We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Teekay Tankers Ltd | NYSE:TNK | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.53 | 0.91% | 58.66 | 58.99 | 57.59 | 58.13 | 198,665 | 21:00:04 |
|
|
PAGE
|
||
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
$
|
|
$
|
|
$
|
|
$
|
||||
REVENUES
|
|
|
||||||||||
Voyage charter revenues
(note 3)
|
|
186,805
|
|
|
144,328
|
|
|
403,222
|
|
|
279,970
|
|
Time-charter revenues
(note 3)
|
|
1,456
|
|
|
17,384
|
|
|
4,866
|
|
|
39,494
|
|
Other revenues
(notes 3 and 4)
|
|
14,016
|
|
|
9,947
|
|
|
26,690
|
|
|
20,660
|
|
Total revenues
|
|
202,277
|
|
|
171,659
|
|
|
434,778
|
|
|
340,124
|
|
|
|
|
|
|
|
|
|
|||||
Voyage expenses
(note 14e
)
|
|
(92,668
|
)
|
|
(86,933
|
)
|
|
(190,007
|
)
|
|
(166,926
|
)
|
Vessel operating expenses
(note 14b)
|
|
(53,600
|
)
|
|
(52,652
|
)
|
|
(108,187
|
)
|
|
(105,647
|
)
|
Time-charter hire expenses
(note 8)
|
|
(10,792
|
)
|
|
(5,697
|
)
|
|
(20,240
|
)
|
|
(10,380
|
)
|
Depreciation and amortization
|
|
(30,658
|
)
|
|
(29,573
|
)
|
|
(60,523
|
)
|
|
(59,003
|
)
|
General and administrative expenses
(note 14b)
|
|
(9,508
|
)
|
|
(9,407
|
)
|
|
(18,673
|
)
|
|
(19,192
|
)
|
Gain on sale of vessel
(note 16)
|
|
—
|
|
|
170
|
|
|
—
|
|
|
170
|
|
Restructuring charges
(note 18)
|
|
—
|
|
|
(982
|
)
|
|
—
|
|
|
(982
|
)
|
Income (loss) from operations
|
|
5,051
|
|
|
(13,415
|
)
|
|
37,148
|
|
|
(21,836
|
)
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
|
(16,607
|
)
|
|
(13,931
|
)
|
|
(33,549
|
)
|
|
(26,660
|
)
|
Interest income
|
|
221
|
|
|
160
|
|
|
586
|
|
|
318
|
|
Realized and unrealized (loss) gain on derivative instruments
(note 9)
|
|
(1,778
|
)
|
|
1,116
|
|
|
(2,625
|
)
|
|
4,129
|
|
Equity (loss) income
(note 5)
|
|
(169
|
)
|
|
(70
|
)
|
|
584
|
|
|
624
|
|
Freight tax and other tax
expenses
(note 11
)
|
|
(1,639
|
)
|
|
(6,086
|
)
|
|
(4,253
|
)
|
|
(7,964
|
)
|
Other income
(note 10)
|
|
614
|
|
|
4,813
|
|
|
249
|
|
|
4,823
|
|
Net loss
|
|
(14,307
|
)
|
|
(27,413
|
)
|
|
(1,860
|
)
|
|
(46,566
|
)
|
|
|
|
|
|
|
|
|
|
||||
Per common share amounts
(note 15)
|
|
|
|
|
|
|
|
|
||||
- Basic loss per share
|
|
(0.05
|
)
|
|
(0.10
|
)
|
|
—
|
|
|
(0.17
|
)
|
- Diluted loss per share
|
|
(0.05
|
)
|
|
(0.10
|
)
|
|
—
|
|
|
(0.17
|
)
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average number of Class A and Class B common stock outstanding (
note 15)
|
|
|
|
|
|
|
|
|
||||
- Basic and diluted
|
|
268,990,399
|
|
|
268,558,556
|
|
|
268,835,175
|
|
|
268,426,201
|
|
|
|
|
|
|
|
|
|
|
||||
Related party transactions
(note 14)
|
|
|
|
|
|
|
|
|
|
|
As at
|
|
As at
|
||
|
|
June 30,
2019
|
|
December 31, 2018
|
||
|
|
$
|
|
$
|
||
ASSETS
|
|
|
|
|
||
Current
|
|
|
|
|
||
Cash and cash equivalents
|
|
35,429
|
|
|
54,917
|
|
Restricted cash – current
(note 17)
|
|
1,916
|
|
|
2,153
|
|
Pool receivable from affiliates, net
(note 14d)
|
|
15,330
|
|
|
56,549
|
|
Accounts receivable, including affiliate balances of $1.7 million (2018 - $2.1 million)
(note 9)
|
|
51,451
|
|
|
17,365
|
|
Due from affiliates
(note 14c)
|
|
1,240
|
|
|
39,663
|
|
Current portion of derivative assets
(note 9)
|
|
1,229
|
|
|
2,905
|
|
Bunker and lube oil inventory
(note 1)
|
|
63,441
|
|
|
23,179
|
|
Prepaid expenses
|
|
10,146
|
|
|
10,917
|
|
Other current assets
|
|
48,296
|
|
|
17,943
|
|
Total current assets
|
|
228,478
|
|
|
225,591
|
|
Restricted cash – long-term
(note 17)
|
|
3,437
|
|
|
3,437
|
|
Vessels and equipment
|
|
|
|
|
||
At cost, less accumulated depreciation of $531.0 million (2018 - $494.4 million)
(note 6)
|
|
1,327,480
|
|
|
1,401,551
|
|
Vessels related to finance leases, at cost, less accumulated depreciation of $128.1 million (2018 - $111.3 million)
(note 8)
|
|
529,286
|
|
|
482,010
|
|
Operating lease right-of-use assets
(notes 2 and 8)
|
|
19,089
|
|
|
—
|
|
Total vessels and equipment
|
|
1,875,855
|
|
|
1,883,561
|
|
Investment in and advances to equity-accounted joint venture
(note 5)
|
|
26,351
|
|
|
25,766
|
|
Derivative asset
s (note 9
)
|
|
240
|
|
|
2,973
|
|
Other non-current assets
|
|
1,010
|
|
|
74
|
|
Intangible assets at cost, less accumulated amortization of $12.0 million (2018 - $10.9 million)
|
|
10,498
|
|
|
11,625
|
|
Goodwill
|
|
8,059
|
|
|
8,059
|
|
Total assets
|
|
2,153,928
|
|
|
2,161,086
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
||
Current
|
|
|
|
|
||
Accounts payable, including affiliate balances of $0.1 million (2018 - $0.6 million)
|
|
47,532
|
|
|
11,146
|
|
Accrued liabilities
(notes 9 and 14c)
|
|
56,448
|
|
|
40,856
|
|
Short-term debt
(note 7)
|
|
15,000
|
|
|
—
|
|
Due to affiliates
(note 14c)
|
|
12,320
|
|
|
18,570
|
|
Current portion of derivative liabilities
(note 9)
|
|
—
|
|
|
57
|
|
Current portion of long-term debt
(note 6)
|
|
101,264
|
|
|
106,236
|
|
Current obligations related to finance leases
(note 8)
|
|
24,397
|
|
|
20,896
|
|
Current portion of operating lease liabilities
(note 2 and 8)
|
|
12,224
|
|
|
—
|
|
Other current liabilities
|
|
316
|
|
|
—
|
|
Total current liabilities
|
|
269,501
|
|
|
197,761
|
|
Long-term debt
(note 6)
|
|
491,962
|
|
|
629,170
|
|
Long-term obligations related to finance leases
(note 8)
|
|
402,539
|
|
|
354,393
|
|
Long-term operating lease liabilities
(notes 2 and 8)
|
|
6,865
|
|
|
—
|
|
Other long-term liabilities
(note 11)
|
|
37,166
|
|
|
32,829
|
|
Total liabilities
|
|
1,208,033
|
|
|
1,214,153
|
|
Commitments and contingencies
(notes 5, 6, 7, 8 and 9)
|
|
|
|
|
||
Equity
|
|
|
|
|
||
Common stock and additional paid-in capital (585.0 million shares authorized, 232.0 million Class A and 37.0 million Class B shares issued and outstanding as of June 30, 2019 and 585.0 million shares authorized, 231.6 million Class A and 37.0 million Class B shares issued and outstanding as of December 31, 2018)
(note 13)
|
|
1,296,751
|
|
|
1,295,929
|
|
Accumulated deficit
|
|
(350,856
|
)
|
|
(348,996
|
)
|
Total equity
|
|
945,895
|
|
|
946,933
|
|
