Teekay Tankers Ltd. Reports Fourth Quarter and Annual Results

Teekay Tankers Ltd. Reports Fourth Quarter and Annual Results 
HAMILTON, BERMUDA -- (Marketwire) -- 02/21/13 -- Teekay Tankers Ltd.
(NYSE:TNK) -  
Highlights 


 
--  Declared a cash dividend of $0.03 per share for the quarter ended
    December 31, 2012. 
--  Reported fourth quarter 2012 adjusted net loss attributable to
    shareholders of Teekay Tankers(1) of $7.8 million, or $0.09 per share
    (excluding specific items which increased GAAP net loss by $348.8
    million, or $4.18 per share, of which includes a $352.5 million non-cash
    vessel impairment charge). 
--  Completed sale of a 1998-built Aframax tanker for net proceeds of $9.1
    million on January 22, 2013.  
--  Total liquidity of $327.3 million at December 31, 2012. 
--  Moved to fixed dividend policy, commencing with the first quarter 2013
    dividend, initially set at an annual amoun
t of $0.12 per share, payable
    quarterly. 

 
Teekay Tankers Ltd. (Teekay Tankers or the Company) today reported
its results for the three months ended December 31, 2012. During the
fourth quarter of 2012, the Company generated $10.8 million, or $0.13
per share, in Cash Available for Distribution(2), compared to $9.7
million, or $0.12 per share, in the third quarter of 2012. On
February 20, 2013, Teekay Tankers declared a dividend of $0.03 per
share(3) for the fourth quarter of 2012, which will be paid on March
11, 2013 to all shareholders of record on March 4, 2013.  
Since the Company's initial public offering in December 2007, it has
declared a dividend in 21 consecutive quarters, which now totals
$7.185 per share on a cumulative basis (including the dividend to be
paid on March 11, 2013). 
"Stronger spot rates materialized for brief periods later in the
fourth quarter; however, the current oversupply of tanker capacity,
combined with reduced OPEC oil production, has largely offset any
seasonal strengthening of crude tanker rates so far in the first
quarter of 2013," commented Bruce Chan, Teekay Tankers' Chief
Executive Officer. "On a positive note, increasing product tanker
demand has led to relatively stronger LR2 product tanker rates, a
trend that we believe will continue in the medium-term due to the
increased refinery capacity east of Suez, and a corresponding
increase in long-haul product tanker demand."  
"As a result of the continuing weak tanker market across most
segments, delays to the expected tanker market recovery and a further
decline in vessel market values during the course of the year, Teekay
Tankers' US GAAP financial results for the fourth quarter of 2012
include a non-cash vessel impairment charge of approximately $353
million," Mr. Chan added. "Vessel values over the past five years
have fallen significantly, and ships recorded on the books at these
historically high values have become impaired. The ships which were
affected the most are the Suezmaxes acquired by Teekay Corporation in
2007, and recorded on Teekay Tankers' balance sheet at the same
values due to dropdown accounting rules. It is important to note that
for the 13 vessels acquired more recently, in June 2012, had these
ships been recorded on our balance sheet at Teekay Tankers' actual
purchase price, rather than Teekay Corporation's book value, none of
these vessels would have been written-down. The vessel impairment
charge included in our fourth quarter results is non-cash in nature
and does not impact the Company's Cash Available for Distribution or
cash dividend, nor does it affect any covenants related to Teekay
Tankers' debt facilities." 


 
1.  Adjusted net loss attributable to shareholders of Teekay Tankers is a
    non-GAAP financial measure. Please refer to Appendix a to this release
    for a reconciliation of this non-GAAP measure as used in this release to
    the most directly comparable financial measure under United States
    generally accepted accounting principles (GAAP) and for information
    about specific items affecting net loss that are typically excluded by
    securities analysts in their published estimates of the Company's
    financial results.  
2.  Cash Available for Distribution represents net income (loss), plus
    depreciation and amortization, unrealized losses from derivatives, non-
    cash items and any write-offs or other non-recurring items, less
    unrealized gains from derivatives and net income attributable to the
    historical results of vessels acquired by the Company from Teekay
    Corporation, for the period when these vessels were owned and operated
    by Teekay Corporation. 
3.  Please refer to Appendix B to this release for the calculation of the
    cash dividend amount. 

