February 23, 2023
On February 23, Teekay Corporation and Teekay Tankers released Q4-2022 earnings results.
In the fourth quarter of 2022, we reported our fourth consecutive quarterly adjusted profit. Our stronger results this quarter can be attributed to stronger earnings from Teekay Tankers as a result of higher spot tanker rates as well as lower interest expense in Teekay Parent due to bond and convertible debt repurchases completed during 2022, which was partially offset by the loss of earnings contribution from the Teekay Gas Business as a result of the sale of the Teekay Gas Business on January 13, 2022.
In addition, in January 2023, Teekay Parent repaid the remaining amount due at maturity on its convertible bond and is now debt free. Moving forward, with China’s economic reopening expected to be a major driver of global oil demand growth, the orderbook for newbuilding vessels at a record low level with little capacity to increase through late-2025, an increasingly complex and inefficient trading environment caused by Russia’s invasion of Ukraine, and first quarter-to-date rates continuing at very high levels, we believe Teekay Tankers is ideally positioned within the right segments to continue benefiting from strong spot tanker rates, generating significant free cash flow, and creating lasting value for our shareholders.
We believe our strong balance sheet has created the financial flexibility and optionality that we now have which is particularly valuable during times of extreme volatility and global economic uncertainty. It positions us well to pursue future investments patiently and selectively where we can leverage our operating franchise and proven capabilities of the Teekay platform.
Below you will find the highlights from our earnings results. For detailed information, visit our Investor pages: $TK, $TNK.