Teekay Tankers takes on five modern aframaxes

NYSE-listed company Teekay Tankers has agreed to four coated vessels, plus one uncoated for a purchase price of $230 million.
Teekay Tankers takes on five modern aframaxes

Teekay Tankers Ltd is set to acquire five aframax tankers for an aggregate purchase price of around $230 million.

The vessels, four of which are coated and one uncoated, are scheduled to be delivered in the first quarter of 2015. Teekay states that they were constructed in 2008, 2010 and 2011 at top tier shipyards in Japan and China. Once delivered, the vessels will trade in the Teekay-managed Taurus LR2 Pool and Aframax RSA.

"We are pleased to announce this acquisition of five, high quality, modern secondhand tankers at an attractive price, which, when combined with the increase in our in-chartered fleet over the past six months, is consistent with our stated strategy of increasing our exposure to an improving spot tanker market," said Kevin Mackay, chief executive officer of Teekay Tankers.

"Combined with our existing fleet and in-chartered portfolio, these new vessels will increase our fleet size to 43 vessels. In addition, the transaction provides optionality to trade the four coated Aframaxes in the crude or product tanker markets and, with an average age of only 3.8 years for the five vessels, enhances the age profile of our fleet."

"Spot tanker rates for crude and large product tankers for the fourth quarter of 2014 are averaging higher than the previous quarter," Mr. Mackay continued. "Increased seasonal oil demand, winter weather delays and lower global oil prices, which is encouraging stockpiling of crude oil and resulting in lower bunker fuel costs, are some of the key factors that are driving spot tanker rates higher."

The acquisitions have been approved by the board of directors of both Teekay Tankers and the sellers and remain subject to customary closing conditions.

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by Laura Stackhouse

readmt.com Editor

Laura Stackhouse is the Web Editor of readmt.com, an official publication of the International Marine Purchasing Association (IMPA). To discuss news, features or contributing to readmt.com please get in touch.

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