Q3 2014 Teekay Tankers Ltd Earnings Call

Nov 06, 2014 AM EST
TNK - Teekay Tankers Ltd
Q3 2014 Teekay Tankers Ltd Earnings Call
Nov 06, 2014 / 06:00PM GMT 

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Corporate Participants
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   *  Kevin Mackay
      Teekay Tankers Ltd. - CEO
   *  Ryan Hamilton
      Teekay Tankers Ltd. - IR

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Conference Call Participants
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   *  Jon Chappell
      Evercore ISI - Analyst
   *  Amit Mehrotra
      Deutsche Bank - Analyst
   *  Michael Webber
      Wells Fargo Securities - Analyst
   *  Shawn Collins
      Bank of America Merrill Lynch - Analyst
   *  John Reardon
      Merriman Capital - Analyst

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Presentation
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Operator   [1]
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 Welcome to Teekay Tankers third quarter 2014 earnings results conference call. 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. Now for opening remarks and introductions, I would like to turn the call over to Mr. Kevin Mackay, Teekay Tankers Chief Executive Officer. Please go ahead, sir

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 Ryan Hamilton,  Teekay Tankers Ltd. - IR   [2]
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 Before Mr. Mackay begins, I would like to direct all participants to our website at www.TeekayTankers.com, where you will find a copy of the third quarter 2014 earnings presentation. Mr. Mackay 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 actually results to materially differ from those in the forward-looking statements is contained in the third quarter 2014 earnings release and earnings presentation available on our website. I'll now turn will call over to Mr. Mackay to begin.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [3]
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 Thank you Ryan. Hello everyone, and thank you very much for joining us today. With me here in Vancouver is Vince Lok, Teekay Tankers Chief Financial Officer, and Brian Fortier, Group Comptroller of Teekay Corporation. During today's call I will be taking you through Teekay Tankers third quarter 2014 earnings results presentation, which can be found on our website. Beginning with our recent highlights on slide three of the presentation, Teekay Tankers reported adjusted net income of $0.03 per share in the third quarter, compared to an adjusted net loss of $0.05 per loss in the same period of the prior year. Cash available for distribution or CAD was $0.19 per share in the third quarter, up from $0.10 per share in the same period the prior year.

 The improved results were primarily due to higher Suezmax, Aframax, and LR2 spot tanker rates earned in the third quarter. For the third quarter of 2014, the Company declared and paid a quarterly dividend of $0.03 per share. Since inception Teekay Tankers has declared dividends in 28 consecutive quarters, which now totals $7.395 per share in dividends. Teekay Tankers dividend is currently fixed at an annual level of a $0.12 per share payable quarterly. In August Teekay Tankers completed an acquisition of its 50% joint venture interest in Teekay's conventional tanker commercial and technical management operations, which has resulted in Teekay Tankers becoming a more integrated tanker company. In October, Teekay Tankers secured two new in charter Aframax tankers at a average rate of $18,000 per day, for duration periods of 6 and 33 months respectively, with options to extend beyond the firm periods.

 With the addition of these two vessels, our total in charter fleet grows to ten ships, and meaningfully increase our exposure to what we anticipate will be a firming spot tanker market. In October as an opportunistic move, Teekay Tankers invested approximately $10 million to acquire additional shares in Tanker Investments Limited, or TIL, increasing its ownership to 9.3% of TIL shares, continue to trade at a significant discount to its net asset value. Turning to slide four, I will provide an update on Teekay Tankers fixed employment mix, and our strategic move to actively increase the Company's spot market exposure. Based on our near-term market view that spot tanker rates will on average exceed tank charter out rates, we've continued to increase the Company's spot market exposure, through a combination of new in charter contracts, and transitioning some of our owned vessels from fixed rate employment to spot rate employment, as their existing contract expire. By utilizing the tactical lever of in chartering third party vessels, we can increase Teekay Tankers spot market exposure without increasing our capital investment.

