October 30, 2025
On October 29, Teekay Corporation and Teekay Tankers released Q3-2025 earnings results.
Teekay Tankers reported its best quarterly performance in the past 12 months, supported by spot tanker rates that remained unusually strong for the season. Rates were well above historical averages, driven by the OPEC+ unwinding of supply cuts and seaborne crude oil trade volumes approaching record highs.
This positive momentum has continued into the fourth quarter, with spot rates strengthening further. A firm winter market is anticipated, supported by higher crude trade volumes, growing inefficiencies from sanctions, low global oil inventories, softer oil prices, and a weaker U.S. dollar. With our strong exposure to the spot market, Teekay Tankers is well positioned to benefit from these favorable conditions.
The company also continued to advance its fleet renewal strategy, completing the purchase of a modern Suezmax and the remaining 50% stake in a VLCC from a joint venture partner. In addition, the sale of four Suezmax tankers and a LR2 vessel, which have now been delivered to their new owners, generated combined gross proceeds of $158.5 million, with an estimated book gain of approximately $47.5 million recorded across the third and fourth quarters.
With low cash flow break-even levels, an integrated operating platform, and a strong balance sheet, the Teekay Group remains well positioned to continue generating significant free cash flow, while advancing its fleet renewal program and returning capital to shareholders through quarterly dividends.