Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE:
TNK) today reported the Company's results for the quarter ended
June 30, 2019:
Consolidated Financial Summary
| |
Three Months Ended |
| (in thousands of U.S.
dollars, except per share data) |
June 30, 2019 |
March 31, 2019 |
June 30, 2018 |
| GAAP FINANCIAL COMPARISON |
|
|
|
|
|
|
| Total revenues |
202,277 |
|
|
232,501 |
|
|
171,659 |
|
|
| Income (loss) from operations |
5,051 |
|
|
32,097 |
|
|
(13,415 |
) |
|
| Net (loss) income |
(14,307 |
) |
|
12,447 |
|
|
(27,413 |
) |
|
| (Loss) earnings per share |
(0.05 |
) |
|
0.05 |
|
|
(0.10 |
) |
|
| NON-GAAP FINANCIAL COMPARISON |
|
|
|
|
|
| Total Adjusted EBITDA (1) |
36,197 |
|
|
63,428 |
|
|
16,554 |
|
|
| Adjusted net (loss) income
(1) |
(12,142 |
) |
|
14,647 |
|
|
(28,743 |
) |
|
| Adjusted (loss) earnings per
share (1) |
(0.05 |
) |
|
0.05 |
|
|
(0.11 |
) |
|
| Free cash flow (1) |
19,383 |
|
|
44,554 |
|
|
1,980 |
|
|
(1) These are non-GAAP financial measures.
Please refer to "Definitions and Non-GAAP Financial Measures" and
the Appendices to this release for definitions of these terms and
reconciliations of these non-GAAP financial measures as used in
this release to the most directly comparable financial measures
under United States generally accepted accounting principles
(GAAP).
Second Quarter of 2019 Compared to First Quarter
of 2019
During the second quarter of 2019, the Company
reported a GAAP net loss and a non-GAAP adjusted net loss compared
to GAAP net income and non-GAAP adjusted net income in the prior
quarter. The change was primarily due to lower average spot
tanker rates and more scheduled dry dockings in the second quarter
of 2019.
Second Quarter of 2019 Compared to Second Quarter of 2018
GAAP net loss and non-GAAP adjusted net loss for
the second quarter of 2019 improved compared to the GAAP net loss
and non-GAAP adjusted net loss for the same period of the prior
year, primarily due to higher average spot tanker rates, partially
offset by more scheduled dry dockings and higher interest expense
associated with the three sale-leaseback transactions that were
completed between September 2018 and May 2019.
CEO Commentary
“As expected, crude tanker spot rates declined
during the second quarter of 2019 mainly due to seasonal factors
and some near-term headwinds; however, crude tanker spot rates were
up compared to the same period of the prior year, reflecting
tighter market fundamentals, and were the highest second quarter
rates since 2016,” commented Kevin Mackay, Teekay Tankers’
President and Chief Executive Officer. “Lower OPEC oil production
and heavier than normal refinery maintenance as refineries prepare
for the implementation of the new IMO 2020 standards impacted crude
tanker demand, which we expect will continue into the early part of
the third quarter. However, these headwinds were partially offset
by continued strong growth of U.S. crude oil exports which
bolstered our full-service lightering business and drove our
Aframax crude tanker spot rates to average over $20,000 per day
during the second quarter, which was above our peer group and
benchmarks. We expect this strength to continue into the third
quarter as additional pipeline capacity comes online, allowing U.S.
crude oil exports to further increase.”
“We continue to believe that tanker market
fundamentals support a market recovery in the latter part of the
year and into 2020 due to projected underlying oil demand growth,
an expected increase in U.S. crude oil exports, significantly
higher refinery throughput ahead of IMO 2020 regulations, and lower
tanker fleet growth. With healthy liquidity, a market-leading
position and significant operating leverage, we believe we are
well-positioned to benefit from a tanker market recovery.”
Tanker Market
Crude tanker spot rates declined during the
second quarter of 2019 compared to the first quarter of 2019
primarily due to seasonal factors, as well as some near-term
headwinds which have continued into the beginning of the third
quarter.
Lower OPEC oil production has impacted crude
tanker demand during the first half of 2019, with OPEC crude oil
production down by around 2.5 million barrels per day (mb/d) since
November 2018. This reduction is due to both over-compliance with
the 1.2 mb/d of supply cuts announced in early-2019 and reduced
volumes from Iran and Venezuela due to U.S. sanctions. In addition,
the elimination of Venezuelan oil shipments to the U.S. has
resulted in a reduction in shipping activity in the U.S. Gulf /
Caribbean Aframax market. Furthermore, at its most recent meeting,
OPEC decided to extend production cuts through to March 2020 in an
effort to reduce global oil inventories and support oil prices.
Tanker rates have also been impacted by heavier
than normal refinery maintenance in the first half of the year as
refiners prepare for the upcoming IMO 2020 regulations. According
to the IEA, global refining throughput fell by 0.7 mb/d
year-on-year in the second quarter of 2019, the largest annual
decline in 10 years. This led to reduced crude tanker demand, which
has carried over into the early part of the third quarter.
Finally, the first half of 2019 saw relatively
high tanker fleet growth of 20.5 million deadweight tonnes (mdwt),
or 3.5 percent, which was the highest level of fleet growth in a
six-month period since the first half of 2011. This high fleet
growth was a result of a heavy newbuilding delivery schedule since
the start of the year and a lack of tanker scrapping, with just 2.7
mdwt of vessels removed in the first half of the year compared to
21.5 mdwt for the full year of 2018.
Despite some near-term headwinds, the tanker
market fundamentals continue to support a market recovery in the
latter part of the year and into 2020. First, refinery throughput
is expected to increase significantly in the coming months as
refiners ramp up activity in order to produce sufficient low
sulphur fuels ahead of the impending IMO 2020 regulations.
According to the IEA, global refinery throughput is estimated to
increase by over 3 mb/d in the third quarter of 2019 compared to
the second quarter, which is expected to be positive for crude
tanker demand. The new IMO 2020 regulations could create additional
volatility for the tanker market through new trade patterns and
arbitrage movements, floating storage demand, and a potential
increase in port congestion as the market adjusts to the
change.
The second half of the year is also expected to
see an increase in U.S. crude oil exports as new pipeline
infrastructure is brought online that will allow more Permian Basin
shale oil to reach the U.S. Gulf coast. U.S. crude oil exports have
averaged 2.8 mb/d in 2019 to date, up from 2.0 mb/d last year.
