February 20, 2025
On February 20, Teekay Corporation and Teekay Tankers released Q4-2024 and annual 2024 earnings results.
Teekay Group reported a consolidated adjusted profit despite softer than-expected spot rates towards the end of 2024, while successfully completing the sale of Teekay Australia and transferring all the remaining management services companies to Teekay Tankers. This concludes our multi-year effort to simplify the Teekay Group and position Teekay Tankers as the sole operating platform within the Teekay Group.
As part of Teekay Tankers fleet renewal strategy, three older vessels were sold or agreed to be sold in the first quarter of 2025. Along with the two vessel sales completed in Q4-2024, these transactions generated approximately $160 million in sales proceeds and are expected to yield gains of about $58 million.
We also made a passive investment in Ardmore Shipping Corporation where we now own 5.1% of the company. Historically, Teekay has had investments in adjacent sectors to our medium sized crude tanker business, including some exposure to the MR sector in the past. We believe that this investment represents good value in the product sector.
Looking ahead, there is a wide range of potential tanker market outcomes due to the evolving geopolitical landscape; however, we expect the underlying tanker market fundamentals will remain supportive. In any tanker market conditions, we believe the Teekay Group is ideally positioned to create shareholder value with its low cash flow break-even levels and strong balance sheets.
Below you will find the highlights from our earnings results. For detailed information, visit our Investor pages:$TK, $TNK.