- Teekay Tankers reported strong financial results for Q3 2023, with adjusted EBITDA of $106.1 million, up from $91.8 million in Q3 2022. Spot tanker rates remained high in Q3 despite typical seasonal declines, and have increased further in early Q4.
- The company exercised an option to extend a chartered-in vessel for another year at $21,250 per day. It has acquired 4 vessels previously under sale-leaseback and extended a revolving credit facility to refinance vessels.
- Tanker fundamentals remain positive with a low orderbook, aging fleet, and expected growth in oil demand and exports in Q4 which should support
Teekay Tankers presented its third quarter 2021 earnings. Key highlights included:
- Adjusted EBITDA of ($15.8) million, down from the previous quarter, due to weak spot tanker rates.
- Pro forma liquidity of $209 million providing financial resilience.
- Tanker market fundamentals remain positive with an expected recovery, supported by increasing oil demand and tight fleet supply.
- Spot tanker rates improved in early Q4 but remained weak in Q3 due to oil demand impacts from COVID variants and OPEC+ supply cuts.
Teekay Tankers reported weak financial results in Q2 2021 due to persistently low spot tanker rates. However, the company signed contracts to refinance higher-cost debt on eight vessels, which is expected to save $11 million in interest per year. While tanker markets remain weak in the near term, key indicators like rising oil demand, falling inventories, and increasing OPEC+ supply point to a recovery starting in the coming quarters. Teekay Tankers has a strong financial position with $274 million in pro forma liquidity to withstand current market conditions.
Teekay Tankers reported financial results for Q2 2018 and provided an outlook for Q3 2018. Key highlights include:
- Generated $16.6 million in cash flow from vessel operations and an adjusted net loss of $28.7 million in Q2 2018.
- Signed term sheets for $110 million in additional liquidity through sale-leaseback and working capital loan financings.
- Secured a one-year time charter contract expected to generate $6.4 million in fixed revenue.
- Spot tanker rates were lower in Q2 2018 due to OPEC cuts but an inflection point is expected later in 2018 as tanker market fundamentals improve.
- Teekay Tankers reported strong financial results in Q2 2020, generating $125.8 million in free cash flow and reducing net debt by $181 million. Spot tanker rates remained high in Q2 driven by oil trade and floating storage, but have weakened in Q3.
- 13 of Teekay Tankers' vessels are currently fixed at an average rate of $39,100 per day, providing earnings visibility. The company has no debt maturities until 2023 after refinancing four vessels.
- Tanker demand is expected to gradually improve in the second half of 2020 as OPEC+ returns supply and refinery throughput increases, while the unwinding of floating storage returns ships to the
Teekay Tankers held an earnings presentation to discuss their Q4-2019 results and outlook. Some key points include:
- Q4-2019 adjusted EBITDA and adjusted net income significantly increased compared to Q3-2019 due to higher tanker rates.
- Over $100 million in asset sales were completed in Q4-2019 to strengthen the balance sheet.
- Spot tanker rates in Q4-2019 were the highest in four years but near-term weakness is expected due to coronavirus and returning COSCO vessels.
- The presentation provided sensitivity analyses showing substantial upside to earnings and cash flow at sustained high tanker rates.
Teekay Tankers presented its Q1-2019 earnings and outlook for Q2-2019. Key highlights included adjusted EBITDA of $63.4 million for Q1, up slightly from Q4-2018. Recent financing transactions increased liquidity. Spot tanker rates have remained resilient despite near-term headwinds, though Q2 seasonally weaker. Tanker demand is expected to increase in the second half of 2019 due to IMO 2020 and increased oil demand and trade flows. The orderbook remains low relative to the existing fleet, keeping fleet growth constrained over the extended period.
Teekay Corporation reported its Q2-2018 earnings. Some key highlights:
- Consolidated cash flow from vessel operations was $164.2 million. Adjusted net loss was $21.6 million.
- Teekay Parent secured a one-year charter extension for the Banff FPSO to August 2019. Cash flow from its three directly-owned FPSOs provides upside exposure to rising oil prices.
- Teekay LNG continues executing its portfolio of growth projects delivering through 2020, which are expected to increase annual cash flow by $240 million.
- Teekay Tankers signed term sheets for $110 million in additional liquidity to improve its financial position as tanker rates are expected
Teekay Tankers reported its Q3-2018 earnings and provided an outlook for Q4-2018. Some key points:
- Q3-2018 revenues decreased from the prior quarter due to fewer available ship days from drydockings and vessel redeliveries. Spot tanker rates have increased since Q3-2018.
