TNK back in black

US-listed Teekay Tankers (TNK) has returned to profit in the second quarter as it cut costs.

The crude and products tanker division of the Teekay group said net earnings were $4.58m to 30 June, from a deficit of $5.72m in the same period last year.

Revenue edged up to $44.43m against $43.49m, but expenses were reduced to $33.94m compared to $49m, boosted by vessel sales worth nearly $10m.

Teekay said spot rates had been stronger in the second quarter

CEO Kevin Mackay added: “While we expect rates to soften from the current high levels, we believe that stronger oil demand, limited tanker fleet growth and improving global economic conditions will continue to support a general firming of average spot tanker rates."

The company has been “actively increasing” its spot rate exposure through new charter-in contracts with "favourable rates and optional periods".

Its fixed-rate coverage for the next 12 months has reduced to 26%, down from almost 50% two years ago.

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