GlobeNewswire Inc | Feb 25, 2021 02:00AM EST

February 25, 2021

Highlights

-- Reported GAAP net loss of $73.3 million, or $2.17 per share; and adjusted net loss(1) of $40.7 million, or $1.21 per share, in the fourth quarter of 2020 (excluding $24.3 million of non-cash asset write-downs and other items listed in Appendix A to this release). -- Fiscal year 2020 GAAP net income of $87.3 million, or $2.59 per share; and adjusted net income and free cash flow(1) of $153.1 million and $277.3 million, up 138 percent and 56 percent from fiscal year 2019, respectively. -- During 2020, reduced net debt(2) by $419 million and maintained a strong liquidity position of over $370 million as of December 31, 2020. -- In February 2021, entered into an agreement to opportunistically sell two unencumbered Aframax tankers for $32 million, which will further delever the Company's balance sheet and increase its liquidity position. -- As part of further reducing Teekay Tankers' cost of capital, the Company declared options to purchase two of its Suezmax vessels that are currently on long-term sale-leaseback financings for $57 million. The vessels are expected to be redelivered to the Company in May 2021. -- Entered into a seven-year (plus options) in-charter agreement for an eco-Aframax tanker newbuilding, which is expected to be delivered in the fourth quarter of 2022.

HAMILTON, Bermuda, Feb. 25, 2021 (GLOBE NEWSWIRE) -- Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE: TNK) today reported the Company's results for the quarter and year ended December31, 2020:

Consolidated Financial Summary

Three Months Ended Year Ended(in thousands of U.S. December September December December Decemberdollars, except per 31, 30, 31, 31, 31,share data) 2020 2020 2019 ^(3) 2020 2019 ^(3)GAAP FINANCIAL COMPARISONTotal revenues 127,802 170,240 311,305 886,434 943,917 (Loss) income from (42,346 ) (29,193 ) 91,608 141,573 123,883 operationsNet (loss) income (73,286 ) (44,434 ) 63,072 87,317 41,362 (Loss) earnings per (2.17 ) (1.32 ) 1.88 2.59 1.23 share ^(4)NON-GAAP FINANCIAL COMPARISON Total Adjusted EBITDA 9,788 46,248 132,733 335,647 260,194 ^ (1)Adjusted net (loss) (40,666 ) 3,132 82,991 153,147 64,323 income ^(1)Adjusted (loss)earnings per share^ (1.21 ) 0.09 2.47 4.54 1.91 (1) (4)Free cash flow^ (1) (20,975 ) 31,178 102,386 277,336 178,057 Net debt ^(2) 509,858 502,142 929,135 509,858 929,135

(1) These are non-GAAP financial measures. Please refer to "Definitions and Non-GAAP Financial Measures" and the Appendices to this release for definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under United States generally accepted accounting principles (GAAP).

(2) Net debt is a non-GAAP financial measure and represents short-term, current and long-term debt and current and long-term obligations related to finance leases less cash and cash equivalents and restricted cash.

(3) Comparative balances relating to the three months and year ended December 31, 2019 have been updated to reflect results as presented in the Companys Annual Report on Form 20-F for the year ended December 31, 2019.

(4) The per share amounts for all periods presented have been adjusted to reflect a one-for-eight reverse stock split completed in November 2019.

Fourth Quarter of 2020 Compared to Third Quarter of 2020

GAAP net loss and non-GAAP adjusted net loss for the fourth quarter of 2020, compared to the third quarter of 2020, primarily reflect lower average spot tanker rates, the expiration of certain fixed-rate charters, and a higher number of scheduled drydockings during the fourth quarter of 2020, partially offset by lower vessel operating expenses and interest expense in the fourth quarter of 2020. GAAP net loss for the fourth quarter of 2020 was negatively impacted by an $18.1 million freight tax accrual adjustment, of which $10.5 million relates to 2020 (of which $2.1 million relates to the fourth quarter of 2020) and is included in non-GAAP adjusted net loss. In addition, GAAP net loss in the fourth quarter of 2020 also reflects a $20.7 million reduction in write-down of assets compared to the third quarter of 2020.

Fourth Quarter of 2020 Compared to Fourth Quarter of 2019

GAAP net loss and non-GAAP adjusted net loss for the fourth quarter of 2020, compared to the fourth quarter of 2019, were impacted primarily by lower average spot tanker rates and a higher number of scheduled drydockings during the fourth quarter of 2020, as well as the sale of four Suezmax tankers during December 2019 and the first quarter of 2020 and the sale of the non-US portion of the ship-to-ship support services and LNG terminal management business in the second quarter of 2020. These decreases were partially offset by lower vessel operating expenses and interest expense in the fourth quarter of 2020 compared to the same period of the prior year. GAAP net loss for the fourth quarter of 2020 was also negatively impacted by an $18.1 million freight tax accrual adjustment, of which $10.5 million relates to 2020 (of which $2.1 million relates to the fourth quarter of 2020) and is included in non-GAAP adjusted net loss. In addition, GAAP net loss in the fourth quarter of 2020 reflects an $18.7 million increase in write-down of assets compared to the fourth quarter of 2019.

CEO Commentary

Crude spot tanker rate weakness persisted into the fourth quarter of 2020 as a result of OPEC+ production cuts resulting from reduced oil demand related to the COVID-19 pandemic and the unwinding of floating storage, commented Kevin Mackay, Teekay Tankers President and Chief Executive Officer. Despite the pronounced weakness in the fourth quarter and unprecedented challenges faced throughout 2020, Teekay Tankers nevertheless reported one of our best ever annual results.