However, further increases are being hampered by a lack of pipeline
capacity to the Gulf coast. This is expected to be alleviated in
the coming months when three large pipelines with a combined
capacity of around 2 mb/d are planned to come online, allowing U.S.
crude exports to increase significantly. This is expected to be
positive for mid-size tanker demand due to both direct exports to
Europe on Aframax and Suezmax tankers, and increased Aframax
lightering demand for transportation on Very Large Crude Carriers
(VLCCs) to Asia.
Finally, the tanker fleet is set for a period of
much lower fleet growth over the next two years due to a relatively
small orderbook. The tanker orderbook currently totals 53 mdwt, or
8.7 percent of the existing fleet size, which is the lowest tanker
fleet-to-orderbook ratio since early-1997. Fleet growth could be
further offset by an increase in vessel off-hire time in the coming
months as ships are taken out of service for scrubber retrofitting
in anticipation of IMO 2020 regulations. As a result, lower fleet
growth levels are expected in the second half of the year, with
continued low fleet growth during 2020.
In summary, the tanker market is currently at a
seasonal low point, which is compounded by some near-term factors.
However, the fundamentals continue to point towards a stronger
tanker market during the latter part of 2019 and into 2020 due to a
tighter tanker supply / demand balance.
Operating Results
The following table highlights the operating
performance of the Company’s time-charter vessels and spot vessels
trading in revenue sharing arrangements (RSAs), voyage charters and
full service lightering, in each case measured in net revenues(v)
per revenue day, or time-charter equivalent (TCE) rates, before
off-hire bunker expenses:
| |
Three Months Ended |
| |
June 30, 2019(i) |
March 31, 2019(i) |
June 30, 2018(i) |
|
Time Charter-Out Fleet |
|
|
|
|
|
|
| Suezmax
revenue days |
|
91 |
|
|
|
90 |
|
|
|
182 |
|
|
| Suezmax
TCE per revenue day |
$ |
17,281 |
|
|
$ |
17,281 |
|
|
$ |
21,508 |
|
|
| Aframax
revenue days |
|
— |
|
|
|
75 |
|
|
|
512 |
|
|
| Aframax
TCE per revenue day |
|
— |
|
|
$ |
24,276 |
|
|
$ |
21,269 |
|
|
| LR2
revenue days |
|
— |
|
|
|
— |
|
|
|
137 |
|
|
| LR2 TCE
per revenue day |
|
— |
|
|
|
— |
|
|
$ |
17,214 |
|
|
|
|
|
|
|
|
|
|
|
Spot Fleet |
|
|
|
|
|
|
| Suezmax
revenue days |
|
2,418 |
|
|
|
2,415 |
|
|
|
2,516 |
|
|
| Suezmax
spot TCE per revenue day (ii) |
$ |
17,267 |
|
|
$ |
23,568 |
|
|
$ |
12,745 |
|
|
| Aframax
revenue days |
|
1,763 |
|
|
|
1,752 |
|
|
|
1,345 |
|
|
| Aframax
spot TCE per revenue day (iii) |
$ |
20,075 |
|
|
$ |
24,797 |
|
|
$ |
12,113 |
|
|
| LR2
revenue days |
|
840 |
|
|
|
815 |
|
|
|
590 |
|
|
| LR2 spot
TCE per revenue day (iv) |
$ |
15,679 |
|
|
$ |
20,694 |
|
|
$ |
10,854 |
|
|
|
|
|
|
|
|
|
|
|
Total Fleet |
|
|
|
|
|
|
| Suezmax
revenue days |
|
2,509 |
|
|
|
2,505 |
|
|
|
2,698 |
|
|
| Suezmax
TCE per revenue day |
$ |
17,268 |
|
|
$ |
23,342 |
|
|
$ |
13,336 |
|
|
| Aframax
revenue days |
|
1,763 |
|
|
|
1,827 |
|
|
|
1,857 |
|
|
| Aframax
TCE per revenue day |
$ |
20,075 |
|
|
$ |
24,775 |
|
|
$ |
14,638 |
|
|
| LR2
revenue days |
|
840 |
|
|
|
815 |
|
|
|
727 |
|
|
| LR2 TCE
per revenue day |
$ |
15,679 |
|
|
$ |
20,694 |
|
|
$ |
12,057 |
|
|
- Revenue days are the total number of calendar days the
Company's vessels were in its possession during a period, less the
total number of off-hire days during the period associated with
major repairs, dry dockings or special or intermediate surveys.
Consequently, revenue days represents the total number of days
available for the vessel to earn revenue. Idle days, which are days
when the vessel is available to earn revenue but is not employed,
are included in revenue days.
- Includes vessels trading in the Teekay Suezmax RSA, Teekay
Suezmax Classic RSA and non-pool voyage charters.
- Includes vessels trading in the Teekay Aframax RSA, Teekay
Aframax Classic RSA, non-pool voyage charters and full service
lightering voyages.
- Includes vessels trading in the Teekay Taurus RSA and non-pool
voyage charters.
- Net revenues is a non-GAAP financial measure. Please refer to
"Definitions and Non-GAAP Financial Measures" for a definition of
this term.
Third Quarter of 2019 Spot Tanker Rates Update
Below is Teekay Tankers’ spot tanker fleet
update for the third quarter of 2019 to-date:
- The portion of the Suezmax fleet trading on the spot market has
secured TCE rates per revenue day of approximately $15,600 on
average, with 37 percent of the available days fixed(1);
- The portion of the Aframax fleet trading on the spot market has
secured TCE rates per revenue day of approximately $12,800 on
average, with 37 percent of the available days fixed(2); and
- The portion of the Long Range 2 (LR2) product tanker fleet
trading on the spot market has secured TCE rates per revenue day of
approximately $12,200 on average, with 32 percent of the available
days fixed(3).
(1) Combined average TCE rate includes Teekay
Suezmax RSA, Teekay Suezmax Classic RSA and non-pool voyage
charters.(2) Combined average TCE rate includes Teekay Aframax RSA,
Teekay Aframax Classic RSA, non-pool voyage charters and full
service lightering voyages.(3) Combined average TCE rate includes
Teekay Taurus RSA and non-pool voyage charters.
