Teekay Tankers Ltd. (NYSE:TNK) Q1 2020 Earnings Conference Call - Final Transcript

May 21, 2020 • 12:00 pm ET


Teekay Tankers Ltd. (NYSE:TNK) Q1 2020 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good day, everyone. Welcome to today's Teekay Tankers Limited First Quarter 2020 Earnings Results Conference. During the call, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded.

At this time, I'd like to turn things over to the company.

Ryan Hamilton

Before Kevin begins, I'd like to direct all participants to our website at www.teekaytankers.com, where you'll find a copy of the first quarter of 2020 earnings presentation. Kevin and Stewart will review this presentation during today's conference call. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the first quarter 2020 earnings release and earnings presentation available on our website.

I will now turn the call over to Kevin Mackay, Teekay Tankers' President and CEO to begin.

Kevin Mackay

Thank you, Ryan. Hello, everyone. Thank you very much for joining us today for Teekay Tankers' first quarter of 2020 earnings conference call. And I hope that you and your families are all safe and healthy.

Joining me on the call today are Stewart Andrade, Teekay Tankers' CFO and Christian Waldegrave, Director of Research for Teekay Tankers. Before we review our results, I would like to say thank you to all of our seafarers and shore-based staff for their extraordinary efforts in continuing to bring energy to the world with Teekay spirit. While COVID-19 is having an unprecedented impact on the world and is clearly a major focus for us, we are truly proud of how our seafarers and onshore colleagues have responded to COVID-19, implementing new standards, which focus on the health and well-being of everyone involved in our organization, especially our colleagues at sea, while maintaining consistently safe and efficient operations for our customers. Additionally, we are fortunate that the tanker market and our financial results have been strong so far in 2020, and we have had minimal impact on our operations related to COVID-19.

Moving to our recent highlights on Slide 3 of the presentation, Teekay Tankers generated total adjusted EBITDA of approximately $155 million during the first quarter, an increase of 17% and 145% from the fourth quarter of 2019 and the first quarter of 2019, respectively. We reported adjusted net income of $110 million or $3.27 per share in the first quarter, up from an adjusted net income of $83 million or $2.47 per share in the fourth quarter of 2019 and $15 million or $0.44 per share in the first quarter of 2019. Teekay Tankers' first quarter earnings per share was the highest in more than 10 years, resulting in an industry-leading 20% earnings per share yield for the quarter based on our closing share price yesterday at an annualized EPS yield of 80%, clearly demonstrating the earnings power of our business.