During 2020, we have transformed our balance sheet and have built a resilient financial position, commented Mr. Mackay. We have generated $277 million of free cash flow and completed $86 million of asset sales, contributing to a net debt reduction of $419 million, or 45 percent. Our liquidity position has improved by over $220 million, reaching $373 million as of December 31, 2020. In addition, we have also reduced our cost of capital by repurchasing two vessels previously under sale-leaseback financings in October 2020 and declaring purchase options on two additional sale-leaseback vessels for an expected delivery in May 2021.

Through the early part of 2021, the tanker spot market continues to be depressed, and the immediate outlook remains uncertain, commented Mr. Mackay. Looking ahead, though, we believe that the underlying tanker supply fundamentals remain positive and should result in meaningfully improved tanker market conditions as the global economy and oil demand return to more normal conditions. Based on our forward view, we opportunistically entered into a seven-year in-charter agreement for a newbuilding eco-Aframax at an attractive rate, which we anticipate will deliver into a strong tanker market in the fourth quarter of 2022, enabling us to increase our scale in a less capital-intensive manner.

Mr. Mackay concluded, "I want to thank our seafarers and onshore colleagues for their continued dedication to provide safe and uninterrupted service to our customers during the COVID-19 pandemic over the past year. It has truly been a collective effort that has embodied the Teekay values of Teamwork and Reliability.

Summary of Recent Events

In November 2020, Teekay Tankers declared options to purchase two of its Suezmax vessels that are currently on long-term sale-leaseback financings for approximately $57 million, with expected delivery to the Company in May 2021. The Company intends to fund the purchase price with existing liquidity and potentially a new long-term debt facility.

In December 2020, Teekay Tankers entered into a seven-year in-charter agreement (plus extension and purchase options) for one eco-Aframax newbuilding vessel at an attractive rate of $18,700 per day, with expected delivery in late-2022.

In February 2021, Teekay Tankers entered into an agreement to sell two unencumbered 2008-built Aframax tankers for total gross proceeds of $32 million, with expected delivery to the buyer in March 2021.

Tanker Market

Crude tanker spot rates declined during the fourth quarter of 2020, due to a combination of lower oil demand as a result of COVID-19, persistent OPEC+ supply cuts, and the return of ships to the spot trading fleet from floating storage.

Renewed lockdowns in many parts of the world due to a second wave of COVID-19 and the emergence of new, more transmissible variants of the virus led to lower oil demand during the fourth quarter of 2020 than was previously expected. In the International Energy Agency (IEA) October 2020 Oil Market Report, global oil demand was projected to be 96.1 million barrels per day (mb/d) for the fourth quarter of 2020. However, in its January 2021 report, this figure was revised down to 94.5 mb/d. On the oil supply side, the OPEC+ group of producers has shown strong discipline in sticking to planned supply cuts in order to rebalance the oil market, with global oil supply in the fourth quarter of 2020 averaging just 92.3 mb/d, more than 8 mb/d below pre-COVID levels. Finally, the amount of fleet capacity tied up in floating storage or idle due to port delays fell by around 13.2 million deadweight tonnes (mdwt), or 25 percent, during the fourth quarter of 2020, adding to available fleet supply. The combination of slower oil demand growth, limited cargo supply, and an increase in fleet supply has been very negative for crude tanker spot rates.

Crude tanker spot rates have remained weak during the first quarter of 2021, and the market faces several headwinds in the near-term. Firstly, despite the start of vaccine programs in many countries, it is expected that the adverse impacts of COVID-19 will continue to dampen oil demand in the coming months. For example, China reintroduced some travel restrictions before the Lunar New Year in response to rising cases, which has led to lower Chinese crude oil imports. Secondly, and in addition to the OPEC+ group cuts already in place, Saudi Arabia has cut oil supply by an additional 1 mb/d in February and March 2021, which is expected to reduce cargo supply. Thirdly, a backwardated oil structure may lead to further inventory drawdowns and the release of more vessels to the spot trading fleet from floating storage in the coming weeks and months.

Looking further ahead, oil demand is expected to rise in the latter part of 2021 in tandem with the rollout of coronavirus vaccination programs. As per the IEA, global oil demand is expected to increase by approximately 5.5 mb/d between the first and fourth quarters of 2021, which should in turn lead to higher refinery throughput. In addition, it is anticipated that global oil inventories will revert to more normalized levels during the course of the year, with crude inventories expected to normalize earlier than product inventories, meaning that a rise in oil demand will likely be met by higher oil supply. As such, it is expected that the OPEC+ group will start to return barrels to the market in the second half of 2021, which in turn is expected to be positive for tanker demand. However, the exact timing of these events is uncertain.

The fleet supply side of the equation continues to look very favorable. Although there has been a slight uptick in newbuild orders in recent months, the orderbook size remains small by historical standards at approximately 8.1 percent of the existing fleet size. With newbuild prices starting to rise, ongoing uncertainty over vessel technology, and a restrictive financial landscape, the Company expects the overall level of newbuild tanker orders to remain low. In addition, tanker scrapping is expected to pick up in 2021, due to a combination of weaker freight rates, higher scrap prices, and increasing regulatory pressure on older vessels. As a result, tanker fleet growth is expected to remain low during both 2021 and 2022.

In summary, the tanker market faces a challenging few months due to the impact of COVID-19 on oil demand, as well as ongoing OPEC+ supply cuts. However, tanker demand is expected to improve later in 2021 as vaccine programs are implemented worldwide, at which time the OPEC+ group is expected to return oil supply to the market. Low tanker fleet growth should further help facilitate an improvement in the tanker market, particularly if tanker scrapping increases over the coming months.