 As a result of the ten in charter contracts we have entered into so far this year, we have increased Teekay Tankers spot exposure by approximately 3,600 revenue days for the year ahead. On a fleet basis, our spot market exposure for the next 12 months now totals 31 ships, or 82% of revenue days. A decision to scale back our fixed rate cover is based on our view that the tanker market fundamentals will continue to improve. Looking ahead, we will look to further increase our spot market exposure through additional in charter, and continuing to allow some of our fixed rate fleet to naturally roll off existing tank charters, rather than pursue replacement fixed rate contracts for these vessels.

 Based on our expectations the spot tanker market will continue to strengthen. The increase in our spot exposure should translate into increased earnings and cash available for distribution. As indicated by the blue line in the chart on the right, for every $5,000 increase in average spot tanker rates for the 12-month period ending September 30, 2015, CAD per share is expected to increase by $0.48 per share, compared to $0.32 per share for the 12 month period that ended September 30, 2014. This increase in the earnings power highlights Teekay Tankers' strong operating leverage heading into what we anticipate will be an improving tanker market.

 Turning to slide five, I will discuss recent developments in the crude tanker spot market. As shown in the chart on the left, year-to-date earnings for mid-sized crude tankers are averaging over $20,000 per day for the first time since 2010. This is a reflection of tightening fundamentals in the crude tanker market, supported by very low fleet growth, particularly in the mid-sized tanker segment, coupled with firm growth in ton mile demand, as more oil moves longer haul from the Atlantic to Pacific Basin. We believe that this upward spot rate trend will continue into 2015, as fleet growth is expected to remain low, while oil and tanker demand continues to grow.

 Looking at the third quarter of 2014 in isolation, the chart on the right shows that mid-sized crude tanker rates averaged $9,000 per day higher than in the same period of the prior year. This increase was due to a combination of stronger seasonal oil demand in July and August, as well as an increase in long haul crude tanker movements from the Atlantic to the Pacific, as Asian buyers purchased more volumes from West Africa, Brazil, and the Caribbean Basin. Rates subsequently weakened toward the end of the third quarter with the onset of seasonal refinery maintenance, but improved once again in October, as refinery throughput increased ahead of peak winter demand in the Northern Hemisphere.

 Turning to slide six, I will take a moment to talk about the positive impact that falling oil prices are expected to have on tanker demand in the near term. As the chart illustrates, the price of Brent crude is currently at the lowest point since November 2010, and is 25% lower than levels experienced at the recent peak in July of 2014. This drop in oil price is largely due to an oversupply of light sweet crude in the Atlantic region, driven by the return of Libyan volumes, a continued increase in US shale production, and recent downward revisions to global GDP and oil demand. We believe that these lower oil prices are likely to persist in the near term, as OPEC appears ready to maintain current production levels, and compete on price by lowering their official selling prices, or OSPs.

 This is already having an impact on buying patterns with a reduction in Saudi Arabia's official selling price in September, prompting Chinese buyers to purchase 8 million barrels, with a further 20 million barrels of Middle East crude purchased by Chinese buyers in October. These purchases are likely intended for China's strategic petroleum reserve, and are incremental to day-to-day demand.

 In addition to encouraging imports for stockpiling, lower oil prices can have several other benefits for the tanker market. First, lower oil prices positively affect tanker earnings by lowering bunker fuel costs. Each $10 drop in oil price equates to a savings of approximately $2,400 per day in bunker costs. Second, arbitrage created by price competition between different oil producing regions creates volatility in tanker demand, and has the potential to alter traditional trade patterns, and lead to increased ton mile demand. Third, lower oil prices typically support improved refining margins, which could lead to higher refinery throughput, and finally a steepening of the Contango price structure for oil futures, may lead to floating storage, which would help the tanker market by reducing vessel availability in the spot market. In aggregate we believe these factors support our expectation, that lower oil prices could have a beneficial impact on tanker earnings in the near term.