Teekay Tankers’ Fleet
The following table summarizes the Company’s
fleet as of July 31, 2019 (excluding one time chartered-in vessel
that is scheduled to be delivered to the Company in the third
quarter of 2019):
| |
Owned and Leased Vessels |
Chartered-in Vessels |
Total |
|
Fixed-rate: |
|
|
|
| Suezmax
Tankers |
1 |
— |
1 |
|
Total Fixed-Rate Fleet |
1 |
— |
1 |
|
Spot-rate: |
|
|
|
| Suezmax
Tankers |
29 |
— |
29 |
| Aframax
Tankers(i) |
17 |
3 |
20 |
| LR2
Product Tankers(ii) |
9 |
2 |
11 |
|
VLCC Tanker(iii) |
1 |
— |
1 |
|
Total Spot Fleet |
56 |
5 |
61 |
|
Total Conventional Fleet |
57 |
5 |
62 |
|
STS Support Vessels |
3 |
3 |
6 |
|
Total Teekay Tankers' Fleet |
60 |
8 |
68 |
- Includes three Aframax tankers with charter-in contracts that
are scheduled to expire in November 2019, December 2019 and March
2021, respectively.
- Includes two LR2 product tankers with charter-in contracts that
are scheduled to expire in January 2021, each with an option to
extend for one additional year.
- The Company’s ownership interest in this vessel is 50
percent.
Liquidity Update
As at June 30, 2019, the Company had total
liquidity of $119.5 million (comprised of $35.4 million in cash and
cash equivalents and $84.1 million in undrawn capacity from its
revolving credit facilities and the undrawn portion of a loan,
which is determined based on certain borrowing criteria, to finance
its pool management operations) compared to total liquidity of
$116.2 million as at March 31, 2019.
Conference Call
The Company plans to host a conference call on
Thursday, August 1, 2019 at 12:00 p.m. (ET) to discuss its results
for the second quarter of 2019. All shareholders and interested
parties are invited to listen to the live conference call by
choosing from the following options:
- By dialing (877) 260-1479 or (647) 490-5367, if outside of
North America, and quoting conference ID code 8155890.
- By accessing the webcast, which will be available on Teekay
Tankers’ website at www.teekay.com (the archive will remain on the
website for a period of one year).
An accompanying Second Quarter 2019 Earnings
Presentation will also be available at www.teekay.com in advance of
the conference call start time.
About Teekay Tankers
Teekay Tankers currently owns a fleet of 56
double-hull tankers (including 30 Suezmax tankers, 17 Aframax
tankers and nine Long Range 2 (LR2) product tankers), and three
ship-to-ship support vessels, and also has eight time chartered-in
tankers. Teekay Tankers’ vessels are typically employed through a
mix of short- or medium-term fixed-rate time charter contracts and
spot tanker market trading. Teekay Tankers also owns a Very Large
Crude Carrier (VLCC) through a 50 percent-owned joint venture. In
addition, Teekay Tankers owns a ship-to-ship transfer business.
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.”
For Investor Relationsenquiries
contact:
Ryan HamiltonTel: +1 (604) 609-2963Website:
www.teekay.com
Definitions and Non-GAAP Financial Measures
This release includes various financial measures
that are non-GAAP financial measures as defined under the rules of
the Securities and Exchange Commission (SEC). These non-GAAP
financial measures, which include Adjusted Net (Loss) Income, Free
Cash Flow, Net Revenues and, commencing in the first quarter of
2019, Adjusted EBITDA, are intended to provide additional
information and should not be considered substitutes for measures
of performance prepared in accordance with GAAP. In addition, these
measures do not have standardized definitions across companies, and
therefore may not be comparable to similar measures presented by
other companies. These non-GAAP measures are used by
management, and the Company believes that these supplemental
metrics assist investors and other users of its financial reports
in comparing financial and operating performance of the Company
across reporting periods and with other companies.
In prior periods, the Company reported cash flow
from vessel operations (CFVO) as a non-GAAP measure. In the first
quarter of 2019, the Company made certain changes to its non-GAAP
financial measures to more closely align with internal management
reporting, Company reporting in its SEC Annual Report on Form 20-F
and metrics used by certain investors. Total CFVO and CFVO from
Equity-Accounted Joint Venture are replaced with Total Adjusted
EBITDA and Adjusted EBITDA from Equity-Accounted Joint Venture,
respectively, for current and comparative periods.
Non-GAAP Financial Measures
Adjusted net (loss) income excludes items of
income or loss from GAAP net (loss) income that are typically
excluded by securities analysts in their published estimates of the
Company’s financial results. The Company believes that certain
investors use this information to evaluate the Company’s financial
performance, as does management. Please refer to Appendix A of this
release for a reconciliation of this non-GAAP financial measure to
net (loss) income, the most directly comparable GAAP measure
reflected in the Company’s consolidated financial statements.
Adjusted EBITDA represents net (loss) income
before interest, taxes, and depreciation and amortization and is
adjusted to exclude certain items whose timing or amount cannot be
reasonably estimated in advance or that are not considered
representative of core operating performance. Such adjustments
include foreign exchange gains and losses, gains and losses on sale
of vessels, unrealized gains and losses on derivative instruments
and certain other income or expenses. Adjusted EBITDA also excludes
realized gains or losses on interest rate swaps as management, in
assessing the Company's performance, views these gains or losses as
an element of interest expense and realized gains or losses on
derivative instruments resulting from amendments or terminations of
the underlying instruments. Consolidated Adjusted EBITDA represents
Adjusted EBITDA from vessels that are consolidated on the Company's
financial statements. Adjusted EBITDA from Equity-Accounted
Joint Venture represents the Company's proportionate share of
Adjusted EBITDA from its equity-accounted joint venture, and as a
result, the Company does not have the unilateral ability to
determine whether the cash generated by its equity-accounted joint
venture is retained within the entity in which the Company holds
the equity-accounted joint venture or distributed to the Company
and other owners. In addition, the Company does not control the
timing of any such distributions to the Company and other owners.
Adjusted EBITDA is a non-GAAP financial measure used by certain
investors and management to measure the operational performance of
companies. Please refer to Appendices C and D of this release for
reconciliations of Adjusted EBITDA to net (loss) income and equity
(loss) income, respectively, which are the most directly comparable
GAAP measures reflected in the Company’s consolidated financial
statements.
Free cash flow (FCF) represents net (loss)
income, plus depreciation and amortization, unrealized losses from
derivative instruments, loss on sales of vessels, equity loss from
the equity-accounted joint venture, and any write-offs and certain
other non-cash non-recurring items, less unrealized gains from
derivative instruments, gain on sales of vessels, equity income
from the equity-accounted joint venture and certain other non-cash
items. The Company includes FCF from equity-accounted joint venture
as a component of its FCF. FCF from the equity-accounted joint
venture represents the Company’s proportionate share of FCF from
its equity-accounted joint venture. The Company does not control
its equity-accounted joint venture, and as a result, the Company
does not have the unilateral ability to determine whether the cash
generated by its equity-accounted joint venture is retained within
the entity in which the Company holds the equity-accounted joint
venture or distributed to the Company and other owners. In
addition, the Company does not control the timing of such
distributions to the Company and other owners. Consequently,
readers are cautioned when using FCF as a liquidity measure as the
amount contributed from FCF from the equity-accounted joint venture
may not be available to the Company in the periods such FCF is
generated by the equity-accounted joint venture. FCF is a non-GAAP
financial measure used by certain investors and management to
evaluate the Company’s financial and operating performance and to
assess the Company’s ability to generate cash sufficient to repay
debt, pay dividends and undertake capital and dry-dock
expenditures. Please refer to Appendix B to this release for a
reconciliation of this non-GAAP financial measure to net (loss)
income, the most directly comparable GAAP financial measure
reflected in the Company’s consolidated financial statements.
