Teekay Tankers Ltd. Reports First Quarter 2015 Results
Highlights - Realized the highest first quarter crude tanker spot rates since 2008 and the highest LR2 product tanker spot rates since 2006. - Reported first quarter 2015 adjusted net income attributable to shareholders(1) of $39.0 million, or $0.34 per share, compared to $16.9 million, or $0.20 per share, in the same period of the prior year. - Generated first quarter 2015 Free Cash Flow(2) of $0.46 per share, an increase of 31 percent from the fourth quarter of 2014. - Took delivery of four Long Range 2 (LR2) product tankers and one Aframax tanker for an aggregate purchase price of approximately $230 million during the quarter.
(firmenpresse) - HAMILTON, BERMUDA -- (Marketwired) -- 05/14/15 -- Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE: TNK) today reported adjusted net income attributable to its shareholders (1) (as detailed in Appendix A to this release) of $39.0 million, or $0.34 per share, for the quarter ended March 31, 2015, compared to $16.9 million, or $0.20 per share, for the same period in the prior year. The increase is primarily due to stronger spot tanker rates in the first quarter of 2015 compared to the same period in the prior year, an increase in fleet size due to the acquisition of four LR2 product tankers and one Aframax tanker in the first quarter of 2015 and the addition of 10 in-chartered vessels delivered during 2014. Adjusted net income attributable to shareholders excludes a number of specific items that had the net effect of increasing net income attributable to shareholders by $9.6 million, or $0.11 per share, for the three months ended March 31, 2014 as detailed in Appendix A to this release. Including these items, the Company reported, on a GAAP basis, net income attributable to its shareholders of $39.0 million, or $0.34 per share, for the quarter ended March 31, 2015, compared to $26.4 million, or $0.31 per share, for the quarter ended March 31, 2014. Net revenues(3) were $100.0 million and $60.3 million for the three months ended March 31, 2015 and 2014, respectively.
During the first quarter of 2015, the Company generated $53.0 million, or $0.46 per share, of Free Cash Flow(2), compared to $31.7 million, or $0.35 per share, in the fourth quarter of 2014 due to higher average spot rates earned and an increase in fleet size. On April 2, 2015, Teekay Tankers declared a dividend of $0.03 per share for the first quarter of 2015, which was paid on April 30, 2015 to all shareholders of record on April 17, 2015. Since the Company's inception, it has declared dividends in 30 consecutive quarters.
"The Company experienced the strongest quarter in six years with free cash flow of $53 million, or $0.46 per share, resulting in an annualized free cash flow yield of 32 percent based on the average share price during the first quarter," commented Kevin Mackay, Chief Executive Officer of Teekay Tankers.
"Over the past four months, crude spot tanker rates have achieved the highest average levels since the strong winter market of 2008," Mr. Mackay continued. "The continued strength in the tanker market reflects the strong tanker market fundamentals on the back of a shrinking mid-size tanker fleet, increased crude oil trade volumes and growing global oil demand. Low global oil prices, high crude oil supply, and seasonal factors such as increased oil demand and winter weather delays, have provided further support to the crude tanker market during the first quarter. Crude spot tanker rates have remained counter-seasonally strong into the second quarter of 2015 due to record-high Saudi Arabian oil production and a relatively light refinery maintenance schedule as refiners continue to take advantage of positive margins."
Mr. Mackay added, "With approximately 85 percent of our fleet operating in the spot tanker market over the next 12 months and a low cash break-even rate, we believe Teekay Tankers is well-positioned to benefit from the fundamental strength in the global tanker market."
Summary of Recent Developments
New Fleet Deliveries
In the first quarter of 2015, Teekay Tankers completed the acquisition of four LR2 product tankers and one Aframax tanker for an aggregate purchase price of approximately $230 million. With an average age of 3.8 years, the five new vessels reduce the average age of Teekay Tankers' fleet by approximately one year. The Company took delivery of three vessels in February and two vessels in March. All four LR2 product tankers are currently trading in the Taurus LR2 pool and the Aframax tanker is on voyage charter until vetting inspections are completed for joining the Teekay Aframax RSA.
Time Charter-In Vessels
During the first quarter of 2015, Teekay Tankers secured time charter-in contracts for one additional Aframax vessel and one additional LR2 vessel, bringing Teekay Tankers' total time charter-in fleet to 12 vessels. The new time charter-in contracts have an average daily rate of $21,250 and firm contract periods of 24 months, with extension options. The time charter-in contract for the Aframax vessel commenced in April 2015 and the LR2 vessel contract is expected to commence in the second quarter of 2015.
Time Charter-Out Vessel
In April 2015, Teekay Tankers entered into a time charter-out contract for one Aframax vessel. The new time charter-out contract has a daily rate of $24,000 and a firm contract period of 12 months.
Tanker Market
The positive momentum in crude tanker spot rates during the fourth quarter of 2014 continued into the first quarter of 2015, with rates reaching the highest average first quarter levels since 2008. The strength in crude tanker spot rates was primarily a result of continued low global oil prices, high crude oil supply and winter weather delays. Low global oil prices and high crude oil supply have positively impacted tanker rates in a number of ways, including the following:
Crude tanker rates have been counter-seasonally strong in the first half of the second quarter of 2015 due to increased oil demand, which has resulted from on-going low oil prices, record-high Saudi Arabian oil production, and a relatively light refinery maintenance schedule as refiners defer scheduled maintenance to take advantage of strong refining margins.
LR2 product tanker rates in the first quarter of 2015 averaged the highest for a first quarter since 2006. LR2 product tanker rates have been supported by the ramp up of new refineries in the Middle East, which has encouraged long-haul product exports, while Asian naphtha imports remain historically strong. Low oil prices continue to put downward pressure on naphtha prices in relation to liquefied petroleum gas (LPG), which has led some petrochemical plants to consume naphtha rather than LPG for feedstock purposes.