Total liabilities and equity
|
|
2,153,928
|
|
|
2,161,086
|
|
|
|
Six Months Ended June 30,
|
||||
|
|
2019
|
|
2018
|
||
|
|
$
|
|
$
|
||
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
(note 16
)
|
|
—
|
|
|
(170
|
)
|
Unrealized loss (gain) on derivative instruments
(note 9)
|
|
4,366
|
|
|
(3,283
|
)
|
Equity income
(note 5)
|
|
(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
(note 7)
|
|
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
(note 7)
|
|
(50,000
|
)
|
|
—
|
|
Proceeds from financing related to sales
and
leaseback of vessels
(note 8)
|
|
63,720
|
|
|
—
|
|
Scheduled repayments of obligations related to finance leases
(note 8)
|
|
(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
(note 16)
|
|
—
|
|
|
589
|
|
Expenditures for vessels and equipment
|
|
(6,545
|
)
|
|
(2,207
|
)
|
Return of capital from equity-accounted for 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
|
|
|
|
Common Stock and Additional
Paid-in Capital
|
|
|
|
|
|||||||||
|
|
Thousands
of Common
Shares
#
|
|
Class A Common Shares
$
|
|
Class B Common Shares
$
|
|
Accumulated
Deficit
$
|
|
Total
$
|
|||||
Balance as at December 31, 2018
|
|
268,559
|
|
|
1,207,397
|
|
|
88,532
|
|
|
(348,996
|
)
|
|
946,933
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,447
|
|
|
12,447
|
|
Equity-based compensation
(note 13)
|
|
432
|
|
|
668
|
|
|
—
|
|
|
—
|
|
|
668
|
|
Balance as at March 31, 2019
|
|
268,991
|
|
|
1,208,065
|
|
|
88,532
|
|
|
(336,549
|
)
|
|
960,048
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,307
|
)
|
|
(14,307
|
)
|
Equity-based compensation
(note 13)
|
|
—
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
154
|
|
Balance as at June 30, 2019
|
|
268,991
|
|
|
1,208,219
|
|
|
88,532
|
|
|
(350,856
|
)
|
|
945,895
|
|
|
|
Common Stock and Additional
Paid-in Capital
|
|
|
|
|
|||||||||
|
|
Thousands
of Common
Shares
#
|
|
Class A Common Shares
$
|
|
Class B Common Shares
$
|
|
Accumulated
Deficit
$
|
|
Total
$
|
|||||
Balance as at December 31, 2017
|
|
268,202
|
|
|
1,206,466
|
|
|
88,532
|
|
|
(288,397
|
)
|
|
1,006,601
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,153
|
)
|
|
(19,153
|
)
|
Dividends declared ($0.03 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,052
|
)
|
|
(8,052
|
)
|
Equity-based compensation
(note 13)
|
|
357
|
|
|
613
|
|
|
—
|
|
|
—
|
|
|
613
|
|
Other
|
|
—
|
|
|
(274
|
)
|
|
—
|
|
|
—
|
|
|
(274
|
)
|
Balance as at March 31, 2018
|
|
268,559
|
|
|
1,206,805
|
|
|
88,532
|
|
|
(315,602
|
)
|
|
979,735
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27,413
|
)
|
|
(27,413
|
)
|
Equity-based compensation
(note 13)
|
|
—
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
148
|
|
Balance as at June 30, 2018
|
|
268,559
|
|
|
1,206,953
|
|
|
88,532
|
|
|
(343,015
|
)
|
|
952,470
|
|
1.
|
Basis of Presentation
|
2.
|
Recent Accounting Pronouncement
|
•
|
Under ASU 2016-02, the Company recognizes an operating lease right-of-use asset and an operating lease liability on the balance sheet for these chartered-in vessels and office leases based on the present value of future minimum lease payments, whereas previously no right-of-use asset or lease liability was recognized. As a result, operating lease right-of-use assets and operating lease liabilities of $
11.0 million
were each recognized on January 1, 2019. The pattern of expense recognition of chartered-in vessels has remained unchanged, unless the right-of-use asset becomes impaired.
|
•
|
The adoption of ASU 2016-02 results in sale and leaseback transactions where the seller lessee has a fixed price repurchase option, or other situations where the leaseback would be classified as a finance lease, being accounted for as a failed sale of the vessel and a failed purchase of the vessel by the buyer lessor. Prior to the adoption of ASU 2016-02, such transactions were accounted for as a completed sale and a completed purchase. Consequently, for such transactions, the Company does not derecognize the vessel sold and continues to depreciate the vessel as if it was the legal owner. Proceeds received from the sale of the vessel are recognized as an obligation related to finance lease, and bareboat charter hire payments made by the Company to the lessor are allocated between interest expense and principal repayments on the obligation related to finance lease. The adoption of ASU 2016-02 has resulted in the sale and leaseback of the
Aspen Spirit
and
Cascade Spirit
during the second quarter of 2019 being accounted for as a failed sale and unlike the
14
sale-leaseback transactions entered into in prior years, the Company is not considered as holding a variable interest in the buyer lessor entity and, thus, does not consolidate the buyer lessor entities (see note 8).
|
3.
|
Revenue
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
$
|
|
$
|
|
$
|
|
$
|
||||
Voyage charter revenues
|
|
|
|
|
|
|
|
||||
Suezmax
|
84,471
|
|
|
80,721
|
|
|
183,449
|
|
|
153,504
|
|
Aframax
|
48,029
|
|
|
24,265
|
|
|
113,306
|
|
|
47,742
|
|
LR2
|
25,705
|
|
|
11,979
|
|
|
60,012
|
|
|
23,600
|
|
Full service lightering
|
28,600
|
|
|
27,363
|
|
|
46,455
|
|
|
55,124
|
|
Total
|
186,805
|
|
|
144,328
|
|
|
403,222
|
|
|
279,970
|
|
|
|
|
|
|
|
|
|
||||
Time-charter revenues
|
|
|
|
|
|
|
|
||||
Aframax
|
—
|
|
|
11,021
|
|
|
1,837
|
|
|
23,824
|
|
Suezmax
|
1,456
|
|
|
3,957
|
|
|
3,029
|
|
|
10,154
|
|
LR2
|
—
|
|
|
2,406
|
|
|
—
|
|
|
5,516
|
|
Total
|
1,456
|
|
|
17,384
|
|
|
4,866
|
|
|
39,494
|
|
|
|
|
|
|
|
|
|
||||
Other revenues
|
|
|
|
|
|
|
|
||||
Ship-to-ship support services
|
8,222
|
|
|
6,902
|
|
|
13,161
|
|
|
14,235
|
|
Commercial management
|
2,090
|
|
|
2,138
|
|
|
4,326
|
|
|
4,196
|
|
LNG terminal management, consultancy, procurement and other
|
3,704
|
|
|
907
|
|
|
9,203
|
|
|
2,229
|
|
Total
|
14,016
|
|
|
9,947
|
|
|
26,690
|
|
|
20,660
|
|
|
|
|
|
|
|
|
|
||||
Total revenues
|
202,277
|
|
|
171,659
|
|
|
434,778
|
|
|
340,124
|
|
4.