- Expenses are expected to increase in Q4-2018 due to planned maintenance and interest costs associated with recent financing transactions.
- The company completed three financings in Q3-2018 that added approximately $100 million in liquidity.
Teekay Corporation reported its second quarter 2021 earnings. Key highlights included:
- Reversing a $33 million asset retirement obligation associated with the Banff FPSO, reducing remaining FPSO exposure.
- Teekay LNG reported $57 million in adjusted net income for the quarter despite higher drydocking. Rates for LNG shipping remain strong.
- Teekay Tankers reported a loss due to weak tanker spot rates and expired contracts, but sees signs of a market recovery.
- Teekay Corporation's sum-of-the-parts valuation leaves upside given its interests in Teekay LNG and Teekay Tankers trading at a discount to estimated net asset value.
Teekay Tankers reported financial results for Q1-2018 and provided an outlook for Q2-2018. Key points include:
- Generated $22.3 million in cash flow from vessel operations and an adjusted net loss of $22.0 million in Q1-2018.
- Signed a term sheet for a sale-leaseback of 7 tankers expected to improve liquidity by $36 million.
- Spot tanker rates were at cyclical lows in Q1-2018 but fundamentals point to improved rates in late 2018/2019 as fleet growth slows and oil demand increases.
- Q2-2018 is expected to see higher revenues from more operating days and a rise in expenses,
The presentation provides an outlook for Teekay Tankers' Q1 2022 financial results. Net revenues are expected to decrease due to fewer available spot shipping days from vessel sales and more scheduled drydocking days. Time-charter hire expenses will increase slightly due to a new in-chartered vessel. Depreciation expenses will decrease as a result of vessel sales. General and administrative costs will be up modestly. Overall, financial results are forecasted to decline compared to Q4 2021 due to reduced spot shipping activity. However, the company maintains a strong liquidity position and outlook for tanker market recovery remains positive.
The document provides an update on Chesapeake Energy's business strategies and operations for September 2018. It discusses restoring the company's balance sheet through applying $1.9 billion in proceeds from an asset sale to debt reduction. It highlights the company's diverse portfolio across five basins and focuses on growth in the Powder River Basin, where production is ramping ahead of schedule led by the Turner opportunity. The company is improving drilling efficiencies to enhance returns in the Powder River Basin.
Teekay Tankers held a second quarter 2022 earnings presentation on August 4th. Some key points:
- Spot tanker rates significantly increased in Q2 compared to Q1 and Q2 of 2021, driven by oil supply disruptions from the Russia-Ukraine conflict.
- Rates have remained strong into Q3, which is typically a seasonally weaker quarter.
- Changing trade patterns have increased tonne-mile demand for mid-size tankers as they transport Russian crude oil longer distances.
- Tanker supply/demand fundamentals are expected to remain positive for the next 2-3 years as tanker fleet growth is projected to be outpaced by demand growth. The orderbook
- Teekay Tankers reported strong financial results in Q2 2019, with adjusted EBITDA of $36.2 million, up from $16.6 million in Q2 2018. However, it reported an adjusted net loss of $12.1 million.
- Tanker market fundamentals were improving in Q2 2019 compared to the prior year, with higher tanker rates, though seasonal weakness affected Q3 2019. Rates are expected to increase later in the year.
- The company has a significant portion of its fleet employed on short-term charters, providing exposure to improving spot tanker rates. It expects revenues and depreciation to increase in Q3 2019.
Teekay Corporation Fourth Quarter and Business Outlook 2015 PresentationTeekay Corporation
Teekay Corporation held a presentation on its Q4-2015 earnings and business outlook. It reported generating $401.4 million in cash flow in Q4-2015, up 30% year-over-year. For fiscal year 2015, it generated $1.4 billion in cash flow, up 35% over 2014. Teekay temporarily reduced its dividend to $0.055 per share to allow its two MLP subsidiaries, Teekay Offshore Partners and Teekay LNG Partners, to retain cash flows of around $450 million annually to fund growth projects without issuing new equity. This will increase the subsidiaries' distributable cash flow per unit in the future once projects are completed. Teekay
Teekay Tankers presented its third quarter 2022 earnings. Key points include:
- Adjusted EBITDA of $91.8 million, up $33.4 million from last quarter due to higher spot tanker rates.
- Spot tanker rates remained elevated in the third quarter and are expected to stay high in the winter months.
- Changing trade patterns from the Ukraine conflict have increased mid-sized tanker demand and rates.
- Low levels of new tanker orders and an aging fleet imply minimal fleet growth through 2025, supporting tanker fundamentals.
