Vancouver, B.C., based Teekay Tankers Ltd. (NYSE: TNK) reported adjusted net income of $110 million for the quarter ended March 31, 2020, compared with $14.6 million in the first quarter of last year.
“In the first quarter of 2020, Teekay Tankers achieved its highest quarterly adjusted profit in more than 10 years,” commented President and CEO Kevin Mackay, adding that “our fleet has continued to secure strong spot rates in the second quarter of 2020 to-date.”
“We have continued to execute on our strategic priorities, taking advantage of the strong spot tanker market over the last couple of months and opportunistically securing time charter-out contracts for an additional nine vessels for periods of six months to two years,” said Mackay. “We have now secured a total of 13 time charter-out contracts since October 2019, locking in approximately $170 million of forward fixed rate revenues at attractive rates and reducing our free cash flow breakeven to approximately $10,500 per day through the first quarter of 2021. Our low breakeven rate is expected to enable us to create shareholder value in almost any market, which is important given the current market uncertainty for the second half of 2020.”