Teekay (NYSE:TK) Corporation and its subsidiary, Teekay Tankers (NYSE:TNK) Ltd., announced record third-quarter financial results for 2023 on Thursday. The robust performance was driven by a strong spot tanker market, influenced by tight vessel supply, robust oil demand, geopolitical factors, and OPEC+ actions.
In Q3 2023, Teekay Corporation achieved its highest Q3 adjusted net income per share in 15 years. Meanwhile, Teekay Tankers reported its highest-ever Q3 adjusted net income. Despite a decrease in GAAP net income attributable to shareholders in Q3 2023 due to gains on vessel sales in 2022, this was offset by higher interest income, lower interest expense, and stronger earnings from Teekay Tankers due to five additional in-chartered vessels.
Teekay Corporation continued its share repurchase program in the third quarter of 2023. The company bought another $4.6 million of common shares since the start of the quarter, bringing the total to $63 million or about 12% of the outstanding common shares so far. This included the repurchase of approximately 0.8 million common shares for $4.6 million ($5.91 per share), bringing the total to 12.2 million common shares repurchased for $63 million ($5.15 per share). The company still has $22 million left on its latest share repurchase program authorization.
Teekay Tankers also made significant moves during the same period. In September 2023, it repurchased four vessels under sale-leaseback arrangements for $57.2 million and refinanced these under a $350 million 19-vessel revolving credit facility. So far in 2023, Teekay Tankers has repurchased a total of 19 vessels previously under sale-leaseback arrangements for $364.2 million. The company also terminated its $80 million working capital loan facility and extended the chartered-in contract for one vessel for an additional 12 months at a rate of $21,250 per day.
The board declared a fixed quarterly cash dividend of $0.25 per outstanding share of common stock for Q3 2023, marking another significant milestone in the company's financial performance.
InvestingPro Insights
Teekay Corporation (TK) and Teekay Tankers Ltd . (TNK) have shown impressive financial performance in Q3 2023. According to InvestingPro data, TK has a market cap of $663.84 million and an attractive P/E ratio of 4.45. The company's revenue growth stood at 80.21% for the last twelve months as of Q2 2023. On the other hand, TNK has a market cap of $1760 million, a P/E ratio of 3.27, and a revenue growth of 103.87% for the same period.
InvestingPro Tips for TK highlight that the company holds more cash than debt on its balance sheet and has been consistently increasing earnings per share, which is reflected in the company's robust Q3 2023 performance. For TNK, InvestingPro Tips underline that strong earnings should allow management to continue dividend payments and the company has been consistently increasing earnings per share, which is evident in its record Q3 adjusted net income.
InvestingPro offers numerous other tips and real-time metrics for both TK and TNK, which can be beneficial for investors looking to make informed decisions. These tips and metrics can be accessed through the InvestingPro product.
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