Teekay Corporation reported its Q1-2018 earnings. Key points include:
- Consolidated cash flow from vessel operations of $168.4 million and adjusted net loss of $18.3 million.
- Teekay LNG Partners delivered 4 LNG carriers and 1 LPG carrier and extended several charters. Cash flow is expected to grow with additional project deliveries through 2020.
- Teekay Tankers took steps to strengthen its balance sheet including a $36 million sale-leaseback financing and eliminating its minimum quarterly dividend.
- Teekay Offshore delivered its final growth projects which are expected to provide $200 million in additional annual cash flow.
Teekay Corporation First Quarter 2013 Earnings PresentationTeekay Corporation
- Teekay Corporation reported financial results for the first quarter of 2013, with a consolidated adjusted net loss of $11.7 million compared to a $20.8 million loss in Q1 2012.
- Recent highlights included the acquisition of the Voyageur Spirit FPSO and offering to sell a 50% interest in the Cidade de Itajai FPSO to Teekay Offshore.
- For the second quarter of 2013, Teekay expects a $18 million increase in net revenues from the Voyageur Spirit FPSO and about $6 million higher vessel operating expenses.
The document summarizes the company's second quarter 2013 financial results conference call.
1) The company took delivery of two new container ships in the quarter and extended charter agreements for three existing ships.
2) The company reported a 44.4% increase in net income compared to the same quarter last year, and declared a dividend.
3) Under a framework agreement, the company acquired three secondhand ships which were chartered out for periods of 1-2 years.
- Teekay LNG Partners generated distributable cash flow of $40.6 million in Q2 2017, with a distribution coverage ratio of 3.6x.
- The Partnership has $6.8 billion in forward fee-based revenues from its existing fleet and growth projects, with a weighted average charter length of 13 years.
- Teekay LNG has 18 LNG carrier newbuildings on order that will add an average of 18 years of charter duration upon delivery through 2020. Financing for the newbuildings and growth projects remains on track for completion by the end of 2017.
Similar to TNK Q3-23 Earnings Presentation.pdf (20)
Teekay Corporation reported financial results for the first quarter of 2022. GAAP net income was $0.9 million compared to an adjusted net loss of $0.5 million. Total adjusted EBITDA was $41.8 million. The sale of the Teekay Gas Business in January 2022 decreased earnings, which was partially offset by higher earnings from Teekay Tankers due to increased spot tanker rates and lower costs. Teekay also expects to largely offset the remaining costs of decommissioning the Hummingbird FPSO unit through its upcoming sale.
Teekay Tankers reported financial results for the first quarter of 2022, with adjusted EBITDA of $17.5 million, up from $9.7 million in the previous quarter. Spot tanker rates strengthened in late Q1 due to the Russian invasion of Ukraine, and have improved significantly in Q2 to date. The company completed $288 million in refinancings in Q1, increasing liquidity. With 46 vessels trading on the spot market and low fleet growth expected, the company is well positioned to benefit from a strengthening tanker market.
- Teekay Corporation reported financial results for the fourth quarter and full year of 2021. Q4 results were stronger than Q3 due to a modest improvement in spot tanker rates. However, full year 2021 results were lower than 2020 due to a weak tanker market.
- Teekay completed the sale of its interests in Teekay LNG to Stonepeak, generating $641 million in proceeds. Teekay is now largely debt free with a net cash position over $300 million.
- Looking ahead, Teekay expects a decrease in Q1 2022 adjusted net income versus Q4 2021 primarily due to fewer spot tanker days and the sale of its LNG interests. However, tanker
Teekay Tankers reported strong financial results in Q4 2018, with cash flow from vessel operations of $62.3 million, up from $27.8 million in Q3 2018. Spot tanker rates hit three-year highs in Q4 2018 due to seasonal volatility and a structural shift in fundamentals. The company completed $40 million in financing transactions and signed a term sheet for a $25 million sale-leaseback transaction. While OPEC supply cuts may slow tanker demand in the near term, non-OPEC production growth led by the US is expected to increase tanker demand in the second half of 2019 and into 2020. Tanker fleet utilization is forecast to strengthen due to demand growth
- Teekay Tankers reported an adjusted net loss of $5.9 million for Q4-2017 and generated $32.1 million in cash flow from vessel operations.
- In Q4-2017, Teekay Tankers completed a strategic merger with Tanker Investments Ltd, increasing its fleet by 18 vessels, and completed a $270 million debt refinancing for 14 former-TIL vessels.
- While tanker rates are currently at cyclical lows, fundamentals including slowing fleet growth and rebalancing of the oil market signal a tanker market recovery in late-2018.