 Turning to slide seven, seasonal factors are also expected to contribute to oil demand increases, resulting in a stronger fourth quarter and winter tanker market. As the chart on the left illustrates, during the fourth quarter, global oil demand is expected to increase by around 500,000 barrels per day, as colder weather in the Northern Hemisphere drives up heating demand. Chinese demand which is expected to account for approximately 200,000 of those incremental barrels per day in the fourth quarter, could be much higher if China may continue to take advantage of lower oil prices to replenish its strategic petroleum reserve. In addition, winter weather and transit delays typically support crude tanker rates in the fourth quarter, particularly in December and January, which tend to be the peak months for crude tanker rates. Putting together the combined impact of lower oil prices, seasonal stronger oil demand, and lower fleet growth, we expect the rates will continue through the course of the fourth quarter, and into the early part of 2015.

 Turning to slide eight, I'll provide an update on spot earnings for the fourth quarter to-date. Compared to average realized rates for the third quarter, Suezmax, Aframax, and LR2 rates for the fourth quarter of 2014 to-date have been slightly lower, as October fixtures continued the weakness seen in September. By the end of October, however, rates have returned to an upward trajectory, and continue to strengthen significantly going into the November fixing window.

 Also the light blue bars on the graph illustrate, fourth quarter rates to-date are already higher in 2014, when compared to fourth quarter 2013 actual results. Increased seasonal demand as well as winter weather delays should continue to support strengthening in spot rates. Ultimately improving our final fourth quarter earnings across all three vessel segments. To illustrate this, we highlight the red dotted areas on the graph, which represent projected fourth quarter earnings with our bookings to-date, and are extrapolated out using current forward rates for our unfixed portion of the fourth quarter vessel days. With Teekay Tankers strong operating leverage and increased spot exposure, continued strengthening of spot rates will translate into a meaningful increase in our earnings, as well as cash flow. With that, Operator, we're now available to take questions.

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Questions and Answers
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Operator   [1]
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 Thank you. (Operator Instructions). And our first question comes from the line of Jon Chappell of Evercore ISI. Please go ahead.

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 Jon Chappell,  Evercore ISI - Analyst   [2]
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 Good morning guys.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [3]
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 Good morning.

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 Jon Chappell,  Evercore ISI - Analyst   [4]
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 I wanted to ask about strategy in light of the TIL investment, and the new charter ends, is that a commentary at all on vessel acquisitions?Do you feel you'll go in an asset light type expansion manner through this part of the cycle?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [5]
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 I think the acquisition or the additional acquisition in our shares of TIL was really an opportunistic move, based on the fact that TIL shares are trading under net asset value, and we saw it as a way to increase TNK shareholder value by taking advantage of an opportunity. I think strategically as I said at Investor Day, TNK is looking to grow the fleet, and we've got several levers at our disposal to do that. You've seen us use the in chartering lever recently in the summer months, and we'll continue to look at that. But we're also on the lookout and evaluating fleet acquisitions.

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 Jon Chappell,  Evercore ISI - Analyst   [6]
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 Okay. And it seems that asset values have tightened or improved I guess as the market has tightened and improved. Do you feel like asset prices have run away from you yet, and if TIL continues to trade at a discount which I believe it still is, would you consider more purchases of that than today?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [7]
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 You're looking at asset prices, yes, they've obviously come up from their floor at the beginning of the year, but I think there's still grow when you, or improve when you compare it with both the 10 and the 15-year average asset prices for second hand values. I don't think it's too late to look at M&A, but we'll evaluate all potential acquisitions and investments on an ongoing basis.

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 Jon Chappell,  Evercore ISI - Analyst   [8]
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 And any potential more investment in TIL that you see right now?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [9]
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 We will look at TIL as we look at any other investment and if they continue to trade under a net asset value and we have no other uses for cash at that given point in time, we'll make that decision when we feel it's necessary.

