UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 6-K
_________________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
Date of Report: November 12, 2020
Commission file number 1-33867
_________________________
TEEKAY TANKERS LTD.
(Exact name of Registrant as specified in its charter)
_________________________
Suite 2000 - 550 Burrard Street, Bentall 5, Vancouver, BC V6C 2K2
Canada
(Address of principal executive office)
_________________________
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Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F. |
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Form 20-F
ý Form
40-F
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Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1). |
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Yes
¨ No
ý
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Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7). |
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Yes
¨ No
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Item 1 — Information Contained in this Form 6-K Report
Attached as Exhibit 1 is a copy of an announcement of Teekay
Tankers Ltd. dated November 12, 2020.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
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TEEKAY TANKERS LTD. |
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Date: November 12, 2020 |
By: |
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/s/ Stewart Andrade |
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Stewart Andrade
Chief Financial Officer
(Principal Financial and Accounting Officer) |
TEEKAY TANKERS LTD. REPORTS
THIRD QUARTER 2020 RESULTS
Highlights
•Reported
GAAP net loss of $44.4 million, or $1.32 per share, and adjusted
net income(1)
of $3.1 million, or $0.09 per share, in the third quarter of 2020
(excluding $45.0 million of asset write-downs and other items
listed in
Appendix A
to this release).
•Total
Adjusted EBITDA(1)
of $46.2 million in the third quarter of 2020.
•Generated
approximately $31 million of free cash flow(1)
in the third quarter of 2020, contributing to over a $47 million
reduction in net debt(2)
and maintaining a strong liquidity position of approximately $470
million as of September 30, 2020.
•Secured
a one-year time charter-out contract for an Aframax tanker in the
third quarter; approximately 20 percent of the fleet is currently
operating under fixed-rate charters at an average rate of $36,300
per day.
•In
October 2020, repurchased two Aframax tankers that were previously
on sale-leasebacks for $29.6 million.
•In
August 2020, completed refinancing of four Suezmax tankers with a
new 3-year, $67 million term loan; Teekay Tankers now has no debt
maturities until 2023.
Vancouver, Canada, November 12, 2020 -
Teekay Tankers Ltd. (Teekay
Tankers
or
the Company)
(NYSE: TNK) today reported the Company's results for the quarter
ended September 30, 2020:
Consolidated Financial Summary
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Three Months Ended |
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(in thousands of U.S. dollars, except per share data) |
September 30,
2020 |
June 30,
2020 |
September 30,
2019
(3)
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GAAP FINANCIAL COMPARISON |
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Total revenues |
170,240 |
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246,492 |
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187,444 |
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(Loss) income from operations |
(29,193) |
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92,986 |
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(4,873) |
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Net (loss) income |
(44,434) |
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98,198 |
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(19,850) |
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(Loss) earnings per share
(4)
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(1.32) |
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2.91 |
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(0.59) |
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NON-GAAP FINANCIAL COMPARISON |
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Total Adjusted EBITDA
(1)
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46,248 |
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124,241 |
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27,837 |
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Adjusted net income (loss)
(1)
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3,132 |
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80,700 |
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(21,173) |
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Adjusted earnings (loss) per share
(1)(4)
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0.09 |
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2.39 |
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(0.63) |
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Free cash flow
(1)
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31,178 |
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125,799 |
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11,735 |
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(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).
(2) Net debt is a non-GAAP financial
measure and represents short-term, current and long-term debt and
current and long-term obligations related to finance leases less
cash and cash equivalents and restricted cash.
(3) Comparative balances relating to the
three months ended September 30, 2019 have been updated to reflect
results as presented in the Company’s Annual Report on Form 20-F
for the year ended December 31, 2019.
(4) The per share amounts for all periods presented have been
adjusted to reflect a one-for-eight reverse stock split completed
in November 2019.
1
Teekay Tankers Ltd.
Investor Relations Tel: +1 604 683-3529
www.teekaytankers.com
Suite 2000 - 550 Burrard Street, Bentall 5, Vancouver, BC V6C 2K2
Canada
Third Quarter of 2020 Compared to Second Quarter of
2020
GAAP net loss and non-GAAP adjusted net income for the third
quarter of 2020, compared to the second quarter of 2020, primarily
reflects lower average spot tanker rates and a higher number of
scheduled drydockings during the third quarter of 2020. GAAP net
loss in the third quarter of 2020 also included a $45.0 million
write-down of assets, while GAAP net income in the second quarter
of 2020 included a $15.2 million reduction in freight tax accruals
relating to prior periods.
Third Quarter of 2020 Compared to Third Quarter of
2019
GAAP net loss for the third quarter of 2020 increased, while
non-GAAP adjusted net income improved compared to the same period
of the prior year. These measures were positively impacted
primarily by higher revenues from several fixed-rate charters
secured during the past year at higher rates and higher average
spot tanker rates in the third quarter of 2020, partially offset by
the sale of four Suezmax tankers during December 2019 and the first
quarter of 2020, as well as the sale of the non-US portion of the
ship-to-ship support services and LNG terminal management business
in the second quarter of 2020. GAAP net loss in the third quarter
of 2020 also included a $45.0 million write-down of
assets.