Teekay Tankers reported a Q3-17 adjusted net loss of $14.0 million and cash flow from vessel operations of $20.6 million. It declared a $0.03 dividend and entered agreements to sell two older tankers. It also announced a $45 million share repurchase program. The presentation discussed the strategic benefits of Teekay Tankers' proposed merger with Tanker Investments Ltd, including modernizing its fleet and establishing a market-leading presence. It noted supportive factors for tanker rates such as easing fleet growth and strong oil demand and exports. Spot tanker rates have improved in Q4 so far.
Teekay Tankers reported an adjusted net loss of $7.1 million in Q2-2017. It declared a $0.03 per share dividend. The company agreed to a share-for-share merger with Tanker Investments Ltd., which owns 18 mid-sized tankers, to modernize its fleet and realize cost synergies. The merger is expected to be 10% accretive to earnings per share and strengthen the balance sheet by decreasing leverage and increasing liquidity by $100 million. Spot tanker rates were at 4-year lows in Q2-2017 due to high fleet growth and OPEC supply cuts, but a recovery is expected in late 2018 as scrapping increases and oil supply
The proposed merger between Teekay Tankers Ltd. (TNK) and Tanker Investments Ltd. (TIL) will create the largest publicly-listed mid-sized tanker company. The merger is expected to be accretive to TNK's earnings per share, strengthen its balance sheet and liquidity position, reduce its average fleet age, and lower its cash breakeven rates. The combined fleet will total 62 vessels consisting of tankers from both companies operating under the Teekay brand.
Teekay Tankers reported financial results for Q1-2017 and provided an outlook for Q2-2017. Key highlights include:
- Generated $7.0 million in adjusted net income and $34.4 million in free cash flow for Q1-2017.
- Spot tanker rates were lower in Q1 compared to previous years due to high fleet growth and OPEC supply cuts.
- Signed a sale-leaseback deal for 4 Suezmax tankers that will increase liquidity by $30 million.
- Expect revenues to decrease in Q2 due to the redelivery of some in-chartered vessels, while expenses are forecast to be lower.
Teekay Tankers reported its Q4-2016 earnings. Key highlights included generating adjusted income of $5.1 million and free cash flow of $34.2 million. The dividend was maintained at $0.03 per share. Net debt to capitalization was reduced from 50% to 47%. Spot tanker rates increased in Q4-2016 due to seasonal factors and increased oil exports, though have since softened. Teekay Tankers expects revenues to decrease in Q1-2017 due to fewer spot revenue days from vessel sales and employment changes, while expenses are also expected to decrease from timing of repairs and maintenance.
Teekay Tankers reported adjusted net loss of $1.5 million for Q3-2016. Spot tanker rates reached 3-year lows in Q3 due to seasonal factors but have improved in Q4 with stronger oil demand and returning oil supply. While fleet growth remains elevated in 2017, fundamentals point to a more positive tanker market in 2018 with moderating fleet growth and increasing oil supply and demand.
Teekay Tankers reported its Q2-2016 earnings. Some key highlights include:
- Generated $31.6 million in adjusted net income and $59.6 million in free cash flow.
- Paid a dividend of $0.06 per share, representing 30% of adjusted net income.
- Sold a non-core product tanker for $14 million, with delivery expected in mid-August.
- Increased fixed-rate charter coverage to 30% for the next 12 months.
The document is the first quarter 2016 earnings presentation for Teekay Tankers. It discusses Teekay Tankers' financial results for Q1 2016 including generating $46 million in adjusted net income. It also discusses positive tanker market fundamentals expected through 2016 due to factors like rising oil demand and OPEC supply. The presentation provides an outlook on tanker supply/demand trends and notes earnings remained strong in Q1 despite some negative impacts from weather and refinery maintenance.
Teekay Tankers reported strong financial results in Q4-2015 compared to Q4-2014. The company generated adjusted net income of $48.5 million versus $18.6 million in the prior year quarter. Free cash flow increased to $74.0 million from $31.7 million. Looking ahead, tanker demand fundamentals are expected to remain strong in 2016, driven by oil demand growth and fleet utilization. The company recently acquired vessels and expanded its presence in the US Gulf to capitalize on growing oil trade in the region.
The document shows spot rates in USD per day for Suezmax, Aframax, and LR2 tankers from 2015 to 2017 by quarter according to Clarksons data. Suezmax rates increased from 2015 to 2016 but declined in 2017. Aframax rates declined from 2015 to 2016 but increased in 2017. LR2 rates increased each year from 2015 to 2017.