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 Jon Chappell,  Evercore ISI - Analyst   [10]
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 Okay. One last one. On page six, you laid out all of the benefits of the oil price which we've been talking about for the last five weeks. Sometimes it feels like it's in vain. But I guess the only pushback we get is at some point, will OPEC need to cut production to bring the market into balance, and stop chasing the market share?What's your kind of outlook for OPEC supply decisions, and would it have as much of an impact on the market as it may have five years ago, before we had this abundance of light sweet crude in the Atlantic?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [11]
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 I think I wouldn't want to say I know exactly what's going on within the realms of OPEC, but I think the signals that they've been sending to market, both the Saudis and Kuwaitis have indicated that at this point in time, they want to maintain market share with their customers, and they're going to use price as the tool to do that. Whether that is effective in achieving their goals, and stems the decision to cut production, we'll have to wait and see.

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 Jon Chappell,  Evercore ISI - Analyst   [12]
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 Okay. Thanks a lot, Kevin.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [13]
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 Thanks, Jon.

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Operator   [14]
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 Your next question comes from the line of Amit Mehrotra of Deutsche Bank. Please go ahead.

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 Amit Mehrotra,  Deutsche Bank - Analyst   [15]
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 Thanks very much. In terms of how you think about your fleet strategy, clearly Aframax earnings are impressive today and should go higher over the course of the next few months, based on the seasonality that you talked about, but the long-term fundamentals for ton-mile demand clearly benefit, the outlook for sort of larger vessel categories, and so can you just talk about how you think the Company is sort of operationally positioned for some of the sort of secular demand drivers, as opposed to maybe just, more opportunistic seasonally-driven improvement?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [16]
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 I think first off, I wouldn't necessarily agree with you on the Aframax side of the equation. I think Aframax is our regional players, and therefore don't necessarily participate in the longer haul crude movements.

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 Amit Mehrotra,  Deutsche Bank - Analyst   [17]
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 That's what I'm saying, right?Essentially the larger vessel categories are more benefiting from sort of the demand drivers, and that kind of is what I was alluding to?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [18]
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 Yes, I think what you will see happen is as Suexmax's VLCCs continue to see demand for longer haul movements, as more oil moves from the Atlantic to the Pacific, what that does is take out the competition for these regional Aframax movements in the Mediterranean, as well as the US Gulf and other areas, which will lead to Aframax improvements on the basis of lack of segment competition, if you will.

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 Amit Mehrotra,  Deutsche Bank - Analyst   [19]
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 Okay. And just on the product side, we've seen sort of MR rates tick up pretty nicely over the last several months, and can you talk about what your outlook is on that side of the market, and whether you think the trend will continue to go higher?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [20]
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 I think MRs aren't really Teekay Tankers' core business. We have two spot trading assets that we've put into a commercial pool to trade, but I think generally speaking, the MR story will continue to benefit from oil exports or product exports out of the US Gulf heading into Latin America. In the short term, I think one of the head winds that you'll see in the MR sector is the new building program that is due to deliver in 2014, 2015 and early 2016, which could put a cap on their growth and potential earnings.

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 Amit Mehrotra,  Deutsche Bank - Analyst   [21]
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 Okay. Thanks very much.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [22]
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 Thank you.

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Operator   [23]
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 Your next question comes from Michael Webber of Wells Fargo. Please go ahead.

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 Michael Webber,  Wells Fargo Securities - Analyst   [24]
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 Good morning, guys, how are you?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [25]
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 Good morning, Michael.

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 Michael Webber,  Wells Fargo Securities - Analyst   [26]
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 Hey, just a modeling question, and I wanted to touch base on the OSPs you mentioned on slide six again. With the gross of the two most recent charter ins, I believe the term is six months to I think 33, just curious what the rate structure is like on those options that are embedded there, whether there's an actual step up in the rate, and how long is that option period? Basically trying to figure out how much flexibility you guys have that in that embedded tonnage?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [27]
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 I think the longer one, the 33-month deal has a 12-month option, and the rates pick up I believe to around $21,000 per day. And on the shorter one, we have another six-month option on those, and the rates pick up, if I recall rightly into the $20,000 a day range.

