TEEKAY TANKERS DECLARES DIVIDEND
Teekay Tankers Ltd. yesterday announced that its Board of Directors has voted to declare a cash dividend of $0.59 per share for the quarter ended March 31, 2009, representing a total cash dividend of $14.75 million.
The cash dividend is payable on May 29, 2009 to all shareholders of record on May 22, 2009. Teekay Tankers' policy is to pay a variable quarterly dividend equal to its Cash Available for Distribution(i), 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 5 consecutive quarters, which now totals $3.98 per share on a cumulative basis (including the $0.59 per share dividend to be paid on May 29, 2009).
During the fourth quarter of 2008, the Company fixed two of its Aframax tankers (the Kyeema Spirit and the Kareela Spirit) on fixed-rate time-charters for a period of three years and recently entered into a nine-month time-charter extension for the Aframax tanker, the Everest Spirit. With these additional fixed-rate charters, Teekay Tankers has now fixed 62 percent, 41 percent, and 27 percent of its operating days for 2009, 2010, and 2011, respectively at an average rate of approximately $30,000 per day.
"Active management of our fleet between fixed-rate and spot charters is a key component of our strategy and has positioned Teekay Tankers to be able to pay an attractive dividend, even in today's relatively weak tanker market," commented Bjorn Moller, Teekay Tankers' Chief Executive Officer.
"With almost two-thirds of our 2009 fleet operating days locked in at attractive rates under fixed-rate time-charter contracts, Teekay Tankers would, as an example, be able to pay an annualized dividend of about $0.90 per share even if Aframax and Suezmax spot tanker rates were to fall to $10,000 per day."
Mr. Moller continued, "Spot tanker rates have declined significantly from the record rates achieved in 2008 and are likely to remain under pressure for the remainder of 2009 due to weak market fundamentals. However, any recovery in the global economy beginning next year would stimulate oil demand and thus be positive for tanker rates. 2010 is also the timing of the mandated phase-out of the world's single-hull tanker fleet, which would lend further support to the tanker market. Teekay Tankers' fleet employment profile is well matched to these market fundamentals, with our high degree of fixed-rate cover for 2009 and our gradually rising spot market exposure from 2010."