Team Tankers International Ltd.
1st Quarter 2017
Team Tankers International Ltd.
First Quarter Report 2017
Table of Contents
Consolidated statement of comprehensive income ............................................................................... 6 Consolidated statement of financial position ......................................................................................... 7 Consolidated statement of cash flow ..................................................................................................... 8 Consolidated statement of changes in equity ........................................................................................ 9 Notes to the consolidated financial statements ................................................................................... 10 Fleet list ................................................................................................................................................. 13 Page 1
Team Tankers International Ltd.
First Quarter Report 2017
Highlights 
Team Tankers International (the ”Company”) reported EBITDA of $4.3 million in the 1st quarter of 2017, compared with $2.7 million in the 4th quarter of 2016, and $14.2 million in the 1st quarter of 2016.  Net loss in the 1st quarter of 2017 was $6.6 million, compared with net loss of $8.9 million in the 4th quarter of 2016, and net profit of $4.5 million in the 1st quarter of 2016.  The average TCE for the fleet was $10,665 per day compared with $10,550 in the previous quarter, an increase of 1%. Main events Q1 2017 

The Company repurchased 144,840 outstanding shares of its stock at an average price of NOK 11.66 per share during the quarter. At March 31, 2017, the Company held 1,366,003 shares. The Company redelivered three time charter vessels: the Bertina (13,158 dwt), Bernora (13,148 dwt) and Dreggen (19,993 dwt), following the expiry of the lease period. The vessels were classified as operating leases. Financial review First quarter 2017 income statement The Company reported total freight revenue of $63.4 million in the 1st quarter of 2017, compared with $60.2 million in the 4th quarter of 2016. Voyage expenses increased to $24.1 million in the 1st quarter of 2017, up from $21.8 million in the previous quarter. Freight income on T/C basis was $39.2 million, which represents a $0.8 million increase from the previous quarter ($51.7 million in Q1 2016). Ship operating expenses were $22.7 million in the 1st quarter, a $0.5 million decrease compared with the 4th quarter of $23.2 million. Charterhire expenses were $6.7 million in the 1st quarter, down from $7.1 million in the previous quarter. General and administrative expenses were $5.6 million in the 1st quarter compared to $5.5 million in the previous quarter. EBITDA (earnings before interest, taxes, depreciation and amortization) in the 1st quarter of 2017 increased $1.6 million to $4.3 million, from $2.7 million in the previous quarter ($14.2 million in Q1 2016). Depreciation and amortization were $9.2 million in the 1st quarter of 2017, down from $9.9 million in the previous quarter. The operating result (EBIT – earnings before interest and taxes) in the 1st quarter was negative $4.8 million, compared with negative $7.2 million in the prior quarter ($7.0 million in Q1 2016). Net interest expenses were $1.2 million in the 1st quarter of 2017, consistent with the previous quarter. Other financial items were negative $0.6 million in the 1st quarter of 2017 and 4th quarter of 2016. Net loss in the 1st quarter of 2017 was $6.6 million compared with a net loss of $8.9 million in the previous period ($4.5 million in Q1 2016). Page 2
Team Tankers International Ltd.
