Tanker owner and operator Teekay Tankers expects to increase its liquidity by USD 110 million after the repayment of outstanding debt related to 13 vessels.
The company said that it reached an agreement for another sale and leaseback financing transaction for six modern Aframax tankers in June 2018. This deal is related to the signed term sheet for a sale and leaseback transaction for seven mid-sized tankers in May 2018.
In July 2018, Teekay Tankers signed a term sheet for a loan to finance working capital for the company’s revenue sharing arrangement (RSA) pool management operations.
These transactions are expected to be completed in the third quarter of 2018 and remain subject to customary conditions precedent and the execution of definitive documentation.
Additionally, in July 2018, Teekay Tankers entered into a time charter-out contract for one Suezmax tanker for a firm period of 12 months, plus an extension option, which is expected to commence by mid-August 2018. The new charter contract is expected to add some USD 6.4 million in fixed revenues over the initial 12-month period, the company informed.
The company unveiled the agreements as part of its second quarter financial reports, in which Teekay Tankers informed that its net loss for the period stood at USD 27.4 million, compared to a net loss of USD 37.4 million seen in the same period a year earlier. The result was primarily affected by lower average spot tanker rates and the expiry of time-charter out contracts for various vessels which subsequently traded in the spot market at lower rates.
“While OPEC supply cuts and a further drawdown of global oil inventories continued to weigh on crude tanker rates during the second quarter of 2018, our fixed charter cover and full service lightering business continued to support our results,” Kevin Mackay, Teekay Tankers’ President and Chief Executive Officer, said.
“Looking ahead, while we expect the tanker market to remain under pressure in the near-term, we believe that an inflection point will be reached in the later part of 2018 due to improving demand fundamentals and slowing fleet supply growth resulting from elevated scrapping and a shrinking mid-size tanker orderbook. The improved tanker market is expected to be further boosted by positive demand developments ahead of the new IMO fuel regulations in 2020.”