Teekay Tankers reported strong financial results for Q3 2015, with adjusted net income of $40.3 million compared to $2.6 million in Q3 2014. The company generated $59.4 million in free cash flow for the quarter. Teekay Tankers recently acquired 12 Suezmax tankers and a ship-to-ship transfer business, expanding its fleet. Spot tanker rates were higher in Q3 2015 than the previous year, but softened in August and September due to seasonal maintenance, though remained strong historically. The company expects rates and cash flow to increase in Q4 2015 and Q1 2016.
Teekay Tankers acquired 12 Suezmax tankers from Principal Maritime in late Q3-2015 and early Q4-2015. Eight of the vessels are undergoing drydocking, including modifications to improve fuel efficiency. The acquisitions were financed and have been accretive to earnings and free cash flow per share. Spot tanker rates remained strong in Q3-2015 compared to historical levels, though softened seasonally, and are expected to increase further in Q4-2015 and Q1-2016 due to higher oil demand and potential weather delays.
7 Ways to Verify the Legitimacy of DHS Ventures with Fernando Aguirre Guidanc...Fernando Aguirre DHS
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2. This presentation contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended. All statements included in this report, other than statements of historical fact, are forward-looking statements.
When used in this report, the words "expect", "believe", "anticipate", "plan", "intend", "estimate", "may", "will" or similar words are intended to identify forward-
looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are
qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on
current expectations and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such forward-looking
statements. Forward-looking statements contained in this release include, among others, statements regarding: the timing of and our expectations regarding
vessel acquisitions and deliveries (including the exercise of repurchase options under our sale-leaseback arrangements) and tanker contracts; estimated
changes in global oil demand and supply, and the various contributing factors thereto (including seasonal demand) and impacts thereof; global refinery
throughput levels; management's view of the strength of the tanker market and the tanker rate environment, and the Company's ability to benefit from strong spot
tanker rates, generate significant free cash flow, create shareholder value and increase its strategic optionality; crude oil and refined product tanker market
fundamentals, including the balance of supply and demand in the oil and tanker markets and the volatility of such markets; forecasted changes in global oil
supply and the factors contributing thereto; the outlook for the global economy, driven by various factors; forecasts of worldwide tanker fleet growth or
contraction, vessel scrapping levels, and newbuilding tanker orders, including the factors contributing thereto and the timing thereof, and the Company’s general
outlook on tanker supply and demand fundamentals; management’s expectation regarding free cash flow and other financial statement items; anticipated
drydock, equipment installation and off-hire schedules; and the Company's liquidity and market position.
The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and
uncertainties, and that should be considered in evaluating any such statement: potential changes to or termination of the Company's capital allocation plan or
dividend policy; the declaration by the Company's Board of Directors of any future cash dividends on the Company's common shares; the Company's available
cash and the levels of its capital needs; changes in the Company's liquidity and financial leverage; changes in tanker rates, including spot tanker market rate
fluctuations, and in oil prices; changes in the production of, or demand for, oil or refined products and for tankers; changes in trading patterns affecting overall
vessel tonnage requirements; non-OPEC+ and OPEC+ production and supply levels; the status of Russia's invasion of Ukraine and related sanctions, and import
and other restrictions; the impact of geopolitical tensions and conflicts, including the recently-declared Hamas-Israel war, and changes in global economic
conditions; greater or less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; the
potential for early termination of charter contracts on existing vessels in the Company's fleet; the inability of charterers to make future charter payments; delays of
vessel deliveries; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations and the impact of such
changes; increased costs; and other factors discussed in Teekay Tankers’ filings from time to time with the United States Securities and Exchange Commission,
including its Annual Report on Form 20-F for the fiscal year ended December 31, 2022. The Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect
thereto or any change in events, conditions or circumstances on which any such statement is based.
Forward-Looking
Statements
2
3. 3
Recent Highlights
Financial Market Activity
Total adjusted EBITDA(1) of $106.1 million, compared to
$91.8 million in Q3-22
Adjusted net income(1) of $76.6 million, or $2.24 per
share, compared to $57.9 million, or $1.70 per share, in
Q3-22
For every $5,000 above TNK’s FCF(2) breakeven of
approximately $16,000 per day, expected to generate
$2.60(3) of annual FCF per share
Declared fixed quarterly dividend of $0.25 per share
Repurchased four vessels previously on sale-leaseback
arrangements for $57.2 million
Highest third quarter spot rates in 15 years despite
reduced exports from OPEC+ and seasonal factors
Spot tanker rates have firmed significantly through early
Q4-23, while positive long-term fleet supply
fundamentals point to continued strength over the next 2
to 3 years
Extended one in-chartered vessel for an additional 12
months at $21,250 per day
• Eight vessels chartered-in at an average rate of
approximately $25,400 per day.
