On May 11, Teekay Corporation and Teekay Tankers released Q1-2023 earnings results.
Teekay Corporation reported an increase in our consolidated adjusted profit than the previous quarter, primarily attributed by the surge in spot tanker rates and a reduction in interest expense resulting from the completion of bond repurchases.
Teekay Parent has continued to return capital to its shareholders in an accretive manner through its share repurchase program announced in August 2022.
Teekay Tankers had also announced that its Board of Directors has approved an update to the Company’s capital allocation plan under which existing capital allocation priorities of balance sheet strength and well-timed fleet reinvestments will be supplemented by returns of capital to shareholders.
Spot tanker rates have remained firm as demand for mid-sized tankers remained elevated in the first quarter, driven by record export volumes from the US Gulf, continued strong volumes out of Russia, almost all of which has been travelling long-haul to Asia, and Europe’s continued replacement of Russian imports with volumes sourced from further afield.
With robust tanker market fundamentals, we believe there will be multi-year support for a healthy tanker market environment which should enable us to continue creating shareholder value by generating meaningful cash flows, returning capital to shareholders, and seeking opportunities to reinvest in our business and fleet in a disciplined manner.
