Teekay Tankers reported Q1 net income of $154 million, driven by near-record spot tanker rates averaging $61,000 per day.
Teekay Tankers (TNK) reported first-quarter GAAP net income of $154 million, or $4.42 per share, up from $3.69 per share on an adjusted basis. The results reflect near-record spot tanker rates, which averaged $61,000 per day across its midsized fleet, boosting free cash flow to $143 million.
The company’s earnings surged more than 2-3 times year-over-year, supported by strong market conditions and a low free cash flow breakeven. Cash reserves rose to nearly $1 billion, with no debt as of quarter-end.
Teekay also announced agreements to acquire two Korean resale Suezmax newbuildings for $190 million, while selling an older Suezmax for $53.5 million, expecting a $32.5 million gain.