Strong Financial Performance
Teekay Tankers reported the best quarter in the last 12 months with GAAP net income of $92.1 million or $2.66 per share and adjusted net income of $53.3 million or $1.54 per share. The company generated approximately $69 million in free cash flow from operations and had a cash position of $775 million with no debt.
Fleet Renewal Strategy
Teekay Tankers completed the acquisition of a modern Suezmax and 50% ownership in a VLCC. Additionally, the company sold 4 Suezmax tankers, generating gross proceeds of $158.5 million with an estimated book gain on sales of $47.5 million.
Opportunistic Time Charters
The company out-chartered one Suezmax vessel for $42,500 per day and two Aframax-sized vessels for an average time charter rate of $33,275 per day, capitalizing on strong market conditions.
Positive Market Outlook
Spot tanker rates improved, supported by increased global oil supply and long-haul crude oil movements. The market is positioned for a strong winter season with potential for further rate increases.