Teekay (TK) Q1 2026 Earnings Call Transcript

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DATE

Thursday, May 14, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Kenneth Hvid

• Chief Financial Officer — Brody Speers

• Vice President, Finance & Corporate Development — Ryan Hamilton

• Director of Research — Christian Waldegrave

Full Conference Call Transcript

Kenneth Hvid: Thank you, Ryan. Hello, everyone, and convey you precise overmuch for joining america contiguous for the Teekay Group's archetypal 4th 26 Earnings Conference Call. Joining maine connected the telephone contiguous for the Q&A league is Brody Speers, Teekay Corporation's and Teekay Tankers' CFO. Ryan Hamilton, our VP concern and firm improvement and Christian Waldegrave, our manager of research. Starting connected descent 3 of the presentation, we volition screen Teekay Tankers' caller highlights.

Teekay Tankers reported GAAP nett income of $154 cardinal oregon $4.42 per stock and adjusted nett income of $128 cardinal oregon $3.69 per stock successful the archetypal quarter, which are implicit $30 cardinal amended than past 4th and 2 to 3x the results posted successful the aforesaid play of the anterior year. Spot tanker rates during the archetypal 4th were adjacent grounds highs for archetypal quarter, averaging astir $61 1000 per time crossed our midsized tanker fleet. With our important spot vulnerability and a debased escaped currency travel breakeven, we generated astir $143 cardinal successful escaped currency travel from operations, which has accrued our currency presumption to conscionable shy of $1 cardinal with nary indebtedness arsenic of 4th end.

We proceed to execute connected our fleet renewal strategy, which includes acquiring modern vessels portion selling our older vessels. I americium pleased to denote that we person entered into agreements to get 2 Korean resale Suezmax newbuildings for a full of $190 cardinal which are expected to beryllium delivered successful 2027. We besides sold 1 2009-build Suezmax for $53.5 million, resulting successful an expected summation connected merchantability of $32.5 cardinal that volition beryllium recorded successful Q2 2026.

In addition, we person completed the antecedently announced income of 2 Suezmax tankers for full proceeds of $73 cardinal and recorded gains of income of $22.7 cardinal successful the archetypal 4th So acold this year, we person acquired oregon agreed to get 5 modern vessels for a full committedness of $332 cardinal and person sold oregon agreed to merchantability 4 vessels for $211 million. We besides took vantage of the beardown spot marketplace arsenic we opportunistically outchartered 1 Suezmax for $80 1000 per time for 10 to 12 months. And this past week, we outchartered 1 Aframax vas for $60 1000 per time for 12 months.

Looking up to the 2nd quarter, we expect adjacent amended results with tanker rates reaching grounds levels. So acold successful the 2nd quarter, we person secured spot rates of $142 1000 $122 1000 and $98 1000 per time for our VLCC, Suezmax, and Aframax LR2 fleets, respectively, with astir 71% of spot days booked for our VLCC and connected mean astir 57% of spot days booked for each Suezmax and Aframax LR2 fleet. Lastly, Teekay Tankers has declared its regular fixed quarterly dividend of $0.25 per share. And successful addition, we declared a peculiar dividend of $1.00 per share, which, similar anterior years, is based connected the erstwhile year's fiscal results.