CEO Commentary
“Despite weaker spot tanker rates and a heavy drydock schedule
during the third quarter of 2020, Teekay Tankers reported an
adjusted net income of $3.1 million, or $0.09 per share, as we
benefitted from well-timed fixed-rate charters secured over the
last several quarters at rates meaningfully above current spot
market levels," commented Kevin Mackay, Teekay Tankers’ President
and Chief Executive Officer.
"Following three strong quarters, spot tanker rates came under
pressure during the third quarter of 2020 as a result of seasonal
weakness, record OPEC+ production cuts resulting from reduced oil
demand related to the pandemic, and the unwinding of floating
storage. We were able to successfully mitigate the impact of these
weaker rates with 22 percent of our fleet on fixed-rate charters
during the third quarter at an average rate of $37,600 per day,”
commented Mr. Mackay. “This weakness in spot tanker rates has
continued into the fourth quarter; however, there is potential for
an uplift in spot tanker rates as seasonal winter conditions
typically tighten tanker supply as we move through the fourth
quarter. At this point, the near-term outlook remains uncertain,
but we are pleased that we secured a fifth of our fleet on strong
fixed-rate charters and remain encouraged by fleet supply
fundamentals which are significantly more favorable relative to
prior market cycles.”
“Increasing our financial strength has been one of our strategic
priorities, and over the past year, we have transformed our balance
sheet," continued Mr. Mackay. “During this past year, we generated
over $400 million in free cash flow and completed over $100 million
of asset sales, which have contributed to net debt reduction of
approximately $500 million, or 50 percent, as well as strengthened
our liquidity position from around $100 million to $470 million at
the end of the third quarter of 2020. In addition to delevering our
balance sheet, we have also reduced our cost of capital through the
recently completed debt refinancing and the voluntary early
termination of existing sale-leaseback financings on two of our
vessels.”
Mr. Mackay concluded, "I want to thank our seafarers and onshore
colleagues for their continued dedication to provide safe and
uninterrupted service to our customers during this COVID-19
pandemic over the past several months. With strong fixed-rate
charter contracts, low free cash flow break-even, reduced balance
sheet leverage, a strong liquidity position, and no debt maturities
until 2023, we believe that Teekay Tankers is well-positioned
financially to continue creating shareholder value throughout a
wide range of near-term market conditions.”
Summary of Recent Events
In October 2020, Teekay Tankers repurchased two of its Aframax
vessels that were previously subject to long-term finance leases
for a total purchase price of $29.6 million. The purchases were
funded with existing cash balances and therefore, the two vessels
are currently unencumbered.
In September 2020, Teekay Tankers entered into a one-year time
charter-out contract for an Aframax tanker at $18,700 per day,
which commenced in early-October 2020.
In August 2020, Teekay Tankers secured a three-year, $67 million
term loan to refinance four Suezmax tankers. The net proceeds from
the new debt facility, along with existing cash balances, were used
to repay approximately $85 million outstanding on the Company's
existing debt facility with respect to these vessels that was
scheduled to mature in 2021.
Tanker Market
Crude tanker spot rates fell during the third quarter of 2020 due
to a combination of seasonal weakness, reduced oil demand due to
the impact of COVID-19, and low trade volumes as a result of oil
supply cuts by the OPEC+ group of producers. The return of some
ships to the spot trading fleet from floating storage further
compounded the weakness in rates.
Global oil demand has been gradually recovering since the low point
in April 2020, when oil demand plummeted by over 20 million barrels
per day (mb/d)
due to severe restrictions and lockdowns in the wake of the
COVID-19 outbreak. These restrictions, which were at their height
in the second quarter of 2020, have eased since the summer, leading
to a corresponding increase in oil demand. However, as of October
2020, global oil demand remains several million barrels below
pre-pandemic levels and although global crude oil and refined
product inventories have been falling since the third quarter of
2020, they remain well above long-term averages.
The OPEC+ group of oil producers, who implemented supply cuts of
9.7 mb/d in May 2020, returned 2 mb/d of supply to the market in
August 2020. Although this was a positive step, it still results in
crude trade volumes that are well below pre-pandemic levels, which
has depressed crude spot tanker rates into the early part of the
fourth quarter of 2020.
Typically, spot tanker rates would find some support during the
winter months due to the seasonal impacts of higher oil demand and
an increase in vessel delays due to poor weather and shorter
daylight hours. While these seasonal factors are still expected to
be positive for the tanker market, the potential increase in spot
rates this winter is expected to be tempered by the underlying
imbalance between tanker supply and demand. Mid-size tankers could
find some support from an increase in Libyan crude oil production,
which is expected to reach 1.0 mb/d during the fourth quarter of
2020, having averaged only 0.1 mb/d during the third quarter of
2020. However, this could be counter-balanced by a potential
slowdown in demand due to a resurgence of COVID-19 cases in many
regions and the potential for fresh restrictions and lockdowns over
the winter months.
Looking ahead, the Company expects that tanker demand will continue
to recover during 2021 as oil demand increases and oil inventories
are brought back to more normal levels. However, the timing of this
recovery remains uncertain and depends to a large extent on how the
COVID-19 pandemic evolves over the coming months. The OPEC+ group
is scheduled to return a further 2.0 mb/d of oil supply to the
market from January 2021 onwards, which would be positive for
tanker demand; however, a more definitive determination is expected
to be made at the next OPEC meeting on November 30,
2020.
