Teekay Corporation Ltd. Reports Third Quarter 2024 Results; Declares a Special Dividend; and Announces New Share Repurchase Program

Rhea-AI Summary

Teekay (NYSE:TK) has announced three significant developments: a special dividend of $1.00 per common share payable on December 18, 2024, to shareholders of record on December 4, 2024, and a new share repurchase program of up to $40 million. The company, which operates approximately 62 conventional tankers and other marine assets through its controlling stake in Teekay Tankers (NYSE: TNK), provides crude oil marine transportation and other marine services globally, employing about 2,200 staff across 8 countries.

Positive

• Announced special dividend of $1.00 per share
• Authorized new $40 million share repurchase program
• Controls significant fleet of 62 conventional tankers and marine assets

Negative

• None.

Insights

Financial Analyst

The announcement of a $1.00 per share special dividend and a $40 million share repurchase program signals strong financial health and shareholder-friendly capital allocation. With a market cap of $687.8 million, the buyback represents approximately 5.8% of the company's market value. This dual approach to returning capital demonstrates management's confidence in the company's cash flow generation and operational stability.

The timing aligns with favorable conditions in the crude oil marine transportation sector, where mid-sized tanker rates have been robust. Teekay's controlling stake in Teekay Tankers (TNK) provides significant exposure to this market strength. The special dividend will result in an immediate return to shareholders, while the flexible buyback program offers sustained support for the stock price and enhances per-share metrics.

HAMILTON, Bermuda, Oct. 30, 2024 (GLOBE NEWSWIRE) --  Teekay Corporation Ltd. (Teekay or the Company) (NYSE:TK) today reported results for the three months ended September 30, 2024. The full earnings release and Teekay Group’s earnings presentation are available on the Company’s website here.

Special Dividend

The Company's Board of Directors declares a one-time special cash dividend in the amount of $1.00 per outstanding common share. This dividend is payable on December 18, 2024 to all Teekay shareholders of record on December 4, 2024.

New Share Repurchase Program

The Company’s Board of Directors has authorized a new share repurchase program for the repurchase of up to $40 million of the Company’s outstanding common shares. Under the program, repurchases can be made from time to time in the open market, through privately-negotiated transactions and by any other means permitted under the rules of the U.S. Securities and Exchange Commission, in each case at times and prices considered appropriate by the Company. The timing of any purchases and the exact number of shares to be purchased under the program will be subject to the discretion of the Company and upon market conditions and other factors. The Company intends to make all open market repurchases under the plan in accordance with Rule 10b-18 of the U.S. Securities Exchange Act of 1934, as amended.

About Teekay

Teekay is a leading provider of international crude oil marine transportation and other marine services. Teekay provides these services directly and through its controlling ownership interest in Teekay Tankers Ltd. (NYSE: TNK), one of the world’s largest owners and operators of mid-sized crude tankers. The consolidated Teekay entities manage and operate approximately 62 conventional tankers and other marine assets, including vessels operated for the Australian government. With offices in 8 countries and approximately 2,200 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world’s leading energy companies.

Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol “TK”.

For Investor Relations
enquiries contact:

E-mail: investor.relations@teekay.com
Website: www.teekay.com

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements included in this release, other than statements of historical fact, are forward-looking statements. When used in this report, the words “expect,” “believe,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will” or similar words are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Forward-looking statements contained in this release include, among others, statements regarding the expected amount and timing of repurchases of Teekay’s common shares under the Company’s share repurchase program; and the occurrence and timing of a special cash dividend payment by the Company.

The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in the Company’s liquidity and financial leverage; the Company’s capital requirements; changes in the demand for oil and refined products; changes in trading patterns significantly affecting overall vessel tonnage requirements; greater or less than anticipated levels of vessel newbuilding orders and deliveries and greater or less than anticipated rates of vessel scrapping; changes in global oil prices or tanker rates; higher than expected costs and expenses, off-hire days or dry-docking requirements (both scheduled and unscheduled); changes in the trading price and trading volume of the Company’s common shares; and other factors discussed in Teekay’s filings from time to time with the SEC, including its Annual Report on Form 20-F for the fiscal year ended December 31, 2023. Teekay expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Teekay’s expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

FAQ

When will Teekay (TK) pay its special dividend in 2024?

Teekay (TK) will pay a special dividend of $1.00 per share on December 18, 2024, to shareholders of record as of December 4, 2024.

How much is Teekay's (TK) new share repurchase program worth?

Teekay (TK) has authorized a new share repurchase program worth up to $40 million.

How many vessels does Teekay (TK) manage and operate?

Teekay (TK) manages and operates approximately 62 conventional tankers and other marine assets, including vessels operated for the Australian government.