 
"Despite the weak tanker market outlook for 2013, Teekay Tankers
remains financially strong with a manageable debt level and over $325
million of available liquidity as at December 31, 2012," Mr. Chan
continued. "At the current cyclically low asset values for both
secondhand and newbuilding tankers, we believe this market provides
favorable opportunities for investment in future growth either
through the ordering of new, fuel-efficient vessels or the
acquisition of quality on-the-water tonnage." 
Mr. Chan continued, "In line with our goals of fleet renewal and
growth, we have also elected to move Teekay Tankers to a fixed
dividend policy. Commencing with the first quarter 2013 dividend,
payable in June 2013, the dividend will be fixed at an annual amount
of $0.12 per share, payable quarterly. We believe this is a
sustainable level based on our existing fleet size and employment
mix, and is a prudent policy which will enable us to retain an
increasing amount of operating cash flow as the tanker market
recovers for investment in Teekay Tankers' future growth." 
Summary of Recent Transactions 
Commencing December 8, 2012, Teekay Tankers time-chartered out the
Aframax tanker Esther Spirit for a period of 12 months at a rate of
$14,250 per day. In January 2013, the Company time-chartered in the
Aframax tanker BM Breeze for a period of 12 months at a rate of
$11,100 per day which includes an option for the Company to extend
the time-charter for an additional 12-month period at a rate of
$12,600 per day. In addition, the Company exercised its extension
option on the time-charter in of the Aframax tanker Star Lady at a
rate of $12,250 per day until July 2013. 
On January 22, 2013, Teekay Tankers completed the sale of an Aframax
tanker, the Nassau Spirit, for net proceeds of $9.1 million. The sale
was completed ahead of the vessel's third special survey to avoid
upcoming dry-docking costs as well as to reduce the Company's
exposure to older spot-traded vessels that often experience increased
discrimination from charterers. 
Tanker Market 
Crude tanker spot rates improved marginally late in the fourth
quarter of 2012 due primarily to seasonal factors. The improvement in
rates was particularly noticeable during December when global Suezmax
and Aframax spot rates increased to six-month highs. In the Suezmax
segment, rates were supported by an increase in cargoes from West
Africa as oil production in Nigeria recovered following a series of
force majeure related outages. In the Aframax sector, an increase in
North Sea oil production and seasonal weather disruptions gave
support to Atlantic rates during December. Crude tanker rates have
subsequently weakened during the first quarter of 2013 as the start
of seasonal refinery maintenance and lower OPEC oil production have
weighed on tanker demand. 
Long Range 2 (LR2) product tanker rates strengthened to the hig
hest
level in three years during the fourth quarter of 2012. A decrease in
Iranian liquefied petroleum gas exports due to sanctions forced some
Asian petrochemical plants to switch over to naphtha during the
fourth quarter, leading to an open West-East naphtha arbitrage and a
sharp increase in Western naphtha movements into Asia. An increase in
product exports from India and reduced competition from crude tanker
newbuildings on the East-West gasoil trade also gave support to LR2
rates during the fourth quarter. 
The global tanker fleet grew by a net 18.0 million deadweight tonnes
(mdwt), or 3.8 percent, during 2012. A total of 32.4 mdwt of tankers
delivered into the fleet, down from 40.2 mdwt in 2011, while
scrapping and removals increased slightly to 14.5 mdwt from 14.0 mdwt
in 2011. Looking ahead to 2013, the Company estimates that tanker
deliveries will total approximately 30 mdwt while scrapping is
forecast to total approximately 13 mdwt. As a result, the Company
estimates net tanker fleet growth of approximately 17 mdwt, or 3.5
percent, in 2013, the lowest level of tanker fleet growth in
percentage terms since 2003. Fleet growth during 2013 is expected to
be weighted towards the Very Large Crude Carrier (VLCC) and Suezmax
sectors with negligible or declining growth in the Aframax and LR2
sectors.  
Global oil demand is expected to grow by 0.9 million barrels per day
(mb/d) during 2013 according to the average of forecasts from the
International Energy Agency (IEA), Energy Information Administration
(EIA) and Organization of Petroleum Exporting Countries (OPEC). This
represents the same level of oil demand growth as in 2012, with the
non-OECD countries, and China in particular, accounting for the
majority of the growth. However, the "call on OPEC" crude is expected
to decline by approximately 0.3 mb/d during 2013, which could result
in lower tonne-mile demand for crude tankers compared to 2012. 
Financial Summary 
The Company reported an adjusted net loss attributable to
shareholders of Teekay Tankers(1) (as detailed in Appendix A to this
release) of $7.8 million, or $0.09 per share, for the quarter ended
December 31, 2012, compared to adjusted net loss attributable to
shareholders of Teekay Tankers of $1.2 million, or $0.02 per share,
for the same period in the prior year. The increase in adjusted net
loss attributable to shareholders of Teekay Tankers is primarily the
result of the change in employment of certain of the Company's
vessels from fixed rates to lower spot rates on expiry of their
fixed-rate charters and the renewal of certain time-charter out
contracts at lower rates, which resulted in lower average realized
rates compared to the same period in the prior year. Adjusted net
loss attributable to shareholders of Teekay Tankers excludes a number