Operating Results

The following table highlights the operating performance of the Companys time-charter vessels and spot vessels trading in revenue sharing arrangements (RSAs), voyage charters and full service lightering, in each case measured in net revenues(i) per revenue day, or time-charter equivalent (TCE) rates, before off-hire bunker expenses and fees associated with vessels exiting the RSAs:

Three Months Ended Year Ended December September December December December 31, 2020^ 30, 2020^ 31, 2019^ 31, 2020^ 31, 2019^ (ii) (ii) (ii) (ii) (ii)Time Charter-Out FleetSuezmax revenue 545 831 322 2,623 595 daysSuezmax TCE per $ 43,258 $ 41,216 $ 32,370 $ 39,298 $ 25,945 revenue dayAframax revenue 273 184 ? 548 75 daysAframax TCE per $ 22,980 $ 24,983 ? $ 23,644 $ 24,276 revenue dayLR2 revenue days 92 79 ? 242 ? LR2 TCE per $ 28,368 $ 28,638 ? $ 27,605 ? revenue day Spot Fleet Suezmax revenue 1,541 1,388 2,390 6,544 9,798 daysSuezmax spot TCEper revenue day^ $ 9,283 $ 22,269 $ 39,083 $ 33,405 $ 23,892 (iii)Aframax revenue 1,366 1,534 1,929 6,255 7,265 daysAframax spot TCEper revenue day^ $ 7,430 $ 14,802 $ 32,951 $ 22,452 $ 23,323 (iv)LR2 revenue days 808 865 743 3,502 3,178 LR2 spot TCE per $ 8,528 $ 14,400 $ 26,683 $ 22,318 $ 19,293 revenue day^ (v) Total Fleet Suezmax revenue 2,086 2,219 2,712 9,167 10,393 daysSuezmax TCE per $ 18,155 $ 29,366 $ 38,285 $ 35,091 $ 24,010 revenue dayAframax revenue 1,639 1,718 1,929 6,803 7,340 daysAframax TCE per $ 10,015 $ 15,892 $ 32,951 $ 22,548 $ 23,333 revenue dayLR2 revenue days 900 944 743 3,744 3,178 LR2 TCE per $ 10,555 $ 15,592 $ 26,683 $ 22,660 $ 19,293 revenue day

(i) Net revenues is a non-GAAP financial measure. Please refer to "Definitions and Non-GAAP Financial Measures" for a definition of this term.(ii)Revenue days are the total number of calendar days the Company's vessels were in its possession during a period, less the total number of off-hire days during the period associated with major repairs, dry dockings or special or intermediate surveys. Consequently, revenue days represent the total number of days available for the vessel to earn revenue. Idle days, which are days when the vessel is available to earn revenue but is not employed, are included in revenue days.(iii) Includes vessels trading in the Teekay Suezmax RSA, Teekay Suezmax Classic RSA and non-pool voyage charters.(iv)Prior to January 1, 2020, includes vessels trading in the Teekay Aframax RSA, Teekay Aframax Classic RSA, non-pool voyage charters and full service lightering voyages. Subsequent to January 1, 2020, includes Aframax vessels trading in the Teekay Aframax RSA, non-pool voyage charters and full service lightering voyages.(v) Prior to January 1, 2020, includes vessels trading in the Teekay Taurus RSA and non-pool voyage charters. Subsequent to January 1, 2020, includes LR2 vessels trading in the Teekay Aframax RSA, non-pool voyage charters, and full service lightering voyages.

First Quarter of 2021 Tanker Performance Update

The following table summarizes Teekay Tankers TCE rates fixed to-date in the first quarter of 2021 for both its spot-traded fleet only and its combined spot-traded and fixed-rate fleets:

To-Date Spot Tanker Rates Combined To-Date Spot and Time Charter-Out Tanker Rates TCE Rates Per Day % Fixed TCE Rates Per Day % FixedSuezmax $9,600 69 % $18,900 75 %Aframax ^(1) $7,700 67 % $11,400 73 %LR2 ^(2) $10,000 65 % $13,200 69 %

(1) Rates and percentage booked to-date include Aframax RSA, full service lightering (FSL) and non-pool voyage charters for all Aframax vessels.(2) Rates and percentage booked to-date include Aframax RSA, FSL and non-pool voyage charters for all LR2 vessels, whether trading in the clean or dirty spot market.

Teekay Tankers Fleet

The following table summarizes the Companys fleet as of February 15, 2021 (excluding two Aframax tankers that the Company has entered into an agreement to sell, which are scheduled to be delivered by March 31, 2021):

Owned and Leased Vessels Chartered-in Vessels TotalFixed-rate: Suezmax Tankers 5 ? 5Aframax Tankers 3 ? 3LR2 Product Tanker 1 ? 1Total Fixed-Rate Fleet 9 ? 9Spot-rate: Suezmax Tankers 21 ? 21Aframax Tankers^(i) 12 1 13LR2 Product Tankers 8 ? 8VLCC Tanker^(ii) 1 ? 1Total Spot Fleet 42 1 43Total Tanker Fleet 51 1 52STS Support Vessels ? 3 3Total Teekay Tankers' Fleet 51 4 55

(i) Includes one Aframax tanker with a charter-in contract that is scheduled to expire in September 2021, with an option for the Company to extend for one additional year.

(ii) The Companys ownership interest in this vessel is 50 percent.

Liquidity Update

As at December31, 2020, the Company had total liquidity of $372.6 million (comprised of $97.2 million in cash and cash equivalents and $275.4 million in undrawn capacity from its credit facilities) compared to total liquidity of $469.8 million as at September 30, 2020.