Fleet supply fundamentals continue to look very positive due to a
significantly reduced level of newbuild ordering, a diminishing
tanker orderbook, and the potential for higher scrapping due to an
aging world fleet. As of October 2020, the tanker orderbook totaled
47.5 million deadweight tonnes (mdwt),
or just over seven percent of the existing fleet size. When
measured as a proportion of the total fleet, this is the lowest
orderbook since 1996. The level of
newbuild orders remains low, and is expected to remain so due to
uncertainty over vessel technology and a more restrictive financial
landscape. Although scrapping has been very low this year,
scrapping facilities have now returned to full operation, and the
level may pick up during periods of potentially weaker spot tanker
rates in 2021.
In summary, the tanker market has come off the highs seen during
the first half of the year, and the next few months look to be
challenging. However, tanker demand should continue to gradually
recover through the course of 2021 which, coupled with a positive
fleet supply outlook, should help the tanker market begin to
rebalance.
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(i)
per revenue day, or time-charter equivalent (TCE)
rates, before off-hire bunker expenses and fees associated with
vessels exiting the RSAs:
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Three Months Ended |
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September 30, 2020(ii)
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June 30, 2020(ii)
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September 30, 2019(ii)
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Time Charter-Out Fleet |
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Suezmax revenue days
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831 |
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794 |
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92 |
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Suezmax TCE per revenue day |
$41,216 |
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$37,740 |
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$20,488 |
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Aframax revenue days
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184 |
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91 |
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— |
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Aframax TCE per revenue day |
$24,983 |
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$22,925 |
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— |
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LR2 revenue days
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79 |
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71 |
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— |
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LR2 TCE per revenue day |
$28,638 |
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$25,463 |
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Spot Fleet |
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Suezmax revenue days
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1,388 |
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1,544 |
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2,576 |
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Suezmax spot TCE per revenue day
(iii)
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$22,269 |
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$46,484 |
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$16,321 |
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Aframax revenue days
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1,534 |
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1,632 |
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1,821 |
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Aframax spot TCE per revenue day
(iv)
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$14,802 |
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$29,569 |
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$14,850 |
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LR2 revenue days
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865 |
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876 |
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781 |
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LR2 spot TCE per revenue day
(v)
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$14,400 |
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$29,621 |
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$14,686 |
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Total Fleet |
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Suezmax revenue days
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2,219 |
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2,338 |
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2,668 |
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Suezmax TCE per revenue day |
$29,366 |
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$43,516 |
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$16,465 |
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Aframax revenue days
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1,718 |
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1,723 |
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1,821 |
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Aframax TCE per revenue day |
$15,892 |
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$29,218 |
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$14,850 |
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LR2 revenue days
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944 |
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947 |
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781 |
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LR2 TCE per revenue day |
$15,592 |
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$29,309 |
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$14,686 |
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(i)Net
revenues is a non-GAAP financial measure. Please refer to
"Definitions and Non-GAAP Financial Measures" for a definition of
this term.
(ii)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
represent 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.
(iii)Includes
vessels trading in the Teekay Suezmax RSA, Teekay Suezmax Classic
RSA and non-pool voyage charters.
(iv)Prior
to January 1, 2020, includes vessels trading in the Teekay Aframax
RSA, Teekay Aframax Classic RSA, non-pool voyage charters and full
service lightering voyages. Subsequent to January 1, 2020, includes
Aframax vessels trading in the Teekay Aframax RSA, non-pool voyage
charters and full service lightering voyages.
(v)Prior
to January 1, 2020, includes vessels trading in the Teekay Taurus
RSA and non-pool voyage charters. Subsequent to January 1, 2020,
includes LR2 vessels trading in the Teekay Aframax RSA, non-pool
voyage charters, and full service lightering voyages.
Fourth Quarter of 2020 Tanker Performance Update
The following table summarizes Teekay Tankers’ TCE rates fixed
to-date in the fourth quarter of 2020 for both its spot-traded
fleet only and its combined spot-traded and fixed-rate
fleets:
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To-Date Spot Tanker Rates
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Combined To-Date Spot Tanker and Fixed-Rate
Contract Rates
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TCE Rates Per Day
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% Fixed
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TCE Rates Per Day
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% Fixed
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Suezmax |
$10,100 |
49% |
$24,200 |
62% |
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Aframax
(1)
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$7,700 |
45% |
$12,400 |
54% |
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LR2
(2)
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$8,500 |
44% |
$13,500 |
52% |
(1) Rates and percentage booked to-date
include Aframax RSA, full service lightering (FSL) and non-pool
voyage charters for all Aframax vessels.
(2) Rates and percentage booked to-date
include Aframax RSA, FSL and non-pool voyage charters for all LR2
vessels, whether trading in the clean or dirty spot
market.
