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1. Company Snapshot

1.a. Company Description

Teekay Corporation engages in the international crude oil and other marine transportation services worldwide.The company provides a full suite of ship-to-ship transfer services in the oil, gas, and dry bulk industries; lightering and lightering support; and operational and maintenance marine, as well as offshore production services.As of March 1, 2022, it operated a fleet of approximately 55 vessels.


The company primarily serves energy and utility companies, major oil traders, large oil consumers and petroleum product producers, government agencies, and various other entities that depend upon marine transportation.Teekay Corporation was founded in 1973 and is headquartered in Hamilton, Bermuda.

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1.b. Last Insights on TK

The recent 3-month performance of Teekay Corporation was driven by a favorable business environment, with the company poised to capitalize on elevated tanker rates due to a supply glut in the oil market. The OPEC+ decision to increase oil production has led to a surge in tanker rates, benefiting Teekay Tankers significantly. Additionally, the company's robust balance sheet, with approximately $530 million in cash and minimal debt, enables potential share repurchases and dividend boosts. Furthermore, the Teekay Group's announcement of a special dividend in May and July 2025 is expected to yield substantial dividends for investors.

1.c. Company Highlights

2. Teekay Tankers' Strong Q4 Earnings and Positive Outlook

Teekay Tankers reported a GAAP net income of $120 million or $3.47 per share and adjusted net income of $97 million or $2.80 per share in the fourth quarter, with the actual EPS coming in at $3.47, significantly beating estimates of $0.03. For the full year, the company reported GAAP net income of $351 million or $10.15 per share and adjusted net income of $241 million or $6.96 per share. The company generated $112 million in free cash flow from operations and had a cash position of $853 million with no debt, highlighting its strong financial performance.

Publication Date: Feb -22

📋 Highlights
  • Strong Q4 Financials:: GAAP net income of $120M ($3.47/share), adjusted $97M ($2.80/share); full-year GAAP $351M ($10.15/share), adjusted $241M ($6.96/share).
  • Fleet Renewal Strategy:: Acquired 3 Aframaxes for $142M, sold 2 Suezmaxes ($73M) and 1 VLCC ($84.5M), with $100M gains expected in 2026 Q1-Q2.
  • High Spot Rate Utilization:: Secured $79,800/day for VLCCs, $56,900/day for Suezmaxes, $51,400/day for Aframaxes, with 78% VLCC and 65% midsized fleet bookings.
  • Dividend Commitment:: Declared $0.25/share regular dividend; potential higher special dividend in May, with G&A costs at ~$46M and D&A ~$21.5M/Q1.
  • Geopolitical Impact:: 70% rise in sanctioned oil barrels at sea; Venezuela’s exports up to 700K bpd (target 900K by year-end), boosting compliant fleet demand.

Operational Highlights

Teekay Tankers executed its fleet renewal strategy, acquiring three 2016-built Aframaxes for $142 million and bareboat chartering them back to the seller. Two older Suezmaxes were sold for gross proceeds of $73 million, and a VLCC was sold for $84.5 million, with total gains expected to be recognized in the first and second quarters of 2026. The company's spot tanker rates have strengthened, with secured spot rates of $79,800, $56,900, and $51,400 per day for its VLCC, Suezmax, and Aframax LR2 fleets, respectively.

Market Outlook

The tanker market outlook remains positive, with underlying tanker demand fundamentals remaining strong. Global oil demand is projected to increase by 1.1 million barrels per day in 2026, and non-OPEC+ supply growth is projected to increase by 1.3 million barrels per day. Geopolitical events have pushed an increasing portion of global seaborne oil trade to the non-sanctioned or compliant fleet of tankers, benefiting companies like Teekay Tankers.

Valuation Metrics

Teekay Tankers' current valuation metrics, including a P/E Ratio of 11.2, P/B Ratio of 1.6, and EV/EBITDA of 0.69, suggest that the company's strong financial performance and positive outlook are not entirely reflected in its current stock price. The company's high Dividend Yield of 16.64% and Free Cash Flow Yield of 23.47% also make it an attractive investment opportunity.

Growth Strategy

According to Kenneth Hvid, Teekay Tankers has a lot of operating leverage and is generating a lot of cash flow in the strong market. The company will likely continue to do a couple of purchases throughout the year, with a focus on drip feeding and using the arbitrage to sell old ships and buy new ones, as stated by Kenneth Hvid, "it's a tough environment to see a major acquisition."

Future Prospects

The company's integrated platform, with in-house commercial and technical management, is a competitive advantage, providing superior service to customers and transparency through the value chain. With a strong financial position and positive outlook, Teekay Tankers is well-positioned for future growth, driven by increasing global oil demand and a favorable tanker market.