• Two vessels chartered-out at an average rate of
approximately $43,500 per day.
(1) These are non-GAAP financial measures. Please see Teekay Tankers’ Q3-23 earnings release for definitions and reconciliations to the comparable GAAP measures.
(2) Free cash flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives, non-cash items, FCF from equity-accounted
investments and any write-offs or other non-recurring items, less unrealized gains from derivatives, other non-cash items, dry-docking expenditures and other capital
expenditures. This is a non-GAAP financial measure.
(3) Annualized FCF for 12 months ending September 30, 2024 assuming 51 vessels continue to operate in the spot market.
4. 4
Q3-23 Spot Rates
Remain Firm, Exhibiting
Normal Seasonality
Spot rates historically strong despite
falling in the second half of the
quarter due to reduced OPEC+
exports and normal seasonality:
• Reduced Russian crude oil exports as
more oil was diverted to domestic
refineries to meet summer demand
• Voluntary supply cut of 1 mb/d from
Saudi Arabia, which primarily
impacted VLCC demand
• Lower refinery demand due to
seasonal maintenance
Average mid-size tanker spot rates in
Q3-23 were the highest for a third
quarter since 2008
Seaborne crude oil volumes are
rising again at the start of Q4-23,
giving renewed support to rates 0
10
20
30
40
50
60
70
80
90
100
‘000
USD
/
Day
Benchmark Crude Mid-Size Tanker Spot Rates
Suezmax Aframax
0
5
10
15
20
25
30
35
40
45
50
‘000
USD
/
Day
TNK’s Third Quarter Average Mid-Size Tanker Spot Rates
Source: Clarksons (basis 2010-built, excludes Black Sea and
Baltic Sea routes)
Source: Internal
5. 56,000 52,100
35,000 36,800
26,500
38,800
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Suezmax Aframax / LR2
Rate
($/day)
Spot Rates
Q4-2022 Q3-2023 Q4-2023 To-Date
Q4-23 To-Date Spot
Rates
Exercised a one-year extension
option for one chartered-in vessel.
Currently eight vessels chartered-in
at an average rate of $25,400 per
day, mark-to-market value of
approximately $56 million(2)
Current mid-sized tanker spot rates
significantly higher than booked to-
date rates
Suezmax Aframax / LR2(1)
Q4-23 spot ship days
available
2,153 2,242
Q4-23 % spot ship
days booked to-date
42% 37%
5
(1)
(1) Earnings and percentage booked to-date include Aframax RSA, non-RSA voyage charters and full-service lightering (FSL) for all Aframax and LR2 vessels
whether trading in the clean or dirty spot market.
(2) Mark-to-market is the present value of difference between TNK’s chartered-in rates and the current average published time charter rates for similar periods from
Clarksons, Braemar, Galbraiths and Poten & Partners on October 30, 2023, multiplied by the remaining days of each chartered-in agreement, including
extension options on three Aframaxes in 2023.
(3) Clarksons spot rate basis 2010-built vessel, excludes Black Sea and Baltic Sea routes
Clarksons spot rate as of October 27, 2023(3)
$72,900
$83,900
6. Conditions in Place
For Another Strong
Winter Tanker Market
6
6.8 6.9 7.2 7.5
6.5 6.7
6.2
5.5 6.0 6.5
3.6 3.5
3.6
3.8
3.9 3.4
3.1
3.2
3.4
3.5
0
1
2
3
4
5
6
7
8
9
10
11
12
Million
Barrels
per
Day
Saudi / Russian Crude Oil Exports
Saudi Arabia Russia
78
79
80
81
82
83
84
85
Million
Barrels
per
Day
Global Refinery Throughput
2022 2023
Source: Kpler
Crude oil export volumes have
recovered from Q3-23 lows and are
set to rise further during Q4-23:
• Russian crude oil exports +0.4 mb/d
from Q3 lows, boosting demand for
Aframaxes / Suezmaxes
• Saudi Arabian crude oil exports +1.0
mb/d from Q3 lows despite voluntary
supply cut
• Firm exports from the U.S. Gulf, with
the U.S. Gulf / Caribs market set to
benefit further from the return of
Venezuelan crude oil exports
Chartering activity is increasing as
refiners prepare for the strong winter
demand season:
• Global refinery throughput set to
increase by 2.4 mb/d between
October and December
Normal winter market factors, such
as weather delays, could provide
further support to rates
Source: IEA
7. Tanker Fleet Supply
Fundamentals Remain
Very Strong
7
Source: Clarksons / Internal Estimates
The tanker orderbook remains near
historic low levels and shipyard
capacity is limited:
