Teekay Reports $368.925 Million in Revenue and Strong Tanker Earnings in Third Quarter
Key Facts
Teekay Corporation reported consolidated revenue of $368.925 million for the third quarter of 2026 on November 11, with operating income of $189.785 million and net income attributable to shareholders of $59.828 million, or $0.68 per basic share. The parent company’s results include its listed subsidiary Teekay Tankers and its other subsidiaries, so its figures differ from the tanker company’s standalone results. Quarter on quarter, revenue declined from $379.115 million in the second quarter, operating income from $220.791 million, net income from $69.467 million and earnings per share from $0.79. Results remained above the same period in 2025, when revenue was $228.485 million, operating income $69.166 million, net income $29.552 million and earnings per share $0.34. In separate results, Teekay Tankers reported GAAP net income of $195.221 million, or $5.60 per share, and adjusted net income of $175.764 million, or $5.04 per share.
Teekay Tankers said its GAAP and adjusted net income fell from the second quarter, mainly because of the sale of two vessels, lower average spot-market rates and weaker results from its Australian operations. The return to service of three tankers from bareboat charters, allowing the company to benefit from higher spot-market rates, partly offset those factors. Year on year, the subsidiary’s earnings rose, supported by higher average freight rates, the acquisition of four vessels, increased time-charter activity at higher fixed rates and improved Australian results. The company said vessel sales partly limited the improvement, having sold nine vessels from the third quarter of 2025 through the third quarter of 2026. Average daily spot rates in the third quarter were $106,400 for Suezmax tankers, compared with $67,600 for Aframax and LR2 tankers, providing a strong backdrop for tanker earnings.
Available fixtures through November 11 showed a sharp increase in rates booked for the fourth quarter: the average rate for booked Suezmax days was $272,000 per day, with 63% of days fixed, while Aframax and LR2 averaged $208,300 per day, with 53% of days booked. These rates apply to days fixed through the announcement date, while the share of total fourth-quarter days booked remained below full coverage. Chief Executive Kenneth Hvid said about 58% of the quarter’s spot-market days had been fixed at the time of the announcement, and that the company was positioned to deliver its strongest fourth-quarter and full-year results in its history in 2026. He attributed the strong market to conflicts in the Gulf, the Middle East, Ukraine and the Red Sea, as well as high refining margins and longer shipping routes. The company also said global oil demand remained resilient, and that low refined-product inventories and geopolitical disruptions supported the market, while longer routes and logistical inefficiencies reduced effective vessel availability.
Hvid said adjusted net income for the first nine months of 2026 was $497.7 million, a level close to the company’s record annual earnings in 2023. Alongside the strong market, Teekay Tankers announced orders for two Aframax and LR2 tankers from a Chinese shipyard, with delivery expected in 2030. It also ordered two Suezmax tankers from a South Korean shipyard for expected delivery in 2030, and secured an option to buy two additional vessels of the same class. The company also agreed to buy a South Korean-built MR tanker constructed in 2020, with delivery expected by mid-January 2027. According to the November 11 statement, its fleet comprised 38 owned tankers, including newly contracted vessels, plus three chartered tankers; its total fleet, including support and supply vessels, was 43 vessels.
On liquidity, Teekay Tankers said total liquidity was $1.5 billion on September 30, compared with $1.3 billion on June 30. The September-end balance included $1.4 billion in cash, cash equivalents and short-term investments, as well as $97.6 million in undrawn credit facilities. The company declared a flat quarterly cash dividend of $0.25 per share for the quarter ended September 30. The dividend is payable on December 4 to shareholders of record on November 23, 2026. The company expects new tanker deliveries to accelerate over the next three years as ordered vessels enter the market, while older vessel retirements could offset some of the additional supply. It also said rebuilding oil inventories could support demand if supplies return to normal levels.
Teekay and Teekay Tankers are scheduled to hold a call to discuss third-quarter results on November 12, 2026, at 11:00 a.m. Eastern time. The call follows the release of the parent company’s results and the subsidiary’s standalone earnings, along with booking, liquidity and dividend data. Bookings announced through November 11 indicate fourth-quarter revenue fixed to date, while the share of booked days remains below the period’s total. The call will discuss results for the three months ended September 30. It will also give management an opportunity to provide further details on the group’s performance and the market.