Tuesday, August 18, 2009
Teekay Tankers Ltd. Declares Second Quarter Dividend
Tuesday, 18 August 2009
Teekay Tankers Ltd. (Teekay Tankers or the Company) today announced that its Board of Directors has voted to declare a cash dividend of $0.40 per share for the quarter ended June 30, 2009, representing a total cash dividend of $12.8 million. The cash dividend is payable on August 31, 2009 to all shareholders of record on August 24, 2009.
Teekay Tankers' policy is to pay a variable quarterly dividend equal to its Cash Available for Distribution, subject to any reserves its board of directors may from time-to-time determine are required. Since the Company's initial public offering in December 2007, it has paid a dividend for six consecutive quarters which now totals $4.38 per share on a cumulative basis (including the $0.40 per share dividend to be paid on August 31, 2009).
On June 24, 2009, the Company acquired a 2003-built Suezmax tanker, the Ashkini Spirit, for $57 million. The purchase was financed through a seven million common share public follow-on offering with proceeds in excess of the purchase price used to reduce the amount drawn under the Company's revolving credit facility. In addition, as part of the acquisition, the undrawn availability under the revolving credit facility increased by a further $58 million. As a result of the increased availability under the revolving credit facility, based on the amount currently drawn, principal payments are not required under this facility until May 2015, rather than November 2013. Approximately 56 percent, 41 percent, and 25 percent of Teekay Tankers' total operating days for the second half of 2009, fiscal 2010 and fiscal 2011, respectively, are now under fixed-rate charters at an average rate of approximately $30,000 per day.
"We continue to benefit from our strategy of actively managing our fleet between fixed-rate and spot charters which has enabled us to pay an attractive dividend despite the relative weakness in the current spot tanker market," commented Bjorn Moller, Teekay Tankers' Chief Executive Officer. "Although we saw a brief strengthening in rates at the end of June, the spot tanker market remained soft through most of the second quarter and into the third quarter. With a majority of our fleet operating under one- to three-year fixed-rate time-charters, Teekay Tankers is well positioned in the current weak tanker market environment and will also benefit from strengthening spot rates as tanker demand improves with a global economic recovery."
About Teekay Tankers
Teekay Tankers Ltd. was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business. Teekay Tankers currently owns a fleet of nine double-hull Aframax tankers and three double-hull Suezmax tankers, which an affiliate of Teekay Corporation manages through a mix of short- or medium-term fixed-rate time-charter contracts and spot tanker market trading. In addition, Teekay Corporation has agreed to offer to Teekay Tankers, the opportunity to purchase an additional Suezmax tanker. Teekay Tankers intends to distribute on a quarterly basis all of its cash available for distribution, subject to any reserves established by its board of directors.
Teekay Tankers' common stock trades on the New York Stock Exchange under the symbol "TNK".
FORWARD LOOKING STATEMENTS
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the relative strength of the spot tanker market and global economic growth; results of the Company's mix of spot market and time-charter trading; and the Company's ability to generate surplus cash flow and pay dividends. 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: changes in the production of or demand for oil; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; the potential for early termination of short- or medium-term contracts and inability of the Company to renew or replace short- or medium-term contracts; changes in interest rates and the capital markets; increases in the Company's expenses, including any unscheduled drydocking expenses; the Company's ability to raise financing to purchase additional vessels; the ability of Teekay Tankers' board of directors to establish cash reserves for the prudent conduct of Teekay Tankers' business or otherwise; and other factors discussed in Teekay Tankers' filings from time to time with the United States Securities and Exchange Commission, including its Report on Form 20-F for the fiscal year ended December 31, 2008. The Company 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 the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.
Source: Teekay Tankers Ltd.
