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Mr. Moller continued, “We anticipate 2010 will be another year of significant volatility for the tanker market with spot rates positively influenced by growing demand for tankers due to a strengthening global economy and the scrapping of older tankers due to the 2010 single-hull phase out regulations, countered by the negative influence of a relatively high amount of new tanker capacity entering the fleet this year. We have positioned Teekay Tankers’ fleet accordingly, locking in approximately half our 2010 vessel days at fixed rates averaging over $26,500 per day and leaving the rest of our vessel days to benefit from the upside in the spot market. Combined with our low quarterly debt service costs, this approach provides a floor under our cash flows, enabling us to pay a dividend under any market scenario while at the same time providing shareholders with upside in tanker rates. For example, based on our current fleet employment profile, if spot rates for 2010 average $20,000 per day for Aframax tankers and $30,000 per day for Suezmax tankers, which are approximately the spot rates we have realized in the first quarter so far, we would expect to pay out an annual dividend of approximately $1.30 per share. Even if spot rates were to fall to the levels experienced in the fourth quarter of 2009, we would still expect to pay an annual 2010 dividend of approximately $0.90 per share and for each $5,000 per day increase in average spot rates above this, Teekay Tankers would be able to pay an additional $0.30 per share in 2010.” As at January 31, 2010, seven of Teekay Tankers’ 12 vessels were operating under fixed-rate time-charters and the remaining five were traded in the spot market through the Teekay-managed Aframax and Gemini Suezmax Commercial Pools. Based on the existing fleet employment profile, approximately 55 percent of the Company’s revenue days in 2010 will come from vessels operating under fixed-rate time-charter contracts. The Company expects to pay its fourth quarter dividend prior to March 16, 2010 and plans to host a conference call for investors following the release of its fourth quarter results in early March 2010. About Teekay Tankers Teekay Tankers Ltd. was formed in December 2007 by Teekay Corporation (NYSE: TK) 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 of up to three years in duration 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’ 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 seven consecutive quarters. Teekay Tankers’ common stock trades on the New York Stock Exchange under the symbol “TNK”. Teekay Tankers Ltd. |