The company recorded a profit of $38.9m from a cash flow of $58.2m, its strongest cash flow in six years and a significant improvement on the $34.7m of Q1 2014.
Contributing to the stronger quarter were 10 tankers chartered-in during 2014, with Q1 2015 also seeing the delivery of four LR2s and one aframax into the Teekay fleet, at a cost of around $230m.
Of the 45 owned, part-owned, and chartered-in vessels in the Teekay fleet, eight are on long-term charters, leaving the company well positioned to benefit from a strong spot market which has continued into Q2.
Time charter equivalent (TCE) revenues were up for all ship sizes compared to Q1 2014, with suezmaxes at $39,433 per day compared to $26,462 per day in the same period last year, aframaxes at $26,060 up from $18,821 and LR2s enjoying TCE revenues of $24,899 up from $13,905.
“Over the past four months, crude spot tanker rates have achieved the highest average levels since the strong winter market of 2008,” said ceo Kevin Mackay continued. “The continued strength in the tanker market reflects the strong tanker market fundamentals on the back of a shrinking mid-size tanker fleet, increased crude oil trade volumes and growing global oil demand."
“With approximately 85% of our fleet operating in the spot tanker market over the next 12 months and a low cash break-even rate, we believe Teekay Tankers is well-positioned to benefit from the fundamental strength in the global tanker market,” Mackary added.
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