May 8, 2025
On May 8, Teekay Corporation and Teekay Tankers released their Q1-2025 earnings results.
The Teekay Group delivered solid first-quarter 2025 results, driven by a steadily strengthening tanker market. The improvement was driven by rising non-OPEC+ production, particularly in the Americas, and the impact of new U.S. sanctions on Russia and Iran, which together contributed to longer-haul voyages as Asian buyers increasingly turned to the Atlantic Basin for crude oil supplies.
Teekay Tankers declared its regular quarterly dividend of $0.25 per share and a special dividend of $1.00 per share, for a total payout of $1.25 payable in May. Teekay Corporation also declared a $1.00 per share special dividend payable in July.
Since the start of the year, we have continued to execute on our fleet renewal plan, which includes acquiring modern tonnage over time and selling older vessels. Teekay Tankers has agreed to acquire one 2019-built LR2 vessel, which is expected to deliver in the second quarter of 2025. In addition, since the beginning of 2025, Teekay Tankers has sold six vessels for total gross proceeds of approximately $183 million. While we have been more active recently in selling rather than buying, we expect this trend to change over time as we see opportunities to acquire more modern tonnage.
Looking ahead, fleet supply fundamentals remains supportive; however, the medium-term demand outlook remains uncertain amid evolving global developments, including the imposition of new U.S. tariffs and retaliatory actions, which could weigh on global economic growth. These factors are likely to drive continued volatility in spot tanker rates and asset values.
While returning capital to shareholders remains a priority, we are equally focused on preserving strong cash flow to support fleet renewal. Backed by a solid balance sheet and consistent cash generation, we are well positioned to capitalize on market opportunities as they emerge.