Highlights
• GAAP net income attributable to shareholders of Teekay of $39.1 million, or $0.39 per share, and adjusted net
income attributable to shareholders of Teekay(1) (excluding items listed in Appendix A to this release) of $44.3 million,
or $0.44 per share, in the fourth quarter of 2022.
• Adjusted EBITDA(1) of $173.4 million in the fourth quarter of 2022.
• Fiscal year 2022 GAAP net income of $78.4 million, or $0.77 per share, adjusted net income attributable to
shareholders of Teekay of $64.6 million, or $0.63 per share, and adjusted EBITDA of $341.7 million.
• Tanker market remains strong with Teekay Tankers securing first quarter 2023 to-date spot rates of $50,600 per day
for its Suezmax fleet and $67,600 per day for its Aframax-sized fleet, respectively.
• Since reporting earnings last quarter, Teekay Parent has repurchased a further $13.4 million of its outstanding
common shares, bringing the total repurchased since the beginning of the program in August 2022 to $18.7 million at
an average price of $4.16 per share.
Teekay Corporation reported results
for the three and twelve months ended December 31, 2022. These results include the Company’s publicly-listed consolidated
subsidiary, Teekay Tankers Ltd. (Teekay Tankers) (NYSE:TNK), and all remaining subsidiaries and equity-accounted
investments. As a result of Stonepeak's acquisition of Teekay LNG Partners L.P. (Teekay LNG) (now known as Seapeak LLC) in
January 2022, certain information in this release presents Teekay LNG and various subsidiaries that provided the shore-based
operations for Teekay LNG and certain of Teekay LNG’s joint ventures under management services contracts (collectively, the
Teekay Gas Business) as a discontinued operation. Teekay, together with its subsidiaries other than Teekay Tankers, is referred
to in this release as Teekay Parent. Please refer to the fourth quarter and annual 2022 earnings release of Teekay Tankers,
which is available on Teekay's website at www.teekay.com, for additional information on Teekay Tankers' results.
CEO Commentary
“During the fourth quarter of 2022, mid-sized spot tanker rates surged to among the highest rates ever recorded,
which resulted in Teekay posting its highest consolidated adjusted net earnings per share in 14 years,” commented
Kenneth Hvid, Teekay’s President and CEO. “In addition, in January 2023, Teekay Parent repaid the remaining
amount due at maturity on its convertible bond and is now debt free with over $300 million in cash, which is a major
milestone in a six-year journey during which we have focused on simplifying and streamlining our group structure,
while strengthening our balance sheet and financial flexibility to support our long-term value-creation strategy.”
“During the fourth quarter, Teekay Tankers reported its highest ever adjusted net income, driven by strong tanker
supply and demand fundamentals, which has been further boosted by an increase in tanker tonne-miles resulting
from the structural changes to energy trade flows following Russia’s invasion of Ukraine. The strong tanker market
over the past year has transformed Teekay Tankers’ balance sheet, and we are now in the process of refinancing 19
of its sale-leaseback financings completed during the previous cyclical downturn with a new corporate revolver,
which is expected to further reduce our interest costs and cash flow break-even levels. The spot charter rates that
Teekay Tankers' fleet has secured so far in first quarter of 2023 remain strong and, with almost all of Teekay
Tankers' fleet currently trading in the spot market, we believe we have significant operating leverage to benefit from
this robust tanker market.”
“Lastly, since reporting earnings in November 2022, we have continued to repurchase Teekay’s common shares
under our $30 million share repurchase program announced in August 2022, acquiring a further 3.0 million common
shares. To-date, we have repurchased 4.5 million common shares, or approximately 4.4% of the outstanding
common shares immediately prior to commencement of the program, at an average price of $4.16 per share.”
Summary of Results
The Company's adjusted net income attributable to shareholders of Teekay(1) for the fourth quarter of 2022
increased compared to the same quarter of the prior year, primarily due 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, consolidated GAAP net income attributable to shareholders of Teekay increased during the fourth
quarter of 2022, compared to the same quarter of the prior year, mainly due to write-downs of $45.9 million primarily
related to investments in equity-accounted joint ventures (of which $30 million related to the Teekay Gas Business)
which were recognized in the fourth quarter of 2021.
The following table highlights the operating performance of Teekay Tankers' vessels trading in revenue sharing
arrangements (RSAs), on voyage charters and in full service lightering, in each case measured in net revenues(1)
per revenue day(2), or time-charter equivalent (TCE) rates, before off-hire bunker expenses:
Summary of Recent Events
Teekay Parent
Since September 30, 2022, Teekay Parent has repurchased an additional 3.0 million of its common shares under its
share repurchase program for a total cost of $13.4 million. To-date, Teekay has repurchased a total of approximately
4.5 million common shares under the program, or approximately 4.4% of the outstanding common shares
immediately prior to commencement of the program in August 2022, for a total cost of $18.7 million, representing an
average repurchase price of $4.16 per share.
Teekay Tankers
In November 2022, Teekay Tankers entered into a charter-in agreement for one Suezmax vessel at a rate of
$32,250 per day for 54 months with an option to extend for an additional 12 months, while simultaneously entering
into a charter-out agreement for the same vessel at a rate of $38,475 per day for a 21 to 26-month period. Both
charters commenced in December 2022.
In December 2022, Teekay Tankers entered into a charter-in agreement for one Aframax vessel at a rate of $31,150
per day for 36 months with an option to extend for an additional 12 months, while simultaneously entering into a
charter-out agreement for the same vessel at a rate of $48,500 per day for a 12-month period. Both charters
commenced in February 2023.
In January 2023, the previously announced eco-Aframax newbuilding was delivered to Teekay Tankers under a
charter-in agreement for seven years at a rate of $18,700 per day. The charter includes three one-year extension
options, as well as a purchase option.
In February 2023, Teekay Tankers entered into a charter-in contract for one Aframax vessel at a rate of $35,750 per
day for 24 months with an option to extend for an additional 12 months. The vessel is expected to be delivered prior
to the end of the first quarter of 2023.
In January 2023, Teekay Tankers gave notice to exercise nine vessel purchase options under sale-leaseback
arrangements for a total of $164 million. Teekay Tankers expects to purchase the vessels in March 2023 using cash
on hand.
In February 2023, Teekay Tankers signed a term sheet for a new secured revolving credit facility for up to $350
million to refinance 19 vessels (including the nine vessels mentioned above) currently under sale-leaseback
financing arrangements. The facility is expected to be completed during the second quarter of 2023.