Teekay Tankers Ltd. reported the Company’s results for the quarter and year ended December 31, 2025. As a result of the Company’s acquisition of Teekay Corporation Ltd.’s Australian operations and management services companies (collectively, the Acquired Operations) on December 31, 2024, financial information (excluding non-GAAP financial measures) in this release related to all periods prior to December 31, 2024 was retroactively adjusted or recast to include the Acquired Operations on a consolidated basis in accordance with Common Control accounting as required under GAAP.
Fourth Quarter of 2025 Compared to Third Quarter of 2025
GAAP net income and non-GAAP adjusted net income for the fourth quarter of 2025 increased compared to the third quarter of 2025, primarily due to higher average spot tanker rates and the acquisition of two vessels during the third quarter of 2025, partially offset by the sales of five vessels during the third and fourth quarters of 2025. In addition, GAAP net income for the third quarter of 2025 included a gain on distribution from equity-accounted investment.
Fourth Quarter of 2025 Compared to Fourth Quarter of 2024
GAAP net income and non-GAAP adjusted net income for the fourth quarter of 2025 increased compared to the same period of the prior year, primarily due to higher average spot tanker rates, partially offset by certain fleet changes resulting from the sales of 13 vessels, the acquisition of three vessels, and the redelivery of three chartered-in vessels between the start of the fourth quarter of 2024 and the end of 2025. In addition, GAAP net income for the fourth quarter of 2025 included a $21.7 million gain from the sales of two vessels, compared to a
$27.9 million gain from the sales of two vessels in the fourth quarter of 2024.
CEO Commentary
“Teekay Tankers posted strong financial results for the fourth quarter and full year 2025, generating GAAP net income of $351 million and adjusted net income of $241 million in 2025,” commented Kenneth Hvid, Teekay Tankers’ President and Chief Executive Officer. “Mid-sized spot tanker rates during the fourth quarter were the second highest for a fourth quarter in the last 15 years, primarily due to near-record seaborne crude oil trade volumes and growing trade inefficiencies related to sanctions and other geopolitical events. Spot tanker rates are trending even higher so far in the first quarter of 2026, driven by a combination of widening sanctions enforcement, seasonal factors, and added volatility from U.S. action in Venezuela. With our significant exposure to the spot market, Teekay Tankers continues to benefit from these tailwinds.”
“Teekay Tankers continues to execute on its fleet renewal plan. Since reporting earnings in October 2025, we have acquired three 2016-built Aframax tankers for $141.5 million and we bareboat chartered the vessels back to the seller on short-term contracts with full commercial and technical management to be transferred to us upon redelivery in the second and third quarters of 2026. In addition, we also sold, or agreed to sell, two older Suezmaxes and our only VLCC for combined gross sales proceeds of $157.5 million. The combination of the sale and purchase transactions since the beginning of 2025 has reduced our average fleet age and improved our fleet profile, while also maintaining significant operating leverage to the strong tanker market.”
“With our low cash flow break-even levels, integrated operating platform, and significant investment capacity, we believe Teekay Tankers is well positioned to continue generating significant free cash flow, while also progressing our fleet renewal strategy and returning capital to shareholders through our quarterly dividend.”
Summary of Recent Events
Vessel Purchases
In January 2026, the Company acquired three 2016-built Aframax tankers for $141.5 million and it bareboat chartered the vessels back to the seller on short-term contracts. These vessels are expected to be redelivered to the Company in the second and third quarters of 2026, at which point the Company will take over full commercial and technical management of the vessels.
Vessel Sales
In October 2025, the Company completed the previously announced sales of a 2007-built Aframax-sized tanker and a 2009-built Suezmax tanker for combined gross proceeds of $61.5 million, resulting in total gains on sales of $21.7 million in the fourth quarter of 2025.
In January 2026, the Company sold one 2007-built Suezmax tanker and agreed to sell one 2009-built Suezmax tanker for combined total proceeds of $73.0 million, which is expected to result in gains on sales of $22.6 million in the first quarter of 2026. The 2009-built Suezmax tanker is expected to be delivered to the purchaser in the first quarter of 2026.
In February 2026, the Company agreed to sell its 2013-built VLCC tanker for $84.5 million, which is expected to result in a gain on sale of $22.5 million in the second quarter of 2026 when the vessel is expected to be delivered to the purchaser.
In December 2025, the Company exercised an extension option on one in-chartered Aframax tanker for an additional 12 months effective February 2026.
Since mid-September 2025, the Company sold all of its holdings of 2.05 million common shares of Ardmore Shipping Corporation (NYSE: ASC) for total proceeds of $26.3 million, generating a total gross return of $3.3 million, or 14.4%, including dividends.
The Company’s Board of Directors declared its regular, fixed quarterly cash dividend in the amount of $0.25 per outstanding common share for the quarter ended December 31, 2025. This dividend is payable on March 13, 2026 to all of Teekay Tankers’ shareholders of record on March 2, 2026.
Tanker Market
Mid-size crude tanker spot rates strengthened during the fourth quarter of 2025. Global seaborne oil trade volumes were near record highs during the fourth quarter of 2025 due to the unwinding of OPEC+ supply cuts coupled with rising oil production from non-OPEC+ countries, particularly in the Americas. In addition, tighter sanctions against Russia, Iran, and Venezuela, including U.S. sanctions against Russian oil producers Rosneft and Lukoil, have created trading inefficiencies which have benefited tanker tonne-mile demand while pushing more trade volumes away from the “dark fleet” towards the compliant fleet of tankers.
Geopolitical events continue to shape global oil trade flows at the beginning of 2026 and mid-size tanker spot rates remain at very firm levels. U.S. action in Venezuela, including the removal of President Nicolás Maduro and greater involvement in Venezuelan oil production and exports, has led to a sharp decrease in crude oil flows to China via the “dark fleet” of VLCCs at the start of 2026 and shifted trade towards the compliant fleet of tankers. This could benefit compliant mid-size tankers in particular if more Venezuelan oil is sold to U.S. and European markets. Tighter sanctions on Russia and Iran may continue to drive trade inefficiencies in the near-term and further marginalize the “dark fleet” vessels, although the geopolitical environment remains highly volatile and unpredictable.
Underlying tanker demand and supply fundamentals remain supportive. Global oil demand is projected to increase by 1.1 million barrels per day (mb/d) in 2026, which is in line with levels seen in 2024 and 2025. Demand could be further boosted by strategic stockpiling, particularly in China where the country is projected to add just under 1 mb/
to strategic reserves during 2026 according to the U.S. Energy Information Administration (EIA). Non-OPEC+ supply growth is expected to continue to be led by the Americas in 2026, with the International Energy Agency (IEA) projecting 1.3 mb/d of non-OPEC+ growth in 2026. The OPEC+ group, which unwound over 2 mb/d of voluntary supply cuts in 2025, has announced a pause on further unwinds during the first quarter of 2026, and its supply policy for the remainder of the year is uncertain.
On the fleet supply side, tanker newbuild deliveries are set to increase in 2026, although actual net fleet growth will depend on the level of vessel removals via scrapping, the relative mix of vessels trading in the compliant fleet versus the “dark fleet” of tankers, and the utilization rate of older vessels.
In summary, the Company believes that the near-term outlook for the tanker market remains strong, driven by a combination of positive underlying tanker supply and demand fundamentals and various geopolitical factors which are driving trade inefficiencies and tonne-mile demand for the compliant fleet of tankers.
However, the longer-term outlook is highly uncertain and will depend, to a large extent, on how the various geopolitical factors currently supporting the tanker market develop in the coming months and years.
Source: Teekay Tankers