• Tanker orderbook is 6% of the fleet,
delivering over the next 3.5 years
• Vessels ordered now will not deliver
until 2027
The pace of tanker ordering in 2023-
to-date is in line with long-term
average levels
A significant portion of the tanker fleet
is reaching replacement age:
• 11% of the mid-size tanker fleet is
currently aged 20 years or older
• A further 14% of the fleet reaches age
20 in the period 2024-2026
Tanker fleet growth is projected to be
negligible for at least the next three
years based on the current orderbook
and a conservative recycling estimate
Source: Clarksons
0
1
2
3
4
5
6
0
10
20
30
40
50
60
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Shipyard
Forward
Cover
(Years)
Orderbook
as
%
of
Fleet
Favourable Orderbook Dynamics
Orderbook as % of fleet
Shipyard forward cover
-1%
0%
1%
2%
3%
4%
5%
6%
7%
2019 2020 2021 2022 2023 2024 2025 2026
Low Tanker Fleet Growth Through 2026
Historic Forecast*
*Based on current orderbook and internal ship recycling assumptions
8. 8
Creating Significant
Shareholder Value and
Strategic Optionality
96% of the 53-vessel fleet trading in
the strong spot market
• Generated $98 million of FCF(1) in
Q3-23
• Based on LTM average realized spot
rates, annualized FCF(1)(2) forecast is
approximately $18.27 per share,
resulting in a FCF yield of
approximately 36%(3)
Since March 2023, repurchased 19
vessels previously under sale-
leaseback arrangements for $364
million.
• Vessels were refinanced under
previously announced $350 million
revolving credit facility
• Remaining eight vessels on sale-
leaseback arrangements have
purchase options totaling $137
million available beginning in Q1-24
Q3-23 net cash(4) of $83 million
compared to net debt(4) of $28
million in the prior quarter
(1) Free cash flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives, non-cash items, FCF from equity-accounted investments and
any write-offs or other non-recurring items, less unrealized gains from derivatives, other non-cash items, dry-docking expenditures and other capital expenditures. This is a non-
GAAP financial measure. See appendix slide 16 for the reconciliation to the comparable GAAP measure.
(2) For 12 months ending September 30, 2024 assuming 51 vessels operating in the spot market.
(3) Free Cash Flow (FCF) yield is calculated by annualizing free cash flow for a given quarter and dividing by TNK’s closing share price on November 1, 2023 of $51.41.
(4) Net cash and net debt are non-GAAP financial measures and represent (a) cash and cash equivalents and restricted cash, less (b) short-term debt, current and long-term debt
and current and long-term obligations related to finance leases.
10. 5
21 21 21 21
0
10
20
30
Remaining 3 months of
2023
2024 2025 2026 2027
$
Millions
Debt Repayment Profile
10
Debt Repayment
Profile
Scheduled debt repayments are
related to the eight remaining
vessels in sale-leaseback
arrangements, which have
purchase options available in Q1-24
13. Q4-23 Outlook
(1) Changes described are after adjusting Q3-23 for items included in Appendix A of Teekay Tankers’ Q3-23 Earnings Release (see slide 15 of this earnings presentation for the
Consolidated Adjusted Line Items for Q3-23).
(2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q3-23 Earnings Release for a definition and reconciliation of this term. 13
Q3-23 in
thousands
adjusted
basis(1)
Q4-23 Outlook(1)
Income Statement
Item
(expected changes from Q3-23)
Net revenues (2)
172,584
Decrease of approximately 115 spot market revenue days, primarily due to more scheduled dry dockings
in Q4-23.
Refer to Slide 5 for Q4-23 booked to-date spot tanker rates.
Refer to Slide 12 for a summary of fleet out-charter employment.
Time-charter hire expenses (19,378)
Increase of approximately $0.5 million, primarily due to an increase in daily hire rates resulting from the
exercise of extension options for three in-chartered tankers during Q3-23 and Q4-23.
Interest expense (6,440)
Decrease of approximately $2 million, primarily due to lower finance lease obligation balances, and the
write-off of capitalized financing costs related to the repurchase of four sale-leaseback vessels and the
voluntary cancellation of one revolving credit facility in Q3-23.
