Teekay Tankers report Q2 2024

Announced 08/01

  • Rev $296.6M
  • Net Income $107M
  • Acquired a 2021-build
  • Sold two older vessels
  • Declared a 25c/sh div

https://www.teekay.com/wp-content/uploads/2024/07/TNK-Q2-24-ER-Document.pdf

  • Interestingly, the vessel acquisition was completed in July 2024, and is unencumbered (The company has access to credit facilities). [Edit: If TNK received the proceeds from the two vessel sales within the month, then I think it isn’t such a stretch to have the new vessel be an unencumbered transaction. Still think TNK mgmt is a little late on rejuvenating its fleet]

  • Charter-in rates are climbing - $34K daily for a charter-in extension. (Does make sense, given supply and demand issues)
    [Edit: In its early years, TNK would take in one or two charter-in vessels, and it was usually just a side bet - about +$5K daily per vessel if TNK got the bet right, and maybe - $5k daily if the bet was really off. Now, the charter-ins might be newer than their owned vessels, so earnings could potentially increase]

  • Very nice charter-out rate $49750 daily (for Aframax vessel)

  • Very big jump in off-hire days for Q3 2024 (Slide 14)
    https://www.teekay.com/wp-content/uploads/2024/07/TNK-Q2-24-Earnings-Presentation.pdf

  • Huge cash position (even after spending ~ $71M on a new vessel, minimal debt

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