Net revenues represent revenues less voyage
expenses. Because the amount of voyage expenses the Company incurs
for a particular charter depends upon the type of the charter, the
Company uses net revenues to improve the comparability between
periods of reported revenues that are generated by the different
types of charters and contracts. The Company principally uses net
revenues, a non-GAAP financial measure, because the Company
believes it provides more meaningful information about the
deployment of the Company's vessels and their performance than does
revenues, the most directly comparable financial measure under
GAAP.
Teekay Tankers Ltd.Summary Consolidated Statements of (Loss)
Income(in thousands of U.S. dollars, except share and per share
data)
| |
|
Three Months Ended |
|
Six Months Ended |
| |
|
June 30, |
March 31, |
June 30, |
|
June 30, |
June 30, |
|
| |
|
2019 |
2019 |
2018 |
|
2019 |
2018 |
|
| |
|
(unaudited) |
(unaudited) |
(unaudited) |
|
(unaudited) |
(unaudited) |
|
| |
|
|
|
|
|
|
|
|
| Voyage charter
revenues (1) |
186,805 |
|
216,417 |
|
144,328 |
|
|
403,222 |
|
279,970 |
|
|
| Time-charter
revenues |
1,456 |
|
3,410 |
|
17,384 |
|
|
4,866 |
|
39,494 |
|
|
| Other
revenues (2) |
14,016 |
|
12,674 |
|
9,947 |
|
|
26,690 |
|
20,660 |
|
|
| Total
revenues |
202,277 |
|
232,501 |
|
171,659 |
|
|
434,778 |
|
340,124 |
|
|
| |
|
|
|
|
|
|
|
|
| Voyage expenses
(1) |
(92,668 |
) |
(97,339 |
) |
(86,933 |
) |
|
(190,007 |
) |
(166,926 |
) |
|
| Vessel operating
expenses |
(53,600 |
) |
(54,587 |
) |
(52,652 |
) |
|
(108,187 |
) |
(105,647 |
) |
|
| Time-charter hire
expenses |
(10,792 |
) |
(9,448 |
) |
(5,697 |
) |
|
(20,240 |
) |
(10,380 |
) |
|
| Depreciation and
amortization |
(30,658 |
) |
(29,865 |
) |
(29,573 |
) |
|
(60,523 |
) |
(59,003 |
) |
|
| General and
administrative expenses |
(9,508 |
) |
(9,165 |
) |
(9,407 |
) |
|
(18,673 |
) |
(19,192 |
) |
|
| Gain on sale of
vessel |
— |
|
— |
|
170 |
|
|
— |
|
170 |
|
|
|
Restructuring charges |
— |
|
— |
|
(982 |
) |
|
— |
|
(982 |
) |
|
| Income
(loss) from operations |
5,051 |
|
32,097 |
|
(13,415 |
) |
|
37,148 |
|
(21,836 |
) |
|
| |
|
|
|
|
|
|
|
| Interest
expense |
(16,607 |
) |
(16,942 |
) |
(13,931 |
) |
|
(33,549 |
) |
(26,660 |
) |
|
| Interest
income |
221 |
|
365 |
|
160 |
|
|
586 |
|
318 |
|
|
| Realized and
unrealized (loss) gain |
|
|
|
|
|
|
|
| on
derivative instruments (3) |
(1,778 |
) |
(847 |
) |
1,116 |
|
|
(2,625 |
) |
4,129 |
|
|
| Equity (loss)
income (4) |
(169 |
) |
753 |
|
(70 |
) |
|
584 |
|
624 |
|
|
| Other
expense |
(1,025 |
) |
(2,979 |
) |
(1,273 |
) |
|
(4,004 |
) |
(3,141 |
) |
|
|
Net (loss) income |
(14,307 |
) |
12,447 |
|
(27,413 |
) |
|
(1,860 |
) |
(46,566 |
) |
|
| |
|
|
|
|
|
|
|
| (Loss) earnings
per share attributable |
|
|
|
|
|
|
|
| |
to shareholders of Teekay
Tankers |
|
|
|
|
|
|
|
| |
- Basic |
(0.05 |
) |
0.05 |
|
(0.10 |
) |
|
— |
|
(0.17 |
) |
|
| |
- Diluted |
(0.05 |
) |
0.05 |
|
(0.10 |
) |
|
— |
|
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Weighted-average
number of total common |
|
|
|
|
|
|
| |
shares outstanding |
|
|
|
|
|
|
|
| |
- Basic |
268,990,399 |
|
268,678,226 |
|
268,558,556 |
|
|
268,835,175 |
|
268,426,201 |
|
|
| |
- Diluted |
268,990,399 |
|
268,876,324 |
|
268,558,556 |
|
|
268,835,175 |
|
268,426,201 |
|
|
| |
|
|
|
|
|
|
|
|
| Number of
outstanding shares of common stock at the end of the period |
268,990,399 |
|
268,990,399 |
|
268,558,556 |
|
|
268,990,399 |
|
268,558,556 |
|
|
- Voyage charter revenues include revenues earned from full
service lightering activities. Voyage expenses include certain
costs associated with full service lightering activities, which
include: short-term in-charter expenses, bunker fuel expenses and
other port expenses totaling $19.5 million, $11.4 million and $22.9
million for the three months ended June 30, 2019, March 31, 2019
and June 30, 2018, respectively, and $30.9 million and $44.3
million for the six months ended June 30, 2019 and June 30, 2018,
respectively.
- Other revenues include lightering support and liquefied natural
gas services revenue, and pool management fees and commission
revenues.
- Includes realized gains on interest rate swaps of $0.8 million,
$1.0 million and $0.7 million for the three months ended June 30,
2019, March 31, 2019 and June 30, 2018, respectively, and realized
gains of $1.8 million and $0.9 million for the six months ended
June 30, 2019 and 2018, respectively. The Company also recognized
realized losses of $29 thousand, $13 thousand and $18 thousand for
the three months ended June 30, 2019, March 31, 2019 and June 30,
2018, respectively, and realized losses of $42 thousand and $18
thousand for the six months ended June 30, 2019 and 2018,
respectively, relating to its forward freight
agreements.