Teekay Tankers’ Fleet
The following table summarizes the Company’s fleet as of November
1, 2020:
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Owned and Leased Vessels |
Chartered-in Vessels |
Total |
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Fixed-rate: |
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Suezmax Tankers |
7 |
— |
7 |
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Aframax Tankers |
3 |
— |
3 |
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LR2 Product Tanker |
1 |
— |
1 |
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Total Fixed-Rate Fleet |
11 |
— |
11 |
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Spot-rate: |
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Suezmax Tankers |
19 |
— |
19 |
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Aframax Tankers(i)
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14 |
2 |
16 |
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LR2 Product Tankers(ii)
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8 |
2 |
10 |
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VLCC Tanker(iii)
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1 |
— |
1 |
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Total Spot Fleet |
42 |
4 |
46 |
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Total Tanker Fleet |
53 |
4 |
57 |
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STS Support Vessels |
— |
3 |
3 |
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Total Teekay Tankers' Fleet |
53 |
7 |
60 |
(i)Includes
two Aframax tankers with charter-in contracts that are scheduled to
expire in March 2021 and September 2021, respectively, one with an
option for the Company to extend for one additional
year.
(ii)Includes
two LR2 product tankers with charter-in contracts that are
scheduled to expire in January 2021, each with an option for the
Company to extend for one additional year.
(iii)The
Company’s ownership interest in this vessel is 50
percent.
Liquidity Update
As at September 30, 2020, the Company had total liquidity of
$469.8 million (comprised of $120.9 million in cash and cash
equivalents and $348.9 million in undrawn capacity from its credit
facilities) compared to total liquidity of $467.5 million as at
June 30, 2020.
Conference Call
The Company plans to host a conference call on Thursday, November
12, 2020 at 12:00 p.m. (ET) to discuss its results for the third
quarter of 2020. All shareholders and interested parties are
invited to listen to the live conference call by choosing from the
following options:
•By
dialing (800) 367-2403 or (647) 490-5367, if outside of North
America, and quoting conference ID code 9018310.
•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 Third Quarter of 2020 Earnings Presentation will
also be available at
www.teekay.com
in advance of the conference call start time.
About Teekay Tankers
Teekay Tankers currently has a fleet of 52 double-hull tankers
(including 26 Suezmax tankers, 17 Aframax tankers and nine LR2
product tankers), and also has four 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 that performs full
service lightering and lightering support operations in the U.S.
Gulf and Caribbean. Teekay Tankers was formed in December 2007 by
Teekay Corporation as part of its strategy to expand its
conventional oil tanker business.
Teekay Tankers’ Class A common stock trades on the New York Stock
Exchange under the symbol “TNK.”
For Investor Relations enquiries contact:
Ryan Hamilton
Tel: +1 (604) 609-2963
Website:
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
Income (Loss), Free Cash Flow, Net Revenues, and 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.
Non-GAAP Financial Measures
Adjusted net income (loss)
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 credit loss
adjustments, unrealized gains and losses on derivative instruments
and any write-offs 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.
Total Adjusted EBITDA
represents Consolidated Adjusted EBITDA plus Adjusted EBITDA from
Equity-Accounted Joint Venture. Please refer to
Appendices C
and
D
of this release for reconciliations of Adjusted EBITDA to net
(loss) income and equity 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 the
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 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
represents revenues less voyage expenses. Because the amount of
voyage expenses the Company incurs for a particular charter depends
on 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 |
|
Nine Months Ended |
|
|
|
September 30, |
June 30, |
September 30, |
|
September 30, |
September 30, |
|
|
|
|
2020 |
2020 |
2019
(1)
|
|
2020 |
2019
(1)
|
|
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
(unaudited) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage charter revenues
(2)
|
125,819 |
|
207,926 |
|
178,174 |
|
|
651,223 |
|
591,746 |
|
|
|
Time-charter revenues |
42,180 |
|
34,986 |
|
1,909 |
|
|
92,733 |
|
6,815 |
|
|
|
Other revenues
(3)
|
2,241 |
|
3,580 |
|
7,361 |
|
|
14,676 |
|
34,051 |
|
|
|
Total revenues |
170,240 |
|
246,492 |
|
187,444 |
|
|
758,632 |
|
632,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses
(2)
|
(57,777) |
|
(61,558) |
|
(92,866) |
|
|
(238,576) |
|
(293,263) |
|
|
|
Vessel operating expenses |
(46,336) |
|
(46,218) |
|
(48,539) |
|
|
(143,203) |
|
(156,726) |
|
|
|
Time-charter hire expenses |
(9,070) |
|
(9,296) |
|
(10,637) |
|
|
(28,245) |
|