|
Segment Reporting
|
Three Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Conventional Tanker Segment
|
|
Ship-to-Ship
Transfer Segment
|
|
Inter-segment Adjustment
(1)
|
|
Total
|
||||||||
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
||||
Revenues
(2)
|
190,351
|
|
|
|
14,429
|
|
|
|
(2,503
|
)
|
|
|
202,277
|
|
|
Voyage expenses
|
(95,171
|
)
|
|
|
—
|
|
|
|
2,503
|
|
|
|
(92,668
|
)
|
|
Vessel operating expenses
|
(43,375
|
)
|
|
|
(10,225
|
)
|
|
|
—
|
|
|
|
(53,600
|
)
|
|
Time-charter hire expenses
|
(9,196
|
)
|
|
|
(1,596
|
)
|
|
|
—
|
|
|
|
(10,792
|
)
|
|
Depreciation and amortization
|
(29,762
|
)
|
|
|
(896
|
)
|
|
|
—
|
|
|
|
(30,658
|
)
|
|
General and administrative expenses
(3)
|
(8,729
|
)
|
|
|
(779
|
)
|
|
|
—
|
|
|
|
(9,508
|
)
|
|
Income from operations
|
4,118
|
|
|
|
933
|
|
|
|
—
|
|
|
|
5,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loss
|
(169
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(169
|
)
|
|
Three Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Conventional Tanker Segment
|
|
Ship-to-Ship Transfer Segment
|
|
Inter-segment Adjustment
(1)
|
|
Total
|
||||||||
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
||||
Revenues
(2)
|
163,849
|
|
|
|
11,210
|
|
|
|
(3,400
|
)
|
|
|
171,659
|
|
|
Voyage expenses
|
(90,333
|
)
|
|
|
—
|
|
|
|
3,400
|
|
|
|
(86,933
|
)
|
|
Vessel operating expenses
|
(44,738
|
)
|
|
|
(7,914
|
)
|
|
|
—
|
|
|
|
(52,652
|
)
|
|
Time-charter hire expenses
|
(4,113
|
)
|
|
|
(1,584
|
)
|
|
|
—
|
|
|
|
(5,697
|
)
|
|
Depreciation and amortization
|
(28,454
|
)
|
|
|
(1,119
|
)
|
|
|
—
|
|
|
|
(29,573
|
)
|
|
General and administrative expenses
(3)
|
(8,433
|
)
|
|
|
(974
|
)
|
|
|
—
|
|
|
|
(9,407
|
)
|
|
Gain on sale of vessel
|
—
|
|
|
|
170
|
|
|
|
—
|
|
|
|
170
|
|
|
Restructuring charges
|
(152
|
)
|
|
|
(830
|
)
|
|
|
—
|
|
|
|
(982
|
)
|
|
Loss from operations
|
(12,374
|
)
|
|
|
(1,041
|
)
|
|
|
—
|
|
|
|
(13,415
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity loss
|
(70
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(70
|
)
|
|
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Conventional Tanker Segment
|
|
Ship-to-Ship Transfer Segment
|
|
Inter-segment
Adjustment
(1)
|
|
Total
|
|
|||||||
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
||||
Revenues
(2)
|
412,414
|
|
|
|
27,736
|
|
|
|
(5,372
|
)
|
|
|
434,778
|
|
|
Voyage expenses
|
(195,379
|
)
|
|
|
—
|
|
|
|
5,372
|
|
|
|
(190,007
|
)
|
|
Vessel operating expenses
|
(87,722
|
)
|
|
|
(20,465
|
)
|
|
|
—
|
|
|
|
(108,187
|
)
|
|
Time-charter hire expenses
|
(17,166
|
)
|
|
|
(3,074
|
)
|
|
|
—
|
|
|
|
(20,240
|
)
|
|
Depreciation and amortization
|
(58,788
|
)
|
|
|
(1,735
|
)
|
|
|
—
|
|
|
|
(60,523
|
)
|
|
General and administrative expenses
(3)
|
(17,075
|
)
|
|
|
(1,598
|
)
|
|
|
—
|
|
|
|
(18,673
|
)
|
|
Income from operations
|
36,284
|
|
|
|
864
|
|
|
|
—
|
|
|
|
37,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity income
|
584
|
|
|
|
—
|
|
|
|
—
|
|
|
|
584
|
|
|
Six months ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Conventional Tanker Segment
|
|
Ship-to-Ship Transfer Segment
|
|
Inter-segment
Adjustment
(1)
|
|
Total
|
|
|||||||
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
||||
Revenues
(2)
|
323,660
|
|
|
|
23,042
|
|
|
|
(6,578
|
)
|
|
|
340,124
|
|
|
Voyage expenses
|
(173,504
|
)
|
|
|
—
|
|
|
|
6,578
|
|
|
|
(166,926
|
)
|
|
Vessel operating expenses
|
(88,454
|
)
|
|
|
(17,193
|
)
|
|
|
—
|
|
|
|
(105,647
|
)
|
|
Time-charter hire expenses
|
(7,391
|
)
|
|
|
(2,989
|
)
|
|
|
—
|
|
|
|
(10,380
|
)
|
|
Depreciation and amortization
|
(56,639
|
)
|
|
|
(2,364
|
)
|
|
|
—
|
|
|
|
(59,003
|
)
|
|
General and administrative expenses
(3)
|
(17,400
|
)
|
|
|
(1,792
|
)
|
|
|
—
|
|
|
|
(19,192
|
)
|
|
Gain on sale of vessel
|
—
|
|
|
|
170
|
|
|
|
—
|
|
|
|
170
|
|
|
Restructuring charges
|
(152
|
)
|
|
|
(830
|
)
|
|
|
—
|
|
|
|
(982
|
)
|
|
Loss from operations
|
(19,880
|
)
|
|
|
(1,956
|
)
|
|
|
—
|
|
|
|
(21,836
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity income
|
624
|
|
|
|
—
|
|
|
|
—
|
|
|
|
624
|
|
|
(1)
|
The ship-to-ship transfer segment provides lightering support services to the conventional tanker segment for full service lightering operations and the pricing for such services was based on actual costs incurred.
|
(2)
|
Revenues, net of the inter-segment adjustment, earned from the ship-to-ship transfer segment are reflected in Other Revenues in the Company's consolidated statements of loss.
|
(3)
|
Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources).
|
|
As at
|
|
As at
|
||
|
June 30, 2019
|
|
December 31, 2018
|
||
|
$
|
|
$
|
||
Conventional Tanker Segment
|
2,080,124
|
|
|
2,069,854
|
|
Ship-to-Ship Transfer Segment
|
38,375
|
|
|
36,315
|
|
Cash and cash equivalents
|
35,429
|
|
|
54,917
|
|
Consolidated total assets
|
2,153,928
|
|
|
2,161,086
|
|
|
|
As at June 30, 2019
|
|
As at December 31, 2018
|
||
|
|
$
|
|
$
|
||
High-Q Joint Venture
|
|
26,351
|
|
|
25,766
|
|
|
As at
|
|
As at
|
||
|
June 30, 2019
|
|
December 31, 2018
|
||
|
$
|
|
$
|
||
Revolving Credit Facilities due through 2022
|
323,929
|
|
|
417,997
|
|
Term Loans due through 2021
|
273,996
|
|
|
323,995
|
|
Total principal
|
597,925
|
|
|
741,992
|
|
Less: unamortized discount and debt issuance costs
|
(4,699
|
)
|
|
(6,586
|
)
|
Total debt
|
593,226
|
|
|
735,406
|
|
Less: current portion
|
(101,264
|
)
|
|
(106,236
|
)
|
Non-current portion of long-term debt
|
491,962
|
|
|
629,170
|
|
|
Lease
Commitment
|
|
Non-Lease Commitment
|
|
Total
Commitment
|
|||
|
$
|
|
$
|
|
$
|
|||
As at June 30, 2019
|
|
|
|
|
|
|||
Payments:
|
|
|
|
|
|
|||
July to December 2019
|
6,565
|
|
|
5,165
|
|
|
11,730
|
|
2020
|
12,701
|
|
|
9,976
|
|
|
22,677
|
|
2021
|
792
|
|
|
550
|
|
|
1,342
|
|
Total payments
|
20,058
|
|
|
15,691
|
|
|
35,749
|
|
Less: imputed interest
|
(969
|
)
|
|
|
|
|
||
Carrying value of operating lease liabilities
|
19,089
|
|
|
|
|
|
|
As at
|
|
As at
|
||
|
June 30, 2019
|
|
December 31, 2018
|
||
|
$
|
|
$
|
||
Total obligations related to finance leases
|
426,936
|
|
|
375,289
|
|
Less: current portion
|
(24,397
|
)
|
|
(20,896
|
)
|
Long-term obligations related to finance leases
|
402,539
|
|
|
354,393
|
|
Year
|
|
Commitment
|
||
Remainder of 2019
|
|
$
|
30,336
|
|
2020
|
|
$
|
56,364
|
|
2021
|
|
$
|
56,202
|
|
2022
|
|
$
|
56,193
|
|
2023
|
|
$
|
56,184
|
|
Thereafter
|
|
$
|
376,750
|
|
|
Interest Rate
|
|
Notional Amount
|
|
Fair Value / Carrying Amount of Asset
|
|
Remaining Term
|
|
Fixed Interest Rate
|
||||
|
Index
|
|
$
|
|
$
|
|
(years)
|
|
(%)
(1)
|
||||
LIBOR-Based Debt:
|
|
|
|
|
|
|
|
|
|
|
|
||
U.S. Dollar-denominated interest rate swaps
(2)
|
LIBOR
|
|
69,422
|
|
|
|
292
|
|
|
|
1.5
|
|
1.46
|
U.S. Dollar-denominated interest rate swaps
|
LIBOR
|
|
150,000
|
|
|
|
610
|
|
|
|
1.5
|
|
1.55
|
U.S. Dollar-denominated interest rate swaps
|
LIBOR
|
|
50,000
|
|
|
|
506
|
|
|
|
1.5
|
|
1.16
|
(1)
|
Excludes the margin the Company pays on its variable-rate debt, which, as of
June 30, 2019
, ranged from
0.30%
to
3.50%
.
