Teekay Tankers Ltd. (NYSE:TNK) Q1 2022 Earnings Conference Call May 12, 2022 11:00 AM ET

Company Participants

Christian Waldegrave - Director of Research

Kevin Mackay - President & CEO

Stewart Andrade - CFO

Conference Call Participants

Jon Chappell - Evercore ISI

Magnus Fyhr - H.C. Wainwright

Ken Hoexter - Bank of America

Chris Robertson - Jefferies

Operator

Good day, ladies and gentlemen. Welcome to the Teekay Tankers Ltd's First 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] Thank you. 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.

Christian Waldegrave

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 first quarter 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 first quarter 2022 earnings release and earnings presentation available on our website.

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

Kevin Mackay

Thank you, Christian. Hello, everyone, and thank you very much for joining us today for Teekay Tankers first quarter 2022 earnings conference call. Joining me on the call today are Stewart Andrade, Teekay Tankers' CFO and Christian Waldegrave, our Director of Research.

Moving to our recent highlights on Slide 3 of the presentation. Teekay Tankers generated total adjusted EBITDA of approximately $17.5 million in the first quarter of 2022, an increase from $9.7 million in the fourth quarter of 2021. We reported an adjusted net loss of $14 million or $0.41 per share during the first quarter, an improvement from an adjusted net loss of $25 million or $0.74 per share in the prior quarter. Our results improved quarter-over-quarter were primarily due to higher spot tanker rates.

We have maintained a focus on financial strength, supported by our recent attractive refinancings and vessel sales that have taken advantage of its firm asset market as Stewart will discuss later in the presentation. In the freight market, after a slow start to the year we saw a notable spike in spot tanker rates late in the first quarter driven primarily by the impact of the Russia-Ukraine conflict. The increase was most pronounced in the midsize tanker segment in which we operate, given disruptions to oil trading patterns, which increased ton-mile demand. Rates continue to rally into the second quarter with nearly all of our vessels trading in the spot market, we are well positioned to generate strong cash flow in a strengthening market.