Teekay posts strong Q1 results

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Teekay Corporation reported results for the three months ended March 31, 2023.

CEO Commentary

“Teekay posted strong financial results in the first quarter of 2023, reporting the Company’s highest consolidated quarterly net earnings per share in 14 years,” commented Kenneth Hvid, Teekay’s President and CEO. “In addition, Teekay Tankers reported record earnings and cash flows with mid-sized spot charter rates rising to the highest-ever for a first quarter on the back of robust market fundamentals. Spot charter rates for Teekay Tankers’ fleet so far in the second quarter of 2023 remain firm, with its combined Suezmax and Aframax fleet spot rates averaging approximately $60,000 per day based on our bookings to-date.”

“The strong tanker market has enabled Teekay Tankers to transform its balance sheet, create significant equity value, and achieve much greater financial flexibility. As a result, Teekay Tankers has updated its capital allocation plan to include continuing to build financial strength to position the company to act on future investment opportunities at the right point in the cycle, while also returning capital to shareholders. Under this capital allocation plan, Teekay Tankers has implemented a fixed quarterly dividend of $0.25 per share, or $1.00 per share annually, with the first dividend relating to the first quarter of 2023. In addition, the Teekay Tankers board has declared a special dividend of $1.00 per share, for a total dividend of $1.25 per share, from which Teekay Parent’s portion will total approximately $12 million and will be paid in June 2023. Lastly, Teekay Tankers also announced a $100 million Class A common share repurchase program that is expected to be used opportunistically.”

“Since reporting earnings last quarter, Teekay Parent has continued to return capital to its shareholders in an accretive manner. Following the completion of our $30 million share repurchase program that was announced in August 2022, we announced a new $30 million repurchase program in March 2023. Since that time, we have repurchased 2.8 million common shares for $15.8 million. Since August 2022, we have repurchased 9.3 million common shares, or approximately 9.1% of the outstanding common shares immediately prior to commencement of the prior program, at an average price of $4.93 per share.”

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