Oil Glut Helps Teekay to Record Quarterly Profit

Teekay Tankers has reported a second-quarter profit of $44.2 million.

Teekay Tankers Ltd. (Teekay) has reported a record adjusted net income of $41.3 million for Q2 2015, crediting "counter-seasonally strong" crude spot tanker rates, low bunker and oil prices, record high crude oil supply from The Organization of the Petroleum Exporting Countries (OPEC), and further crude oil stockpiling.

"We believe the ongoing strength in the tanker market reflects the continuing positive tanker market fundamentals of low fleet growth, growing global oil demand and an increase in long-haul tanker movements as more crude oil moves from the Atlantic to Pacific basins," said Kevin Mackay, CEO of Teekay.

"Record high crude oil supply from OPEC and continued crude oil stockpiling as a result of the lower oil price environment have provided further support to the crude tanker market during the second quarter and into the third quarter to-date."

However, CNBC reports that Teekay narrowly missed Wall Street expectations, citing analysts at Zacks Investment Research who had reportedly expected earnings of 39 cents per share, compared to the realised 38 cents, and revenue of $107.8 million, compared to Teekay's realised revenue of $107.6 million.

"Our results would have been even stronger in the absence of some non-recurring issues related to three vessels which have largely been rectified, with the exception of one charter-in tanker which has not yet delivered due to vetting issues," explained Mackay.

"Teekay Tankers continues to deliver significant shareholder value by executing on its strategy using a variety of levers."

In June, Teekay reported the launch of a Liquefied Natural Gas (LNG) carrier in South Korea that is "the most efficient LNG ship on the water with the lowest unit freight cost in the world fleet."