The global tanker fleet grew by 3.3 million deadweight tonnes (mdwt), or 0.7 percent, in the first quarter of 2015. The global Suezmax fleet grew by four vessels, or 0.8 percent, while the uncoated Aframax fleet grew by only one vessel, or 0.2 percent, and the LR2 fleet grew by 0.8 mdwt, or 2.8 percent. Looking ahead, the global tanker fleet is forecast to grow 1.5 to 2.5 percent in 2015, with growth again weighted towards the product tanker sectors. Another year of negative fleet growth is expected for the Suezmax and uncoated Aframax sectors in 2015.
In April 2015, the International Monetary Fund (IMF) held its outlook for 2015 global economic growth at 3.5 percent, consistent with its January 2015 forecast. This marks a modest improvement from global economic growth of 3.4 percent in 2014. Based on an average of forecasts from the International Energy Agency, the Energy Information Administration, and OPEC, global oil demand is forecast to grow by 1.1 million barrels day (mb/d) in 2015, which is 0.3 mb/d higher than demand growth in 2014.
The outlook for crude tanker fleet utilization and spot tanker rates is expected to remain positive in 2015 based on a shrinking mid-size crude tanker fleet and a continued increase in long-haul tanker demand as more crude oil moves from the Atlantic to Pacific basin. The impact of low oil prices is also expected to provide support for tanker demand in the first half of 2015.
Operating Results
The following table highlights the operating performance of the Company's time-charter and spot vessels measured in net voyage revenue per revenue day, or time-charter equivalent (TCE) rates, before related-party pool management fees, related-party commissions and off-hire bunker expenses:
Teekay Tankers' Fleet
The following table summarizes the Company's fleet as of May 1, 2015 (including a committed charter-in vessel):
Liquidity
As of March 31, 2015, the Company had total liquidity of $200.7 million (comprised of $40.5 million in cash and cash equivalents and $160.2 million in undrawn revolving credit facilities), compared to total liquidity of $289.0 million as at December 31, 2014. The decrease in the Company's liquidity position during the quarter is primarily due to the acquisition of five conventional tankers for a total purchase price of $230 million, net of a new $127 million loan facility.
Availability of 2014 Annual Report
The Company filed its 2014 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (SEC) on April 28, 2015. Copies are available on Teekay Tankers' website, under "Investors - Teekay Tankers Ltd. - Financials & Presentations", at . Shareholders may request a printed copy of this Annual Report, including the complete audited financial statements, free of charge by contacting Teekay Tankers' Investor Relations.
Conference Call
The Company plans to host a conference call on Thursday, May 14, 2015 at 1:00 p.m. (ET) to discuss its results for the first quarter of 2015. An accompanying investor presentation will be available on Teekay Tankers' website at prior to the start of the call. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:
The conference call will be recorded and available until Thursday, May 28, 2015. This recording can be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North America, and entering access code 2078991.
About Teekay Tankers
Teekay Tankers currently owns a fleet of 32 double-hull tankers, including 12 Aframax tankers, ten Suezmax tankers, seven Long Range 2 (LR2) product tankers, three Medium-Range (MR) product tankers, and has contracted 12 time charter-in tankers. Teekay Tankers' vessels are employed through a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading. The Company also owns a Very Large Crude Carrier (VLCC) through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a minority interest of 9.3 percent in Tanker Investments Ltd., which currently owns a fleet of 20 modern tankers, including six vessels to be acquired in the second quarter of 2015. Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business.
Teekay Tankers' common stock trades on the New York Stock Exchange under the symbol "TNK."
Components of equity income are detailed in the table below:
Set forth below is a reconciliation of the Company's unaudited adjusted net income attributable to the shareholders of Teekay Tankers, a non-GAAP financial measure, to net income as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company's financial results. Adjusted net income attributable to the shareholders of Teekay Tankers is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.
Description of Non-GAAP Financial Measure - Free Cash Flow
Free Cash Flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives, non-cash items, FCF from the equity accounted investments and any write-offs or other non-recurring items, less unrealized gains from derivatives, equity income from the equity accounted investments and other non-cash items.
Description of Non-GAAP Financial Measure - Net Revenues
Net revenues represents revenues less voyage expenses where voyage expenses are comprised of all expenses relating to certain voyages, including bunker fuel expenses, port fees, cargo loading and unloading expenses, canal tolls, agency fees and commissions. Net revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies; however, it is not required by GAAP and should not be considered as an alternative to revenues or any other indicator of the Company's performance required by GAAP.
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the crude oil and refined product tanker market fundamentals, including the balance of supply and demand in the tanker market, estimated negative growth in the world tanker fleet, estimated growth in global oil demand and crude oil tanker demand, changes in long-haul crude tanker movements from the Atlantic to Pacific basins, tanker fleet utilization and spot tanker rates; the effect of lower global oil prices, including the potential impact on oil stockpiling, refinery throughput and bunker fuel prices; TIL's anticipated acquisition of six vessels; and the timing of a new charter-in vessel delivery. 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: changes in the production of or demand for oil or refined products; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; changes in global oil prices; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; delays in delivery of a new charter-in vessel; and other factors discussed in Teekay Tankers' filings from time to time with the United States Securities and Exchange Commission, including its Report on Form 20-F for the fiscal year ended December 31, 2014. 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.
Contacts:
For Investor Relations enquiries contact:
Ryan Hamilton
Tel: +1 (604) 844-6654
Web site:
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Datum: 14.05.2015 - 05:54 Uhr
Sprache: Deutsch
News-ID 393231
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