- Equity (loss) income relates to the Company’s 50 percent
interest in the High-Q Investment Ltd. (High-Q) joint venture,
which owns one VLCC tanker.
Teekay Tankers Ltd.Summary Consolidated Balance Sheets(in
thousands of U.S. dollars)
| |
As at |
As at |
As at |
| |
June 30, |
March 31, |
December 31, |
| |
2019 |
2019 |
2018 |
| |
(unaudited) (4) |
(unaudited) (4) |
(unaudited) |
| ASSETS |
|
|
|
|
|
|
| Cash and cash equivalents |
35,429 |
|
|
75,045 |
|
|
54,917 |
|
|
| Restricted cash |
1,916 |
|
|
2,087 |
|
|
2,153 |
|
|
| Pool receivable from
affiliates |
15,330 |
|
|
31,535 |
|
|
56,549 |
|
|
| Accounts receivable |
51,451 |
|
|
29,946 |
|
|
17,365 |
|
|
| Due from affiliates |
1,240 |
|
|
7,979 |
|
|
39,663 |
|
|
| Current portion of derivative
assets |
1,229 |
|
|
2,277 |
|
|
2,905 |
|
|
| Bunker and lube oil inventory
(1) |
63,441 |
|
|
50,485 |
|
|
23,179 |
|
|
| Prepaid expenses (1) |
10,146 |
|
|
11,649 |
|
|
10,917 |
|
|
| Other current assets |
48,296 |
|
|
53,369 |
|
|
17,943 |
|
|
|
Total current assets |
228,478 |
|
|
264,372 |
|
|
225,591 |
|
|
| Restricted cash -
long-term |
3,437 |
|
|
3,437 |
|
|
3,437 |
|
|
| Vessels and equipment –
net |
1,327,480 |
|
|
1,388,464 |
|
|
1,401,551 |
|
|
| Vessels related to finance
leases – net |
529,286 |
|
|
475,962 |
|
|
482,010 |
|
|
| Operating lease right-of-use
assets (2) |
19,089 |
|
|
22,014 |
|
|
— |
|
|
| Investment in and advances to
equity-accounted joint venture |
26,351 |
|
|
26,520 |
|
|
25,766 |
|
|
| Derivative assets |
240 |
|
|
1,829 |
|
|
2,973 |
|
|
| Intangible assets – net |
10,498 |
|
|
11,055 |
|
|
11,625 |
|
|
| Other non-current assets |
1,010 |
|
|
1,074 |
|
|
74 |
|
|
| Goodwill |
8,059 |
|
|
8,059 |
|
|
8,059 |
|
|
|
Total assets |
2,153,928 |
|
|
2,202,786 |
|
|
2,161,086 |
|
|
| |
|
|
|
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
|
|
| Accounts payable and accrued
liabilities |
103,980 |
|
|
74,338 |
|
|
52,002 |
|
|
| Short-term debt (3) |
15,000 |
|
|
25,000 |
|
|
— |
|
|
| Due to affiliates |
12,320 |
|
|
23,456 |
|
|
18,570 |
|
|
| Current portion of derivative
liabilities |
— |
|
|
105 |
|
|
57 |
|
|
| Current portion of long-term
debt |
101,264 |
|
|
101,227 |
|
|
106,236 |
|
|
| Current obligations related to
finance leases |
24,397 |
|
|
20,616 |
|
|
20,896 |
|
|
| Current portion of operating
lease liabilities (2) |
12,224 |
|
|
12,038 |
|
|
— |
|
|
| Other current liabilities |
316 |
|
|
417 |
|
|
— |
|
|
|
Total current liabilities |
269,501 |
|
|
257,197 |
|
|
197,761 |
|
|
| Long-term debt |
491,962 |
|
|
590,085 |
|
|
629,170 |
|
|
| Long-term obligations related
to finance leases |
402,539 |
|
|
349,137 |
|
|
354,393 |
|
|
| Long-term operating lease
liabilities (2) |
6,865 |
|
|
9,976 |
|
|
— |
|
|
| Other long-term
liabilities |
37,166 |
|
|
36,343 |
|
|
32,829 |
|
|
|
Equity |
945,895 |
|
|
960,048 |
|
|
946,933 |
|
|
|
Total liabilities and equity |
2,153,928 |
|
|
2,202,786 |
|
|
2,161,086 |
|
|
- Commencing in 2019, the Company is separately presenting bunker
and lube oil inventory on its balance sheets. Such amounts were
previously classified as prepaid expenses. Bunker and lube oil
inventory has increased significantly commencing in the first
quarter of 2019 as a result of changes to the Company’s RSAs
whereby the Company now directly procures and has legal title to
the bunker fuel for the vessels in the RSAs, with such assets being
used as collateral for the new loan to finance its pool management
operations entered into by the Company. Bunker and lube oil
inventory is stated at cost which is determined on a first-in,
first-out basis. Comparative figures have been reclassified to
conform to the presentation adopted in the current
period.
- Upon adoption of the new lease accounting standard on January
1, 2019, the Company's chartered-in vessels, with lease terms of
more than one year, are now treated as operating lease right-of-use
assets and operating lease liabilities. This resulted in increases
in the Company’s assets and liabilities of $19.1 million and $22.0
million at June 30, 2019 and March 31, 2019, respectively. This
adoption had no impact on the Company’s Consolidated Statements of
(Loss) Income.
- Short-term debt relates to the Company’s loan to finance its
pool management operations that was initially drawn during the
first quarter of 2019.
- In late 2018, the Company initiated a new RSA structure under a
newly formed subsidiary, Teekay Tankers Chartering Pte. Ltd (TTCL).
By the second quarter of 2019, the Company transitioned a large
portion of its RSA activities under TTCL with the remainder planned
to be completed throughout 2019. Under the TTCL structure, the
balances in the RSA are consolidated, reflecting the Company’s
rights and obligations as per the TTCL RSA agreements, whereas the
previous RSA structure had an agency agreement and therefore
balances were not consolidated. The transition to TTCL has
therefore resulted in notable increases in various balance sheet
working capital categories. A breakdown of the impact of
consolidating TTCL on the Company's consolidated balance sheets as
at June 30, 2019 and March 31, 2019 is included in Appendix E to
this release. Please note that other than interest expense relating
to the working capital loan, there is no impact from the new RSA
structure on the consolidated statements of (loss) income.
