- Over the last 12 months, Teekay Tankers generated more than $400 million of free cash flow and completed over $100 million of asset sales.
- As a result, net debt was reduced by 50%, liquidity increased by $375 million and there are no substantial debt maturities until 2024.
- What's more, the free cash flow spot rate break-even is low (decreased to $13,500 per day) with significant operating leverage. In other words, Teekay Tankers is in a financially strong position.
- There is no doubt that tremendous value has been created for shareholders as a result of rapid deleveraging. Yet, the share price is hovering around all time lows.
- Some might wonder, what if Teekay Tankers used the $400 million in free cash flow generated over the past 12 months to grow its asset base instead, pursuing vessel acquisitions with minimal or no debt?
For further details see:
Teekay Tankers: Net Debt Reduced By 50% In Just 12 Months