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 Michael Webber,  Wells Fargo Securities - Analyst   [28]
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 Got you. That's helpful. And just to kind of piggyback on the earlier question around the lowered OSPs and trading patterns. You mention that we continue to see lower OSPs, we're going to see a change in traditional trading patterns, and then you guys mentioned in your remarks that the bulk of the crude kind of moving from the AG to China if they did lower the OSP in September and October. If you continue to see that happen, can you give a bit more color about what other changes in those trading patterns we could see besides just more crude moving out the AG east? And then kind of related to that, I guess I'll save my thoughts. Any additional changes in trading patterns related to those OSPs, besides just the AG east?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [29]
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 well I think the AG east you'll see benefit both in primarily in VLCC movements, but also the Suezmax as well will continue to see the benefit of those trades. But as you have more of these sort of staying out east to move those barrels, what I think we'll see is a little bit less competition in the Atlantic for the Suezmaxs to benefit from, and as they pick up West African barrels, which see more movements going into the US as the Brent and WTI spread has narrowed. I think as that stays down, West African crude remains attractive to US refineries, which will predominantly benefit the Suezmaxs, and as a result the Aframaxs will have free run to trade in the regions that they benefit from.

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 Michael Webber,  Wells Fargo Securities - Analyst   [30]
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 Got you. And just to kind of follow-up on that, and I guess from your comments to Jon earlier, I know you don't want to speak on behalf of OPEC, we would assume that there's not enough they can do, in terms of cutting production because it really matters, or if they don't chase share, then that kind of ongoing flow out of AG east, and that kind of dynamic shift should persist for quite a while. The supply demand market ends up being non-AG based. Over the long term I guess if you look at that dynamic and we tend to be in agreement with you guys. What sort of longer term impact do you think that actually has on utilization mix across the fleet, and then maybe which asset class you just typically want to be most heavily weighted towards?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [31]
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 I think when we start looking at longer term, it's a much bigger macro economic question in terms of global economic growth, not just based on oil price. I think it's used as you continue to see the oil price drop, and if it stays low for extended periods, I think you've got to look at your higher cost producing areas, which North American heavy oil production is some of the more expensive production may get cut, as well as some of these tight oil plays. Which to our mind would actually benefit tanker rates, even though you see production cuts, because you'll have more demand coming into North America to replace those areas that they cut back on.

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 Michael Webber,  Wells Fargo Securities - Analyst   [32]
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 Great. Alright, thanks, guys. Appreciate the time.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [33]
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 Thanks, Michael.

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Operator   [34]
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 Your next question comes from Shawn Collins of Bank of America. Please go ahead.

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 Shawn Collins,  Bank of America Merrill Lynch - Analyst   [35]
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 Thanks, good morning, Kevin.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [36]
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 Good morning.

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 Shawn Collins,  Bank of America Merrill Lynch - Analyst   [37]
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 Thanks. There's a lot of talk out there about US shale oil production. Theoretically if the US had the ability to export crude, I know it's impossible to predict, but theoretically what new trade patterns do you think might emerge?Can you give us a few examples, and net/net would you imagine this would be a positive?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [38]
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 Yes, I think any time you have a large producing area like the US exporting oil, it is going to be positive for tankers because it will export to further afield. So generally speaking across all segments, I would say that US export, or the US export question would benefit all sectors, not just Aframax in particular. Although based on the loading constraints, I think the immediate beneficiary would be Aframax's, because of the shallow draft restrictions you get in the US Gulf. But that could translate into reversed lightering opportunities onto Suezmaxs or VLCCs, so as I said it could be beneficial across all segments. I think as you look further afield, if US crude exports do get approved in a large way, I think by the time we get to that decision point, we're looking at Panama Canal being an opportunity that could benefit movements towards Asia. You can get a fully laden Aframax and a light loaded Suezmax through the Panama Canal by 2016. That will make it a more attractive option to go east. I think Europe would also a beneficiary of light sweet, as an alternative to buying West African barrels.

