Teekay Tankers Ltd (NYSE:TNK) Q4 2022 Earnings Conference Call February 23, 2023 11:00 AM ET

Company Participants

Kevin Mackay - President & CEO

Stewart Andrade - CFO

Conference Call Participants

Jonathan Chappell - Evercore ISI

Omar Nokta - Jefferies

Operator

Welcome to Teekay Tankers Ltd.'s Fourth Quarter 2022 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 the company. Please go ahead.

Unidentified Company Representative

Before we begin, I would like to direct all participants to our website at www.teekaytankers.com, where you will find a copy of the fourth quarter and annual 2022 earnings presentation. Kevin and Stewart will review this presentation during today's conference call.

Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the fourth quarter and annual 2022 earnings release and earnings presentation available on our website.

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

Kevin Mackay

Thank you, Ed, and hello, everyone, and thank you very much for joining us today for Teekay Tanker's fourth quarter and annual 2022 earnings conference call. Joining me on the call today are Stewart Andrade, Teekay Tanker CFO; and Christian Waldegrave, our Director of Research.

Moving to our recent highlights on Slide 3 of the presentation. Teekay Tankers generated total adjusted net income of $147.5 million, or $4.33 per share, up significantly from a strong third quarter adjusted net income of $57.9 million or $1.70 per share. To put this in context, it is Teekay Tankers' highest ever quarterly adjusted net income.

We have given notice to exercise purchase options on nine vessels currently in sale leaseback arrangements for a total of $164 million. Related to this, we have also signed a term sheet to refinance 19 vessels under a $350 million revolving credit facility. By taking these actions, we will eliminate some of our more expensive debt, thereby reducing our already competitive fleet breakevens, and we will improve our ability to optimize our balance sheet on an ongoing basis.