Teekay Tankers Ltd.Summary Consolidated Statements of Cash
Flows(in thousands of U.S. dollars)
| |
|
Six Months Ended |
| |
|
June 30, |
June 30, |
| |
|
2019 |
2018 |
| |
|
(unaudited) |
(unaudited) |
| Cash, cash
equivalents and restricted cash provided by (used for) |
|
|
|
|
| OPERATING
ACTIVITIES |
|
|
|
|
| Net loss |
(1,860 |
) |
|
(46,566 |
) |
|
| Non-cash
items: |
|
|
|
|
|
Depreciation and amortization |
60,523 |
|
|
59,003 |
|
|
|
Gain on sale of vessel |
— |
|
|
(170 |
) |
|
|
Unrealized loss (gain) on derivative instruments |
4,366 |
|
|
(3,283 |
) |
|
|
Equity income |
(584 |
) |
|
(624 |
) |
|
|
Other |
6,538 |
|
|
5,467 |
|
|
| Change in
operating assets and liabilities |
23,198 |
|
|
3,368 |
|
|
|
Expenditures for dry docking |
(27,815 |
) |
|
(6,725 |
) |
|
|
Net operating cash flow |
64,366 |
|
|
10,470 |
|
|
| |
|
|
|
|
| FINANCING
ACTIVITIES |
|
|
|
|
| Proceeds from
short-term debt |
65,000 |
|
|
— |
|
|
| Proceeds from
long-term debt, net of issuance costs |
16,421 |
|
|
45,659 |
|
|
| Scheduled
repayments of long-term debt |
(50,800 |
) |
|
(66,333 |
) |
|
| Prepayments of
long-term debt |
(109,688 |
) |
|
— |
|
|
| Prepayments of
short-term debt |
(50,000 |
) |
|
— |
|
|
| Proceeds from
financing related to sales and leaseback of vessels |
63,720 |
|
|
— |
|
|
| Scheduled
repayments of obligations related to finance leases |
(12,073 |
) |
|
(3,503 |
) |
|
| Cash dividends
paid |
— |
|
|
(8,052 |
) |
|
|
Other |
(126 |
) |
|
(92 |
) |
|
|
Net financing cash flow |
(77,546 |
) |
|
(32,321 |
) |
|
| |
|
|
|
|
| INVESTING
ACTIVITIES |
|
|
|
|
| Proceeds from sale
of vessel |
— |
|
|
589 |
|
|
| Expenditures for
vessels and equipment |
(6,545 |
) |
|
(2,207 |
) |
|
| Return
of capital from equity-accounted joint venture |
— |
|
|
746 |
|
|
|
Net investing cash flow |
(6,545 |
) |
|
(872 |
) |
|
| |
|
|
|
|
| Decrease in cash,
cash equivalents and restricted cash |
(19,725 |
) |
|
(22,723 |
) |
|
| Cash,
cash equivalents and restricted cash, beginning of the period |
60,507 |
|
|
75,710 |
|
|
|
Cash, cash equivalents and restricted cash, end of the
period |
40,782 |
|
|
52,987 |
|
|
Teekay Tankers Ltd.Appendix A - Reconciliation of Non-GAAP
Financial MeasuresAdjusted Net Loss(in thousands of U.S. dollars,
except per share amounts)
| |
|
|
Three Months Ended |
| |
|
|
June 30, 2019 |
|
June 30, 2018 |
|
| |
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
$ |
$ Per Share(1) |
|
$ |
$ Per Share(1) |
|
| Net
loss - GAAP basis |
(14,307 |
) |
|
($ |
0.05 |
) |
|
(27,413 |
) |
|
($ |
0.10 |
) |
|
| |
|
|
|
|
|
|
|
|
|
| Add specific items affecting net
loss: |
|
|
|
|
|
|
|
|
| |
Gain on sale of vessel |
— |
|
|
|
— |
|
|
(170 |
) |
|
|
— |
|
|
| |
Unrealized loss (gain) on derivative instruments
(2) |
2,578 |
|
|
|
— |
|
|
(460 |
) |
|
|
— |
|
|
|
|
Other
(3) |
(413 |
) |
|
|
— |
|
|
(700 |
) |
|
($ |
0.01 |
) |
|
|
Total adjustments |
2,165 |
|
|
|
— |
|
|
(1,330 |
) |
|
($ |
0.01 |
) |
|
| Adjusted
net loss attributable to shareholders of |
|
|
|
|
|
|
|
|
|
|
Teekay Tankers |
(12,142 |
) |
|
($ |
0.05 |
) |
|
(28,743 |
) |
|
($ |
0.11 |
) |
|
- Basic per share amounts.
- Reflects unrealized gains or losses due to the changes in the
mark-to-market value of derivative instruments that are not
designated as hedges for accounting purposes, including unrealized
gains or losses on interest rate swaps and forward freight
agreements.
- The amount recorded for the three months ended June 30, 2019
primarily relates to unrealized foreign exchange gains and debt
issuance costs that were written off in connection with the
refinancing of the Company's debt facilities. The amount recorded
for the three months ended June 30, 2018 primarily relates to
adjustments relating to freight tax accruals from prior years.
Teekay Tankers Ltd.Appendix B - Reconciliation of Non-GAAP
Financial MeasuresFree Cash Flow(in thousands of U.S. dollars,
except share data)
| |
|
|
Three Months Ended |
| |
|
|
June 30, 2019 |
June 30, 2018 |
| |
|
|
(unaudited) |
(unaudited) |
| |
|
|
|
|
|
|
|
|
Net
loss - GAAP basis |
(14,307 |
) |
|
(27,413 |
) |
|
| |
|
|
|
|
|
|
| |
Add: |
|
|
|
|
| |
|
Depreciation and
amortization |
30,658 |
|
|
29,573 |
|
|
| |
|
Proportionate share of free
cash flow from equity-accounted joint venture |
285 |
|
|
380 |
|
|
| |
|
Unrealized loss on derivative
instruments |
2,578 |
|
|
— |
|
|
| |
|
Equity loss (1) |
169 |
|
|
70 |
|
|
| |
|
|
|
|
|
|
| |
Less: |
|
|
|
|
| |
|
Unrealized gain on derivative
instruments |
— |
|
|
(460 |
) |
|
| |
|
Gain on sale of vessel |
— |
|
|
(170 |
) |
|
|
|
|
|
|
|
|
|
| Free cash
flow |
19,383 |
|
|
1,980 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding for the period
- basic |
268,990,399 |
|
|
268,558,556 |
|
|
- Equity income relates to the Company’s 50 percent interest in
the High-Q joint venture, which owns one VLCC tanker.
