Teekay Corporation’s special investment company Tanker Investments has announced today that the company is upsizing its existing share repurchase program by a further $30m.
The repurchase will now increase to a total of up to $60m, with the increase effective immediately and valid for an initial period of one year.
“During the past year we have invested over $20 million of our excess capital repurchasing shares, at an average price of NOK 77 per share, and we intend to continue distributing all excess capital to shareholders as we have now completed the company’s tanker investment program,” commented William Hung, CEO of Tanker Investments.
“We anticipate Tanker Investments’ financial position will continue to strengthen due to the significant cash flow our fleet is expected to generate as we head into what is expected to be a fundamentally strong winter tanker market,” Hung added.
Tanker Investments will repurchase shares in the open market on the Oslo Bors at an appropriate time and market price.
Teekay Corporation and subsidiary Teekay Tankers set up Tanker Investments last year to benefit from cyclical fluctuations in the tanker market. It now has a fleet consisting of 20 vessels.