(30,877) |
|
|
|
Depreciation and amortization |
(29,992) |
|
(29,546) |
|
(31,536) |
|
|
(89,170) |
|
(92,059) |
|
|
|
General and administrative expenses |
(9,887) |
|
(9,784) |
|
(8,739) |
|
|
(28,957) |
|
(27,412) |
|
|
|
(Write-down) and (loss) gain
on sale of assets
(4)
|
(44,973) |
|
2,896 |
|
— |
|
|
(45,164) |
|
— |
|
|
|
Restructuring charge |
(1,398) |
|
— |
|
— |
|
|
(1,398) |
|
— |
|
|
|
(Loss) income from operations |
(29,193) |
|
92,986 |
|
(4,873) |
|
|
183,919 |
|
32,275 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
(12,553) |
|
(13,492) |
|
(16,134) |
|
|
(41,180) |
|
(49,683) |
|
|
|
Interest income |
337 |
|
567 |
|
138 |
|
|
1,160 |
|
724 |
|
|
|
Realized and unrealized (loss) gain
on derivative instruments
(5)
|
(414) |
|
(589) |
|
1,453 |
|
|
(1,830) |
|
(1,172) |
|
|
|
Equity income
(6)
|
46 |
|
3,188 |
|
68 |
|
|
5,174 |
|
652 |
|
|
|
Other (expense) income |
(470) |
|
940 |
|
933 |
|
|
1,613 |
|
1,182 |
|
|
|
Net (loss) income before income tax |
(42,247) |
|
83,600 |
|
(18,415) |
|
|
148,856 |
|
(16,022) |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) recovery
(7)
|
(2,187) |
|
14,598 |
|
(1,435) |
|
|
11,747 |
|
(5,688) |
|
|
|
Net (loss) income |
(44,434) |
|
98,198 |
|
(19,850) |
|
|
160,603 |
|
(21,710) |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per share attributable |
|
|
|
|
|
|
|
|
|
to shareholders of Teekay Tankers |
|
|
|
|
|
|
|
|
|
- Basic
(8)
|
(1.32) |
|
2.91 |
|
(0.59) |
|
|
4.76 |
|
(0.65) |
|
|
|
|
- Diluted
(8)
|
(1.32) |
|
2.89 |
|
(0.59) |
|
|
4.73 |
|
(0.65) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of total common |
|
|
|
|
|
|
|
|
shares outstanding |
|
|
|
|
|
|
|
|
|
- Basic
(8)
|
33,738,143 |
|
33,727,978 |
|
33,623,608 |
|
|
33,712,124 |
|
33,610,936 |
|
|
|
|
- Diluted
(8)
|
33,738,143 |
|
33,978,730 |
|
33,623,608 |
|
|
33,942,191 |
|
33,610,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of outstanding shares of common stock at the end of the
period
(8)
|
33,738,143 |
|
33,738,143 |
|
33,623,608 |
|
|
33,738,143 |
|
33,623,608 |
|
|
(1)Voyage
expenses incurred that are recoverable from the Company's customers
in connection with its voyage charter contracts are reflected in
voyage charter revenues and voyage expenses. The Company recast the
results for the three and nine months ended September 2019 to be
consistent with the presentation in the 2019 20-F and this report
for the three and nine months ended September 30, 2020. This had
the impact of increasing both voyage charter revenues and voyage
expenses by $5.1 million and $15.5 million, respectively, for the
three and nine months ended September 30, 2019.
(2)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 $10.8 million, $12.7 million and $9.0 million for
the three months ended September 30, 2020, June 30, 2020 and
September 30, 2019, respectively, and $42.2 million and $39.9
million for the nine months ended September 30, 2020 and September
30, 2019, respectively.
(3)Other
revenues include lightering support and liquefied natural gas
services revenue, revenue earned from the Company's
responsibilities in employing the vessels subject to the RSAs, and
bunker commissions earned. In April 2020, the Company sold a
portion of its oil and gas ship-to-ship transfer support business,
including its gas terminal management services.
(4)(Write-down)
and (loss) gain on sale of assets for the three and nine months
ended September 30, 2020 includes a write-down of $45.0 million
relating to five Aframax tankers and the Company's operating lease
right-of-use assets, which were written-down to their estimated
fair values. (Write-down) and (loss) gain on sale of assets for the
nine months ended September 30, 2020 also includes a loss on sale
of $2.6 million relating to three Suezmax tankers which were sold
in the first quarter of 2020 and a write-down of $0.7 million
relating to the Company's operating lease right-of-use assets in
the second quarter of 2020, partially offset by a gain on sale of
$3.1 million relating to the completion of the sale of the non-US
portion of the Company's ship-to-ship support services business, as
well as the Company's LNG terminal management business in the
second quarter of 2020.
(5)Includes
realized gains on interest rate swaps of nil, $0.1 million and $0.6
million for the three months ended September 30, 2020, June 30,
2020 and September 30, 2019, respectively, and realized gains of
$0.6 million and $2.4 million for the nine months ended September
30, 2020 and September 30, 2019, respectively. The Company also
recognized realized losses of $0.2 million, $0.2 million and
realized gains of $0.4 million for the three months ended September
30, 2020, June 30, 2020 and September 30, 2019, respectively, and
realized losses of $0.4 million and realized gains of $0.4 million
for the nine months ended September 30, 2020 and September 30,
2019, respectively, relating to its forward freight
agreements.
(6)Equity
income relates to the Company’s 50 percent interest in the High-Q
Investment Ltd. (High-Q)
joint venture, which owns one VLCC tanker.
(7)Income
tax recovery for the three months ended June 30, 2020 includes a
reduction in freight tax accruals of $15.2 million related to
periods prior to 2020.
(8)The
number of shares and per share amounts, including comparative
figures, have been adjusted to reflect the changes resulting from
the one-for-eight reverse stock split which took effect on November
25, 2019.
Teekay Tankers Ltd.