of specific items that had the net effect of increasing net loss
attributable to shareholders of Teekay Tankers by $348.8 million, or
$4.18 per share, and decreasing net loss attributable to shareholders
of Teekay Tankers by $0.7 million, or $0.01 per share, for the three
month periods ended December 31, 2012 and December 31, 2011,
respectively, as detailed in Appendix A to this release. Including
these items, the Company reported, on a GAAP basis, a net loss
attributable to shareholders of Teekay Tankers of $356.6 million, or
$4.27 per share, for the quarter ended December 31, 2012, compared to
a net loss attributable to shareholders of Teekay Tankers of $0.5
million, or $0.01 per share, for the quarter ended December 31, 2011.
Net revenues(2) were $44.5 million and $47.5 million for the fourth
quarters of 2012 and 2011, respectively. 
The adjusted net loss attributable to shareholders of Teekay Tankers
(as detailed in Appendix A to this release) for the year ended
December 31, 2012 was $11.4 million, or $0.14 per share, compared to
adjusted net income attributable to shareholders of Teekay Tankers of
$10.1 million, or $0.17 per share, for the prior year. The reduction
in the adjusted net income attributable to shareholders of Teekay
Tankers was primarily the result of the drydockings of four Suezmax
tankers in 2012, the change in employment of certain of the Company's
vessels from fixed rates to lower spot rates on expiry of their
fixed-rate charters, and the renewal of certain time-charter out
contracts at lower rates, which resulted in lower average realized
rates compared to the prior year. Adjusted net income attributable to
shareholders of Teekay Tankers excludes a number of specific items
that had the net effect of increasing net loss attributable to
shareholders of Teekay Tankers by $349.6 million, or $4.40 per share,
and decreasing net income attributable to shareholders of Teekay
Tankers by $19.1 million, or $0.32 per share, for the year ended
December 31, 2012 and December 31, 2011, respectively, as detailed in
Appendix A to this release. Including these items, the Company
reported, on a GAAP basis, net loss attributable to shareholders of
Teekay Tankers of $361.0 million, or $4.54 per share, for the year
ended December 31, 2012, compared to a net loss attributable to
shareholders of Teekay Tankers of $9.1 million, or $0.15 per share,
for the year ended December 31, 2011. Net revenues(2) were $192.8
million for the year ended December 31, 2012, compared to $211.6
million for same period last year. 
For accounting purposes, the Company is required to recognize the
changes in the fair value of its derivative instruments in the
statements of loss. This method of accounting does not affect the
Company's cash flows or the calculation of Cash Available for
Distribution, but results in the recognition of unrealized gains or
losses in the statements of loss. 
The Company's financial statements for the prior periods include
historical results of the 13 vessels acquired by the Company from
Teekay Corporation in June 2012, referred to herein as the Dropdown
Predecessor, for the periods when these vessels were owned and
operated by Teekay Corporation. 
Vessel Impairment Charge 
Due to the current economic environment for the tanker industry and
the Company's current outlook for expected future earnings from the
Teekay Tankers' conventional tanker fleet, the estimated future cash
flows for certain of the Company's tankers were lower than the book
values of these vessels at December 31, 2012. As a result, under U
S
GAAP, the Company is required to reduce the book value of the
affected vessels on its December 31, 2012 balance sheet to their
estimated fair market values, which in total are $352.5 million lower
than their prior carrying value. This difference is included in the
Company's fourth quarter and fiscal 2012 statements of loss as a
write-down of vessels and equipment. The majority of this non-cash
impairment charge relates to seven Suezmax tankers that have a
similar age (eight to 10 years) and carrying value. The impairment
charge is non-cash in nature and thus, has no impact on the Company's
cash flows, liquidity, or loan covenants. As at December 31, 2012,
the Company was in compliance with all covenants relating to its
revolving credit facilities and term loans. Only $109 million, or
approximately 15 percent, of the Company's outstanding loan balances
as at December 31, 2012, are subject to covenants related to minimum
vessel value to loan ratios, which are currently above the minimum
ratio requirements. 
(1) Adjusted net income attributable to shareholders of Teekay
Tankers is a non-GAAP financial measure. Please refer to Appendix a
included in this release for a reconciliation of this non-GAAP
measure to the most directly comparable financial measure under GAAP
and information about specific items affecting net income that are
typically excluded by securities analysts in their published
estimates of the Company's financial results. 
(2) Net revenues represents revenues less voyage expenses. Net
revenues is a non-GAAP financial measure used by certain investors to
measure the financial performance of shipping companies. Please see
the Company's website at www.teekaytankers.com for a reconciliation
of net revenues to the most directly comparable financial measure
under GAAP. 
Operating Results 
The following table highlights the operating performance of the
Company's time-charter and spot vessels measured in net voyage
revenue per revenue day, or time-charter equivalent (TCE) rates,
before related-party pool management fees, related-party commissions
and off-hire bunker expenses:  


