Spot spur for Teekay Tankers

Teekay Tankers’ best crude tanker spot market showing in four years has lifted the owner to a stronger than expected first quarter performance.

New York-listed Teekay Tankers booked a gain of $16.9m for the period to erase a loss of $3.5m a year ago.

Adjusted earnings per share of $0.11 were a cent ahead of what Wall Street analysts had predicted.

“The increase in adjusted net income attributable to shareholders of Teekay Tankers is primarily due to stronger spot rates in the first quarter of 2014 as compared to the same period in the prior year and an increase in interest income recognized from the company's investment in term loans,” it said.

Teekay says its suezmaxes commanded $28,079 per day on the spot market while its spot aframaxes earned $22,591 daily. Both sectors were up over $10,000 daily year-on-year.

“Crude tanker spot rates strengthened significantly during the first quarter of 2014, with aframax and suezmax rates achieving their highest quarterly averages since the fourth quarter of 2008 and the second quarter of 2010, respectively,” it said.

“The increase in tanker rates was primarily due to a combination of stronger fundamentals and seasonal factors, particularly during January and February of 2014.”

Teekay added: “Stronger global oil demand growth coupled with low tanker fleet growth, particularly in the crude segments, is expected to lead to an increase in tanker fleet utilization and therefore, freight rates during 2014 and 2015.”