About Teekay Tankers

Teekay Tankers Ltd. operates as an international provider of marine transportation to global oil industries. The company’s tanker fleet size included 44 owned and leased tankers, five in-chartered tankers and one jointly-owned very large crude carrier (or VLCC) tanker as of December 31, 2022. The capacity of its tanker fleet was approximately 6,327,900 deadweight tonnes (dwt) as of December 31, 2022. The company sold one Suezmax tanker and three Aframax / LR tankers in 2022. The company’s primary business is to own and operate crude oil and refined product tankers. In addition to the company’s core business, it provides STS support services, along with the company’s tanker commercial management and technical management operations. Teekay Corporation is a leading provider of international crude oil and other marine transportation services. The company benefits from Teekay Corporation’s expertise, relationships and reputation as the company operates its fleet and pursue growth opportunities. The company owns a portion of its operating fleet from Teekay Corporation at various times, and the company anticipates additional opportunities to expand its fleet through acquisitions of tankers from third parties. The company operates its vessels in the spot market. As of December 31, 2022, a total of 43 of the company’s owned and leased vessels, one vessel owned through a 50/50 joint venture and four time chartered-in vessels operated in the spot market through employment on spot voyage charters. The company’s mix of vessels trading in the spot market, providing lightering services in the U.S. Gulf (or USG), or subject to fixed-rate time charters will change from time to time. The company’s lightering capability leverages access to its Aframax fleet operating in the USG and the company’s offshore lightering support acumen to provide full service lightering. The company’s customers include oil companies and trading companies that are importing or exporting crude oil in the USG to or from larger Suezmax and VLCC vessels, which are port restricted due to their size. The company’s full service lightering in the USG will provide additional base cargo volume complementary to the company’s spot trading in the Caribbean to the USG market and allow the company to better optimize the deployment of the fleet that the company trades in this region through enhanced scheduling flexibility, higher utilization and higher average revenues. The company and certain third-party vessel owners have entered into RSAs. As of December 31, 2022, 25 of the Suezmax tankers and 15 of the Aframax / LR2 tankers in the company’s fleet, as well as seven vessels not in the company’s fleet owned by third parties, were subject to RSAs. The vessels subject to the RSAs are employed and operated in the spot market or pursuant to time charters of less than one year. As of December 31, 2022, the company remained one of three active STS lightering businesses in the USG. The company is one of the two providers in this group who provides a complete full service STS offering, which includes the availability of Aframax tonnage to provide shipment between shore and offshore. As of December 31, 2022, the world Aframax crude tanker fleet consisted of 680 vessels, with an additional 46 Aframax crude oil tanker newbuildings on order for delivery through 2025; the world Suezmax crude tanker fleet consisted of 655 vessels, with an additional 20 Suezmax crude oil tanker newbuildings on order for delivery through 2025; and the world LR2 product tanker fleet consisted of 416 vessels, with an additional 44 LR2 product tanker newbuildings on order through 2025. The company, through its subsidiaries and affiliates, provides technical management services for some of its vessels. The company has obtained through Det Norske Veritas (or DNV), the Norwegian classification society, approval of the company’s safety management system as being in compliance with the International Safety Management Code (or ISM Code), and this system has been implemented for all of the company’s vessels. As part of the company’s ISM Code compliance, all of the vessels’ safety management certificates are maintained through ongoing internal audits performed by certified internal auditors and intermediate audits performed by DNV. The company provides, through the company’s subsidiaries and affiliates, expertise in various functions critical to its operations and access to human resources, financial and other administrative functions. Critical ship management functions include vessel maintenance (including repairs and dry docking) and certification; crewing by competent seafarers; purchasing of stores, bunkers and spare parts; shipyard supervision; insurance; and financial management services. These functions are supported by onboard and onshore systems for maintenance, inventory, purchasing and budget management. All vessels are operated by the company under a comprehensive and integrated Safety Management System that complies with the ISM Code, the International Standards Organization’s (or ISO) 9001 for Quality Assurance, ISO 14001 for Environment Management Systems, and ISO 45001:2018 Occupational Health and Safety Management System and the Maritime Labour Convention 2006 that became enforceable on August 20, 2013. The company’s vessels are registered with reputable flag states, and the hull and machinery of all of the company’s vessels have been ‘Classed’ by one of the major classification societies and members of the International Association of Classification Societies Ltd (or IACS): DNV, Lloyd’s Register of Shipping or the American Bureau of Shipping. Business Strategies The company’s primary business strategies are to expand its fleet through accretive acquisitions; tactically manage its mix of spot, fixed-rate and full service lightering contracts; and provide superior customer service by maintaining high reliability, safety, environmental and quality standards. Regulations IMO regulations relating to pollution prevention for oil tankers have been adopted by many of the jurisdictions in which the company’s tanker fleet operates. SOLAS and other IMO regulations concerning safety, including those relating to treaties on the training of shipboard personnel, lifesaving appliances, radio equipment and the global maritime distress and safety system, apply to the company’s operations. Each of the existing vessels in the company’s fleet is ISM Code-certified, and the company obtain a safety management certificate for each newbuilding on delivery. The IMO has issued guidance regarding protecting against acts of piracy off the coast of Somalia. The company complies with these guidelines. As of December 31, 2022, the company had installed BWTS on 33 vessels in its fleet. All of the company’s maritime labor contracts comply with the MLC. The company has complied with the USCG regulations by using self-insurance for certain vessels and obtaining financial guaranties from a third party for the remaining vessels. If other vessels in the company’s fleet trade into the U.S. All the company’s vessels have USCG-approved vessel response plans. Also, the company conducts regular oil spill response drills as per the guidelines set out in OPA 90. The company’s vessels that discharge certain effluents, including ballast water, in the U.S. waters must obtain a Clean Water Act permit from the Environmental Protection Agency (or EPA) titled the ‘Vessel General Permit’ (or VGP) and comply with a range of effluent limitations, best management practices, reporting, inspections and other requirements. In addition, the company’s vessels are escorted through the Nigerian Exclusive Economic Zone (or EEZ) for calling at some ports of Cameroon and Equatorial Guinea, which are close to the Nigerian EEZ. The company’s vessels are fully compliant with all recommendations of Best Management Practices for West Africa. History Teekay Tankers Ltd. was founded in 2007. The company was incorporated as a Marshall Islands corporation in 2007.