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 Shawn Collins,  Bank of America Merrill Lynch - Analyst   [39]
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 Okay, great. That's helpful. Thank you. And then a second question. With the recent lower, dramatically lower oil prices and the resulting new arbitrage activity, can you talk about a few of the new training patterns that you observed or participated in?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [40]
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 I think we've seen a fair amount of stockpiling is one of the benefits of that arbitrage. Traders have moved a fair amount of barrels from West Africa into Saldanha Bay for onshore storage in South Africa. We're seeing cross movements, barrels going from West Africa into the US Gulf, and into the US AC, which we hadn't seen for a long period of time. There are various developments that we're seeing globally, that is benefiting from the drop in price.

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 Shawn Collins,  Bank of America Merrill Lynch - Analyst   [41]
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 Okay, great. Well, that is great. That's helpful. Thank you very much, Kevin. I appreciate it.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [42]
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 Thanks, Shawn.

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Operator   [43]
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 (Operator Instructions). And your next question comes from the line of John Reardon of Merriman Capital, please go ahead.

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 John Reardon,  Merriman Capital - Analyst   [44]
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 Hi, good day and great quarter. I have a question about the dividend. I've been a TNK person for a while now, and Vince you'll probably remember in the old days, the dividend was variable based on the quarterly performance. And then when we kind of went into the Death Valley days, it decided to cut it to a more regular rate, and now things are picking up again. Is there any thought, and I noticed you kind of made a mention about $0.19 in distributable cash flow, up from $0.10 or so a year ago. Is there any thoughts that in a couple of quarters we might go back to a performance-based dividend? That's question number one.

 Question number two is, correct me if I'm wrong, but it seems that some of the European banks that have a lot of shipping loans have been playing extend and pretend. And a lot of the companies out there that they loan the money to, aren't as say in the same shape you folks are, and are you noticing that you're picking up some business by customers who don't want to run the risk of having their cargoes tied up in some kind of Maritime legal proceeding, because some financial institution is seizing somebody's equipment?That's my second question. Thank you.

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 Ryan Hamilton,  Teekay Tankers Ltd. - IR   [45]
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 Okay. Well I guess first on the dividend. We made a strategic decision a couple of years ago, as you know to go to a fixed dividend of $0.12 per annum, and we did this mainly because we felt that it was better for us to retain additional operating cash flow, to reinvest into what we expect to be a stronger tanker market. And that's turning out to be the case right now. So the additional cash flow that we're generating in the near term is being used to reduce debt, and further strengthen our balance sheet, which in turn allows us to reinvest into the stronger market. So in short, in the near term, we don't have any plans to change our dividend policy, and I think TNK isn't really trading on a basis of a dividend yield anymore. It's more based on our earnings power, and the play on the recovery of the tanker market. But of course longer term, that is something we obviously will revisit in the longer term, should we be in a position where we have excess cash flow, then of course we'll look at ways of what's the best use of that capital at that time?

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [46]
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 Yes, I think taking your second question, John. I think with regards to European banks, where the biggest exposure is for a lot of those banks is primarily in the container sector, where they, mainly the German banks have gone extremely long, and have been caught out in that business. On the tanker side, we haven't seen an awful lot of distressed assets being shown. There are one or two out there, but nothing significant in terms of on a fleet basis. But to your sort part B of your second question, around how do customers view that sort of operational risk, not to mention a credit risk, having just recently been a customer, I know that the oil companies look very, very seriously at their operational exposure when dealing with companies that have questionable financial solvency and backing. So it's an opportunity really for companies like TNK, that have got 40 years of strong customer relationships and trust, that we maintain a strong balance sheet, we operate good quality assets, that don't cause operational problems. It gives us an advantage, and we can grow our business and our relationships on that basis with those companies.

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 John Reardon,  Merriman Capital - Analyst   [47]
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 Thank you.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [48]
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 Thanks for the questions.

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Operator   [49]
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 And there are no further questions at this time. I would like to turn the call back over to Mr. Mackay for closing remarks.

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 Kevin Mackay,  Teekay Tankers Ltd. - CEO   [50]
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 Well, thank you very much for joining us today, and hope you'll all have a good festive season as Christmas approaches. Thanks very much.

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Operator   [51]
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 Ladies and gentlemen, this concludes the conference call for today. We thank you for your participation. You may now disconnect your line, and have a great day.




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