First Quarter Report 2017
Balance sheet as of 31 March 2017 and Cash Flow as of 31 March 2017 The Company’s Vessels and Vessels held under leases amounted to $465.2 million as of 31 March 2017 down $7.8 million from $472.9 million as of 31 December 2016. Total debt, including obligations under leases, was $94.4 million at the end of the 1st quarter, down from $97.3 million at the end of the previous quarter. During the 1st quarter of 2017, a principal payment $2.5 million was made in accordance with the repayment schedule of the $100.0 million term loan facility. Cash and cash equivalents amounted $95.5 million as of 31 March 2017, a decrease of $2.3 million compared to $97.8 million as of 31 December 2016. The Company has an additional $50.0 million undrawn under the revolving credit facility. The change in Working capital and other adjustments shown on the Consolidated Statement of Cash Flow is the result of an increase in customer receivables and other assets, partly offset by an increase in vendor payables. Total equity as of 31 March 2017 was $475.5 million, compared with $482.2 million at the end of the previous quarter. The equity ratio of the Company was approximately 79 per cent at the end of the 1st quarter of 2017. At 31 March 2017, there were 188,482,074 shares outstanding each with a par value of $0.01. The share price, as quoted on the Oslo Stock Exchange, at the end of the 1st quarter of 2017 was NOK 11.95, slightly higher than the share price of NOK 11.80 at the end of the previous quarter. Earnings development The total cargo volume lifted in the 1st quarter of 2017 was slightly lower than the volumes lifted in the 4th quarter of 2016. Total trading days for the Company’s fleet was slightly lower when compared to the previous quarter, mainly due to fewer average vessels in the fleet following the redeliveries in the quarter. The average TCE for the fleet increased from $10,550 per day in the previous quarter to $10,665 per day in the current quarter due to a slightly improvement in pricing per ton. As of 9 May 2017, about 56.7% of the expected operating days in the 2nd quarter were fixed at an average TCE of about $11,610 per day. Fleet development
Quarter
# vessels Avg Dwt
EOP
TCE ‐ $/day
Q1 17
18 028 40 10 665
Q4 16
17 847 43 10 550
Q3 16
18 034 42 10 926
Q2 16
18 558 45 13 242
Q1 16
18 586 46 14 000 Page 3
Team Tankers International Ltd.
First Quarter Report 2017
The Team Tankers Index (TTI) is based on the company’s sailed in time charter equivalent (TCE) earnings per day since 2007, both the actual development and the development on a same‐ship basis (same‐ship excludes short term charters). The TTI is calculated using the days the vessels are available to earn revenue (revenue days), and includes revenue earned from COAs and time charters. Fleet development At the end of March 2017, the fleet consisted of 40 vessels, of which 32 were owned, 1 was a financial lease and 7 were classified as operational leases. In the 1st quarter of 2017, the Company redelivered three time‐charter vessels, the Bertina (13,158 dwt), Bernora (13,148 dwt) and Dreggen (19,993 dwt), following the expiry of their lease periods. One vessel was dry docked in the 1st quarter of 2017 compared with four dry dockings and two in‐water surveys in the previous quarter. One dry docking is scheduled for the 2nd quarter of 2017. Definitions Time‐Charter Equivalent (TCE): Shipping industry freight rates are commonly measured in terms of “time‐charter equivalent” (or TCE) rates, which represent net revenues divided by revenue days. Freight income on T/C basis: is defined as freight revenues less voyage expenses. EBITDA: is defined as operating profit adjusted for depreciation and amortization, other gains/(losses), interest income, interest expenses and other financial items. EBIT: is defined as operating profit adjusted for interest income, interest expenses and other financial items. Page 4
Team Tankers International Ltd.
First Quarter Report 2017
Hamilton, Bermuda, 9 May 2017 The Board of Directors of Team Tankers International Ltd. /s/ Jesper Bo Hansen Jesper Bo Hansen /s/ Robert P. Burke Robert P. Burke /s/ Mads Meldgaard Mads Meldgaard /s/ Kevin M. Kennedy Kevin M. Kennedy /s/ Tom Higbie Tom Higbie /s/ Bryce Fraser Bryce Fraser /s/ Morten Arntzen Morten Arntzen Chairman of the Board /s/ Hans Feringa Hans Feringa President & Chief Executive Officer Page 5
Team Tankers International Ltd.
