Teekay Tankers Ltd. on Thursday reported its results for the
three months ended December 31, 2012. During the fourth quarter of 2012, the Company generated $10.8 million, or $0.13 per share, in Cash
Available for Distribution(2), compared to $9.7 million, or $0.12 per
share, in the third quarter of 2012. On February 20, 2013, Teekay
Tankers declared a dividend of $0.03 per share(3) for the fourth quarter of 2012, which will be paid on March 11, 2013 to all shareholders of
record on March 4, 2013.Since the Company’s initial public offering in December 2007, it has
declared a dividend in 21 consecutive quarters, which now totals $7.185
per share on a cumulative basis (including the dividend to be paid on
March 11, 2013).“Stronger spot rates materialized for brief periods later in the
fourth quarter; however, the current oversupply of tanker capacity,
combined with reduced OPEC oil production, has largely offset any
seasonal strengthening of crude tanker rates so far in the first quarter of 2013,” commented Bruce Chan , Teekay Tankers’ Chief Executive Officer. “On a positive note, increasing product tanker demand has led to
relatively stronger LR2 product tanker rates, a trend that we believe
will continue in the medium-term due to the increased refinery capacity
east of Suez, and a corresponding increase in long-haul product tanker
demand.”“As a result of the continuing weak tanker market across most
segments, delays to the expected tanker market recovery and a further
decline in vessel market values during the course of the year, Teekay
Tankers’ US GAAP financial results for the fourth quarter of 2012
include a non-cash vessel impairment charge of approximately $353
million,” Mr. Chan added. “Vessel values over the past five
years have fallen significantly, and ships recorded on the books at
these historically high values have become impaired. The ships which
were affected the most are the Suezmaxes acquired by Teekay Corporation
in 2007, and recorded on Teekay Tankers’ balance sheet at the same
values due to dropdown accounting rules. It is important to note that
for the 13 vessels acquired more recently, in June 2012, had these ships been recorded on our balance sheet at Teekay Tankers’ actual purchase
price, rather than Teekay Corporation’s book value, none of these
vessels would have been written-down. The vessel impairment charge
included in our fourth quarter results is non-cash in nature and does
not impact the Company’s Cash Available for Distribution or cash
dividend, nor does it affect any covenants related to Teekay Tankers’
debt facilities.”Adjusted net loss attributable to shareholders of Teekay Tankers is a non-GAAP financial measure. Please refer to Appendix a to this release
for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable financial measure under United States
generally accepted accounting principles (GAAP) and for information
about specific items affecting net loss that are typically excluded by
securities analysts in their published estimates of the Company’s
financial results.Cash Available for Distribution represents net income (loss), plus
depreciation and amortization, unrealized losses from derivatives, non-
cash items and any write-offs or other non-recurring items, less
unrealized gains from derivatives and net income attributable to the
historical results of vessels acquired by the Company from Teekay
Corporation, for the period when these vessels were owned and operated
by Teekay Corporation.Please refer to Appendix B to this release for the calculation of the cash dividend amount.
“Despite the weak tanker market outlook for 2013, Teekay Tankers
remains financially strong with a manageable debt level and over $325
million of available liquidity as at December 31, 2012,” Mr. Chan continued. “At the current cyclically low asset values for both secondhand and
newbuilding tankers, we believe this market provides favorable
opportunities for investment in future growth either through the
ordering of new, fuel-efficient vessels or the acquisition of quality
on-the-water tonnage.”Mr. Chan continued, “In line with our goals of fleet renewal and
growth, we have also elected to move Teekay Tankers to a fixed dividend
policy. Commencing with the first quarter 2013 dividend, payable in June 2013, the dividend will be fixed at an annual amount of $0.12 per
share, payable quarterly. We believe this is a sustainable level based
on our existing fleet size and employment mix, and is a prudent policy
which will enable us to retain an increasing amount of operating cash
flow as the tanker market recovers for investment in Teekay Tankers’
future growth.”
TANKERS
25 February 2013 - 22:28
Teekay Tankers Plans to Expand Its Fleet
Teekay Tankers Ltd. on Thursday reported its results for the three months ended December 31, 2012
TANKERS
25 February 2013 - 22:28
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