Conference Call

The Company plans to host a conference call on Thursday, February 25, 2021 at 12:00 p.m. (ET) to discuss its fourth quarter and annual 2020 results. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:

-- By dialing (800) 430-8332 or (647) 792-1241, if outside of North America, and quoting conference ID code 2578684. -- By accessing the webcast, which will be available on Teekay Tankers website at www.teekay.com(the archive will remain on the website for a period of one year).

An accompanying Fourth Quarter of 2020 Earnings Presentation will also be available at www.teekay.comin advance of the conference call start time.

About Teekay Tankers

Teekay Tankers currently has a fleet of 52 double-hull tankers (including 26 Suezmax tankers, 17 Aframax tankers and nine LR2 product tankers), and also has one time chartered-in tanker. Teekay Tankers vessels are typically employed through a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading. Teekay Tankers also owns a Very Large Crude Carrier (VLCC) through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a ship-to-ship transfer business that performs full service lightering and lightering support operations in the U.S. Gulf and Caribbean. Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business.

Teekay Tankers Class A common stock trades on the New York Stock Exchange under the symbol TNK.

For Investor Relations enquiries contact:

Ryan HamiltonTel: +1 (604) 609-2963Website:www.teekay.com

Definitions and Non-GAAP Financial Measures

This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission (SEC). These non-GAAP financial measures, which include Adjusted Net (Loss) Income, Free Cash Flow, Net Revenues, and Adjusted EBITDA, are intended to provide additional information and should not be considered substitutes for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized definitions across companies, and therefore may not be comparable to similar measures presented by other companies. These non-GAAP measures are used by management, and the Company believes that these supplemental metrics assist investors and other users of its financial reports in comparing financial and operating performance of the Company across reporting periods and with other companies.

Non-GAAP Financial Measures

Adjusted net (loss) income excludes items of income or loss from GAAP net (loss) income that are typically excluded by securities analysts in their published estimates of the Companys financial results. The Company believes that certain investors use this information to evaluate the Companys financial performance, as does management. Please refer to Appendix A of this release for a reconciliation of this non-GAAP financial measure to net (loss) income, the most directly comparable GAAP measure reflected in the Companys consolidated financial statements.

Adjusted EBITDA represents net (loss) income before interest, taxes, and depreciation and amortization and is adjusted to exclude certain items whose timing or amount cannot be reasonably estimated in advance or that are not considered representative of core operating performance. Such adjustments include foreign exchange gains and losses, write-downs of vessels, gains and losses on sale of assets, unrealized credit loss adjustments, unrealized gains and losses on derivative instruments and any write-offs and certain other income or expenses. Adjusted EBITDA also excludes realized gains or losses on interest rate swaps as management, in assessing the Company's performance, views these gains or losses as an element of interest expense and realized gains or losses on derivative instruments resulting from amendments or terminations of the underlying instruments. Consolidated Adjusted EBITDA represents Adjusted EBITDA from vessels that are consolidated on the Company's financial statements. Adjusted EBITDA from Equity-Accounted Joint Venture represents the Company's proportionate share of Adjusted EBITDA from its equity-accounted joint venture, and as a result, the Company does not have the unilateral ability to determine whether the cash generated by its equity-accounted joint venture is retained within the entity in which the Company holds the equity-accounted joint venture or distributed to the Company and other owners. In addition, the Company does not control the timing of any such distributions to the Company and other owners. Adjusted EBITDA is a non-GAAP financial measure used by certain investors and management to measure the operational performance of companies. Total Adjusted EBITDA represents Consolidated Adjusted EBITDA plus Adjusted EBITDA from Equity-Accounted Joint Venture. Please refer to Appendices C and D of this release for reconciliations of Adjusted EBITDA to net (loss) income and equity (loss) income, respectively, which are the most directly comparable GAAP measures reflected in the Companys consolidated financial statements.

Free cash flow (FCF) represents net (loss) income, plus depreciation and amortization, unrealized losses from derivative instruments, write-down and loss on sale of assets, equity loss from the equity-accounted joint venture, and any write-offs and certain other non-cash non-recurring items, less unrealized gains from derivative instruments, gain on sales of vessels, equity income from the equity-accounted joint venture and certain other non-cash items. The Company includes FCF from the equity-accounted joint venture as a component of its FCF. FCF from the equity-accounted joint venture represents the Companys proportionate share of FCF from its equity-accounted joint venture. The Company does not control its equity-accounted joint venture, and as a result, the Company does not have the unilateral ability to determine whether the cash generated by its equity-accounted joint venture is retained within the joint venture or distributed to the Company and other owners. In addition, the Company does not control the timing of such distributions to the Company and other owners. Consequently, readers are cautioned when using FCF as a liquidity measure as the amount contributed from FCF from the equity-accounted joint venture may not be available to the Company in the periods such FCF is generated by the equity-accounted joint venture. FCF is a non-GAAP financial measure used by certain investors and management to evaluate the Companys financial and operating performance and to assess the Companys ability to generate cash sufficient to repay debt, pay dividends and undertake capital and dry-dock expenditures. Please refer to Appendix B to this release for a reconciliation of this non-GAAP financial measure to net (loss) income, the most directly comparable GAAP financial measure reflected in the Companys consolidated financial statements.

Net revenues represents income from operations before vessel operating expenses, time-charter hire expenses, depreciation and amortization, general and administrative expenses, write-down and loss on sale of assets and restructuring charge. Since the amount of voyage expenses the Company incurs for a particular charter depends on the type of the charter, the Company includes these costs in net revenues to improve the comparability between periods of reported revenues that are generated by the different types of charters and contracts. The Company principally uses net revenues, a non-GAAP financial measure, because the Company believes it provides more meaningful information about the deployment of the Company's vessels and their performance than does income from operations, the most directly comparable financial measure under GAAP.