Summary Consolidated Balance Sheets
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
As at |
As at |
|
|
September 30, |
June 30, |
December 31, |
|
|
2020 |
2020 |
2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
120,872 |
|
|
167,907 |
|
|
88,824 |
|
|
|
Restricted cash |
4,686 |
|
|
4,766 |
|
|
3,071 |
|
|
|
Accounts receivable |
46,247 |
|
|
88,663 |
|
|
95,648 |
|
|
|
Bunker and lube oil inventory |
33,444 |
|
|
30,885 |
|
|
49,790 |
|
|
|
Prepaid expenses |
13,561 |
|
|
12,103 |
|
|
10,288 |
|
|
|
Due from affiliates |
3,323 |
|
|
2,440 |
|
|
697 |
|
|
|
Current portion of derivative assets |
— |
|
|
— |
|
|
577 |
|
|
|
Assets held for sale
(1)
|
— |
|
|
— |
|
|
65,458 |
|
|
|
Accrued revenue |
29,410 |
|
|
42,153 |
|
|
106,872 |
|
|
|
Total current assets
|
251,543 |
|
|
348,917 |
|
|
421,225 |
|
|
|
Restricted cash – long-term |
3,437 |
|
|
3,437 |
|
|
3,437 |
|
|
|
Vessels and equipment – net |
1,131,742 |
|
|
1,161,097 |
|
|
1,223,085 |
|
|
|
Vessels related to finance leases – net |
484,776 |
|
|
511,879 |
|
|
527,081 |
|
|
|
Operating lease right-of-use assets |
6,148 |
|
|
10,758 |
|
|
19,560 |
|
|
|
Investment in and advances to equity-accounted joint
venture |
28,635 |
|
|
29,740 |
|
|
28,112 |
|
|
|
Derivative assets |
— |
|
|
— |
|
|
82 |
|
|
|
Other non-current assets |
1,175 |
|
|
1,453 |
|
|
1,923 |
|
|
|
Intangible assets – net |
2,122 |
|
|
2,259 |
|
|
2,545 |
|
|
|
Goodwill |
2,426 |
|
|
2,426 |
|
|
2,426 |
|
|
|
Total assets |
1,912,004 |
|
|
2,071,966 |
|
|
2,229,476 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
83,272 |
|
|
100,012 |
|
|
130,713 |
|
|
|
Short-term debt |
20,000 |
|
|
10,000 |
|
|
50,000 |
|
|
|
Current portion of long-term debt |
10,962 |
|
|
27,549 |
|
|
43,573 |
|
|
|
Current portion of derivative liabilities |
755 |
|
|
414 |
|
|
86 |
|
|
|
Current obligations related to finance leases |
26,794 |
|
|
26,281 |
|
|
25,357 |
|
|
|
Current portion of operating lease liabilities |
7,602 |
|
|
10,986 |
|
|
16,290 |
|
|
|
Liabilities associated with assets held for sale
(1)
|
— |
|
|
— |
|
|
2,980 |
|
|
|
Due to affiliates |
2,932 |
|
|
2,091 |
|
|
2,139 |
|
|
|
Other current liabilities |
3,696 |
|
|
8,485 |
|
|
8,567 |
|
|
|
Total current liabilities
|
156,013 |
|
|
185,818 |
|
|
279,705 |
|
|
|
Long-term debt |
204,103 |
|
|
285,389 |
|
|
516,106 |
|
|
|
Long-term obligations related to finance leases |
369,278 |
|
|
376,238 |
|
|
389,431 |
|
|
|
Long-term operating lease liabilities |
421 |
|
|
417 |
|
|
3,270 |
|
|
|
Other long-term liabilities |
29,683 |
|
|
27,516 |
|
|
51,044 |
|
|
|
Derivative liabilities |
717 |
|
|
789 |
|
|
— |
|
|
|
Equity |
1,151,789 |
|
|
1,195,799 |
|
|
989,920 |
|
|
|
Total liabilities and equity |
1,912,004 |
|
|
2,071,966 |
|
|
2,229,476 |
|
|
|
|
|
|
|
|
|
|
|
Net debt
(2)
|
502,142 |
|
|
549,347 |
|
|
929,135 |
|
|
(1)On
April 30, 2020, the Company finalized the sale of a portion of its
oil and gas ship-to-ship transfer support business, which also
provides gas terminal management services, for $27.1 million. The
sale of a portion of the ship-to-ship support services business and
gas terminal management business, including cash, cash equivalents
and restricted cash of $1.5 million, was classified as held for
sale as at December 31, 2019. Also included in assets held for sale
at December 31, 2019 were two Suezmax vessels.
(2)Net
debt is a non-GAAP financial measure and represents short-term,
current and long-term debt and current and long-term obligations
related to finance leases less cash and cash equivalents and
restricted cash.
Teekay Tankers Ltd.
