Teekay Tankers Reports First Quarter 2024 Results

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Teekay Tankers reported the Company’s results for the quarter ended March 31, 2024:

First Quarter of 2024 Compared to Fourth Quarter of 2023

GAAP net income and non-GAAP adjusted net income for the first quarter of 2024 increased compared to the fourth quarter of 2023, primarily due to higher average spot tanker rates, partially offset by the sale of two vessels during the fourth quarter of 2023 and the first quarter of 2024. GAAP net income in the first quarter of 2024 included a $11.6 million gain from the sale of one vessel, while the fourth quarter of 2023 included a $10.4 million gain from the sale of one vessel.

First Quarter of 2024 Compared to First Quarter of 2023

GAAP net income and non-GAAP adjusted net income for the first quarter of 2024 decreased compared to the same period of the prior year, primarily due to lower average spot tanker rates and the sale of two vessels between the fourth quarter of 2023 and the first quarter of 2024, partially offset by lower interest expense resulting from lower overall finance lease obligation balances and higher interest income. In addition, GAAP net income in the first quarter of 2024 included a $11.6 million gain from the sale of one vessel.

CEO Commentary

“Throughout the first quarter of 2024, mid-size tankers have continued to be the greatest beneficiaries of the current tanker market environment, with strong rates reflecting the sustained tightness of supply and demand across Suezmax, Aframax, and LR2 tankers,” commented Kevin Mackay, Teekay Tankers’ President and Chief Executive Officer. “Global oil demand continues to increase, vessel deliveries are expected to be historically low over the coming years, and heightened geopolitical tensions continue to extend voyage lengths. These factors, combined with a lack of shipyard capacity to deliver any significant volume of tankers before mid-2027, and the emergence of new trade flows specific to Aframax tankers from the opening of the Trans Mountain Expansion (TMX) in Vancouver, make us optimistic about market conditions for mid-size tankers through at least the medium-term.” “We continue to execute on our balanced capital allocation plan and have recently completed the repurchase of eight vessels from their sale-leaseback arrangements, reaching a major milestone by becoming debt free(1). As we continue to prioritize balance sheet strength to enable fleet rejuvenation, our Board of Directors have also approved a special cash dividend of $2.00 per share in addition to our fixed quarterly dividend for a combined cash dividend of $2.25 per share.”