First Quarter Report 2017
Consolidated statement of comprehensive income
($ '000, except per share data)
Note
2017
Q1
(unaudited) 2016
Q4
(unaudited) 2016
Q1
(unaudited) Freight revenue
Voyage expenses
Freight income on T/C basis
63 369 60 238 72 024
(24 144) (21 798) (20 274)
39 225 38 440 51 750
Ship operating expenses
Charterhire expenses
General and administrative expenses
EBITDA
(22 670)
(6 671)
(5 552)
4 332
Depreciation and amortization
Other gains / (losses)
EBIT
3
(23 187)
(7 084)
(5 460)
2 709
(25 294)
(5 630)
(6 609)
14 217
(9 165) (9 912) (9 126)
‐
‐
1 885
(4 833) (7 203) 6 976
Interest income
Interest expenses
Other financial items
Profit / (loss) before taxes
25
(1 180)
( 567)
(6 555)
11
(1 187)
( 568)
(8 947)
1
(2 085)
( 422)
4 470
Income tax expense
‐
‐
‐
Net profit / (loss)
(6 555) (8 947) 4 470
Value adjustments of hedging instruments
Foreign currency translation differences
Total items that may be reclassified to profit or loss
( 379) 340 ( 15)
9 ( 67) 28
( 370) 273 13
Other comprehensive income / (loss), net of tax
( 370) 273 13
Total comprehensive income
(6 925) (8 674) 4 483
Attributable to owners of the parent
(6 925) (8 674) 4 483
Earnings per share ‐ basic (USD)
Earnings per share ‐ diluted (USD)
5
5
(0.04) (0.05) 0.02
(0.04) (0.05) 0.02
Weighted average number of shares
5
187,102,222 187,245,595 187,768,894
See accompanying notes that are an integral part of these consolidated financial statements. Page 6
Team Tankers International Ltd.
First Quarter Report 2017
Consolidated statement of financial position
($ '000)
Note
2017
31.03
(unaudited)
2016
31.12
(audited)
ASSETS
Vessels
Vessels held under leases
Other equipment
Other non‐current assets
Total non‐current assets
Inventories
Trade and other receivables
Other current assets
Cash and cash equivalents
Total current assets
3
3
3
4
TOTAL ASSETS
464 315 471 832
862 1 109
1 107 1 165
1 613 1 976
467 897 476 082
9 179 28 773
29 376 8 233
917 1 167
95 522 97 808
134 994 135 981
602 891 612 063
EQUITY AND LIABILITIES
Total equity
5
475 470
Long‐term debt
Obligations under leases
Total non‐current liabilities
6
6
78 816 84 300
641 1 130
79 457 85 430
Trade and other payables
Short‐term debt and current portion of long‐term debt
Current portion of obligations under leases
Other current liabilities
Total current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
6
6
482 186
27 681 26 615
13 000 10 000
1 935 1 904
5 348 5 928
47 964 44 446
127 421
129 876
602 891 612 063 See accompanying notes that are an integral part of these consolidated financial statements. Page 7
Team Tankers International Ltd.
First Quarter Report 2017
Consolidated statement of cash flow
2017
Q1
(unaudited)
2016
Q4
(unaudited)
2016
Q1
(unaudited)
Operating activities
Profit / (loss) before taxes
Depreciation and amortization
Loss/(gain) on sale of vessels
Net interest expenses
Foreign currency (gain) / loss, net
Working capital and other adjustments
Net cash flow from operating activities
(6 555)
9 165
‐
1 156
120
( 585)
3 301
(8 947)
9 912
‐
1 187
193
5 792
8 138
4 470
9 126
(1 885)
2 084
( 118)
(1 341)
12 336
Investing activities
Proceeds from sales of vessels
Payments on purchase of vessels
Capitalized dry dock expenditures
Interest received
Net cash flow from investing activities
‐
‐
(1 336)
25
(1 311)
‐
‐
(7 464)
11
(7 453)
31 700
(60 610)
(4 129)
1
(33 038)
(2 500)
( 462)
(1 011)
( 198)
(4 171)
(1 500)
( 462)
( 941)
( 325)
(3 228)
‐
( 841)
(1 726)
‐
(2 567)
(2 181)
97 808
( 105)
95 522
(2 543)
100 097
255
97 808
(23 269)
85 912
( 305)
62 338
($ '000)
Note
3
3
Financing activities
Repayment of long term debt
Repayment of obligations under leases
Interest paid
Stock repurchase
Net cash flow from financing activities 6
6
Net change in cash and cash equivalents
Cash balance at beginning of period
Net foreign exchange difference on cash
Cash and cash equivalents at end of period
4
See accompanying notes that are an integral part of these consolidated financial statements. Page 8
Team Tankers International Ltd.