Summary Consolidated Statements of Cash Flows
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
September 30, |
|
|
|
2020 |
2019 |
|
|
|
(unaudited) |
(unaudited) |
|
Cash, cash equivalents and restricted cash provided by (used
for) |
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
Net income (loss) |
160,603 |
|
|
(21,710) |
|
|
|
Non-cash items: |
|
|
|
|
|
Depreciation and amortization |
89,170 |
|
|
92,059 |
|
|
|
Write-down and loss on sale of assets |
45,164 |
|
|
— |
|
|
|
Unrealized loss on derivative instruments |
1,948 |
|
|
3,960 |
|
|
|
Equity income |
(5,174) |
|
|
(652) |
|
|
|
Income tax (recovery) expense |
(10,951) |
|
|
4,181 |
|
|
|
Other |
3,827 |
|
|
3,690 |
|
|
|
Change in operating assets and liabilities |
72,629 |
|
|
18,685 |
|
|
|
Expenditures for dry docking |
(9,405) |
|
|
(37,430) |
|
|
|
Net operating cash flow |
347,811 |
|
|
62,783 |
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
Proceeds from short-term debt |
235,000 |
|
|
125,000 |
|
|
|
Proceeds from long-term debt, net of issuance costs |
544,872 |
|
|
56,788 |
|
|
|
Scheduled repayments of long-term debt |
(10,366) |
|
|
(76,216) |
|
|
|
Prepayments of long-term debt |
(882,495) |
|
|
(109,688) |
|
|
|
Prepayments of short-term debt |
(265,000) |
|
|
(75,000) |
|
|
|
Proceeds from financing related to sales and leaseback of
vessels |
— |
|
|
63,720 |
|
|
|
Scheduled repayments of obligations related to finance
leases |
(18,716) |
|
|
(18,075) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
(562) |
|
|
(126) |
|
|
|
Net financing cash flow |
(397,267) |
|
|
(33,597) |
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
Proceeds from sale of assets |
85,892 |
|
|
— |
|
|
|
Expenditures for vessels and equipment |
(8,881) |
|
|
(7,210) |
|
|
|
Loan repayments from equity-accounted joint venture |
4,650 |
|
|
— |
|
|
|
Net investing cash flow |
81,661 |
|
|
(7,210) |
|
|
|
|
|
|
|
|
|
Increase in cash, cash equivalents and restricted cash |
32,205 |
|
|
21,976 |
|
|
|
Cash, cash equivalents and restricted cash, beginning of the
period |
96,790 |
|
|
60,507 |
|
|
|
Cash, cash equivalents and restricted cash, end of the
period |
128,995 |
|
|
82,483 |
|
|
Teekay Tankers Ltd.
Appendix A - Reconciliation of Non-GAAP Financial
Measures
Adjusted Net Income (Loss)
(in thousands of U.S. dollars, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
September 30, 2020 |
June 30, 2020 |
September 30, 2019 |
|
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
$ |
$ Per Share(1)
|
$ |
$ Per Share(1)
|
$ |
$ Per Share(1)
|
|
Net (loss) income - GAAP basis |
(44,434) |
|
|
($1.32) |
|
|
98,198 |
|
|
$2.91 |
|
|
(19,850) |
|
|
($0.59) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract) specific items affecting net loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-down and (gain) on sale of assets |
44,973 |
|
|
$1.33 |
|
|
(2,896) |
|
|
($0.09) |
|
|
— |
|
|
— |
|
|
|
|
Unrealized loss (gain) on derivative instruments
(2)
|
172 |
|
|
$0.01 |
|
|
475 |
|
|
$0.02 |
|
|
(405) |
|
|
($0.01) |
|
|
|
|
Other
(3)
|
2,421 |
|
|
$0.07 |
|
|
(15,077) |
|
|
($0.45) |
|
|
(918) |
|
|
($0.03) |
|
|
|
Total adjustments |
47,566 |
|
|
$1.41 |
|
|
(17,498) |
|
|
($0.52) |
|
|
(1,323) |
|
|
($0.04) |
|
|
|
Adjusted net income (loss) attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders of Teekay Tankers |
3,132 |
|
|
$0.09 |
|
|
80,700 |
|
|
$2.39 |
|
|
(21,173) |
|
|
($0.63) |
|
|
(1)Basic
per share amounts.
(2)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.
(3)The
amount recorded for the three months ended September 30, 2020
primarily relates to restructuring charges, unrealized foreign
exchange losses and debt issuance costs which were written off in
connection with the refinancing of one of the Company's debt
facilities in August 2020. The amount recorded for the three months
ended June 30, 2020 primarily relates to a reduction to freight tax
accruals of prior years and unrealized foreign exchange losses. The
amount recorded for the three months ended September 30, 2019
primarily relates to unrealized foreign exchange
gains.
Teekay Tankers Ltd.
Appendix B - Reconciliation of Non-GAAP Financial
Measures
Free Cash Flow
(in thousands of U.S. dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
September 30, 2020 |
June 30, 2020 |
September 30, 2019 |
|
|
|
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
Net (loss) income - GAAP basis |
(44,434) |
|
98,198 |
|
(19,850) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
29,992 |
|
29,546 |
|
31,536 |
|
|
|
|
|
|
|
|
Proportionate share of free cash flow from
equity-accounted joint venture |
521 |
|
3,664 |
|
522 |
|
|
|
|
|
|
|
|
Unrealized loss on derivative instruments |
172 |
|
475 |
|
— |
|
|
|
|
|
|
|
|
Write-down of assets |
44,973 |
|
185 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity income
(1)
|
(46) |
|
(3,188) |
|
(68) |
|
|
|
|
|
|
|
|
Unrealized gain on derivative instruments |
— |
|
— |
|
(405) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
— |
|
(3,081) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow |
31,178 |
|
125,799 |
|
11,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares
outstanding for the period - basic |
33,738,143 |
|
33,727,978 |
|
33,623,608 |
|
|
|
|
|
(1)Equity
income relates to the Company’s 50 percent ownership interest in
the High-Q joint venture, which owns one VLCC tanker.