Teekay Tankers Ltd. Summary Consolidated Statements of (Loss) Income(in thousands of U.S. dollars, except share and per share data)

Three Months Ended Year Ended December 31, September December 31, December 31, December 31, 30, 2020 2020 2019 ^(1) 2020 2019 ^(1) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Voyage charter 90,581 125,819 289,857 741,804 881,603 revenues ^(2)Time-charter 34,865 42,180 10,680 127,598 17,495 revenuesOther revenues ^ 2,356 2,241 10,768 17,032 44,819 (3)Total revenues 127,802 170,240 311,305 886,434 943,917 Voyage expenses^ (58,649 ) (57,777 ) (109,031 ) (297,225 ) (402,294 )(2)Vessel operating (41,030 ) (46,336 ) (51,875 ) (184,233 ) (208,601 )expensesTime-charter (8,096 ) (9,070 ) (12,312 ) (36,341 ) (43,189 )hire expensesDepreciation and (28,042 ) (29,992 ) (31,943 ) (117,212 ) (124,002 )amortizationGeneral andadministrative (10,049 ) (9,887 ) (8,992 ) (39,006 ) (36,404 )expensesWrite-down andloss on sale of (24,282 ) (44,973 ) (5,544 ) (69,446 ) (5,544 )assets ^(4)Restructuring ? (1,398 ) ? (1,398 ) ? charge(Loss) income (42,346 ) (29,193 ) 91,608 141,573 123,883 from operations Interest expense (10,345 ) (12,553 ) (15,679 ) (51,525 ) (65,362 )Interest income 39 337 147 1,199 871 Realized andunrealized(loss) gain on (390 ) (414 ) 205 (2,220 ) (967 )derivativeinstruments^ (5)Equity (loss) (74 ) 46 1,693 5,100 2,345 income ^(6)Other (expense) (1,140 ) (470 ) (487 ) 473 695 incomeNet (loss)income before (54,256 ) (42,247 ) 77,487 94,600 61,465 income tax Income tax (19,030 ) (2,187 ) (14,415 ) (7,283 ) (20,103 )expense^ (7)Net (loss) (73,286 ) (44,434 ) 63,072 87,317 41,362 income (Loss) earningsper shareattributable to shareholders ofTeekay Tankers- Basic (2.17 ) (1.32 ) 1.88 2.59 1.23 - Diluted (2.17 ) (1.32 ) 1.86 2.57 1.23 Weighted-averagenumber of total common sharesoutstanding- Basic 33,738,143 33,738,143 33,638,082 33,718,665 33,617,635 - Diluted 33,738,143 33,738,143 33,948,512 33,921,621 33,731,171 Number ofoutstandingshares of common 33,738,143 33,738,143 33,654,576 33,738,143 33,654,576 stock at the endof the period

(1) Voyage expenses incurred that are recoverable from the Company's customers in connection with its voyage charter and time-charter contracts are reflected in voyage charter revenues, time-charter revenues and voyage expenses. Certain taxes incurred that are recoverable from one of the Company's customers are reflected in other revenues and income tax expense. The Company recast the results for the three months and year ended December 2019 to be consistent with the presentation in the 2019 20-F and this report for the three months and year ended December 31, 2020. This had the impact of increasing revenues, voyage expenses and income tax expense by $7.4 million, $6.2 million and $1.2 million, respectively, for the three months ended December 31, 2019 and $22.9 million, $21.7 million and $1.2 million, respectively, for the year ended December 31, 2019.

(2) Voyage charter revenues include revenues earned from full service lightering activities. Voyage expenses include certain costs associated with full service lightering activities, which include: short-term in-charter expenses, bunker fuel expenses and other port expenses totaling $6.3 million, $10.8 million and $12.0 million for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively, and $48.5 million and $51.9 million for the year ended December 31, 2020 and December 31, 2019, respectively.

(3) Other revenues include lightering support and liquefied natural gas services revenue, revenue earned from the Company's responsibilities in employing the vessels subject to the RSAs, and bunker commissions earned. In April 2020, the Company sold a portion of its oil and gas ship-to-ship transfer support business, including its gas terminal management services.

(4) Write-down and loss on sale of assets for the three months ended December 31, 2020 includes a write-down of $22.7 million relating to four Aframax tankers and the Company's operating lease right-of-use assets, which were written-down to their estimated fair values. Write-down and loss on sale of assets for the three months ended December 31, 2020 also includes a write-down of $1.6 million related to two Aframax tankers, which we have entered into agreements to sell and are classified as held for sale at December 31, 2020.

(5) Includes realized losses on interest rate swaps of $0.1 million and nil and a realized gain of $0.4 million for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively, and realized gains of $0.5 million and $2.8 million for the year ended December 31, 2020 and December 31, 2019, respectively. The Company also recognized realized losses of $0.8 million and $0.2 million and a realized gain of $1.1 million for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019, respectively, and a realized loss of $1.2 million and a realized gain of $1.5 million for the year ended December 31, 2020 and December 31, 2019, respectively, relating to its forward freight agreements.

(6) Equity (loss) income relates to the Companys 50 percent interest in the High-Q Investment Ltd. (High-Q) joint venture, which owns one VLCC tanker.

