Hmm! … TNK’s results were released after-hours
- Rev of $229M
- Adj EBITDA of $64.3m
- Net Income of $92.1m
- TCE avg: Suezmax $33404 daily Aframax/LR2 $30861 daily, VLCC $33285 daily
- Q3 dividend 25c/sh
- Some vessel transactions
TNK experienced a weak result for its lone VLCC @ 43285 daily in Q3 2025. It looks like during Q4 2025, the single VLCC operating in the spot market is doing a lot better ($63700 daily 54% of Q4 done ). Improvement of TCE in the two other categories too.
Footnote (5) is also interesting. Only half the fleet is unencumbered. With such a large cash balance, I would have expected more vessels to be unencumbered. How much debt are we talking? LT debt is only $66M. No indication on any significant fleet expansion. Maybe it comes up during the earnings call? Also, the vessel count - was it 34 owned @ end-of-Q3 2025? And another two exits in Q4 2025?
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Given Q3 is usually a weaker tanker market, should probably rephrase “weak” rate. $43K daily is a profitable rate for a VLCC, and probably more so in a typical Q3. Let me change the adjective to “decent”.
Got a chance to peruse a little more. So TNK inherited “Australian Operations” from Teekay parent (TK) at the end of last year. The results of that entity skew the revenue results of TNK. This masks the deterioration of the primary business (Page 14 - 15). In a similar fashion, the gain on asset sales helps spruce up net income.
Q4’s are typically stronger. Q4 2024 was a somewhat weak quarter. But, it looks like Q4 2025 is playing out as a stronger one. At least, the tanker market appears to have picked up some the end of Q3 2025.
I had visited Seeking Alpha a couple of times since the TNK results. I found it odd that there was no TNK transcript. But Teekay parent, Teekay Corp (TK) have a transcript. Since TK management took over TNK mgmt, then it seems fair that whatever TK have to discuss, is mostly about TNK anyway, right? So I skimmed thru the TK Earnings Call transcript.
Good old Omar Nokta asked the relevant TNK question (HohumAI paraphrasing) - what’s the status with fleet expansion? In a prior call, TK/TNK mgmt had indicated a possibility of moving into the MR segment. That is now off-the-table. Per a follow-up question by another analyst, TK/TNK will likely focus on their core strength - the mid-sized tanker category. That’s Suezmax, and Aframax/LR2. Per a STNG mgmt observation, about 50% of LR2’s are actually in the dirty trade (carrying crude, or crude-like cargos). I suspect that’s an optionality which suggests most owners likely go to yards and place LR2 orders now. Then have the flexibility to trade either clean or dirty. My guess, an exception would likely be if an oil major were deciding.
https://seekingalpha.com/article/4835868-teekay-corporation-ltd-tk-q3-2025-earnings-call-transcript
I guess a couple of other takeaways from the transcript.
- TK/TNK mgmt suggest the port fees have been suspended for about a year.
- A slightly different term than I’m used to seeing - “free cash flow breakeven”. For TNK, that is $11,300