Teekay Tankers Ltd.Appendix C - Reconciliation of Non-GAAP
Financial MeasuresTotal Adjusted EBITDA(in thousands of U.S.
dollars)
|
|
Three Months Ended |
| |
June 30, 2019 |
June 30, 2018 |
| |
(unaudited) |
(unaudited) |
| Net loss - GAAP basis |
(14,307 |
) |
(27,413 |
) |
|
Depreciation and amortization |
30,658 |
|
29,573 |
|
|
Interest expense, net of interest income |
16,386 |
|
13,771 |
|
|
Freight tax and other tax expenses |
1,639 |
|
6,086 |
|
|
EBITDA |
34,376 |
|
22,017 |
|
|
|
|
|
| Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
Foreign exchange gain |
(595 |
) |
(4,794 |
) |
|
Gain on sale of vessel |
— |
|
(170 |
) |
|
Realized gain on interest rate swaps |
(829 |
) |
(674 |
) |
|
Unrealized loss (gain) on derivative instruments |
2,578 |
|
(460 |
) |
|
Equity loss |
169 |
|
70 |
|
|
Other income – net |
— |
|
(1 |
) |
| Consolidated adjusted
EBITDA |
35,699 |
|
15,988 |
|
|
Adjusted EBITDA from equity-accounted joint venture (See Appendix
D) |
498 |
|
566 |
|
|
Total Adjusted EBITDA |
36,197 |
|
16,554 |
|
Teekay Tankers Ltd.Appendix D - Reconciliation of Non-GAAP
Financial MeasuresAdjusted EBITDA from Equity-Accounted Joint
Venture(in thousands of U.S. dollars)
| |
Three Months Ended |
| |
June 30, 2019 |
June 30, 2018 |
| |
(unaudited) |
(unaudited) |
| |
At |
Company's |
At |
Company's |
| |
100 |
% |
Portion (1) |
100 |
% |
Portion (1) |
| Revenues |
1,750 |
|
875 |
|
2,012 |
|
1,006 |
|
| Vessel and other operating
expenses |
(754 |
) |
(377 |
) |
(880 |
) |
(440 |
) |
| Depreciation and
amortization |
(908 |
) |
(454 |
) |
(849 |
) |
(425 |
) |
|
Income from vessel operations of equity-accounted joint
venture |
88 |
|
44 |
|
283 |
|
141 |
|
| |
|
|
|
|
| Net interest expense |
(427 |
) |
(213 |
) |
(436 |
) |
(218 |
) |
| Realized and unrealized gain
on derivative instruments |
— |
|
— |
|
13 |
|
7 |
|
|
Equity loss of equity-accounted joint venture |
(339 |
) |
(169 |
) |
(140 |
) |
(70 |
) |
| |
|
|
|
|
| Equity loss of
equity-accounted joint venture |
(339 |
) |
(169 |
) |
(140 |
) |
(70 |
) |
|
Depreciation and amortization |
908 |
|
454 |
|
849 |
|
425 |
|
|
Interest expense, net of interest income |
427 |
|
213 |
|
436 |
|
218 |
|
|
EBITDA from equity-accounted joint venture |
996 |
|
498 |
|
1,145 |
|
573 |
|
| |
|
|
|
|
| Add (subtract) specific income
statement items affecting EBITDA: |
|
|
|
|
|
Realized and unrealized gain on derivative instruments |
— |
|
— |
|
(13 |
) |
(7 |
) |
|
Adjusted EBITDA from equity-accounted joint
venture |
996 |
|
498 |
|
1,132 |
|
566 |
|
(1) The Company’s proportionate
share of its equity-accounted joint venture is 50 percent.
Teekay Tankers Ltd.Appendix E - Impact from Consolidating the
New RSA Structure on Summary Consolidated Balance Sheets as at June
30, 2019(in thousands of U.S. dollars)
| |
As at June 30, 2019 |
| |
Balances before impact of the new RSA
structure |
Impact of the new RSA structure |
As Reported on Summary Consolidated Balance
Sheets |
| |
(unaudited) |
(unaudited) |
(unaudited) |
| ASSETS |
|
|
|
|
|
|
| Cash and cash equivalents |
23,371 |
|
|
12,058 |
|
|
35,429 |
|
|
| Restricted cash |
1,916 |
|
|
— |
|
|
1,916 |
|
|
| Pool receivable from
affiliates |
15,330 |
|
|
— |
|
|
15,330 |
|
|
| Accounts receivable |
23,469 |
|
|
27,982 |
|
|
51,451 |
|
|
| Due from affiliates |
45,619 |
|
|
(44,379 |
) |
|
1,240 |
|
|
| Current portion of derivative
assets |
1,229 |
|
|
— |
|
|
1,229 |
|
|
| Bunker and lube oil
inventory |
9,026 |
|
|
54,415 |
|
|
63,441 |
|
|
| Prepaid expenses |
10,146 |
|
|
— |
|
|
10,146 |
|
|
| Other current assets |
7,099 |
|
|
41,197 |
|
|
48,296 |
|
|
|
Total current assets |
137,205 |
|
|
91,273 |
|
|
228,478 |
|
|
| Restricted cash -
long-term |
3,437 |
|
|
— |
|
|
3,437 |
|
|
| Vessels and equipment –
net |
1,327,480 |
|
|
— |
|
|
1,327,480 |
|
|
| Vessels related to finance
leases – net |
529,286 |
|
|
— |
|
|
529,286 |
|
|
| Operating lease right-of-use
assets |
19,089 |
|
|
— |
|
|
19,089 |
|
|
| Investment in and advances to
equity-accounted joint venture |
26,351 |
|
|
— |
|
|
26,351 |
|
|
| Derivative assets |
240 |
|
|
— |
|
|
240 |
|
|
| Intangible assets – net |
10,498 |
|
|
— |
|
|
10,498 |
|
|
| Other non-current assets |
1,010 |
|
|
— |
|
|
1,010 |
|
|
| Goodwill |
8,059 |
|
|
— |
|
|
8,059 |
|
|
|
Total assets |
2,062,655 |
|
|
91,273 |
|
|
2,153,928 |
|
|
| |
|
|
|
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
|
|
| Accounts payable and accrued
liabilities |
39,083 |
|
|
64,897 |
|
|
103,980 |
|
|
| Short-term debt |
— |
|
|
15,000 |
|
|
15,000 |
|
|
| Due to affiliates |
1,532 |
|
|
10,788 |
|
|
12,320 |
|
|
| Current portion of derivative
liabilities |
— |
|
|
— |
|
|
— |
|
|
| Current portion of long-term
debt |
101,264 |
|
|
— |
|
|
101,264 |
|
|
| Current obligations related to
finance leases |
24,397 |
|
|
— |
|
|
24,397 |
|
|
| Current portion of operating
lease liabilities |
12,224 |
|
|
— |
|
|
12,224 |
|
|
| Other current liabilities |
316 |
|
|
— |
|
|
316 |
|
|
|
Total current liabilities |
178,816 |
|
|
90,685 |
|
|
269,501 |
|
|
| Long-term debt |
491,962 |
|
|
— |
|
|
491,962 |
|
|
