Teekay Tankers Updates Capital Allocation Plan
May 11 2023 - 12:00AM
Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE:TNK)
today announced that its Board of Directors has approved an update
to the Company’s capital allocation plan under which existing
capital allocation priorities of balance sheet strength and
well-timed fleet reinvestments will be supplemented by returns of
capital to shareholders.
The Company has initiated a regular, fixed
quarterly cash dividend in the amount of $0.25 per outstanding
share of Class A and B common stock, with the first dividend
relating to the first quarter of 2023. In addition, the Board of
Directors has declared a special cash dividend of $1.00 per
outstanding share of Class A and B common stock. Both of these cash
dividends are payable on June 2, 2023 to all common shareholders of
record on May 22, 2023. The declaration and payment of any future
dividends is subject to the discretion of the Board of
Directors.
The Company further announced that its Board of
Directors has authorized a new share repurchase program allowing
for the repurchase of up to $100 million of the Company’s
outstanding Class A common shares. Under the program, repurchases
can be made from time to time in the open market, through
privately-negotiated transactions and by any other means permitted
under the rules of the U.S. Securities and Exchange Commission, in
each case at times and prices considered appropriate by the
Company. The timing of any purchases and the exact number of shares
to be purchased under the program will be subject to the discretion
of the Company.
About Teekay Tankers
Teekay Tankers has a fleet of 44 double-hull
tankers (including 25 Suezmax tankers and 19 Aframax / LR2
tankers), and also has eight time chartered-in tankers. Teekay
Tankers’ vessels are typically employed through a mix of spot
tanker market trading and short- or medium-term fixed-rate time
charter contracts. Teekay Tankers also owns a Very Large Crude
Carrier (VLCC) through a 50 percent-owned joint venture. In
addition, Teekay Tankers owns a ship-to-ship transfer business that
performs full service lightering and lightering support operations
in the U.S. Gulf and Caribbean. Teekay Tankers was formed in
December 2007 by Teekay Corporation as part of its strategy to
expand its oil tanker business.
Teekay Tankers’ Class A common stock trades on
the New York Stock Exchange under the symbol “TNK.”
For Investor Relations enquiries
contact:
E-mail: TeekayTankers@IGBIR.com
Forward-Looking Statements
This release contains forward-looking statements
within the meaning of Section 27A of the U.S. Securities Act of
1933, as amended, and Section 21E of the U.S. Securities Exchange
Act of 1934, as amended. All statements included in this release,
other than statements of historical fact, are forward-looking
statements. When used in this report, the words “expect,”
“believe,” “anticipate,” “plan,” “intend,” “estimate,” “may,”
“will” or similar words are intended to identify forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements and any such forward-looking
statements are qualified in their entirety by reference to the
following cautionary statements. All forward-looking statements
speak only as of the date hereof and are based on current
expectations and involve a number of assumptions, risks and
uncertainties that could cause actual results to differ materially
from such forward-looking statements. Forward-looking statements
contained in this release include, among others, statements
regarding: Teekay Tankers’ capital allocation plan, including its
ability to position itself to pursue the priorities of balance
sheet strength, well-timed fleet reinvestments and return capital
to shareholders, including through quarterly cash dividends; any
future dividends; and the expected amount and timing of repurchases
of Teekay Tankers’ Class A common shares under the Company’s share
repurchase program.
The following factors are among those that could
cause actual results to differ materially from the forward-looking
statements, which involve risks and uncertainties, and that should
be considered in evaluating any such statement: potential changes
to or termination of the Company’s capital allocation policy or
dividend policy, the declaration by the Company’s Board of
Directors of any future cash dividends on the Company’s common
shares; the Company’s available cash and the levels of its capital
needs; changes in the Company’s liquidity and financial leverage;
changes in the demand for oil, refined products and tankers;
changes in trading patterns affecting overall vessel tonnage
requirements; greater or less than anticipated levels of vessel
newbuilding orders and deliveries and greater or less than
anticipated rates of vessel scrapping; changes in global oil prices
or tanker rates; OPEC+ and non-OPEC+ production and supply levels;
issues with vessel operations; higher than expected costs and
expenses, off-hire days or dry-docking requirements (both scheduled
and unscheduled); changes in the trading price and trading volume
of the Company’s Class A common shares; changes in applicable
industry laws and regulations and the timing and implementation of
new laws and regulations; and other factors discussed in Teekay
Tankers’ filings from time to time with the SEC, including its
Annual Report on Form 20-F for the fiscal year ended December 31,
2022. Teekay Tankers expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in Teekay Tankers’ expectations with respect thereto or any change
in events, conditions or circumstances on which any such statement
is based.
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