First Quarter Report 2017
Consolidated statement of changes in equity
2017 (unaudited)
Share
capital ($ '000)
At 1 January 2017
Profit / (loss) for the period Other comprehensive income Total comprehensive income Share repurchase
Share‐based payment ‐ costs
At 31 March 2017
1 885
‐
‐
‐
‐
‐
1 885
Share Premium Paid in capital
‐
( 13)
‐
‐
‐
‐
‐
‐
‐
( 1)
‐
1
‐
( 13)
2016 (unaudited)
Share
capital ($ '000)
At 1 January 2016
Profit / (loss) for the period Other comprehensive income Total comprehensive income Share repurchase
Share‐based payment ‐ costs
At 31 March 2016
1 885
‐
‐
‐
‐
‐
1 885
Attributable to equity holders of the parent company
Treasury Other paid Retained Revaluation Translation Hedging shares in equity earnings reserve reserve reserve Share Premium 1 132 988
‐
‐
‐
( 197)
406
1 133 197
(662 544)
(6 555)
‐
(6 555)
‐
‐
(669 099)
Other reserves
3 406 6 050 414
‐
‐
‐
‐
9 ( 379)
‐
9 ( 379)
‐
‐
‐
‐
‐
‐
3 406 6 059 35
Attributable to equity holders of the parent company
Treasury Other paid Retained Revaluation Translation Hedging shares in equity earnings reserve reserve reserve Paid in capital
‐
( 5)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
( 5)
1 132 582 (649 465)
‐
4 470
‐
‐
4 470
‐
‐
‐
718 ‐
1 133 300 (644 994)
Other reserves
3 406 6 097
‐
‐
‐
28
‐
28
‐
‐
‐
‐
3 406 6 125
( 136)
‐
( 15)
( 15)
‐
‐
( 150)
Total 482 186
(6 555)
( 370)
(6 925)
( 198)
407
475 470
Total 494 364
4 470
13
4 483
‐
718
499 566
Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of subsidiaries in foreign currencies. Treasury shares The treasury shares reserve is used to record purchase of own shares. At 31 March 2017, the Company held 1,366,003 treasury shares. Revaluation reserve The revaluation reserves are used to record step by step revaluation in connection with purchase of subsidiaries. See accompanying notes that are an integral part of these consolidated financial statements. Page 9
Team Tankers International Ltd.
First Quarter Report 2017
Notes to the consolidated financial statements
Note 1 Organization and basis for preparation Team Tankers International Ltd. (the “Company”) is incorporated and domiciled in Bermuda. The Company is incorporated as an exempted company under the laws of Bermuda and in accordance with the Bermuda Companies Act. The address of its registered office is Williams House, 4th Floor, 20 Reid Street, Hamilton HM 11, Bermuda. Note 2 Significant accounting policies Basis of preparation The interim consolidated financial statements for the Company are prepared in accordance with International Accounting Standard IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board (IASB) and adopted by the European Union (EU). Judgments, estimates and assumptions The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis, considering the current and expected future market conditions. A change in an accounting estimate is recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Significant accounting principles The accounting principles used to prepare these interim financial statements are consistent with those used to prepare prior annual financial statements. The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the 2016 annual financial statements which is available on the Company’s website www.teamtankers.com. As a result of rounding adjustments, the figures in one or more columns may not add up to the total of that column. Segment information The Company has one reportable segment; chemical tankers. Accordingly, no segment information is presented in the notes to the consolidated financial statements. Page 10
Team Tankers International Ltd.
