Canadian owner Teekay Tankers has given notice that it will exercise purchase options on nine vessels under sale and leaseback agreements.
The New York-listed firm is paying $164m for the transactions that will be funded using cash on hand and executed in March of this year.
Earlier this month, the company signed a term sheet for a new secured revolving credit facility for up to $350m to refinance 19 ships under sale-leaseback deals, including the nine units it opted to buy. The facility is expected to be completed during the second quarter of 2023.
Since last November, Teekay Tankers has entered into three charter-in agreements with periods ranging from 24 months to 54 months at an average rate of $33,050 per day and has also chartered out two ships from 12 to 26 months at an average rate of $43,490 per day. In January 2023, it took delivery of an aframax newbuild under a seven-year charter at $18,700 per day with three one-year extension options. The company has a total of eight tankers chartered-in at an average rate of $24,300 per day.
Teekay Tankers reported fourth-quarter 2022 adjusted net income of $147.5m, or $4.33 per share and $217.1m, or $6.39 per share, for the full year.
“In this environment, we are greatly benefiting from the high operating leverage of our business with our near-total spot market exposure, including the very strong performance of our chartered-in fleet, resulting in Teekay Tankers reporting its highest ever quarterly adjusted net income. By continuing to pay down debt and refinancing vessels currently in sale-leaseback arrangements, we are taking action to further reduce our fleet breakeven levels and utilise our strong operating cash flow to increase shareholder value,” commented Kevin Mackay, Teekay Tankers’ president and CEO.