|
(2)
|
Notional amount reduces quarterly.
|
|
Current portion of derivative assets
|
|
Derivative assets
|
|
Accounts receivable (Accrued liabilities)
|
|
Current portion of derivative liabilities
|
||||
|
$
|
|
$
|
|
$
|
|
$
|
||||
As at June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap agreements
|
1,168
|
|
|
240
|
|
|
487
|
|
|
—
|
|
Forward freight agreements
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,229
|
|
|
240
|
|
|
487
|
|
|
—
|
|
|
|
|
|
|
|
|
|
||||
As at December 31, 2018
|
|
|
|
|
|
|
|
||||
Interest rate swap agreements
|
2,905
|
|
|
2,973
|
|
|
422
|
|
|
—
|
|
Forward freight agreements
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(57
|
)
|
|
2,905
|
|
|
2,973
|
|
|
419
|
|
|
(57
|
)
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||
|
Realized gains (losses)
|
Unrealized (losses) gains
|
Total
|
|
Realized gains (losses)
|
Unrealized
gains
|
Total
|
||||||
|
$
|
$
|
$
|
|
$
|
$
|
$
|
||||||
Interest rate swap agreements
|
829
|
|
(2,699
|
)
|
(1,870
|
)
|
|
674
|
|
426
|
|
1,100
|
|
Forward freight agreements
|
(29
|
)
|
121
|
|
92
|
|
|
(18
|
)
|
34
|
|
16
|
|
|
800
|
|
(2,578
|
)
|
(1,778
|
)
|
|
656
|
|
460
|
|
1,116
|
|
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||
|
June 30, 2019
|
|
June 30, 2018
|
||||||||||
|
Realized gains (losses)
|
Unrealized (losses) gains
|
Total
|
|
Realized gains
(losses)
|
Unrealized gains
|
Total
|
||||||
|
$
|
$
|
$
|
|
$
|
$
|
$
|
||||||
Interest rate swap agreements
|
1,783
|
|
(4,470
|
)
|
(2,687
|
)
|
|
864
|
|
3,249
|
|
4,113
|
|
Forward freight agreements
|
(42
|
)
|
104
|
|
62
|
|
|
(18
|
)
|
34
|
|
16
|
|
|
1,741
|
|
(4,366
|
)
|
(2,625
|
)
|
|
846
|
|
3,283
|
|
4,129
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|||||||
|
2019
|
|
2018
|
|
2019
|
2018
|
||||
|
$
|
|
$
|
|
$
|
$
|
||||
Foreign exchange gain
|
595
|
|
|
4,794
|
|
|
182
|
|
4,774
|
|
Other income
|
19
|
|
|
19
|
|
|
67
|
|
49
|
|
Total
|
614
|
|
|
4,813
|
|
|
249
|
|
4,823
|
|
11.
|
Freight Tax and Other Tax Expenses
|
|
Six Months Ended June 30,
|
||||
|
2019
$ |
|
2018
$ |
||
Balance of unrecognized tax benefits as at January 1
|
32,059
|
|
|
26,054
|
|
Increases for positions related to the current year
|
1,686
|
|
|
1,467
|
|
Changes for positions taken in prior years
|
2,047
|
|
|
1,483
|
|
Decreases related to statute of limitations
|
—
|
|
|
(93
|
)
|
Balance of unrecognized tax benefits as at June 30
|
35,792
|
|
|
28,911
|
|
a.
|
Fair Value Measurements
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||
|
|
Fair
Value
Hierarchy
Level
|
|
Carrying
Amount
Asset /
(Liability)
$
|
|
Fair
Value
Asset /
(Liability)
$
|
|
Carrying
Amount
Asset /
(Liability)
$
|
|
Fair
Value
Asset /
(Liability)
$
|
||||
Recurring:
|
|
|
|
|
|
|
|
|
|
|
||||
Cash, cash equivalents and restricted cash
|
|
Level 1
|
|
40,782
|
|
|
40,782
|
|
|
60,507
|
|
|
60,507
|
|
Derivative instruments
(note 9)
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swap agreements
(1)
|
|
Level 2
|
|
1,408
|
|
|
1,408
|
|
|
5,878
|
|
|
5,878
|
|
Forward freight agreements
(1)
|
|
Level 2
|
|
61
|
|
|
61
|
|
|
(57
|
)
|
|
(57
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other:
|
|
|
|
|
|
|
|
|
|
|
||||
Short-term debt
|
|
Level 2
|
|
(15,000
|
)
|
|
(15,000
|
)
|
|
—
|
|
|
—
|
|
Advances to equity-accounted for joint venture
|
|
(2)
|
|
9,930
|
|
|
(2)
|
|
|
9,930
|
|
|
(2)
|
|
Long-term debt, including current portion
|
|
Level 2
|
|
(593,226
|
)
|
|
(585,052
|
)
|
|
(735,406
|
)
|
|
(723,031
|
)
|
Obligations related to finance leases, including current portion
|
|
Level 2
|
|
(426,936
|
)
|
|
(451,746
|
)
|
|
(375,289
|
)
|
|
(377,652
|
)
|
(1)
|
The fair value of the Company’s interest rate swap agreements and FFAs at
June 30, 2019
and
December 31, 2018
excludes accrued interest income and expenses which are recorded in accounts receivables and accrued liabilities, respectively, on the unaudited consolidated balance sheets.
|
(2)
|
The advances to its equity-accounted joint venture, together with the Company’s investment in the equity-accounted joint venture, form the net aggregate carrying value of the Company’s interests in the equity-accounted joint venture in these consolidated financial statements. The fair values of the individual components of such aggregate interests as at
June 30, 2019
and
December 31, 2018
were not determinable.
|
b.
|
Financing Receivables
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||
Class of Financing Receivable
|
Credit Quality Indicator
|
|
Grade
|
$
|
|
$
|
||
Advances to equity-accounted joint venture
|
Other internal metrics
|
|
Performing
|
9,930
|
|
|
9,930
|
|
Total
|
|
|
|
9,930
|
|
|
9,930
|
|
14.
|
Related Party Transactions
|
a.
|
The Company's operations are conducted in part by its subsidiaries, which receive services from Teekay's wholly-owned subsidiary, Teekay Shipping Ltd. (or
the Manager,
as successor by merger to Teekay Tankers Management Services Ltd.) and its affiliates. The Manager provides various services under a long-term management agreement (the
Management Agreement
). Commencing October 1, 2018, the Company elected to receive commercial and technical management services for its owned and leased vessels (other than certain former TIL vessels, which are managed by a third party) from its wholly-owned subsidiaries and no longer contracts these services from the Manager. Prior to this date, the Manager provided these services to the Company, which it did by subcontracting such services from the Company's subsidiary, Teekay Tanker Operations Ltd. (or
TTOL
) and its affiliates. Certain of the Company’s vessels participate in RSAs that are managed by the Company's subsidiaries, TTOL or Teekay Tankers Chartering Pte Ltd.