(7) During the three months ended December 31, 2020, the Company obtained further advice regarding the freight taxes in a certain jurisdiction due to the uncertainty surrounding recent tax changes. Based on this new information and other considerations, the Company increased its provision during the three months ended December 31, 2020 for uncertain tax liabilities by $18.1 million, of which $10.5 million relates to 2020 voyages, and $2.1 million of that balance relates to the fourth quarter of 2020.

Teekay Tankers Ltd. Summary Consolidated Balance Sheets(in thousands of U.S. dollars)

As at As at As at December September December 31, 30, 31, 2020 2020 2019 (unaudited) (unaudited) (unaudited)ASSETS Cash and cash equivalents 97,232 120,872 88,824 Restricted cash 2,779 4,686 3,071 Accounts receivable 36,202 46,247 95,648 Bunker and lube oil inventory 34,606 33,444 49,790 Prepaid expenses 9,739 13,561 10,288 Due from affiliates 5,236 3,323 697 Current portion of derivative assets ? ? 577 Assets held for sale ^(1) 32,974 ? 65,458 Accrued revenue 26,640 29,410 106,872 Total current assets 245,408 251,543 421,225 Restricted cash ? long-term 3,135 3,437 3,437 Vessels and equipment ? net 1,104,742 1,131,742 1,223,085 Vessels related to finance leases ? net 450,558 484,776 527,081 Operating lease right-of-use assets 2,529 6,148 19,560 Investment in and advances to 28,561 28,635 28,112 equity-accounted joint ventureDerivative assets ? ? 82 Other non-current assets 897 1,175 1,923 Intangible assets ? net 1,989 2,122 2,545 Goodwill 2,426 2,426 2,426 Total assets 1,840,245 1,912,004 2,229,476 LIABILITIES AND EQUITY Accounts payable and accrued liabilities 86,114 83,272 130,713 Short-term debt 10,000 20,000 50,000 Current portion of long-term debt 10,858 10,962 43,573 Current portion of derivative liabilities 289 755 86 Current obligations related to finance 78,476 26,794 25,357 leasesCurrent portion of operating lease 3,685 7,602 16,290 liabilitiesLiabilities associated with assets held for ? ? 2,980 sale ^(1)Due to affiliates 3,123 2,932 2,139 Other current liabilities 4,574 3,696 8,567 Total current liabilities 197,119 156,013 279,705 Long-term debt 232,103 204,103 516,106 Long-term obligations related to finance 281,567 369,278 389,431 leasesLong-term operating lease liabilities 315 421 3,270 Other long-term liabilities 49,642 29,683 51,044 Derivative liabilities 597 717 ? Equity 1,078,902 1,151,789 989,920 Total liabilities and equity 1,840,245 1,912,004 2,229,476 Net debt ^(2) 509,858 502,142 929,135

(1) Assets held for sale at December 31, 2020 includes two unencumbered Aframax vessels. In February 2021, the Company entered into an agreement to sell the vessels for a combined gross sales price of $32.0 million and both vessels are expected to be delivered during the first quarter of 2021. On April 30, 2020, the Company finalized the sale of its non-US ship-to-ship transfer support business and its LNG terminal management business for $27.1 million. These businesses, including cash, cash equivalents and restricted cash of $1.5 million, were classified as held for sale as at December 31, 2019. Also included in assets held for sale at December 31, 2019 were two Suezmax vessels, which were both sold during the first quarter of 2020.

(2) Net debt is a non-GAAP financial measure and represents short-term, current and long-term debt and current and long-term obligations related to finance leases less cash and cash equivalents and restricted cash.

Teekay Tankers Ltd. Summary Consolidated Statements of Cash Flows(in thousands of U.S. dollars)

Year Ended December December 31, 31, 2020 2019 (unaudited) (unaudited)Cash, cash equivalents and restricted cash provided by (used for)OPERATING ACTIVITIES Net income 87,317 41,362 Non-cash items: Depreciation and amortization 117,212 124,002 Write-down and loss on sale of assets 69,446 5,544 Unrealized loss on derivative instruments 1,458 5,247 Equity income (5,100 ) (2,345 )Income tax expense 7,113 18,489 Other 5,232 4,044 Change in operating assets and liabilities 89,920 (30,432 )Expenditures for dry docking (24,655 ) (48,250 )Net operating cash flow 347,943 117,661 FINANCING ACTIVITIES Proceeds from short-term debt 235,000 200,000 Proceeds from long-term debt, net of issuance costs 574,872 57,086 Scheduled repayments of long-term debt (13,174 ) (101,107 )Prepayments of long-term debt (882,495 ) (135,110 )Prepayments of short-term debt (275,000 ) (150,000 )Proceeds from financing related to sales and leaseback ? 63,720 of vesselsScheduled repayments of obligations related to finance (25,149 ) (24,221 )leasesExtinguishment of obligations related to finance leases (29,596 ) ? Other (562 ) (126 )Net financing cash flow (416,104 ) (89,758 ) INVESTING ACTIVITIES Proceeds from sale of assets 85,892 20,008 Expenditures for vessels and equipment (16,025 ) (11,628 )Loan repayments from equity-accounted joint venture 4,650 ? Net investing cash flow 74,517 8,380 Increase in cash, cash equivalents and restricted cash 6,356 36,283 Cash, cash equivalents and restricted cash, beginning 96,790 60,507 of the yearCash, cash equivalents and restricted cash, end of the 103,146 96,790 year

Teekay Tankers Ltd. Appendix A - Reconciliation of Non-GAAP Financial MeasuresAdjusted Net (Loss) Income(in thousands of U.S. dollars, except per share amounts)

