Welcome!

News Feed Item

Teekay Tankers 2017 Annual General Meeting Presentation

HAMILTON, BERMUDA -- (Marketwired) -- 06/19/17 -- Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE:TNK) presented at its 2017 Annual General Meeting on Thursday, June 15, 2017. Below is a detailed speech from Kenneth Hvid, a Director of Teekay Tankers and Teekay Corporation's President and Chief Executive Officer:

"Good morning, ladies and gentlemen. Thank you for attending our June 2017 Annual General Meeting. It is my pleasure to report to you at this Annual General Meeting as a Director for Teekay Tankers. I will spend some time today reviewing our key developments since our last Annual General Meeting in June 2016. For further information, I refer you to our website at www.teekaytankers.com where you will be able to download our 20-F filing for the year ended December 31, 2016 filed with the United States Securities and Exchange Commission.

Before I begin, I must include the usual and important disclaimers about forward looking statements that are mandated by U.S. Securities lawsi.

In 2016, Teekay Tankers reported GAAP net income and adjusted net incomeii of $62.9 million and $81.2 million, respectively, and generated significant free cash flowiii of $186.7 million, which, together with the sale of some older tonnage, has allowed Teekay Tankers to further strengthen its balance sheet.

Tanker rates in 2016 softened from the highs seen in 2015, yet remained in-line with the ten-year average as a result of positive demand fundamentals. The tanker market experienced downward pressure during the first half of 2017 due to heavy refinery maintenance, OPEC supply cuts and higher tanker fleet growth. On the oil supply side, U.S. crude exports have increased significantly in 2017 and have been increasingly moving to Asian and European buyers, which is supportive of mid-size tanker demand in the form of reverse lightering and cross-Atlantic trade into Europe. Teekay Tankers is well- positioned to benefit from this export growth through the build-up of our Aframax presence in the U.S. Gulf. In anticipation of the headwinds in the tanker market in 2017, Teekay Tankers increased its fixed-rate charter cover to approximately 40 percent, from approximately 15 percent a year ago through fixed-rate term charters and ship-to-ship transfer contracts. This contract coverage has provided stable cash flows in the weaker first half of 2017. We believe we are nearing the bottom of the current tanker market cycle with more positive fleet fundamentals ahead, including limited ordering in the mid-sized tanker segments and an anticipated increase in scrapping due to regulatory changes, as well as robust global oil demand growth and a more balanced oil market, which we expect will help drive a tanker market recovery in 2018.

Teekay Tankers continues to focus on building upon its core segments, strengthening its financial foundation, and consolidating its operations in order to generate the greatest value for our shareholders. Teekay Tankers recently announced that it has entered into a definitive agreement to merge with Tanker Investments Ltd (TIL)(1), which owns 18 modern mid-size conventional tankers, creating a combined fleet of 62 vessels. This merger is expected to be accretive to earnings per share, reduce the Company's average overall fleet age by approximately one year and reduce our overall cash break-even. This transaction will establish Teekay Tankers as the largest publicly-listed mid-sized tanker company, allowing us to better service our customers on a global basis. The anticipated merger is also expected to further decrease financial leverage, and increase pro-forma liquidity by approximately $117 million(2) to over $200 million. With a more robust balance sheet, lower leverage, and increased liquidity, Teekay Tankers will be better positioned to take advantage of opportunities in the future.

Teekay Tankers also acquired the remaining 50 percent interest in Teekay Corporation's commercial and technical management operations, which consolidates all commercial and technical management operations under Teekay Tankers and completes our evolution into a fully-integrated conventional tanker platform. The consolidation of the Teekay brand through this acquisition and the merger with TIL will allow us to provide our customers a seamless integrated offering, resulting in a higher quality of service.

Along with the support of our sponsor, Teekay Corporation, we continue to strive for operational excellence, which has always been one of Teekay's strengths. Our global teams onboard ships and ashore, devote enormous effort towards upholding the Teekay name as a respected symbol of quality and as a protector of the environment. We set ourselves high standards for personnel safety, fleet availability and customer service. However, we recognize that there will always be room to do better and we live by our core value of continuous improvement.

In closing, since our last Annual General Meeting, we have continued to build on our core segments, strengthened our financial foundation and evolved into a fully-integrated conventional tanker platform. We are very excited about the announcement of the TIL merger and believe that this will firmly establish Teekay Tankers as the leading company in the mid-sized tanker segment. With our scale, integrated global customer offering, and industry leading operational excellence, Teekay Tankers continues to execute on its strategy and deliver long-term shareholder value.

I would like to thank our customers for the opportunity to serve them; our colleagues for their dedicated efforts; our Board of Directors for their valued guidance; and our fellow shareholders for their continued support."

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 statements regarding: crude oil and refined product tanker market fundamentals, including the balance of supply and demand in the tanker market, the amount of new orders for tankers, the estimated growth in the world tanker fleet, the amount of tanker scrapping, estimated growth in global oil demand and supply, and crude oil tanker demand; the expected benefits of the TIL merger, including the expected impact on Teekay Tankers' earnings per share, financial leverage, liquidity position, fleet age and future results; and the timing and completion of, and expected benefits of, the acquisition of Teekay Operations. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in the production of, or demand for, oil or refined products; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; changes in global oil prices; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; increased costs; failure to satisfy the closing conditions of the merger with TIL, including obtaining the required approvals from the Teekay Tankers and TIL shareholders and relevant regulatory authorities; failure to successfully integrate TIL into Teekay Tankers and realize the expected benefits and synergies from the combined company; and other factors discussed in Teekay Tankers' filings from time to time with the United States Securities and Exchange Commission, including its Report on Form 20-F for the fiscal year ended December 31, 2016. Teekay Tankers 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 Teekay Tankers' expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

i Before I proceed with my report to the shareholders, please allow me to remind you that various remarks that we may make in the course of this presentation about future expectations, plans and prospects for the Company and the shipping industry constitute forward-looking statements for the purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements, as a result of various important factors, including those discussed in our annual report on Form 20-F for the year ended December 31, 2016 and dated April 26, 2017, which is on file with the U.S. Securities and Exchange Commission.

ii Adjusted net income excludes from net income items of income that are typically excluded by securities analysts in their published estimates of Teekay Tankers' financial results. Please refer to Appendix A in Teekay Tankers' Fourth Quarter and Annual 2016 Earnings Release, which can be found on our website www.teekaytankers.com, for a reconciliation of this non-GAAP finance measure, as referenced above, to the most directly comparable financial measure under GAAP.

iii Free cash flow (FCF) represents net income, plus depreciation and amortization, unrealized losses from derivatives, certain non-cash items, FCF from the equity accounted investments, loss on sale of vessel, and any write-offs or other non-recurring items, less unrealized gains from derivatives, equity income from the equity accounted investments, gain on sale of vessel and certain other non-cash items. Please refer to Appendix B in Teekay Tankers' Fourth Quarter and Annual 2016 Earnings Release, which can be found on our website www.teekaytankers.com, for a reconciliation of this non-GAAP finance measure, as referenced above, to the most directly comparable financial measure under GAAP.

(1) Teekay Tankers merger with TIL remains subject to customary closing conditions, approval by TIL's shareholders of the merger, and approval by Teekay Tankers' shareholders of an increase in the authorized number of Teekay Tankers' Class A common shares, to permit the issuance of Class A common shares as merger consideration.

(2) Pro-forma March 31, 2017

Contacts:
Investor Relations Enquiries:
Ryan Hamilton
+1 (604) 844-6654
www.teekaytankers.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists discussed...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to ma...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...