Q2 2024 Teekay Tankers Ltd Earnings Call Transcript
Key Points
- Teekay Tankers Ltd (TNK) generated a strong quarterly result with total adjusted EBITDA of $124 million.
- The company reported an adjusted net income of $107 million or $3.11 per share.
- Midsized tanker spot rates remained strong, supported by increased exports from the Trans Mountain pipeline expansion.
- Teekay Tankers Ltd (TNK) sold two older ships for nearly $65 million and acquired a modern eco-design Aframax for $70.5 million.
- The company has a high operating leverage, with 96% of its fleet deployed in the spot market, generating significant free cash flow.
- Adjusted EBITDA decreased from $151 million in the previous quarter to $124 million.
- Adjusted net income decreased from $132 million or $3.96 per share in the first quarter of 2024.
- The company faces potential volatility and seasonality in spot rates despite a positive outlook.
- There is a modest tanker order book and limited shipyard capacity until the second half of 2027, which could impact fleet growth.
- Asset prices are elevated, making it challenging to deploy capital for fleet renewal without being selective.
Welcome to Teekay Tankers Ltd. second-quarter 2024 earnings conference call (Operator Instructions). As a reminder, this call is being recorded. Now for opening remarks and introductions, I would like to turn the call over to the company. Please go ahead.
Before we begin, I would like to direct all participants to our website at www.teekay.com, where you will find a copy of the second quarter 2024 earnings presentation. Kevin and Stewart will review this presentation during today's conference call. Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements.
Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the second quarter 2024 earnings release and earnings presentation available on our website. I will
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