Teekay Tankers Ltd.
Appendix C - Reconciliation of Non-GAAP Financial
Measures
Total Adjusted EBITDA
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
September 30, 2020 |
June 30,
2020 |
September 30, 2019 |
|
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
Net (loss) income - GAAP basis |
(44,434) |
|
98,198 |
|
(19,850) |
|
|
|
|
Depreciation and amortization |
29,992 |
|
29,546 |
|
31,536 |
|
|
|
|
Interest expense, net of interest income |
12,216 |
|
12,925 |
|
15,996 |
|
|
|
|
Income tax expense (recovery) |
2,187 |
|
(14,598) |
|
1,435 |
|
|
|
|
EBITDA |
(39) |
|
126,071 |
|
29,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract) specific income statement items affecting
EBITDA: |
|
|
|
|
|
|
|
|
|
Foreign exchange loss (gain) |
514 |
|
87 |
|
(918) |
|
|
|
|
Write-down and (gain) on sale of assets |
44,973 |
|
(2,896) |
|
— |
|
|
|
|
Realized loss (gain) on interest rate swaps |
58 |
|
(86) |
|
(613) |
|
|
|
|
Unrealized loss (gain) on derivative instruments |
172 |
|
475 |
|
(405) |
|
|
|
|
Equity income |
(46) |
|
(3,188) |
|
(68) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated adjusted EBITDA |
45,632 |
|
120,463 |
|
27,113 |
|
|
|
|
Adjusted EBITDA from equity-accounted joint venture
(See
Appendix D)
|
616 |
|
3,778 |
|
724 |
|
|
|
|
Total Adjusted EBITDA |
46,248 |
|
124,241 |
|
27,837 |
|
|
|
Teekay Tankers Ltd.
Appendix D - Reconciliation of Non-GAAP Financial
Measures
Adjusted EBITDA from Equity-Accounted Joint Venture
(in thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
September 30, 2020 |
June 30, 2020 |
September 30, 2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
At |
Company's |
At |
Company's |
At |
Company's |
|
|
100% |
Portion
(1)
|
100% |
Portion
(1)
|
100% |
Portion
(1)
|
|
Revenues |
1,986 |
993 |
8,113 |
4,056 |
2,022 |
1,011 |
|
Vessel and other operating expenses |
(753) |
(376) |
(557) |
(278) |
(575) |
(287) |
|
Depreciation and amortization |
(951) |
(476) |
(952) |
(476) |
(908) |
(454) |
|
|
|
|
|
|
|
Income from vessel operations of equity-accounted
joint venture |
282 |
141 |
6,604 |
3,302 |
539 |
270 |
|
|
|
|
|
|
|
|
|
Net interest expense |
(190) |
(94) |
(228) |
(114) |
(403) |
(202) |
|
|
|
|
|
|
|
|
Other |
(1) |
(1) |
— |
— |
— |
— |
|
Equity income of equity-accounted joint venture |
91 |
46 |
6,376 |
3,188 |
136 |
68 |
|
|
|
|
|
|
|
|
|
Equity income of equity-accounted joint venture |
91 |
46 |
6,376 |
3,188 |
136 |
68 |
|
Depreciation and amortization |
951 |
476 |
952 |
476 |
908 |
454 |
|
Interest expense, net of interest income |
190 |
94 |
228 |
114 |
403 |
202 |
|
|
|
|
|
|
|
|
EBITDA from equity-accounted joint venture |
1,232 |
616 |
7,556 |
3,778 |
1,447 |
724 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA from equity-accounted joint venture |
1,232 |
616 |
7,556 |
3,778 |
1,447 |
724 |
(1) The Company’s proportionate share of its equity-accounted joint
venture is 50 percent.
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 and the volatility of such markets; forecasts of
worldwide tanker fleet growth or contraction and newbuilding tanker
deliveries and vessel scrapping; estimated growth in global oil
demand and supply and the timing thereof; future tanker rates,
including the impact of seasonal conditions on spot tanker rates;
future OPEC+ oil production increases; the impact of the COVID-19
outbreak and related developments on the Company's business and
tanker and oil market fundamentals; the Company's liquidity and
market position; the Company’s strategic priorities and anticipated
delevering of the Company's balance sheet and reduction in its cost
of capital; and the Company’s ability to deal with potential market
volatility and create shareholder value. 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 tanker rates; changes in the production of,
or demand for, oil or refined products; changes in trading patterns
significantly affecting overall vessel tonnage requirements; OPEC+
and non-OPEC production and supply levels; the duration and extent
of the COVID-19 outbreak and any resulting effects on the markets
in which the Company operates; the impact of the COVID-19 outbreak
on the Company’s ability to maintain safe and efficient operations;
the impact of geopolitical tensions 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 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 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 2030; 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, 2019. 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.
Teekay Tankers (NYSE:TNK)
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