14. Adjusted Net
Income(1)
Q3-23 vs Q2-23
(1) Refer to slide 15 for the Q3-23 reconciliations of non-GAAP financial measures to the most directly comparable financial measures under United States generally accepted
accounting principles (GAAP). For the Q2-23 reconciliation, please refer to the Q2-23 earnings presentation.
(2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q3-23 Earnings Release for a definition and reconciliation of this term. 14
(In thousands of U.S. dollars)
Statement Item
Q3-2023
(unaudited)
Q2-2023
(unaudited)
Variance Comments
Revenues 285,858 370,646 (84,788)
Voyage expenses (113,274) (118,082) 4,808
Net revenues
(2)
172,584 252,564 (79,980) Decrease primarily due to lower overall spot TCE rates, partially offset by more calendar days in
Q3-23.
Vessel operating expenses (36,366) (37,800) 1,434 Decrease primarily due to the timing of repair and maintenance activities.
Time-charter hire expenses (19,378) (18,691) (687)
Depreciation and amortization (24,565) (24,384) (181)
General and administrative expenses (10,700) (12,118) 1,418 Decrease primarily due to the timing of expenditures.
Income from operations 81,575 159,571 (77,996)
Interest expense (6,440) (5,450) (990) Increase primarily due to the write-off of capitalized financing costs related to the repurchase of
four sale-leaseback vessels and the voluntary cancellation of one revolving credit facility during
Q3-23, partially offset by lower interest payments related to the repurchase of six other sale-
leaseback vessels during Q2-23.
Interest income 3,119 1,771 1,348 Increase primarily due to higher interest income earned on larger cash balances during Q3-23.
Equity income 666 1,120 (454)
Other (expense) income (82) 547 (629)
Income tax expense (2,227) (8,121) 5,894 Decrease in income tax expense primarily due to vessel trading activities and the regular
assessment of tax positions.
Adjusted net income 76,611 149,438 (72,827)
15. Consolidated
Adjusted Statement of
Income
Q3-23
(In thousands of U.S. dollars)
15
(1) Please refer to Appendix A in Teekay Tankers Q3-23 Earnings Release for a description of Appendix A items.
(2) Net revenues is a non-GAAP financial measure. Please refer to the Teekay Tankers Q3-23 Earnings Release for a definition and reconciliation of this term.
Statement Item As Reported Appendix A
Items(1)
As Adjusted
Revenues 285,858 - 285,858
Voyage expenses (113,274) - (113,274)
Net revenues (2) 172,584 - 172,584
Vessel operating expenses (36,366) - (36,366)
Time-charter hire expenses (19,378) - (19,378)
Depreciation and amortization (24,565) - (24,565)
General and administrative expenses (10,700) - (10,700)
Income from operations 81,575 - 81,575
Interest expense (6,440) - (6,440)
Interest income 3,119 - 3,119
Equity income 666 - 666
Other expense (82) - (82)
Income tax recovery (expense) 2,528 (4,755) (2,227)
Net income 81,366 (4,755) 76,611
16. 16
Three Months Ended
September 30,
2023
(unaudited)
Net income - GAAP basis 81,366
Add:
Depreciation and amortization 24,565
Proportionate share of free cash flow from equity-accounted joint venture 1,180
Less:
Equity income (666)
Dry-docking and capital expenditures (8,352)
Free Cash Flow 98,093
Reconciliation of Non-
GAAP Financial
Measure – Free Cash
Flow (In thousands of U.S. dollars)
17. Drydock & Off-hire
Schedule(1)(2)(3)
17
(1) Includes vessels scheduled for drydocking, ballast water treatment system installation, and an estimate of unscheduled off-hire.
(2) In the case that a vessel drydock & off-hire straddles between quarters, the drydock has been allocated to the quarter in which majority of drydock days occur.
(3) Vessel count only reflects the vessels with drydock and/or ballast water treatment system installation related off-hire.
Teekay Tankers March 31, 2023 (A) June 30, 2023 (A) September 30, 2023 (A) December 31, 2023 (E) Total 2023 (E) Total 2024 (E)
Segment
Vessels
Total
Off-hire
Days
Vessels
Total
Off-hire
Days
Vessels
Total
Off-hire
Days
Vessels
Total
Off-hire
Days
Vessels
Total
Off-hire
Days
Vessels
Total
Off-hire
Days
Spot Tanker - 13 1 54 2 92 5 175 8 334 16 560
Fixed-Rate Tanker - - - - - - - - - - - -
Other - Unplanned Offhire - 119 - 51 - 1 - 31 - 202 - 153
- 132 1 105 2 93 5 206 8 536 16 713