Company initiates fixed quarterly dividend, announces a special dividend, and establishes a share repurchase program.
HAMILTON, Bermuda, May 11, 2023 (GLOBE NEWSWIRE) -- Teekay Tankers Ltd. (Teekay Tankers or the Company) (NYSE:TNK) today announced that its Board of Directors has approved an update to the Company’s capital allocation plan under which existing capital allocation priorities of balance sheet strength and well-timed fleet reinvestments will be supplemented by returns of capital to shareholders.
The Company has initiated a regular, fixed quarterly cash dividend in the amount of $0.25 per outstanding share of Class A and B common stock, with the first dividend relating to the first quarter of 2023. In addition, the Board of Directors has declared a special cash dividend of $1.00 per outstanding share of Class A and B common stock. Both of these cash dividends are payable on June 2, 2023 to all common shareholders of record on May 22, 2023. The declaration and payment of any future dividends is subject to the discretion of the Board of Directors.
The Company further announced that its Board of Directors has authorized a new share repurchase program allowing for the repurchase of up to $100 million of the Company’s outstanding Class A common shares. Under the program, repurchases can be made from time to time in the open market, through privately-negotiated transactions and by any other means permitted under the rules of the U.S. Securities and Exchange Commission, in each case at times and prices considered appropriate by the Company. The timing of any purchases and the exact number of shares to be purchased under the program will be subject to the discretion of the Company.
About Teekay Tankers
Teekay Tankers has a fleet of 44 double-hull tankers (including 25 Suezmax tankers and 19 Aframax / LR2 tankers), and also has eight time chartered-in tankers. Teekay Tankers’ vessels are typically employed through a mix of spot tanker market trading and short- or medium-term fixed-rate time charter contracts. Teekay Tankers also owns a Very Large Crude Carrier (VLCC) through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a ship-to-ship transfer business that performs full service lightering and lightering support operations in the U.S. Gulf and Caribbean. Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its oil tanker business.
Teekay Tankers’ Class A common stock trades on the New York Stock Exchange under the symbol “TNK.”
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This release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements included in this release, other than statements of historical fact, are forward-looking statements. When used in this report, the words “expect,” “believe,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will” or similar words are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Forward-looking statements contained in this release include, among others, statements regarding: Teekay Tankers’ capital allocation plan, including its ability to position itself to pursue the priorities of balance sheet strength, well-timed fleet reinvestments and return capital to shareholders, including through quarterly cash dividends; any future dividends; and the expected amount and timing of repurchases of Teekay Tankers’ Class A common shares under the Company’s share repurchase program.
The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: potential changes to or termination of the Company’s capital allocation policy or dividend policy, the declaration by the Company’s Board of Directors of any future cash dividends on the Company’s common shares; the Company’s available cash and the levels of its capital needs; changes in the Company’s liquidity and financial leverage; changes in the demand for oil, refined products and tankers; changes in trading patterns affecting overall vessel tonnage requirements; greater or less than anticipated levels of vessel newbuilding orders and deliveries and greater or less than anticipated rates of vessel scrapping; changes in global oil prices or tanker rates; OPEC+ and non-OPEC+ production and supply levels; issues with vessel operations; higher than expected costs and expenses, off-hire days or dry-docking requirements (both scheduled and unscheduled); changes in the trading price and trading volume of the Company’s Class A common shares; changes in applicable industry laws and regulations and the timing and implementation of new laws and regulations; and other factors discussed in Teekay Tankers’ filings from time to time with the SEC, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2022. Teekay Tankers expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Teekay Tankers’ expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.