First Quarter Report 2017
Note 3 – Vessels, vessels held under finance leases and other equipment Vessels
Vessels held under leases
Other equipment
Total
($ '000)
At 1 January 2017, net of accumulated depreciation
471 832
1 109
1 165
474 106
Other additions (mainly upgrading and docking of vessels)
1 333
‐
10
1 343
Depreciation for the period
(8 850) ( 247) ( 68) (9 165)
At 31 March 2017 net of accumulated depreciation
464 315
862
1 107
466 284
Note 4 – Cash and cash equivalents 2017
31.03
2016
31.12
(unaudited)
(audited)
Banks
92 455
94 692
Petty cash
442
497
($ '000)
Restricted Cash
2 625
2 619
Cash and cash equivalents
95 522
97 808 Note 5 – Share capital Number of shares
Share capital
$ '000
At 1 January 2017
188 482 074 1 885
Changes in shares and share capital in the period
‐
At 31 March 2017
188 482 074 1 885
‐
The Company’s share capital was $1,884,820.74 at 31 March 2017. Outstanding shares were 188,482,074, each with a par value of $0.01. Page 11
Team Tankers International Ltd.
First Quarter Report 2017
Note 6 – Long‐term debt Bank loans
Obligations under leases
Total
($ '000)
Balance at 1 January 2017
94 300
3 034
97 334
Installments
Amortization of debt issuance costs
(2 500) ( 458) (2 958)
16
‐
16
Balance at 31 March 2017
91 816
2 576
94 392
Non‐current
78 816
641
79 457
Current
13 000
1 935
14 935
Balance at 31 March 2017
91 816
2 576
94 392 Note 7 Subsequent events There were no subsequent events following the end of the 1st Quarter 2017 and the date of this filing. Page 12
Team Tankers International Ltd.
First Quarter Report 2017
Fleet list
Vessel Sichem Croisic Sichem Lily Sichem Orchid Sichem Iris Tour Margaux Sichem Palace Sichem Amethyst Sichem Ruby Sichem Aneline Team Sapphire Aigran D Tour Pomerol Sichem Challenge Sichem Mississippi Sichem Dubai Sichem Marseille Sichem Melbourne Sichem New York Sichem Montreal Sichem Beijing Sichem Hong Kong Sichem Paris Sichem Mumbai Sichem Manila Sichem Singapore Sichem Rio Team Houston Team Oslo Oceanic Crimson Sichem Defiance Sichem Hawk Sichem Falcon Sichem Eagle Sichem Osprey Ioannis I Siteam Explorer Siteam Discoverer Siteam Leader Siteam Adventurer Siteam Voyager Built Coating 2001 2009 2008 2008 1993 2004 2006 2006 1998 2004 1997 1998 1998 2008 2007 2007 2007 2007 2008 2007 2007 2008 2006 2007 2006 2006 2008 2008 2008 2001 2008 2009 2008 2009 2006 2007 2008 2009 2007 2008 Stainless Steel Stainless Steel Stainless Steel Stainless Steel Stainless Steel Stainless Steel Stainless Steel Stainless Steel Coated Stainless Steel Stainless Steel Stainless Steel Stainless Steel Stainless Steel Coated Coated Coated Coated Coated Coated Coated Coated Coated Coated Coated Coated Coated Coated Coated Stainless Steel Coated Coated Coated Coated Coated Coated Coated Coated Coated Coated DWT Ownership Flag 7 721 8 109 8 115 8 139 8 674 8 807 8 817 8 824 8 941 8 907 10 020 10 379 12 180 12 273 12 888 12 927 12 936 12 945 13 056 13 068 13 069 13 079 13 084 13 125 13 141 13 162 13 221 13 226 13 273 17 396 25 385 25 419 25 421 25 431 45 557 46 026 46 043 46 070 46 099 46 190 Owned Owned Owned Operational lease Owned Owned Owned Owned Financial lease Owned Operational lease Owned Owned Operational lease Owned Owned Operational lease Owned Owned Owned Owned Owned Owned Owned Owned Owned Owned Owned Operational lease Owned Owned Owned Operational lease Owned Operational lease Owned Owned Owned Owned Owned Malta Malta Malta Malta Malta Malta Malta Malta Marshall Island Malta Netherlands Malta Bermuda Panama Malta Bermuda Marshall Islands Bermuda Bermuda Bermuda Bermuda Bermuda Bermuda Malta Italy Malta Bermuda Bermuda Panama Marshall Islands Malta Malta Malta Malta Cyprus Bermuda Bermuda Bermuda Bermuda Bermuda Page 13