|
|
Three Months Ended
|
Six Months Ended
|
||||||
|
June 30, 2019
|
June 30, 2018
|
June 30, 2019
|
June 30, 2018
|
||||
|
$
|
$
|
$
|
$
|
||||
Vessel operating expenses - technical management fee
(i)
|
—
|
|
(2,800
|
)
|
—
|
|
(6,100
|
)
|
Strategic and administrative service fees
(ii)
|
(7,950
|
)
|
(8,633
|
)
|
(15,742
|
)
|
(17,329
|
)
|
Secondment fees
(iii)
|
(40
|
)
|
(142
|
)
|
(99
|
)
|
(359
|
)
|
LNG service revenues
(iv)
|
1,000
|
|
31
|
|
2,129
|
|
272
|
|
Technical management fee revenue
(v)
|
169
|
|
3,171
|
|
427
|
|
6,329
|
|
Service revenues
(vi)
|
67
|
|
254
|
|
217
|
|
415
|
|
(i)
|
The cost of ship management services provided by the Manager has been presented as vessel operating expenses on the Company's consolidated statements of loss.
|
(ii)
|
The Manager’s strategic and administrative service fees have been presented in general and administrative expenses, except for fees related to technical management services, which have been presented in vessel operating expenses, on the Company’s consolidated statements of loss. The Company’s executive officers are employees of Teekay or subsidiaries thereof, and their compensation (other than any awards under the Company’s long-term incentive plan described in note 13) is set and paid by Teekay or such other subsidiaries. The Company reimburses Teekay for time spent by its executive officers on the Company’s management matters through the strategic portion of the management fee.
|
(iii)
|
The Company pays secondment fees for services provided by some employees of Teekay. Secondment fees have been presented in general and administrative expenses, except for fees related to technical management services, which have been presented in vessel operating expenses on the Company's consolidated statements of loss.
|
(iv)
|
In November 2016, the Company's ship-to-ship transfer business signed an operational and maintenance subcontract with Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by TGP, for the Bahrain LNG Import Terminal. The terminal is owned by Bahrain LNG W.I.L., a joint venture for which Teekay LNG Operating L.L.C., an entity wholly-owned by TGP, has a
30%
interest. The sub-contract ended in April 2019.
|
(v)
|
The Company receives reimbursements from Teekay, which subcontracts technical management services from the Manager. These reimbursements have been presented in general and administrative expenses on the Company's consolidated statements of loss.
|
(vi)
|
The Company recorded revenue relating to TTOL's administration of certain RSAs and provision of certain commercial services to participants in the arrangements.
|
c.
|
The Manager and other subsidiaries of Teekay collect revenues and remit payments for expenses incurred by the Company’s vessels. Such amounts, which are presented on the Company’s consolidated balance sheets in "due from affiliates" or "due to affiliates," as applicable, are without interest or stated terms of repayment. In addition,
$7.8 million
and
$7.6 million
were payable as crewing and manning costs as at
June 30, 2019
and
December 31, 2018
, respectively, and such amounts are included in accrued liabilities in the consolidated balance sheets. These crewing and manning costs will be payable as
reimbursement to the Manager once they are paid by the Manager to the vessels' crew.
The amounts owing from the RSAs, which are reflected in the consolidated balance sheets as pool receivables from affiliates, are without interest and are repayable upon the terms contained within the applicable RSA. In addition, the Company had advanced $
nil
and
$34.9 million
as at
June 30, 2019
and
December 31, 2018
, respectively, to the RSAs for working capital purposes. These activities, which are reflected in the Company's consolidated balance sheets as due from affiliates, are without interest or stated terms of repayment.
|
d.
|
Pursuant to certain RSAs, TTOL provides certain commercial services to the RSA participants and administers the RSAs in exchange for a fee currently equal to
1.25%
of the gross revenues attributable to each RSA participant’s vessels and a fixed amount per vessel per day which ranges from
$275
to
$350
. Voyage revenues and voyage expenses of the Company’s vessels operating in these RSAs are pooled with the voyage revenues and voyage expenses of other RSA participants. The resulting net pool revenues, calculated on a time-charter equivalent basis, are allocated to the RSA participants according to an agreed formula. The pool receivables from affiliates as at
June 30, 2019
and
December 31, 2018
were
$15.3 million
and
$56.5 million
, respectively.
|
e.
|
Pursuant to a service agreement with the Teekay Aframax RSA, from time to time, the Company may hire vessels to perform full service lightering services. During the
three and six
months ended
June 30, 2019
, the Company recognized
$5.1 million
and
$7.4 million
(
June 30, 2018
-
$7.4 million
and
$15.8 million
), respectively, related to vessels that were chartered-in from the RSA to assist with full service lightering operations. These amounts have been presented in voyage expenses on the Company's consolidated statements of loss.
|
15.
|
Loss Per Share
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
||||
|
$
|
|
$
|
|
$
|
|
$
|
||||
Net loss
|
(14,307
|
)
|
|
(27,413
|
)
|
|
(1,860
|
)
|
|
(46,566
|
)
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares – basic
|
268,990,399
|
|
|
268,558,556
|
|
|
268,835,175
|
|
|
268,426,201
|
|
Dilutive effect of stock-based awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Weighted average number of common shares – diluted
|
268,990,399
|
|
|
268,558,556
|
|
|
268,835,175
|
|
|
268,426,201
|
|
|
|
|
|
|
|
|
|
||||
Loss per common share:
|
|
|
|
|
|
|
|
||||
– Basic
|
(0.05
|
)
|
|
(0.10
|
)
|
|
—
|
|
|
(0.17
|
)
|
– Diluted
|
(0.05
|
)
|
|
(0.10
|
)
|
|
—
|
|
|
(0.17
|
)
|
|
As at
|
|
As at
|
|
As at
|
|
As at
|
||||
|
June 30, 2019
|
|
December 31, 2018
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
$
|
|
$
|
|
$
|
|
$
|
||||
Cash and cash equivalents
|
35,429
|
|
|
54,917
|
|
|
48,457
|
|
|
71,439
|
|
Restricted cash – current
|
1,916
|
|
|
2,153
|
|
|
1,858
|
|
|
1,599
|
|
Restricted cash – long-term
|
3,437
|
|
|
3,437
|
|
|
2,672
|
|
|
2,672
|
|
|
40,782
|
|
|
60,507
|
|
|
52,987
|
|
|
75,710
|
|
|
|
|
|
|
For the six months ended
|
||||
|
|
|
|
|
June 30, 2019
|
|
June 30, 2018
|
||
|
|
|
|
|
$
|
|
$
|
||
Leased assets obtained in exchange for new operating lease liabilities
|
|
25,656
|
|
|
—
|
|
18.
|
Restructuring Charges
|
19.
|
Liquidity
|
|
Owned and Leased Vessels
|
Chartered-in Vessels
|
Total
|
|
Fixed-rate:
|
|
|
|
|
Suezmax Tankers
|
1
|
—
|
1
|
|
Total Fixed-Rate Fleet
(1)
|
1
|
—
|
1
|
|
|
|
|
|
|
Spot-rate:
|
|
|
|
|
Suezmax Tankers
|
29
|
—
|
29
|
|
Aframax Tankers
(2)
|
17
|
3
|
20
|
|
LR2 Product Tankers
(2)(3)
|
9
|
2
|
11
|
|
VLCC Tanker
(4)
|
1
|
—
|
1
|
|
Total Spot Fleet
(5)
|
56
|
5
|
61
|
|
STS Support Vessels
|
3
|
3
|
6
|
|
Total Teekay Tankers Fleet
|
60
|
8
|
68
|
1.
|
Time charter-out contract is scheduled to expire in 2020.
|
2.
|
One Aframax tanker is currently time-chartered in for a period of 60 months expiring in 2021, two Aframax tankers are currently time-chartered in for periods of 12 months expiring in 2019, and two LR2 tankers are currently time-chartered in for periods of 24 months expiring in 2021, each with an option to extend for one year.
|
3.
|
Long Range 2 (or
LR2
) product tankers.
