Teekay Tankers’ Profit Rises

Due to the strongest tanker market recorded since 2008, Nasdaq-listed tanker shipping company Teekay Tankers, a part of the Teekay Corporation, has reported an increase in its net income from USD 40.9 million in the third quarter of 2015 to USD 53.5 million in the fourth quarter.

The company added that its net income for the full year jumped to USD 179.6 million in 2015, while in 2014 it was at USD 60.5 million.

According to Teekay Tankers, this was one of the company’s strongest quarters ever resulting in a 300 percent increase in quarterly cash dividend. The increase in financials is attributed to a higher average spot rates earned and an increase in the size of the company’s fleet.

“We expect that many of the positive tanker market fundamentals in 2015 will remain in place during 2016,” Kevin Mackay, Teekay Tankers’ Chief Executive Officer, said.

“We expect the recent approval of U.S. crude exports will result in the development of new trade routes and positive demand growth for mid-sized tankers, directly benefiting Teekay Tankers as the world’s largest owner and operator in this segment. As well as the expected rise over time of U.S. exports to Europe and Asia via the expanded Panama Canal, which is scheduled to be completed in June 2016, the lifting of the export ban and the resultant narrowing of the WTI/Brent crude oil spread could give rise to increased imports into the U.S.”

During the fourth quarter, Teekay Tankers bought two purpose-built Lightering Aframax tankers for a price of some USD 80 million.
Additionally, the company refinanced a majority of its fleet with a new five-year USD 900 million debt facility in January 2016.

Furthermore, the strong tanker market also affected Teekay Corporation, as the company reported a net income of USD 162.9 million in the fourth quarter of 2015, compared to a net loss of USD 16.6 million in the previous quarter. The company’s full year net income increased to USD 405.4 million in 2015 from USD 124 million in 2014.

Peter Evensen, Teekay Corporation’s President and Chief Executive Officer, said that “the strong cash flow growth and earnings were driven mainly by the delivery and acquisition of various growth projects during 2015, including our largest FPSO project to date, the Knarr FPSO, tanker fleet growth and the highest spot tanker rates in seven years.”