Three Months Ended December 31, September 30, 2020 December 31, 2020 2019 (unaudited) (unaudited) (unaudited) $ Per $ Per $ Per $ Share^(1) $ Share^(1) $ Share^ (1)Net (loss) income - (73,286 ) ($2.17 ) (44,434 ) ($1.32 ) 63,072 $1.88GAAP basis Add (subtract)specific items affecting net(loss) income:Write-down and loss 24,282 $0.71 44,973 $1.33 5,544 $0.16on sale of assetsUnrealized (gain)loss on derivative (489 ) ($0.01 ) 172 $0.01 1,287 $0.04instruments^ (2)Other^ (3) 8,827 $0.26 2,421 $0.07 13,088 $0.39Total adjustments 32,620 $0.96 47,566 $1.41 19,919 $0.59Adjusted net (loss)income attributable (40,666 ) ($1.21 ) 3,132 $0.09 82,991 $2.47to shareholders ofTeekay Tankers

Year Ended December 31, 2020 December 31, 2019 (unaudited) (unaudited) $ Per $ Per $ Share^(1) $ Share^ (1)Net income - GAAP basis 87,317 $2.59 41,362 $1.23 Add (subtract) specific items affecting net income:Write-down and loss on sale of assets 69,446 $2.06 5,544 $0.16Unrealized loss on derivative 1,459 $0.04 5,247 $0.16instruments ^(2)Other ^(3) (5,075 ) ($0.15 ) 12,170 $0.36Total adjustments 65,830 $1.95 22,961 $0.68Adjusted net income attributable to 153,147 $4.54 64,323 $1.91shareholders of Teekay Tankers

(1) Basic per share amounts.

(2) Reflects unrealized gains or losses due to the changes in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes, including unrealized gains or losses on interest rate swaps and forward freight agreements.

(3) The amount recorded for the three months ended December 31, 2020 primarily relates to adjustments to freight tax accruals of prior years and unrealized foreign exchange losses. The amount recorded for the three months ended September 30, 2020 primarily relates to restructuring charges, unrealized foreign exchange losses and debt issuance costs which were written off in connection with the refinancing of one of the Company's debt facilities in August 2020. In addition to these amounts, the amount recorded for the year ended December 31, 2020 primarily relates to realized gains from swap termination settlement and debt issuance costs which were written off in connection with the refinancing of the Company's debt facilities in January 2020, additional adjustments to freight tax accruals of prior years and unrealized foreign exchange gains. The amount recorded for the three months and year ended December 31, 2019 primarily relates to adjustments to freight tax accruals of prior years and unrealized foreign exchange gains and losses.

Teekay Tankers Ltd.Appendix B - Reconciliation of Non-GAAP Financial Measures Free Cash Flow(in thousands of U.S. dollars, except share data)

Three Months Ended Year Ended December 31, September December 31, December 31, December 31, 2020 30, 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)Net (loss)income - GAAP (73,286 ) (44,434 ) 63,072 87,317 41,362 basis Add: Depreciation and 28,042 29,992 31,943 117,212 124,002 amortizationProportionateshare of freecash flow from 402 521 2,233 7,002 4,247 equity-accountedjoint ventureUnrealized losson derivative ? 172 1,287 1,459 5,247 instrumentsWrite-down andloss on sale of 24,282 44,973 5,544 72,527 5,544 assetsEquity loss ^(1) 74 ? ? ? ? Less: Equity income ^ ? (46 ) (1,693 ) (5,100 ) (2,345 )(1)Unrealized gainon derivative (489 ) ? ? ? ? instrumentsGain on sale of ? ? ? (3,081 ) ? assets Free cash flow (20,975 ) 31,178 102,386 277,336 178,057 Weighted-averagenumber of commonshares 33,738,143 33,738,143 33,638,082 33,718,665 33,617,635 outstanding forthe period -basic

(1) Equity loss and equity income relate to the Companys 50 percent ownership interest in the High-Q joint venture, which owns one VLCC tanker.

Teekay Tankers Ltd. Appendix C - Reconciliation of Non-GAAP Financial MeasuresTotal Adjusted EBITDA(in thousands of U.S. dollars)

Three Months Ended December September December 31, 2020 30, 2020 31, 2019 ^(1) (unaudited) (unaudited) (unaudited)Net (loss) income - GAAP basis (73,286 ) (44,434 ) 63,072 Depreciation and amortization 28,042 29,992 31,943 Interest expense, net of interest income 10,306 12,216 15,532 Income tax expense 19,030 2,187 14,415 EBITDA (15,908 ) (39 ) 124,962 Add (subtract) specific income statement items affecting EBITDA:Foreign exchange loss 1,268 514 615 Write-down and loss on sale of assets 24,282 44,973 5,544 Realized loss (gain) on interest rate swaps 70 58 (395 )Unrealized (gain) loss on derivative (489 ) 172 1,287 instrumentsEquity loss (income) 74 (46 ) (1,693 )Consolidated adjusted EBITDA 9,297 45,632 130,320 Adjusted EBITDA from equity-accounted joint 491 616 2,413 venture (See Appendix D)Total adjusted EBITDA 9,788 46,248 132,733

Year Ended December 31, December 2020 31, 2019 ^(1) (unaudited) (unaudited)Net income - GAAP basis 87,317 41,362 Depreciation and amortization 117,212 124,002 Interest expense, net of interest income 50,326 64,491 Income tax expense 7,283 20,103 EBITDA 262,138 249,958 Add (subtract) specific income statement items affecting EBITDA:Foreign exchange loss (gain) 734 (486 )Write-down and loss on sale of assets 69,446 5,544 Realized gain on interest rate swaps (481 ) (2,791 )Unrealized loss on derivative instruments 1,459 5,247 Equity income (5,100 ) (2,345 )Consolidated adjusted EBITDA 328,196 255,127 Adjusted EBITDA from equity-accounted joint venture ( 7,451 5,067 See Appendix D)Total adjusted EBITDA 335,647 260,194

(1) Comparative balances relating to the three months and year ended December 31, 2019 have been updated to reflect results as presented in the Companys Annual Report on Form 20-F for the year ended December 31, 2019.

