July 31, 2025
On July 31, Teekay Corporation and Teekay Tankers released Q2-2025 earnings results.
Teekay posted a solid second quarter earnings results in 2025 with spot tanker rates holding strong against the seasonal trend, performing better than the last two quarters and sitting well above the historical average for this time of year.
Since our last earnings update in May, Teekay Tankers acquired a 2017 built Suezmax tanker and agreed to acquire the remaining 50% ownership interest in the Hong Kong Spirit Very Large Crude Carrier (VLCC), as part of Teekay Tankers’ fleet renewal plan. At the same time, Teekay Tankers has agreed to sell five vessels for total gross proceeds of $158.5 million.
As we step into the third quarter, rates have softened slightly, which is expected for the season. Still, the outlook remains positive. With OPEC+ accelerating the reversal of its production cuts, increased output from non-OPEC producers in the Atlantic region, and global oil inventories sitting at low levels, there’s reason to believe demand for tankers will pick up again later this year.
With our low cash flow break-even levels and significant balance sheet strength, we believe Teekay Tankers is very well positioned to continue to generate significant free cash flow while we continue to take incremental steps on fleet renewal and return capital to shareholders.