| Long-term obligations related
to finance leases |
402,539 |
|
|
— |
|
|
402,539 |
|
|
| Long-term operating lease
liabilities |
6,865 |
|
|
— |
|
|
6,865 |
|
|
| Other long-term
liabilities |
36,578 |
|
|
588 |
|
|
37,166 |
|
|
|
Equity |
945,895 |
|
|
— |
|
|
945,895 |
|
|
|
Total liabilities and equity |
2,062,655 |
|
|
91,273 |
|
|
2,153,928 |
|
|
Teekay Tankers Ltd.Appendix E - Impact from Consolidating the
New RSA Structure on Summary Consolidated Balance Sheets as at
March 31, 2019(in thousands of U.S. dollars)
| |
As at March 31, 2019 |
| |
Balances before impact of the new RSA
structure |
Impact of the new RSA structure |
As Reported on Summary Consolidated Balance
Sheets |
| |
(unaudited) |
(unaudited) |
(unaudited) |
| ASSETS |
|
|
|
|
|
|
| Cash and cash equivalents |
55,321 |
|
|
19,724 |
|
|
75,045 |
|
|
| Restricted cash |
2,087 |
|
|
— |
|
|
2,087 |
|
|
| Pool receivable from
affiliates |
31,535 |
|
|
— |
|
|
31,535 |
|
|
| Accounts receivable |
20,504 |
|
|
9,442 |
|
|
29,946 |
|
|
| Due from affiliates |
37,388 |
|
|
(29,409 |
) |
|
7,979 |
|
|
| Current portion of derivative
assets |
2,277 |
|
|
— |
|
|
2,277 |
|
|
| Bunker and lube oil
inventory |
10,924 |
|
|
39,561 |
|
|
50,485 |
|
|
| Prepaid expenses |
11,649 |
|
|
— |
|
|
11,649 |
|
|
| Other current assets |
6,184 |
|
|
47,185 |
|
|
53,369 |
|
|
|
Total current assets |
177,869 |
|
|
86,503 |
|
|
264,372 |
|
|
| Restricted cash -
long-term |
3,437 |
|
|
— |
|
|
3,437 |
|
|
| Vessels and equipment –
net |
1,388,464 |
|
|
— |
|
|
1,388,464 |
|
|
| Vessels related to finance
leases – net |
475,962 |
|
|
— |
|
|
475,962 |
|
|
| Operating lease right-of-use
assets |
22,014 |
|
|
— |
|
|
22,014 |
|
|
| Investment in and advances to
equity-accounted joint venture |
26,520 |
|
|
— |
|
|
26,520 |
|
|
| Derivative assets |
1,829 |
|
|
— |
|
|
1,829 |
|
|
| Intangible assets – net |
11,055 |
|
|
— |
|
|
11,055 |
|
|
| Other non-current assets |
1,074 |
|
|
— |
|
|
1,074 |
|
|
| Goodwill |
8,059 |
|
|
— |
|
|
8,059 |
|
|
|
Total assets |
2,116,283 |
|
|
86,503 |
|
|
2,202,786 |
|
|
| |
|
|
|
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
|
|
| Accounts payable and accrued
liabilities |
33,362 |
|
|
40,976 |
|
|
74,338 |
|
|
| Short-term debt |
— |
|
|
25,000 |
|
|
25,000 |
|
|
| Due to affiliates |
3,174 |
|
|
20,282 |
|
|
23,456 |
|
|
| Current portion of derivative
liabilities |
105 |
|
|
— |
|
|
105 |
|
|
| Current portion of long-term
debt |
101,227 |
|
|
— |
|
|
101,227 |
|
|
| Current obligations related to
finance leases |
20,616 |
|
|
— |
|
|
20,616 |
|
|
| Current portion of operating
lease liabilities |
12,038 |
|
|
— |
|
|
12,038 |
|
|
| Other current liabilities |
376 |
|
|
41 |
|
|
417 |
|
|
|
Total current liabilities |
170,898 |
|
|
86,299 |
|
|
257,197 |
|
|
| Long-term debt |
590,085 |
|
|
— |
|
|
590,085 |
|
|
| Long-term obligations related
to finance leases |
349,137 |
|
|
— |
|
|
349,137 |
|
|
| Long-term operating lease
liabilities |
9,976 |
|
|
— |
|
|
9,976 |
|
|
| Other long-term
liabilities |
36,139 |
|
|
204 |
|
|
36,343 |
|
|
|
Equity |
960,048 |
|
|
— |
|
|
960,048 |
|
|
|
Total liabilities and equity |
2,116,283 |
|
|
86,503 |
|
|
2,202,786 |
|
|
Forward Looking Statements
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, among other
things, statements regarding: crude oil and refined product tanker
market fundamentals, including the balance of supply and demand in
the oil and tanker markets, the occurrence and expected timing of a
tanker market recovery, the impact of geopolitical tensions,
forecasts of worldwide tanker fleet growth, the amount of tanker
scrapping and newbuilding tanker deliveries, estimated increase in
vessel off-hire time, estimated growth in global oil demand and
supply, future tanker rates, future OPEC oil production, the
expected increase in global refinery throughput, the expected
increase in U.S. crude oil production, pipeline capacity and
exports and the corresponding impact on tanker demand, tanker spot
rates and the Company’s full service lightering business, and the
estimated impact of IMO 2020 regulations on refinery throughput and
tanker demand; the Company's liquidity and market position; and the
timing for completion of the transition to the Company’s new RSA
structure. 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: the potential for
early termination of charter contracts of existing vessels in the
Company's fleet; the inability of charterers to make future charter
payments; the inability of the Company to renew or replace charter
contracts; changes in tanker rates; changes in the production of,
or demand for, oil or refined products; changes in trading patterns
significantly affecting overall vessel tonnage requirements; the
impact of geopolitical tensions; 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 and the
impact of such changes, including IMO 2020; increased costs; the
availability under the Company's revolving credit facilities and
loans; 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, 2018. 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.
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