Teekay Tankers reports 1Q 2019 results
Teekay Tankers Ltd. on May 23 reported GAAP net income of $12.4 million, or $0.05 per share, and adjusted net income(1) of $14.6 million, or $0.05 per share, in the first quarter of 2019 (excluding items listed in Appendix A to this release) and Total Adjusted EBITDA(1) of $63.4 million for the three-month period ended March 31, 2019.
In May 2019, Teekay Tankers completed two additional financing initiatives, which increased the Company’s liquidity position by approximately $40 million.
In the first quarter of 2019, the Company made certain changes to its non-GAAP financial measures to more closely align with internal management reporting and annual reporting filed with the U.S. Securities and Exchange Commission (SEC) under Form 20-F. Total Cash Flow from Vessel Operations (CFVO) and CFVO of Equity-Accounted for Investment are replaced with Total Adjusted EBITDA and Adjusted EBITDA from Equity-Accounted Vessel, respectively. Please refer to “Definitions and Non-GAAP Financial Measures” in this release for definitions of these non-GAAP financial measures and information about the changes made.
“Average crude tanker spot rates moderately increased during the first quarter of 2019, which resulted in another profitable quarter and slightly improved results over the prior quarter,” commented Kevin Mackay, Teekay Tankers’ President and Chief Executive Officer. “However, spot tanker rates declined towards the latter half of the first quarter, and the market faces a number of seasonal and other short-term headwinds, which are expected to reduce our earnings during the second quarter of 2019. We believe these factors are temporary in nature and expect a significant firming in the tanker market from the second half of 2019 due to positive underlying oil demand, an expected increase in U.S. crude oil exports, higher OPEC production, lower tanker fleet growth, and the positive impacts of IMO 2020.”
Mr. Mackay added, “With a stronger liquidity position, market-leading position in our vessel sectors and significant operating leverage, we believe we are well-positioned to benefit from a tanker market recovery in the second half of 2019 and into 2020.”