|
4.
|
VLCC owned through a 50/50 joint venture. As at
June 30, 2019
, the VLCC was trading on spot voyage charters in a pooling arrangement managed by a third party.
|
5.
|
As at
June 30, 2019
, a total of 52 of our owned, leased and chartered-in vessels operated in the spot market in revenue sharing arrangements (or
RSAs
), which are managed by our subsidiaries TTOL and Teekay Tankers Chartering Pte Ltd. As at
June 30, 2019
, the RSAs in which we participate were comprised of a total of 35 Aframax tankers, 33 Suezmax tankers and 11 LR2 product tankers (of which five LR2 tankers were cross-trading in the Aframax RSA), including vessels owned by other members of the RSAs.
|
•
|
an increase of $61.7 million due to higher overall average realized spot TCE rates earned by our Suezmax, Aframax and LR2 product tankers;
|
•
|
an increase of $8.1 million due to improved net results from our FSL and STS transfer businesses; and
|
•
|
an increase of $1.3 million due to the addition of two Aframax and two LR2 chartered-in tankers that were delivered to us in the fourth quarter of 2018 and first quarter of 2019;
|
•
|
a decrease of $10.7 million due a higher number of off-hire days and off-hire bunker expenses compared to the same period in the prior year; and
|
•
|
a decrease of $2.2 million due to the amortization of new dry dockings with higher costs and completing the first dry dockings for various former TIL vessels subsequent to our acquisition of TIL in late 2017.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|||||||||||||
(in thousands of U.S. dollars, except percentage changes)
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
|||||
Revenues
|
190,351
|
|
|
163,849
|
|
|
16.2
|
%
|
|
412,414
|
|
323,660
|
|
|
27.4
|
%
|
Less: Voyage expenses
(1)
|
(95,171
|
)
|
|
(90,333
|
)
|
|
5.4
|
%
|
|
(195,379)
|
|
(173,504
|
)
|
|
12.6
|
%
|
Net revenues
|
95,180
|
|
|
73,516
|
|
|
29.5
|
%
|
|
217,035
|
|
150,156
|
|
|
44.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vessel operating expenses
|
(43,375
|
)
|
|
(44,738
|
)
|
|
(3.0
|
)%
|
|
(87,722)
|
|
(88,454
|
)
|
|
(0.8
|
)%
|
Time-charter hire expenses
|
(9,196
|
)
|
|
(4,113
|
)
|
|
123.6
|
%
|
|
(17,166)
|
|
(7,391
|
)
|
|
132.3
|
%
|
Depreciation and amortization
|
(29,762
|
)
|
|
(28,454
|
)
|
|
4.6
|
%
|
|
(58,788)
|
|
(56,639
|
)
|
|
3.8
|
%
|
General and administrative expenses
|
(8,729
|
)
|
|
(8,433
|
)
|
|
3.5
|
%
|
|
(17,075)
|
|
(17,400
|
)
|
|
(1.9
|
)%
|
Restructuring charges
|
—
|
|
|
(152
|
)
|
|
(100.0
|
)%
|
|
—
|
|
(152
|
)
|
|
(100.0
|
)%
|
Income (loss) from operations
|
4,118
|
|
|
(12,374
|
)
|
|
133.3
|
%
|
|
36,284
|
|
(19,880
|
)
|
|
282.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity (loss) income
|
(169
|
)
|
|
(70
|
)
|
|
141.4
|
%
|
|
584
|
|
624
|
|
|
(6.4
|
)%
|
(1)
|
Includes
$2.5 million
and
$5.4 million
of voyage expenses for the
three and six
months ended
June 30, 2019
, respectively, and
$3.4 million
and
$6.6 million
of voyage expenses for the
three and six
months ended
June 30, 2018
, respectively, relating to lightering support services, which the STS transfer segment provided to the conventional tanker segment for FSL operations.
|
|
Conventional Tanker Segment
|
|||||||||||||||||
|
Three Months Ended June 30, 2019
|
|||||||||||||||||
|
Revenues
(1)(5)
|
Voyage Expenses
(2)(5)
|
Adjustments
(3)
|
TCE Revenues
|
Revenue Days
|
Average TCE per Revenue Day
(3)
|
||||||||||||
|
(in thousands)
|
(in thousands)
|
(in thousands)
|
(in thousands)
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Voyage-charter contracts - Suezmax
|
|
$84,472
|
|
|
($43,705
|
)
|
|
$984
|
|
|
$41,751
|
|
2,418
|
|
|
$17,267
|
|
|
Voyage-charter contracts - Aframax
(4)(5)
|
|
$76,058
|
|
|
($41,180
|
)
|
|
$507
|
|
|
$35,385
|
|
1,763
|
|
|
$20,075
|
|
|
Voyage-charter contracts - LR2
(5)
|
|
$25,662
|
|
|
($12,593
|
)
|
|
$99
|
|
|
$13,168
|
|
840
|
|
|
$15,679
|
|
|
Time-charter out contracts - Suezmax
|
|
$1,455
|
|
|
($4
|
)
|
|
$122
|
|
|
$1,573
|
|
91
|
|
|
$17,281
|
|
|
Time-charter out contracts - Aframax
|
—
|
|
|
$137
|
|
|
($138
|
)
|
|
($1
|
)
|
—
|
|
—
|
|
|||
Total
|
|
$187,647
|
|
|
($97,345
|
)
|
|
$1,574
|
|
|
$91,876
|
|
5,112
|
|
|
$17,975
|
|
|
(1)
|
Includes $4.1 million of revenue earned from the vessels that were chartered from the RSAs to perform FSL. Excludes $1.5 million of commissions and management fees earned for the management of external vessels trading in RSAs and $0.6 million of bunker commissions earned.
|
(2)
|
Includes $2.5 million of inter-segment voyage expenses relating to lightering support services provided by the STS transfer segment and $4.1 million of voyage expenses incurred by the vessels that were chartered from the RSAs to perform FSL.
|
(3)
|
Adjustments primarily include off-hire bunker expenses, which are excluded from Average TCE per revenue day.
|
(4)
|
Includes $28.6 million of revenues and $19.5 million of voyage expenses related to the FSL business, which includes $2.5 million of inter-segment voyage expenses referenced in note (2) above relating to the FSL business by the STS transfer segment.
|
(5)
|
Excludes $4.6 million of revenues and $1.9 million of voyage expenses related to the risk-sharing agreements that were entered during the first quarter of 2019 for two time charter-in contracts that were entered during late 2018. Please read "Significant Developments in 2019 - Time Chartered-In Vessels".
|
|
Conventional Tanker Segment
|
|||||||||||||||||
|
Three Months Ended June 30, 2018
|
|||||||||||||||||
|
Revenues
(1)
|
Voyage Expenses
(2)
|
Adjustments
(3)
|
TCE Revenues
|
Revenue Days
|
Average TCE per Revenue Day
(3)
|
||||||||||||
|
(in thousands)
|
(in thousands)
|
(in thousands)
|
(in thousands)
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Voyage-charter contracts - Suezmax
|
|
$80,800
|
|
|
($48,874
|
)
|
|
$146
|
|
|
$32,072
|
|
2,516
|
|
|
$12,745
|
|
|
Voyage-charter contracts - Aframax
(4)
|
|
$53,732
|
|
|
($37,667
|
)
|
|
$226
|
|
|
$16,291
|
|
1,345
|
|
|
$12,113
|
|
|
Voyage-charter contracts - LR2
|
|
$13,242
|
|
|
($6,898
|
)
|
|
$54
|
|
|
$6,398
|
|
590
|
|
|
$10,854
|
|
|
Time-charter out contracts - Suezmax
|
|
$3,958
|
|
|
($66
|
)
|
|
$23
|
|
|
$3,915
|
|
182
|
|
|
$21,508
|
|
|
Time-charter out contracts - Aframax
|
|
$11,021
|
|
|
($249
|
)
|
|
$122
|
|
|
$10,894
|
|
512
|
|
|
$21,269
|
|
|
Time-charter out contracts - LR2
|
|
$2,406
|
|
|
($39
|
)
|
—
|
|
|
$2,367
|
|
137
|
|
|
$17,214
|
|
|
|
Total
|
|
$165,159
|
|
|
($93,793
|
)
|
|
$571
|
|
|
$71,937
|
|
5,282
|
|
|
$13,618
|
|
|
(1)
|
Includes $3.4 million of revenue earned from the vessels that were chartered from the RSAs to perform FSL. Excludes $1.4 million of commissions and management fees earned for the management of external vessels trading in RSAs and $0.7 million of bunker commissions earned.
