Teekay Tankers Ltd. Reports First Quarter 2013 Results

Teekay Tankers Ltd. yesterday reported an adjusted net loss attributable to shareholders of Teekay Tankers of $3.5 million, or $0.04 per share, for the quarter ended March 31, 2013, compared to adjusted net income attributable to shareholders of Teekay Tankers of $3.1 million, or $0.04 per share, for the same period in the prior year. The increase in adjusted net loss attributable to shareholders of Teekay Tankers is primarily the result of the change in employment of certain of the Company's vessels from fixed rates to lower spot rates on expiry of their fixed-rate charters and lower average spot realized tanker rates for the first quarter of 2013 compared to the same period in the prior year. Adjusted net loss attributable to shareholders of Teekay Tankers excludes a number of specific items that had the net effect of decreasing net loss attributable to shareholders of Teekay Tankers by $1.6 million, or $0.02 per share, and increasing net income attributable to shareholders of Teekay Tankers by $1.1 million, or $0.02 per share, for the three month periods ended March 31, 2013 and March 31, 2012, respectively, as detailed in Appendix a to this release. Including these items, the Company reported, on a GAAP basis, a net loss attributable to shareholders of Teekay Tankers of $2.0 million, or $0.02 per share, for the quarter ended March 31, 2013, compared to a net income attributable to shareholders of Teekay Tankers of $4.1 million, or $0.06 per share, for the quarter ended March 31, 2012. Net revenues were $42.0 million and $53.5 million for the first quarters of 2013 and 2012, respectively.
The Company's financial statements for prior periods include the historical results of the 13 vessels acquired by the Company from Teekay Corporation in June 2012, referred to herein as the Dropdown Predecessor, for the periods when these vessels were owned and operated by Teekay Corporation.
During the first quarter of 2013, the Company generated $8.3 million, or $0.10 per share, in Cash Available for Distribution, compared to $10.8 million, or $0.13 per share, in the fourth quarter of 2012. On May 8, 2013, Teekay Tankers under its new fixed dividend policy declared a dividend of $0.03 per share for the first quarter of 2013, which will be paid on May 28, 2013 to all shareholders of record on May 20, 2013. Since the Company's initial public offering in December 2007, it has declared a dividend in 22 consecutive quarters, which now totals $7.215 per share on a cumulative basis (including the dividend to be paid on May 28, 2013).
"In the first quarter of 2013, spot tanker rates remained at similar levels to the fourth quarter of 2012, with cold weather creating late season ice conditions which led to short-lived rate spikes in the Atlantic near the end of the quarter," commented Bruce Chan, Teekay Tankers' Chief Executive Officer. "As we proceed into the Northern Hemisphere summer months, a seasonally weaker period for spot tanker demand, we have continued to focus on maintaining a strong level of fixed-cover, which is approximately 40 percent over the next 12 months."
"Despite the near-term challenges in the spot tanker rate environment, we believe that Teekay Tankers remains well-positioned for an expected market recovery," Mr. Chan continued. "Our recent order of four fuel-efficient LR2 product tanker newbuildings from STX Offshore & Shipbuilding is a reflection of our positive view of the developing fundamentals, particularly in the long-haul product tanker market. At an attractive fully built-up cost of approximately $47 million per vessel, we believe that these newbuildings will provide good value for Teekay Tankers as they deliver into an expected improving tanker market in late-2015 and early-2016. In addition, the fixed-price option stream included with this transaction provides potential for further upside in a recovering tanker market."
Mr. Chan added, "Teekay Tankers remains financially strong with a manageable level of debt and no significant debt repayments until 2017. The favorable tail-weighted payment profile of the LR2 newbuildings will result in the majority of the purchase price being paid on delivery, which limits the near-term impact on Teekay Tankers' liquidity and provides ample time to arrange longer-term financing. In addition, with the shift to a fixed dividend commencing this quarter, Teekay Tankers will retain additional operating cash flow as the tanker market recovers for investment in Teekay Tankers' future growth."
http://www.teekaytankers.com/News/News-Releases/Press-Release-Details/2013/Teekay-Tankers-Ltd-Reports-First-Quarter-2013-Results/default.aspx
Source: Teekay Tankers Ltd.