October 31, 2024
On October 31, Teekay Corporation and Teekay Tankers released Q3-2024 earnings results.
Teekay posted another strong financial performance for the third quarter of 2024, as rates for Teekay Tankers’ mid-sized fleet remained historically strong, defying the usual seasonal weakness of this period.
Spot tanker rates in Q3 were among the highest recorded for this time of year in Teekay Tankers’ history, with seasonal headwinds already shifting into tailwinds as we move into the fourth quarter. With Teekay Tankers’ fleet primarily positioned in the spot market, we are well-positioned to benefit from the anticipated seasonal uplift in rates.
Teekay has continued its commitment to shareholder returns, through its share repurchase program announced at the start of Q3 2023. Additionally, Teekay’s Board of Directors has declared a one-time special cash dividend of $1.00 per common share.
Over recent years, the Teekay Group has taken several important steps to streamline the organization, including the recent changes to our group management team structure. We have also reached an agreement to sell Teekay Australia—our asset-light ship management arm, primarily serving the Australian Government—to Teekay Tankers for $65 million in cash. All remaining Teekay management services companies will also be transferred to Teekay Tankers.
With these transactions, Teekay Tankers will become the Teekay Group’s sole operating platform, allowing Teekay Corporation to focus on managing its controlling interest in Teekay Tankers.
Looking ahead, we are very optimistic about the market dynamics ahead of us, and as we continue to generate earnings and maintain our discipline and long-term orientation in deploying or retaining that capital, we look forward to continuing to build shareholder value at both Teekay Corporation and Teekay Tankers.