|
(2)
|
Includes $3.4 million of inter-segment voyage expenses relating to lightering support services provided by the STS transfer segment and $3.4 million of voyage expenses incurred by the vessels that were chartered from the RSAs to perform FSL.
|
(3)
|
Adjustments primarily include off-hire bunker expenses, which are excluded from Average TCE per revenue day.
|
(4)
|
Includes $27.4 million of revenues and $22.9 million of voyage expenses related to the FSL business, which includes $3.4 million of inter-segment voyage expenses referenced in note (2) above relating to the FSL business by the STS transfer segment.
|
|
Conventional Tanker Segment
|
|||||||||||||||||
|
Six Months Ended June 30, 2019
|
|||||||||||||||||
|
Revenues
(1)(5)
|
Voyage Expenses
(2)(5)
|
Adjustments
(3)
|
TCE Revenues
|
Revenue Days
|
Average TCE per Revenue Day
(3)
|
||||||||||||
|
(in thousands)
|
(in thousands)
|
(in thousands)
|
(in thousands)
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Voyage-charter contracts - Suezmax
|
|
$183,450
|
|
|
($87,936
|
)
|
|
$3,147
|
|
|
$98,661
|
|
4,833
|
|
|
$20,415
|
|
|
Voyage-charter contracts - Aframax
(4)(5)
|
|
$158,550
|
|
|
($80,561
|
)
|
|
$851
|
|
|
$78,840
|
|
3,515
|
|
|
$22,429
|
|
|
Voyage-charter contracts - LR2
(5)
|
|
$59,391
|
|
|
($29,571
|
)
|
|
$206
|
|
|
$30,026
|
|
1,655
|
|
|
$18,148
|
|
|
Time-charter out contracts - Suezmax
|
|
$3,028
|
|
|
($96
|
)
|
|
$196
|
|
|
$3,128
|
|
181
|
|
|
$17,281
|
|
|
Time-charter out contracts - Aframax
|
|
$1,838
|
|
|
$127
|
|
|
($137
|
)
|
|
$1,828
|
|
75
|
|
|
$24,276
|
|
|
Total
|
|
$406,257
|
|
|
($198,037
|
)
|
|
$4,263
|
|
|
$212,483
|
|
10,259
|
|
|
$20,713
|
|
|
(1)
|
Includes $6.1 million of revenue earned from the vessels that were chartered from the RSAs to perform FSL. Excludes $3.1 million of commissions and management fees earned for the management of external vessels trading in RSAs and $1.2 million of bunker commissions earned.
|
(2)
|
Includes $5.4 million of inter-segment voyage expenses relating to lightering support services provided by the STS transfer segment and $6.1 million of voyage expenses incurred by the vessels that were chartered from the RSAs to perform FSL.
|
(3)
|
Adjustments primarily include off-hire bunker expenses, which are excluded from Average TCE per revenue day.
|
(4)
|
Includes $46.5 million of revenues and $30.9 million of voyage expenses related to the FSL business, which includes $5.4 million of inter-segment voyage expenses referenced in note (2) above relating to the FSL business by the STS transfer segment.
|
(5)
|
Excludes $7.9 million of revenues and $3.5 million of voyage expenses related to the risk-sharing agreements that were entered during the first quarter of 2019 for two time charter-in contracts that were entered during late 2018. Please read "Significant Developments in 2019 - Time Chartered-In Vessels".
|
|
Conventional Tanker Segment
|
|||||||||||||||||
|
Six Months Ended June 30, 2018
|
|||||||||||||||||
|
Revenues
(1)
|
Voyage Expenses
(2)
|
Adjustments
(3)
|
TCE Revenues
|
Revenue Days
|
Average TCE per Revenue Day
(3)
|
||||||||||||
|
(in thousands)
|
(in thousands)
|
(in thousands)
|
(in thousands)
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Voyage-charter contracts - Suezmax
|
|
$153,583
|
|
|
($92,264
|
)
|
|
$547
|
|
|
$61,866
|
|
4,891
|
|
|
$12,647
|
|
|
Voyage-charter contracts - Aframax
(4)
|
|
$107,651
|
|
|
($74,324
|
)
|
|
$393
|
|
|
$33,720
|
|
2,501
|
|
|
$13,486
|
|
|
Voyage-charter contracts - LR2
|
|
$25,834
|
|
|
($13,149
|
)
|
|
$66
|
|
|
$12,751
|
|
1,121
|
|
|
$11,384
|
|
|
Time-charter out contracts - Suezmax
|
|
$10,155
|
|
|
($286
|
)
|
|
$23
|
|
|
$9,892
|
|
477
|
|
|
$20,721
|
|
|
Time-charter out contracts - Aframax
|
|
$23,823
|
|
|
($510
|
)
|
|
$122
|
|
|
$23,435
|
|
1,109
|
|
|
$21,137
|
|
|
Time-charter out contracts - LR2
|
|
$5,516
|
|
|
($78
|
)
|
—
|
|
|
$5,438
|
|
316
|
|
|
$17,184
|
|
|
|
Total
|
|
$326,562
|
|
|
($180,611
|
)
|
|
$1,151
|
|
|
$147,102
|
|
10,415
|
|
|
$14,124
|
|
|
(1)
|
Includes $7.1 million of revenue earned from the vessels that were chartered from the RSAs to perform FSL. Excludes $2.8 million of commissions and management fees earned for the management of external vessels trading in RSAs and $1.4 million of bunker commissions earned.
|
(2)
|
Includes $6.6 million of inter-segment voyage expenses relating to lightering support services provided by the STS transfer segment and $7.1 million of voyage expenses incurred by the vessels that were chartered from the RSAs to perform FSL.
|
(3)
|
Adjustments primarily include off-hire bunker expenses, which are excluded from Average TCE per revenue day.
|
(4)
|
Includes $55.2 million of revenues and $44.3 million of voyage expenses related to the FSL business, which includes $6.6 million of inter-segment voyage expenses referenced in note (2) above relating to the FSL business by the STS transfer segment.
