NYSE-listed Teekay Tankers reported higher-than-expected profits for the first quarter, driven by its highest rates in years.
The product and crude tanker owner reported a net income of USD39 million for 1Q15 versus USD26.4 million in 1Q14. Adjusted earnings of USD0.34/share topped the Wall Street analyst consensus estimate for USD0.30/share.
Teekay Tankers’ Suezmaxes in the spot market earned USD39,433/day in 1Q15, up 40% from the year before. The company’s Aframaxes in the spot market earned USD30,708/day, up 36%, and its spot-traded LR2s earned USD24,899/day, up 80%.
“Over the past four months, crude spot tanker rates have achieved the highest average levels since the strong winter of 2008,” said Teekay Tankers chief executive Kevin Mackay. “Crude spot tanker rates have remained counter-seasonally strong into the second quarter due to record-high Saudi Arabian oil production and a relatively light refinery maintenance schedule as refiners continue to take advantage of positive margins.”
The company also noted that LR2 product tanker rates in 1Q15 were at the highest average levels since 2006, buoyed by “the ramp-up of new refineries in the Middle East, which has encouraged long-haul product exports, while Asian naphtha imports remain historically high.”