 
----------------------------------------------------------------------------
                                             Three Months Ended             
                                  December 31,  September 30,   December 31,
                                          2012           2012       2011(ii)
----------------------------------------------------------------------------
Time-Charter Fleet                                                          
Suezmax revenue days                       362            366            275
Suezmax TCE per revenue day(i)         $21,036        $20,954        $26,336
Aframax revenue days                       714            717            571
Aframax TCE per revenue day(i)         $17,769        $18,255        $19,133
MR revenue days                            276            271              -
MR TCE per revenue day(iii)            $25,287        $25,960              -
                                                                            
Spot Fleet                                                                  
Suezmax revenue days                       538            487            273
Suezmax TCE per revenue day            $11,515        $14,081        $12,922
Aframax revenue days                       424            414            428
Aframax TCE per revenue day            $13,384        $11,688         $8,542
LR2 revenue days                           276            276              -
LR2 TCE per revenue day                $15,889        $12,601              -
                                                                            
----------------------------------------------------------------------------
Total Fleet                                                                 
Suezmax revenue days                       900            853            548
Suezmax TCE per revenue day(i)         $15,345        $17,031        $19,656
Aframax revenue days                     1,138          1,131            999
Aframax TCE per revenue day(i)         $16,141        $15,851        $14,595
LR2 revenue days                           276            276              -
LR2 TCE per revenue day                $15,889        $12,601              -
MR revenue days                            276            271              -
MR TCE per revenue day(iii)            $25,287        $25,960              -
                                                                            
----------------------------------------------------------------------------
 
i.  Excludes profit share amounts relating to certain vessels which are
    employed on fixed-rate time-charter contracts that include a profit-
    sharing component. 
ii. The TCE rates in the table above exclude the results of the acquisition
    of the 13 conventional tankers from Teekay Corporation prior to their
    acquisition by the Company in June 2012. 
iii.The charter rate on one of the Medium Range (MR) tankers includes
    approximately $14,000 per day for the additional costs relating to
    Australian crew versus international crew. 

 
Teekay Tankers' Fleet 
The following table summarizes the Company's fleet as of February 1,
2013: 


 
----------------------------------------------------------------------------
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                                            Chartered-                      
                                    Owned           in                      
                                  Vessels      Vessels Newbuildings    Total
----------------------------------------------------------------------------
Fixed-rate:                                                                 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Suezmax Tankers(i)                      2            -            -        2
Aframax Tankers(ii)                     9            -            -        9
MR Product Tankers                      3            -            -        3
VLCC Tankers                            -            -            1        1
----------------------------------------------------------------------------
 Total Fixed-Rate Fleet                14            -            1       15
----------------------------------------------------------------------------
Spot-rate:                                                                  
----------------------------------------------------------------------------
Suezmax Tankers(i)                      8                         -        8
Aframax Tankers(iii)(iv)(v)             2            2            -        4
LR2 Product Tankers                     3            -            -        3
----------------------------------------------------------------------------
Total Spot Fleet                       13            2            -       15
----------------------------------------------------------------------------
Total Teekay Tankers Fleet             27            2            1       30
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
i.  Two Suezmax tankers, the Narmada Spirit and the Godavari Spirit,
    delivered to the Gemini Pool in January 2013 after completion of their
    time-charter out contracts. 
ii. Commencing December 8, 2012, the Aframax tanker Esther Spirit was time-
    chartered out for a 12-month period at rate of $14,250 per day. 
iii.The Aframax tanker Star Lady was extended on time-charter in for an
    additional six-month period ending in July 2013, with an additional
    option to extend for a 12-month period at a higher rate. 
iv. The Aframax tanker BM Breeze is currently time-chartered in for a 12-
    month period ending in January 2014 with an 
option to extend for an
    additional 12-month period at a higher rate. 
v.  The sale of the Aframax tanker Nassau Spirit was completed on January
    22, 2013. 

 
The fleet list above includes one VLCC newbuilding that Teekay
Tankers owns through a 50/50 joint venture with Wah Kwong Maritime
Transport Holdings Limited entered into in October 2010. The
newbuilding is scheduled to deliver in the second quarter of 2013, at
which time it will commence a time-charter out contract to a major
Chinese shipping company for a period of five years. The time-charter
includes a fixed floor rate, coupled with a profit-sharing component. 
In July 2010, the Company made loans secured by first-priority ship
mortgages on two VLCCs, the income of which the Company believes
approximates that of two vessels trading on fixed-rate bareboat
charters. Including the income earned from these loans, the Company
expects to have fixed coverage of approximately 42 percent for fiscal
2013. 
Liquidity 
As of December 31, 2012, the Company had total liquidity of $327.3
million (which consisted of $26.3 million of cash and $301.0 million
in an undrawn revolving credit facility), compared to total liquidity
of $382.9 million as at September 30, 2012. The change in liquidity
during the fourth quarter is due to the scheduled amortization of the
Company's revolving credit facilities.  
Conference Call 
The Company plans to host a conference call on February 21, 2013 at
1:00 p.m. (ET) to discuss its results for the fourth quarter of 2012.
an accompanying investor presentation will be available on Teekay
Tankers' website at www.teekaytankers.com prior to the start of the
call. All shareholders and interested parties are invited to listen
to the live conference call by choosing from the following options: 


 
--  By dialing (800) 711-9538 or (416) 640-5925, if outside of North
    America, and quoting conference ID code 4846815. 
--  By accessing the webcast, which will be available on Teekay Tankers'
    website at www.teekaytankers.com (the archive will remain on the website
    for a period of 30 days). 

 
The conference call will be recorded and available until Thursday,
February 28, 2013. This recording can be accessed following the live
call by dialing (888) 203-1112 or (647) 436-0148, if outside North
America, and entering access code 4846815. 
About Teekay Tankers 
Teekay Tankers currently owns a fleet of 27 double-hull vessels,
including 11 Aframax tankers, 10 Suezmax tankers, three Long Range 2
(LR2) product tankers, three Medium-Range (MR) product tankers, and
has time-chartered in two Aframax tankers, which vessels an affiliate
of Teekay Corporation (NYSE:TK) manages through a mix of short- or
medium-term fixed-rate time-charter contracts and spot tanker market
trading. The Company also owns a VLCC newbuilding through a 50
percent joint venture, which is scheduled to deliver in the second
quarter of 2013. Teekay Tankers was formed in December 2007 by Teekay
Corporation as part of its strategy to expand its conventional oil
tanker business.  
Teekay Tankers' common stock trades on the New York Stock Exchange
under the symbol "TNK". 


 
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                            TEEKAY TANKERS LTD.                             
                  SUMMARY CONSOLIDATED STATEMENTS OF LOSS                   
              (in thousands of U.S. dollars, except share data)             
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                         Three Months Ended                Year Ended       
                ------------------------------------------------------------
                    December   September    December    December    December
                    31, 2012    30, 2012    31, 2011    31, 2012    31, 2011
                ------------------------------------------------------------
                                         (unaudited) (unaudited) (unaudited)
                 (unaudited) (unaudited)         (1)         (1)         (1)
                ------------------------------------------------------------
                                                                            
Time-charter                                                                
 revenues             27,339      28,356      36,088     123,364     155,591
Net pool                                                                    
 revenues             15,241      14,638       9,389      62,328      48,158
Voyage charter                                                              
 revenue                  28         210           -         238           -
Interest income                                                             
 from investment                                                            
 in term loans         2,885       2,880       2,861      11,499      11,323
----------------------------------------------------------------------------
REVENUES              45,493      46,084      48,338     197,429     215,072
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
OPERATING                                                                   
 EXPENSES                                                                   
Voyage expenses        1,017       2,172         848       4,618       3,449
Vessel operating                                                            
 expenses             23,615      23,529      21,350      89,215      84,089
Time-charter                                                                
 hire expense            841         804       2,436       3,950       4,046
Depreciation and                                                            
 amortization         18,431      17,896      18,155      72,365      74,482
General and                                                                 
 administrative        3,791       3,327       3,224      14,930      16,125
Goodwill                                                                    
 Impairment                -           -           -           -      19,294
Write-down of                                                               
 vessels and                                                                
 equipment           352,546           -           -     352,546      58,034
----------------------------------------------------------------------------
                     400,241      47,728      46,013     537,624     259,519
----------------------------------------------------------------------------
(Loss) income                                                               
 from operations   (354,748)     (1,644)       2,325   (340,195)    (44,447)
----------------------------------------------------------------------------
                                                                            
OTHER ITEMS                                                                 
Interest expense     (2,840)     (2,954)     (7,417)    (20,009)    (40,539)
Interest income           14          15           9          50          71
Realized and                                                                
 unrealized gain                                                            
 (loss) on                                                                  
 derivative                                                                 
 instruments(2)        1,263     (4,252)     (1,833)     (7,963)    (27,783)
Other expenses         (258)       (826)        (20)     (2,064)       (377)
----------------------------------------------------------------------------
                     (1,821)     (8,017)     (9,261)    (29,986)    (68,628)
----------------------------------------------------------------------------
Net loss           (356,569)     (9,661)     (6,936)   (370,181)   (113,075)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Loss per share                                                              
 attributable to                                                            
 shareholders of                                                            
 Teekay                                                                     
 Tankers(3)                                                                 
 - Basic and                                                                
  diluted            ($4.27)     ($0.12)     ($0.01)     ($4.54)     ($0.15)
Weighted-average                                                            
 number of Class                       
                                     
 A common shares                                                            
 outstanding                                                                
 - Basic and                                                                
  diluted         71,091,030  71,091,030  49,376,744  67,039,605  48,270,525
Weighted-average                                                            
 number of Class                                                            
 B common shares                                                            
 outstanding                                                                
 - Basic and                                                                
  diluted         12,500,000  12,500,000  12,500,000  12,500,000  12,500,000
Weighted-average                                                            
 number of total                                                            
 common shares                                                              
 outstanding                                                                
 - Basic and                                                                
  diluted         83,591,030  83,591,030  61,876,744  79,539,605  60,770,525
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
1.  The Company acquired 13 vessels from Teekay Corporation in June 2012.
    Results for the 13 conventional tankers for the periods prior to their
    acquisition by the Company when they were owned and operating under
    Teekay Corporation, are referred to as the Dropdown Predecessor.
    Dropdown Predecessor amounts included in the financial results are
    summarized for the respective periods in Appendix A. 
2.  Includes realized losses relating to interest rate swaps of $2.4
    million, $2.4 million and $2.5 million for the three months ended
    December 31, 2012, September 30, 2012 and December 31, 2011,
    respectively, and $9.5 million and $39.0 million for the years ended
    December 31, 2012 and December 31, 2011, respectively. The realized loss
    relating to interest rate swap for the year ended December 31, 2011
    includes $29.8 million attributable to the interest rate swap that was
    acquired as part of the Dropdown Predecessor, which had its fixed
    interest rate amended in the first quarter of 2011 from 5.07 percent to
    2.51 percent. 
3.  Loss per share attributable to shareholders of Teekay Tankers is
    determined by dividing (a) net (loss) income of the Company after
    adjusting for the amount of net (loss) income attributable to the
    Dropdown Predecessor by (b) the weighted-average number of shares
    outstanding during the applicable period. 
 
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                            TEEKAY TANKERS LTD.                             
                     SUMMARY CONSOLIDATED BALANCE SHEETS                    
                       (in thousands of U.S. dollars)                       
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                         As at          As at          As at
                               ---------------------------------------------
                                      December      September       December
                                      31, 2012       30, 2012       31, 2011
                               ---------------------------------------------
                                                                 (unaudited)
                                   (unaudited)    (unaudited)            (1)
                               ---------------------------------------------
ASSETS                                                                      
Cash                                    26,341         26,298         18,566
Pool receivable from related                                                
 parties                                 9,101          8,611          4,360
Interest receivable                      1,565          1,754          1,754
Vessel held for sale                     9,114              -              -
Other current assets                    14,237          9,478          8,752
Due from affiliates (current                                                
 and long-term)                         24,787         22,619        166,346
Vessels and equipment                  885,992      1,266,594      1,310,496
Investment in term loans               117,820        117,581        116,844
Loan to joint venture                    9,830          9,830          9,830
Other non-current assets                 6,869          6,881          4,521
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Total assets                         1,105,656      1,469,646      1,641,469
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LIABILITIES AND EQUITY                                                      
Accounts payable and accrued                                                
 liabilities                            21,228         16,902         18,891
Current portion of long-term                                                
 debt                                   25,246         25,246         26,268
Current portion of derivative                                               
 instruments                             7,200          6,228          6,652
Other current liabilities                4,564          2,121          3,824
Due to affiliates                        3,592         16,154         91,200
Long-term debt                         710,455        706,896        882,462
Other long-term liabilities             31,188         35,715         34,008
Equity                                 302,183        660,384        578,164
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Total liabilities and equity         1,105,656      1,469,646      1,641,469
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1.  In accordance with GAAP, the balance sheet as at December 31, 2011
    includes the Dropdown Predecessor amounts for the 13 conventional
    tankers acquired by the Company from Teekay Corporation in June 2012 to
    reflect ownership of the vessels from the time they were owned and
    operated by Teekay Corporation.  
 
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                            TEEKAY TANKERS LTD.                             
                SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS               
                       (in thousands of U.S. dollars)                       
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                                                        Year Ended          
                                              ------------------------------
                                                     December       December
                                                     31, 2012       31, 2011
                                              ------------------------------
                                               (unaudited)(1) (unaudited)(1)
                                              ------------------
------------
Cash and cash equivalents provided by (used                                 
 for)                                                                       
                                                                            
OPERATING ACTIVITIES                                                        
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Net operating cash flow                                27,542         24,020
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FINANCING ACTIVITIES                                                        
Proceeds from long-term debt                           32,226         15,000
Repayments of long-term debt                         (13,522)        (1,800)
Prepayment of long-term debt                         (60,000)      (118,328)
Proceeds from long-term debt of Dropdown                                    
 Predecessor                                            2,312        269,874
Repayment from long-term debt of Dropdown                                   
 Predecessor                                         (10,372)       (18,567)
Prepayment from long-term debt of Dropdown                                  
 Predecessor                                         (15,000)              -
Acquisition of 13 vessels from Teekay                                       
 Corporation                                          (9,509)              -
Due to / from affiliates                               16,913      (287,101)
Equity contribution from Teekay Corporation             9,507         69,169
Proceeds from issuance of Class a common stock         69,000        112,054
Share issuance costs                                  (3,229)        (4,949)
Cash dividends paid                                  (32,231)       (51,358)
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Net financing cash flow                              (13,905)       (16,006)
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INVESTING ACTIVITIES                                                        
Expenditures for vessels and equipment                (2,518)        (4,337)
Investment in joint venture                           (3,344)              -
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Net investing cash flow                               (5,862)        (4,337)
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Increase in cash and cash equivalents                   7,775          3,677
Cash and cash equivalents, beginning of the                                 
 year                                                  18,566         14,889
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Cash and cash equivalents, end of the year             26,341         18,566
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1.  In accordance with GAAP, the statements of cash flows for the 12-month
    periods ended December 31, 2012 and December 31, 2011, respectively,
    include the Dropdown Predecessor amounts for the 13 conventional tankers
    acquired by the Company from Teekay Corporation in June 2012 to reflect
    ownership of the vessels from the time they were owned and operated by
    Teekay Corporation. 
 
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                            TEEKAY TANKERS LTD.                             
           APPENDIX A - SPECIFIC ITEMS AFFECTING NET (LOSS) INCOME          
          (in thousands of U.S. dollars, except per share amounts)          
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Set forth below is a reconciliation of the Company's unaudited
adjusted net income attributable to the shareholders of Teekay
Tankers, a non-GAAP financial measure, to net (loss) income as
determined in accordance with GAAP. The Company believes that, in
addition to conventional measures prepared in accordance with GAAP,
certain investors use this information to evaluate the Company's
financial performance. The items below are also typically excluded by
securities analysts in their published estimates of the Company's
financial results. Adjusted net income attributable to the
shareholders of Teekay Tankers is intended to provide additional
information and should not be considered a substitute for measures of
performance prepared in accordance with GAAP. 


 
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                                               Three Months Ended           
                                    ----------------------------------------
                                          December            December      
                                          31, 2012            31, 2011      
                                    ----------------------------------------
                                         (unaudited)         (unaudited)    
                                    ----------------------------------------
                                                   $ Per               $ Per
                                             $     Share         $     Share
----------------------------------------------------------------------------
Net loss - GAAP basis                (356,569)   ($4.27)   (6,936)   ($0.11)
Add:                                                                        
Net loss attributable to the                                                
 Dropdown Predecessor                        -               6,471     $0.10
                                    ----------------------------------------
Net loss attributable to                                                    
 shareholders of Teekay Tankers      (356,569)   ($4.27)     (465)   ($0.01)
(Subtract) add specific items                                               
 affecting net loss:                                                        
 Unrealized gain on interest rate                                           
  swaps (1)                            (3,735)   ($0.04)     (697)   ($0.01)
 Write-down of vessels and equipment                                        
  (2)                                  352,546     $4.22         -         -
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Total adjustments                      348,811     $4.18     (697)   ($0.01)
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Adjusted net loss attributable to                                           
 shareholders of Teekay Tankers        (7,759)   ($0.09)   (1,162)   ($0.02)
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                                                   Year Ended               
                                    ----------------------------------------
                                          December            December      
                                          31, 2012            31, 2011      
                                    ----------------------------------------
                                         (unaudited)         (unaudited)    
                                    ----------------------------------------
                                                   $ Per               $ Per
                                             $     Share         $     Share
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Net loss - GAAP basis                (370,181)   ($4.65) (113,075)   ($1.87)
Add:                                                                        
Net loss attributable to the                                                
 Dropdown Predecessor                    9,163     $0.11   104,010     $1.72
                                    ----------------------------------------
Net loss attributable to                                                    
 shareholders of Teekay Tankers      (361,018)   ($4.54)   (9,065)   ($0.15)
Add (subtract) specific items              
                                 
 affecting net loss:                                                        
 Unrealized (gain) loss on interest                                         
  rate swaps (1)                       (3,810)   ($0.04)     5,330     $0.09
 Goodwill impairment charge (3)              -         -    13,310     $0.22
 Write-down of vessels and equipment                                        
  (2)                                  352,546     $4.43         -         -
 Other (4)                                 840     $0.01       478     $0.01
                                    ----------------------------------------
Total adjustments                      349,576     $4.40    19,118     $0.32
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Adjusted net (loss) income                                                  
 attributable to shareholders of                                            
 Teekay Tankers                       (11,442)   ($0.14)    10,053     $0.17
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1.  Reflects the unrealized gain or loss due to changes in the mark-to-
    market value of derivative instruments that are not designated as hedges
    for accounting purposes. 
2.  The amount for the three months and year ended December 31, 2012 relates
    to impairment charges associated with the Company's Suezmax tankers,
    certain of its older Aframax tankers, and one Medium Range (MR) product
    tanker. For the year ended December 31, 2011, the write-down of $58.0
    million on three MR product tankers relating to the Dropdown Predecessor
    is included in the "Net loss attributable to the Dropdown Predecessor"
    adjustment in the table above. 
3.  The amount for the year ended December 31, 2011 relates to a goodwill
    impairment charge associated with the Company's Suezmax tanker fleet.
    For the year ended December 31, 2011, a goodwill impairment charge of
    $6.0 million relating to the Dropdown Predecessor is included in the
    "Net loss attributable to the Dropdown Predecessor" adjustments in the
    tables above. 
4.  The amount for the year ended December 31, 2012 relates to transaction
    costs related to the Company's acquisition of 13 conventional tankers
    from Teekay Corporation in June 2012. The amount for the year ended
    December 31, 2011 relates to a one-time management fee associated with
    the portion of stock-based compensation grants of the Company's former
    Chief Executive Officer that had not yet vested prior to the date of his
    retirement on March 31, 2011. 
 
