Teekay Tankers reported the Company’s results for the quarter ended June 30, 2024
Second Quarter of 2024 Compared to First Quarter of 2024
GAAP net income and non-GAAP adjusted net income for the second quarter of 2024 decreased compared to the first quarter of 2024, primarily due to lower average spot tanker rates and a higher number of scheduled dry dockings. In addition, GAAP net income in the first quarter of 2024 included a $11.6 million gain from the sale of one vessel.
Second Quarter of 2024 Compared to Second Quarter of 2023
GAAP net income and non-GAAP adjusted net income for the second 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, as well as a higher number of scheduled dry dockings, partially offset by lower income tax expense resulting from the re-assessment of certain tax positions, lower interest expense resulting from the repurchases of certain vessels previously under sale-leaseback arrangements between the second quarter of 2023 and the first quarter of 2024, and higher interest income.
CEO Commentary
“Mid-size crude tanker rates remained strong and stable for the second quarter,” commented Kevin Mackay, Teekay Tankers’ President and Chief Executive Officer. “The underlying fundamentals, and resulting strong utilization levels within the mid-sized tanker segment specifically, continue to support historically high spot charter rates for our Suezmax and Aframax-sized fleets.”
“With the Trans Mountain Pipeline expansion continuing to ramp up towards one Aframax cargo per day, vessel attacks in the Red Sea continuing to divert ships, and a newbuilding delivery schedule that is very low in historical terms, the mid-size tanker market is expected to remain well supported through the remainder of 2024.”
“Looking ahead, we are optimistic about the operating environment for mid-size tankers in the coming years. With high operating leverage to the spot tanker market and a debt-free balance sheet(1), Teekay Tankers expects to continue generating significant free cash flow, supporting our ability to prudently reinvest in our fleet, return capital to shareholders and maintain financial strength. We are pleased to be adding new, modern tonnage to our fleet by redeploying capital from selling some older vessels, while we remain confident that our patience in pursuing growth opportunities positions us well to drive value creation in both the near and long-term.”
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