Teekay Tankers Ltd. Appendix D - Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA from Equity-Accounted Joint Venture(in thousands of U.S. dollars)

Three Months Ended December 31, 2020 September 30, December 31, 2019 2020 (unaudited) (unaudited) (unaudited) At Company's At Company's At Company's 100% Portion ^ 100% Portion ^ 100% Portion ^ (1) (1) (1)Revenues 1,584 792 1,986 993 5,300 2,650 Vessel and other (602 ) (301 ) (753 ) (376 ) (554 ) (277 )operating expensesDepreciation and (951 ) (475 ) (951 ) (476 ) (1,081 ) (540 )amortizationIncome from operationsof equity-accounted 31 16 282 141 3,665 1,833 joint venture Interest expense, net of (179 ) (90 ) (190 ) (94 ) (359 ) (180 )interest incomeOther ? ? (1 ) (1 ) 80 40 Equity (loss) income ofequity-accountedjoint (148 ) (74 ) 91 46 3,386 1,693 venture Equity (loss) income ofequity-accounted joint (148 ) (74 ) 91 46 3,386 1,693 ventureDepreciation and 951 475 951 476 1,081 540 amortizationInterest expense, net of 179 90 190 94 359 180 interest incomeEBITDA fromequity-accounted joint 982 491 1,232 616 4,826 2,413 venture Adjusted EBITDA fromequity-accounted joint 982 491 1,232 616 4,826 2,413 venture

(1) The Companys proportionate share of its equity-accounted joint venture is 50 percent.

Teekay Tankers Ltd.

Appendix D - Reconciliation of Non-GAAP Financial Measures Adjusted EBITDA from Equity-Accounted Joint Venture(in thousands of U.S. dollars)

Year Ended December 31, 2020 December 31, 2019 (unaudited) (unaudited) At Company's At Company's 100% Portion ^ 100% Portion ^ (1) (1)Revenues 17,519 8,759 12,282 6,141 Vessel and other operating expenses (2,617 ) (1,308 ) (2,373 ) (1,186 )Depreciation and amortization (3,805 ) (1,902 ) (3,805 ) (1,903 )Income from operations of 11,097 5,549 6,104 3,052 equity-accounted joint venture Interest expense, net of interest income (898 ) (449 ) (1,639 ) (819 )Other ? ? 225 112 Equity income of equity-accounted joint 10,199 5,100 4,690 2,345 venture Equity income of equity-accounted joint 10,199 5,100 4,690 2,345 ventureDepreciation and amortization 3,805 1,902 3,805 1,903 Interest expense, net of interest income 898 449 1,639 819 EBITDA from equity-accounted joint 14,902 7,451 10,134 5,067 venture Adjusted EBITDA from equity-accounted 14,902 7,451 10,134 5,067 joint venture

(1) The Companys proportionate share of its equity-accounted joint venture is 50 percent.

Forward Looking Statements

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect managements current views with respect to certain future events and performance, including, among other things, statements regarding: the impact of the sale of vessels on the Companys balance sheet and liquidity position, and the timing of closings of such transactions; the Companys plans to finance, and the timing of closing, the re-purchase of sale-and-leaseback vessels; the impact on the Companys scale and capital resources, as well as the timing of the delivery of the tanker newbuilding subject to the Companys new long-term in-charter agreement; crude oil and refined product tanker market fundamentals, including the balance of supply and demand in the oil and tanker markets and the volatility of such markets; the future outlook on the crude tanker spot and charter markets, as well as the global economy; forecasts of worldwide tanker fleet growth or contraction and newbuilding tanker deliveries and vessel scrapping; estimated fluctuations in global oil demand and supply levels, including anticipated future fluctuations in global oil inventories and the timing thereof; anticipated oil production or supply cuts and the effect and timing thereof; future tanker rates, including a potential recovery as the global economy and oil demand returns to normal conditions; future OPEC+ oil production increases and the resulting impact on tanker demand; expected changes in global refinery throughput; the impact of the COVID-19 outbreak and related developments on the Company's business and tanker and oil market fundamentals, including the timing and impact of coronavirus vaccination programs; the Company's liquidity and market position; the anticipated delevering of the Company's balance sheet and reduction in its cost of capital; and the Companys ability to deal with potential market volatility and create shareholder value. 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 tanker rates; changes in the production of, or demand for, oil or refined products; changes in trading patterns significantly affecting overall vessel tonnage requirements; OPEC+ and non-OPEC production and supply levels; the duration and extent of the COVID-19 outbreak and any resulting effects on the markets in which the Company operates; the impact of the COVID-19 outbreak on the Companys ability to maintain safe and efficient operations; the impact and timing of coronavirus vaccination programs; the impact of geopolitical tensions and changes in global economic conditions; greater or less than anticipated levels of tanker newbuilding orders and deliveries and greater or less than anticipated rates of tanker scrapping; the potential for early termination of charter contracts on existing vessels in the Company's fleet; the inability of charterers to make future charter payments; the inability of the Company to renew or replace charter contracts; changes in global oil prices; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations and the impact of such changes, including IMO 2030; increased costs; and other factors discussed in Teekay Tankers filings from time to time with the United States Securities and Exchange Commission, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2019. 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 Companys expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.