3. NewsRoom

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Teekay Corporation Ltd. (TK) Q4 2025 Earnings Call Transcript

Feb -19

Source: seekingalpha.com

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83,231 Shares in Teekay Corporation Ltd. $TK Purchased by Principal Financial Group Inc.

Feb -19

Source: defenseworld.net

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Teekay Corporation Ltd. Fourth Quarter and Annual 2025 Update

Feb -18

Source: globenewswire.com

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Teekay Tankers Ltd. Reports Fourth Quarter and Annual 2025 Results and Declares Dividend

Feb -18

Source: globenewswire.com

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Teekay Group to Announce Fourth Quarter and Annual 2025 Earnings Results on February 18, 2026

Feb -04

Source: globenewswire.com

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Teekay (NYSE:TK) Shares Cross Above Two Hundred Day Moving Average – Here’s Why

Jan -31

Source: defenseworld.net

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Tinka Provides Update on Silvia Gold-Copper Project with Completion of Initial 1,400 Metre Drill Program

Jan -23

Source: newsfilecorp.com

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Teekay Tankers: A 20% FCF Yield Should Reward Investors, Even With Fleet Renewal

Jan -13

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.28%)

6. Segments

Conventional Tankers

Expected Growth: 10%

Teekay Corporation's Conventional Tankers segment growth is driven by increasing global oil demand, rising crude oil production, and growing seaborne trade. Additionally, the company's modern fleet, operational efficiencies, and strong relationships with major oil companies contribute to its growth. Furthermore, the segment benefits from a favorable tanker market, characterized by low vessel supply growth and increasing charter rates.

Marine Services and Other

Expected Growth: 14%

Teekay Corporation's Marine Services and Other segment growth of 14% is driven by increasing demand for offshore oil and gas exploration, rising LNG production, and growing need for marine transportation services. Additionally, the company's strategic acquisitions and investments in new vessels, as well as its focus on operational efficiency, have contributed to the segment's growth.

7. Detailed Products

Offshore Production

Teekay Corporation provides offshore production services through its FPSO (Floating Production, Storage and Offloading) units, which are used to extract oil and gas from offshore fields.

Offshore Accommodation

Teekay Corporation offers offshore accommodation services, providing living quarters and support services for workers on offshore oil and gas platforms.

Shuttle Tankers

Teekay Corporation operates a fleet of shuttle tankers, which are used to transport oil from offshore production facilities to onshore terminals.

FPSO (Floating Production, Storage and Offloading) Units

Teekay Corporation designs, builds, and operates FPSO units, which are used to extract, process, and store oil and gas from offshore fields.

LNG (Liquefied Natural Gas) Services

Teekay Corporation provides LNG services, including transportation, regasification, and storage of LNG.

8. Teekay Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Teekay Corporation operates in the marine transportation industry, which has a moderate threat of substitutes. While there are alternative modes of transportation, such as pipelines and trucks, they are not always feasible or cost-effective for the transportation of oil and gas products.

Bargaining Power Of Customers

Teekay Corporation's customers, primarily oil and gas companies, have limited bargaining power due to the specialized nature of the marine transportation services provided.

Bargaining Power Of Suppliers

Teekay Corporation's suppliers, including shipbuilders and equipment providers, have a moderate level of bargaining power due to the availability of alternative suppliers and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants in the marine transportation industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The marine transportation industry is highly competitive, with several established players competing for market share. Teekay Corporation faces intense rivalry from companies such as Frontline Ltd. and Nordic American Tankers Ltd.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.48%
Debt Cost 7.05%
Equity Weight 76.52%
Equity Cost 7.05%
WACC 7.05%
Leverage 30.68%

11. Quality Control: Teekay Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Teekay

A-Score: 7.9/10

Value: 8.6

Growth: 6.2

Quality: 6.5

Yield: 10.0

Momentum: 9.5

Volatility: 6.3

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DHT Holdings

A-Score: 7.1/10

Value: 6.4

Growth: 7.6

Quality: 7.6

Yield: 10.0

Momentum: 4.5

Volatility: 6.7

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Dorian LPG

A-Score: 6.7/10

Value: 5.7

Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 7.0

Volatility: 5.3

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Global Partners

A-Score: 5.8/10

Value: 7.5

Growth: 3.9

Quality: 3.1

Yield: 10.0

Momentum: 3.0

Volatility: 7.0

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Genesis Energy

A-Score: 5.7/10

Value: 4.9

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 9.0

Volatility: 6.3

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Overseas Shipholding Group

A-Score: 4.5/10

Value: 7.2

Growth: 5.9

Quality: 5.4

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.02$

Current Price

12.02$

Potential

-0.00%

Expected Cash-Flows