August 4, 2022
On August 4, Teekay Corporation and Teekay Tankers released Q2-2022 earnings results.
Teekay Corporation reported a higher consolidated adjusted profit than the previous quarter, primarily due to higher spot tanker rates and lower general and administrative expenses, partially offset by the sale of all their interest in Seapeak LLC in mid-January and as we continue to wind down the FPSO business.
In April 2022, Teekay Corporation entered into an agreement to sell the Sevan Hummingbird FPSO unit to a third party, which closed on July 1, 2022. The proceeds from the sale are expected to be received in the third quarter of 2022 and are expected to substantially complete the wind-down of the FPSO business.
Teekay Tankers secured improved results quarter-over-quarter due to higher spot tanker rates and a lower number of scheduled dry dockings in the second quarter of 2022. The wide-ranging impacts of Russia’s invasion of Ukraine are reshaping the global energy markets, with new oil supply chains now established and marked by significantly longer average voyages, particularly for mid-size tankers.
A strong tanker demand growth is projected in both 2022 and 2023 due to rising oil consumption as the world adapts to the COVID-19 pandemic and a corresponding increase in oil supply which in 2023 is primarily expected to come from growth in non-OPEC volumes.
We believe our strong balance sheet has created the financial flexibility and optionality that we now have which is particularly valuable during times of extreme volatility and global economic uncertainty. It positions us well to pursue future investments patiently and selectively where we can leverage our operating franchise and proven capabilities of the Teekay platform.
Below you will find the highlights from our earnings results. For detailed information, visit our Investor pages: $TK, $TNK.