Teekay Tankers Ltd. Reports Best Quarterly Adjusted Net Income in Q2 2026

Teekay Tankers Ltd., one of the largest publicly listed owners of mid-size crude tankers with substantial spot market exposure, reported its financial results for the quarter ended June 30, 2026, posting the highest quarterly adjusted net income in the Company's history.

Second Quarter 2026 vs. First Quarter 2026

Both GAAP net income and non-GAAP adjusted net income rose in the second quarter of 2026 compared to the first quarter, driven primarily by higher average spot tanker rates and improved net results from Australian operations. These gains were partially offset by the sale of three vessels during the first half of 2026, a higher number of scheduled dry dockings, and the annual recognition of equity-based compensation in the second quarter.

GAAP net income for the second quarter included a $32.3 million gain from the sale of one vessel, compared with a $22.7 million gain from the sale of two vessels in the first quarter.

Second Quarter 2026 vs. Second Quarter 2025

Compared to the same period in the prior year, GAAP net income and non-GAAP adjusted net income both increased, largely due to higher average spot tanker rates, the acquisition of six vessels between the second quarter of 2025 and the end of the first quarter of 2026, and stronger net results from Australian operations. These improvements were partially offset by the sale of ten vessels between the start of the second quarter of 2025 and the end of the second quarter of 2026.

GAAP net income for the second quarter of 2026 included a $32.3 million gain from the sale of one vessel, compared with a $13.9 million gain from the sale of two vessels in the second quarter of 2025.

CEO Commentary

"Teekay Tankers posted its best quarterly adjusted net income ever in the second quarter of 2026, generating GAAP net income of $225.9 million and adjusted net income of $193.6 million," said Kenneth Hvid, Teekay Tankers' President and Chief Executive Officer.

"Second quarter of 2026 spot rates were the highest in the Company's history, primarily due to the effective closure of the Strait of Hormuz which disrupted oil and tanker markets. While this unprecedented event has not directly impacted the safety and operations of our vessels, it continues to create volatility in our markets. In the third quarter to-date, our Suezmax fleet spot rates remain at near record levels, while our Aframax/LR2 fleet has so far achieved rates well above normal seasonal levels and several times above our cash break-even rate. Spot rates have recently strengthened in the Aframax/LR2 sector, particularly in the Atlantic where rates are currently over $100,000 per day. In addition, we have continued to execute on our fleet renewal plan with the acquisition of two 2027 Suezmax tanker newbuilding contracts and the sale of two vessels."

"Although the near-term tanker market outlook remains complex, unpredictable, and subject to significant influence from geopolitical events, we believe Teekay Tankers' low cash flow break-even levels, significant free cash flow generation, and sizable investment capacity positions us well to simultaneously renew our fleet and create shareholder value," Hvid added.

Summary of Recent Events

Vessel Purchases

In January 2026, Teekay Tankers acquired three 2016-built Aframax tankers for a total of $141.5 million and bareboat chartered them back to the seller on short-term contracts. All three vessels have now been redelivered to the Company—one in May 2026 and two in July 2026—with Teekay Tankers assuming full commercial and technical management. All vessels have been trading in the spot market since redelivery.

In June 2026, the Company completed the previously announced acquisition of two Korean Suezmax tanker newbuilding contracts for a total of $190.0 million, with delivery expected in 2027. To date, $33.4 million has been paid, with the remaining $156.6 million payable according to construction milestones.

Vessel Sales

In May 2026, Teekay Tankers completed the sale of a 2009-built Suezmax tanker for $53.5 million, generating a gain on sale of $32.3 million in the second quarter.

In July 2026, the Company completed the sale of a 2013-built VLCC for $84.5 million, which is expected to produce a gain on sale of $22.9 million in the third quarter of 2026.

Dividends

Teekay Tankers' Board of Directors declared a fixed quarterly cash dividend of $0.25 per outstanding common share for the quarter ended June 30, 2026. The dividend is payable on August 21, 2026 to shareholders of record as of August 10, 2026.

Tanker Market Overview

Crude tanker spot rates surged to record highs in the second quarter of 2026 amid severe geopolitical disruption in the Middle East, triggered by the conflict between the United States and Iran that escalated on February 28, 2026.

The Strait of Hormuz, which normally handles roughly one-fifth of global seaborne oil consumption, had never before been effectively shut to traffic. A series of attacks on vessels transiting the strait sharply reduced traffic and caused a collapse in Middle East crude oil production and exports in the weeks following the onset of hostilities, creating immediate dislocation across global crude markets. With the Strait of Hormuz effectively closed, Asian refiners were forced to source replacement barrels from the Atlantic Basin instead of the significantly closer Middle East. This shift triggered a wave of long-haul crude movements, stretching the global tanker fleet and tightening available tonnage. Concurrently, several vessels were trapped inside the Gulf due to safety concerns or strategic positioning, further amplifying upward pressure on spot rates.

By the latter part of the quarter, tanker spot rates began to correct as trade flows adjusted. Large crude tanker rates remained relatively well supported by sustained long-haul demand, while Aframax rates declined more rapidly due to an influx of newbuildings and LR2s switching from clean to dirty trades. Rates nonetheless remained well above long-term averages.

On June 17, 2026, the U.S. and Iran signed a Memorandum of Understanding (MoU) providing a framework to end hostilities, lift economic blockades, and open a 60-day window to negotiate a permanent peace treaty. In the two weeks following the signing, transits through the Strait of Hormuz increased and Middle East exports began to recover. However, renewed hostilities at the start of July—including fresh attacks on vessels in the Strait of Hormuz—led to the collapse of the agreement, leaving the outlook highly uncertain at the time of writing. Renewed uncertainty and the potential need to reposition ships back to the Atlantic Basin, should Asian refiners seek alternative crude supplies, could lead to continued rate volatility.

Market Outlook

While oil demand and supply remain contingent on the development of the U.S.-Iran conflict, major oil agencies expect global oil demand to rebound once the conflict is resolved. The International Energy Agency (IEA) projects demand growth of 2.1 million barrels per day (mb/d) in 2027.

Global oil supply is expected to grow strongly, driven by an anticipated recovery in OPEC+ production should the conflict be resolved, along with non-OPEC+ supply growth led by the Americas and the United Arab Emirates. The UAE left the OPEC+ group on May 1, 2026 and is now free to increase production without adhering to quotas. According to IEA projections, global supply growth is expected to outpace demand growth in 2027, potentially creating conditions for restocking depleted global oil inventories. Combined commercial and strategic inventories in the OECD are currently at their lowest level in over 20 years, which could provide a boost to tanker demand.

On the fleet supply side, a high volume of new tanker orders in 2026 has expanded the orderbook, which now extends into 2030. This surge in ordering mirrors past tanker cycles, where periods of elevated spot rates have historically triggered waves of newbuilding contracts. Scrapping activity remains limited, though pressure is mounting on the dark fleet of older vessels as sanctions are lifted, reducing available trading markets, and as regulatory scrutiny increases. The tanker fleet continues to age, with the average age of the mid-size tanker fleet now the oldest in over 30 years. Teekay Tankers believes the eventual removal of these older vessels should help mitigate the impact of rising tanker deliveries in the coming years.

Source: Teekay Tankers Ltd.