Shares of Teekay Tankers ( NYSE: TNK ) surged as much as 13.6% on Thursday after the oil tanker operator's fourth quarter results blew past Wall Street expectations.
TNK posted Q4 Non-GAAP EPS of $4.33, topping consensus by almost a dollar, and revenue of $367.32M was ahead of estimates by nearly $156M, and also had more than doubled from a year ago.
Commenting on results, CEO Kevin Mackay said “While the mid-size tanker market in the third quarter was among the strongest in recent years, rates in the fourth quarter of 2022 surged to among the highest rates ever recorded”.
“In this environment, we are greatly benefiting from the high operating leverage of our business with our near-total spot market exposure, including the very strong performance of our chartered-in fleet," Mackay added.
Looking ahead, TNK said it expects China’s economic re-opening to be an important factor for driving global oil demand growth, and anticipates "an increasingly complex and inefficient trading environment" due to Russia-Ukraine war, among other things.
Other Q4 metrics: GAAP net income $146.4M, Adjusted net income $147.5M, Adjusted EBITDA $180.2M.
The company's net debt as of Dec. 31, 2022 was $345.4M vs. $583.8M as of Dec. 31, 2021.
TNK shares nearly tripled in 2022, while the benchmark S&P 500 fell nearly 20% for the year.
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Teekay Tankers stock soars 13% after Q4 earnings beat impresses Wall St.