|
•
|
increases of $20.3 million and $61.7 million for the
three and six
months ended
June 30, 2019
, respectively, due to higher overall average realized spot rates by our Suezmax, Aframax and LR2 product tankers;
|
•
|
increases of $4.8 million and $6.6 million for the
three and six
months ended
June 30, 2019
, respectively, due to higher average realized spot FSL rates and a decrease in the cost of short-term in-charters to support FSL operations; and
|
•
|
increases of $4.4 million and $10.4 million for the
three and six
months ended
June 30, 2019
, respectively, primarily due to the addition of two Aframax and two LR2 in-chartered tankers that were delivered to us in the fourth quarter of 2018 and first quarter of 2019, partially offset by the redeliveries of three Aframax in-chartered tankers to their owners at various times during 2018;
|
•
|
net decreases o
f $5.5 million and $10.7 million for the
three and six
months ended
June 30, 2019
, respectively, due to a higher number of off-hire days and off-hire bunker expenses compared to the same periods in the prior year; and
|
•
|
net decreases of $2.2 million and $1.2 million for the
three and six
months ended
June 30, 2019
, respectively, primarily due to the expiry of time-charter out contracts for various vessels, which subsequently traded on spot voyages at lower average realized rates.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
(in thousands of U.S. dollars, except percentage changes)
|
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||
Revenues
(1)
|
|
14,429
|
|
|
11,210
|
|
|
28.7
|
%
|
|
27,736
|
|
|
23,042
|
|
|
20.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vessel operating expenses
|
|
(10,225
|
)
|
|
(7,914
|
)
|
|
29.2
|
%
|
|
(20,465
|
)
|
|
(17,193
|
)
|
|
19.0
|
%
|
Time-charter hire expenses
|
|
(1,596
|
)
|
|
(1,584
|
)
|
|
0.8
|
%
|
|
(3,074
|
)
|
|
(2,989
|
)
|
|
2.8
|
%
|
Depreciation and amortization
|
|
(896
|
)
|
|
(1,119
|
)
|
|
(19.9
|
)%
|
|
(1,735
|
)
|
|
(2,364
|
)
|
|
(26.6
|
)%
|
General and administrative expenses
|
|
(779
|
)
|
|
(974
|
)
|
|
(20.0
|
)%
|
|
(1,598
|
)
|
|
(1,792
|
)
|
|
(10.8
|
)%
|
Gain on sale of vessel
|
|
—
|
|
|
170
|
|
|
(100.0
|
)%
|
|
—
|
|
|
170
|
|
|
(100.0
|
)%
|
Restructuring charges
|
|
—
|
|
|
(830
|
)
|
|
100.0
|
%
|
|
—
|
|
|
(830
|
)
|
|
100.0
|
%
|
Income (loss) from operations
|
|
933
|
|
|
(1,041
|
)
|
|
189.6
|
%
|
|
864
|
|
|
(1,956
|
)
|
|
144.2
|
%
|
(1)
|
Includes
$2.5 million
and
$5.4 million
of revenues for the
three and six
months ended
June 30, 2019
, respectively, and
$3.4 million
and
$6.6 million
of revenues for the
three and six
months ended
June 30, 2018
, respectively, relating to lightering support services, which the STS transfer segment provided to the conventional tanker segment for FSL operations.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
|
June 30, 2019
|
|
June 30, 2018
|
|
June 30, 2019
|
|
June 30, 2018
|
||||
(in thousands of U.S. dollars)
|
|
$
|
|
$
|
|
$
|
|
$
|
||||
Interest expense
|
|
(16,607
|
)
|
|
(13,931
|
)
|
|
(33,549
|
)
|
|
(26,660
|
)
|
Interest income
|
|
221
|
|
|
160
|
|
|
586
|
|
|
318
|
|
Realized and unrealized (loss) gain on derivative instruments
|
|
(1,778
|
)
|
|
1,116
|
|
|
(2,625
|
)
|
|
4,129
|
|
Freight tax and other tax expenses
|
|
(1,639
|
)
|
|
(6,086
|
)
|
|
(4,253
|
)
|
|
(7,964
|
)
|
Other income
|
|
614
|
|
|
4,813
|
|
|
249
|
|
|
4,823
|
|
|
|
Six Months Ended June 30,
|
||||
|
|
2019
|
|
2018
|
||
(in thousands of U.S. dollars)
|
|
$
|
|
$
|
||
Net cash flow provided by operating activities
|
|
64,366
|
|
|
10,470
|
|
Net cash flow used for financing activities
|
|
(77,546
|
)
|
|
(32,321
|
)
|
Net cash flow used for investing activities
|
|
(6,545
|
)
|
|
(872
|
)
|
•
|
a net increase of $55.2 million in cash inflows primarily due to higher operating earnings resulting from higher average realized spot tanker rates, partially offset by a higher number of off-hire days and the expiry of time-charter out contracts for various vessels that subsequently traded on spot voyages at lower average realized rates; and
|
•
|
a net increase of $19.8 million in cash inflows due to changes in working capital;
|
•
|
an increase of $21.1 million in cash outflows relating to higher expenditures for dry-docking activities.
|
•
|
a net increase of $123.4 million in cash outflows due to a net increase in prepayments and scheduled repayments on our term loans and revolving credit facilities and lower proceeds from the draw-down of our term loans and revolving credit facilities; and
|
•
|
an increase of $8.6 million in cash outflows due to scheduled payments on our obligations related to our finance leases, which we entered into in September 2018, November 2018 and May 2019;
|
•
|
an increase of $63.7 million in cash inflows due to proceeds received on the sale-leaseback financing transaction of the two Suezmax tankers in the second quarter of 2019;
|
•
|
a net increase of $15.0 million in cash inflows primarily due to borrowings under our working capital loan facility; and
|
•
|
a decrease of $8.1 million in cash outflows due to no cash dividends paid during the
three and six
months ended
June 30, 2019
.
|
•
|
an increase of $4.3 million in cash outflows due to a higher amount of capital expenditures for the fleet during the six months ended June 30, 2019;
|
•
|
a decrease of $0.7 million in cash inflows due to the return of capital from our equity-accounted joint venture in Gemini Tankers L.L.C. in 2018; and
|
•
|
a decrease of $0.6 million in cash inflows due to the proceeds received from the sale of one lightering support vessel during the six months ended June 30, 2018.
|
|
|
|
Remainder of
|
|
|
|
|
|
|
|
|
Beyond
|
|||||||||
(in millions of U.S. dollars)
|
Total
|
2019
|
2020
|
2021
|
2022
|
2023
|
2023
|
||||||||||||||
U.S. Dollar-Denominated Obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Scheduled repayments of revolving facilities, term loans and other debt
(1)
|
164.6
|
|
|
50.8
|
|
|
101.8
|
|
|
12.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Repayments at maturity of revolving facilities, term loans and other debt
(1)
|
448.3
|
|
|
15.0
|
|
|
—
|
|
|
402.1
|
|
|
31.2
|
|
|
—
|
|
|
—
|
|
|
Scheduled repayments of obligations related to finance leases
(2)
|
426.9
|
|
|
12.1
|
|
|
25.4
|
|
|
27.3
|
|
|
29.5
|
|
|
31.9
|
|
|
300.7
|
|
|
Chartered-in vessels (operating leases)
(3)
|
57.8
|
|
|
20.3
|
|
|
31.0
|
|
|
6.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
1,097.6
|
|
|
98.2
|
|
|
158.2
|
|
|
447.9
|
|
|
60.7
|
|
|
31.9
|
|
|
300.7
|
|
|
(1)
|
Excludes expected interest payments of
$12.7 million
(remainder of
2019
),
$21.7 million
(
2020
),
$10.5 million
(
2021
) and
$0.8 million
(
2022
). Expected interest payments are based on the existing interest rates for variable-rate loans at LIBOR plus margins that range from
0.30%
to
3.50%
at
June 30, 2019
. The expected interest payments do not reflect the effect of related interest rate swaps that we have used to hedge certain of our floating-rate debt.
|
(2)
|
Excludes imputed interest payments of
$16.3 million
(remainder of
2019
),
$31.0 million
(
2020
),
$28.9 million
(
2021
),
$26.7 million
(
2022
),
$24.3 million
(
2023
) and
$76.0 million
(thereafter).
|
(3)
|
Excludes payments required if we execute options to extend the terms of in-chartered leases signed as of
June 30, 2019
. If we exercise all options to extend the terms of signed in-chartered leases, we would expect total payments of
$21.1 million
(remainder of
2019
),
$36.6 million
(
2020
),
$25.5 million
(
2021
) and
$5.3 million
(
2022
).
|
•
|
the crude oil and refined product tanker market fundamentals, including the balance of supply and demand in the tanker market and the occurrence and expected timing of a tanker market recovery, estimated growth in the world tanker fleet (including for Suezmax, Aframax and LR2 tankers), estimated changes in vessel off-hire time, estimated growth in global oil demand and crude oil tanker demand, future tanker rates, future OPEC oil supply, future oil prices and production, future crude oil exports, future pipeline capacity and refinery throughput and the anticipated impact of IMO 2020 fuel regulations on tanker demand;
|
•
|
the expected timing of tanker deliveries;
|
•
|
our liquidity needs for the upcoming 12 months, including anticipated funds and sources of financing for liquidity and capital expenditure needs and the sufficiency of cash flows;
|
•
|
our and Teekay's compliance with, and the effect on our and Teekay's business and operating results on, covenants under our term loans and credit facilities; and
|
•
|
expected interest payments on our contractual obligations and the impact on our payment obligations if we exercise options to extend in-chartered leases.
|
|
|
|
|
TEEKAY TANKERS LTD.
|
|
|
|
|
|
||
Date:
|
August 15, 2019
|
|
|
By:
|
/s/ Stewart Andrade
|
|
|
|
|
|
Stewart Andrade
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
1 Year Teekay Tankers Chart |
1 Month Teekay Tankers Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions