Teekay Tankers Ltd. Orders Four Fuel-Efficient LR2 Product Tanker Newbuildings With Options for an Additional Twelve Vessels

Teekay Tankers Ltd. Orders Four Fuel-Efficient LR2 Product Tanker Newbuildings 
With Options for an Additional Twelve Vessels 
HAMILTON, BERMUDA -- (Marketwired) -- 04/08/13 -- Teekay Tankers Ltd.
(NYSE:TNK) (Teekay Tankers or the Company) announced today that it
has entered into an agreement with STX Offshore & Shipbuilding Co.,
Ltd., (STX) of South Korea for the construction of four,
fuel-efficient 113,000 dead-weight tonne (dwt) Long Range 2 (LR2)
product tanker newbuildings for a fully built-up cost of
approximately $47 million each. The agreement with STX also includes
fixed-price options for up to 12 additional LR2 newbuildings that can
be declared over the next 18 months. Upon delivery, it is expected
that the vessels will operate in Teekay Corporation's Taurus Tankers
LR2 Pool (the Taurus LR2 Pool), which is one of the world's largest
LR2 pools with approximately 20 LR2 product tankers. 
The agreement with STX includes a favorable installment payment
schedule, with the majority of the purchase price due upon delivery.
The Company intends to finance the installment payments with its
existing liquidity, which was approximately $327 million as of
December 31, 2012. The Company expects to secure long-term debt
financing for the four vessels prior to their scheduled deliveries in
late-2015 and early-2016.  
"The shift in global refining capacity east of the Suez Canal,
development of new long-haul product tanker trading patterns,
including the potential for increased U.S. exports, and a relatively
modest orderbook, make the LR2 segment a particularly attractive
growth area for Teekay Tankers," commented Bruce Chan, Teekay
Tankers' Chief Executive Officer. "With their fuel-efficient design,
which is estimated to result in 20 to 30 percent fuel savings
compared to current vessels in the existing LR2 fleet, we believe
these newbuildings will be very attractive to our customers.
Furthermore, we believe the vessel deliveries are well-timed to
benefit from expected improvements in refined product and global
crude oil tanker market fundamentals."  
Mr. Chan added, "We are pleased to be working with STX, a high
quality Korean yard with a strong track record for successful
newbuilding deliveries. Working closely over the past two years with
STX, our customers and our sponsor, Teekay Corporation, we evaluated
several vessel configuration options before proceeding with a design
we believe will provide an optimal combination of function and
efficiency. In addition, we have been able to benefit from our
sponsor's strong shipyard relationship to achieve favorable pricing
and an option stream that supports Teekay Tankers' future growth and
fleet renewal objectives."  
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. Teekay Corporation
(NYSE:TK) manages these vessels 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". 
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: the purchase
price, timing of vessel deliveries and timing of shipyard payments
related to the Company's four LR2 newbuildings; the Company's ability
to finance the four LR2 newbuildings from existing liquidity and its
ability to secure long-term debt financing for these vessels prior to
their delivery; the potential for the Company to exercise its options
to order up to 12 additional LR2 newbuildings; expectations regarding
the ability to trade the LR2 newbuildings in the crude oil and
refined product markets and the Company's intention to trade the four
newbuildings in the Taurus LR2 Pool upon their respective deliveries;
the expected amount of fuel savings to be achieved by the four LR2
newbuildings compared to existing Aframax/LR2 conventional tankers
and the ability of these vessels to compete for future cargoes; and
the relative attractiveness of the LR2 product tanker sector for
investment and impact of current and expected industry fundamentals
on future spot trading rates in this product tanker segment,
including the potential for increased U.S. exports.  
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: vessel change orders and other
modifications that would affect pricing on the four LR2 newbuildings;
shipyard construction delays or factors, including insolvency, that
could impact the ability of STX to complete delivery of the four LR2
newbuildings or to deliver additional vessels to the Company pursuant
to the potential future exercise of shipyard options; the inability
of the Company to secure long-term financing prior to the delivery
for the four LR2 newbuildings; changes in the production of or demand
for refined products; changes in trading patterns significantly
affecting overall vessel tonnage requirements; changes in the global
LR2 orderbook; future spot rates in Aframax and LR2 trades which may
impact decisions to trade the LR2 newbuildings in the crude oil or
refined product markets; the future existence of the Taurus LR2 Pool;
changes in applicable industry laws and regulations and the timing of
implementation of new laws and regulations; 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.
Teekay Tankers Ltd.
Kent Alekson
Investor Relations Enquiries
+1 (604) 844-6654
Press spacebar to pause and continue. Press esc to stop.