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                             TEEKAY TANKERS LTD.                            
                   APPENDIX B - CASH DIVIDEND CALCULATION                   
      (in thousands of U.S. dollars, except share and per share data)       
----------------------------------------------------------------------------
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Cash Available for Distribution  
For the quarter ended December 31, 2012, the Company's declared
dividend was based on its Cash Available for Distribution, subject to
any reserves its board of directors determined are required for the
prudent conduct of its business. Cash Available for Distribution
represents net (loss) income, plus depreciation and amortization,
unrealized losses from derivatives, non-cash items and any write-offs
or other non-recurring items, less unrealized gains from derivatives
and net income attributable to the historical results of vessels
acquired by the Company from Teekay Corporation for the period when
these vessels were owned and operated by Teekay Corporation.  


 
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                                                                Three Months
                                                                       Ended
                                                           -----------------
                                                                    December
                                                                    31, 2012
                                                           -----------------
                                                                 (unaudited)
----------------------------------------------------------------------------
                                                                            
Net loss for the period                                            (356,569)
                                                                            
Add:                                                                        
 Depreciation and amortization                                        18,431
 Write down of vessels and equipment                                 352,546
 Other                                                                    89
                                                                            
Less:                                                                       
 Unrealized gain on interest rate swaps                              (3,735)
                                                                            
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Cash Available for Distribution before Reserves                       10,762
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Less:                                                                       
 Reserve for drydocking and capital expenditures                     (3,400)
 Reserve for loan repayments                                         (5,000)
                                                                            
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Cash Available for Distribution after Reserves                         2,362
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Weighted average number of common shares outstanding for                    
 the quarter ended                                                83,591,030
                                                                            
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Cash dividend per share (rounded)                                      $0.03
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                         FORWARD-LOOKING STATEMENTS                         
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This release contains forward-looking statements (as defined in
Section 21E of the Securities Exchange Act of 1934, as amended) which
reflect management's current views with respect to certain future
events and performance, including statements regarding: tanker market
fundamentals, including the balance of supply and demand in the
tanker market, spot tanker rates and the potential for a future
tanker market recovery; the Company's financial position and ability
to acquire additional assets; the Company's fixed coverage for fiscal
2013; the Company's ability to generate surplus cash flow and pay
dividends; the timing and certainty of investment in future growth
opportunities; the anticipated timing of delivery of the joint
venture's VLCC newbuilding; compliance w
ith the Company's loan
covenants, including loan-to-hull-value covenants relating to certain
loans; and the timing and sustainability of the Company's move to a
fixed dividend policy and the expected dividend amount. the following
factors are among those that could cause actual results to differ
materially from the forward-looking statements, which involve risks
and uncertainties, and that should be considered in evaluating any
such statement: changes in the production of or demand for oil;
changes in trading patterns significantly affecting overall vessel
tonnage requirements; lower than expected levels of tanker scrapping;
changes in applicable industry laws and regulations and the timing of
implementation of new laws and regulations; the potential for early
termination of short- or medium-term contracts and inability of the
Company to renew or replace short- or medium-term contracts; changes
in interest rates and the capital markets; future issuances of the
Company's common stock; the ability of the owner of the two VLCC
newbuildings securing the two first-priority ship mortgage loans to
meet its payment obligations; increases in the Company's expenses,
including any dry-docking expenses and associated off-hire days; the
ability of Teekay Tankers' Board of directors to establish cash
reserves for the prudent conduct of Teekay Tankers' business or
otherwise; failure of Teekay Tankers Board of Directors and its
Conflicts Committee to accept future acquisitions of vessels that may
be offered by Teekay Corporation or third parties; and other factors
discussed in Teekay Tankers' filings from time to time with the
United States Securities and Exchange Commission, including its
Report on Form 20-F for the fiscal year ended December 31, 2011. The
Company expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Company's expectations
with respect thereto or any change in events, conditions or
circumstances on which any such statement is based. 
Contacts:
Teekay Tankers Ltd.
Kent Alekson
Investor Relations Enquiries
+1 (604) 844-6654
www.teekaytankers.com