Teekay Tankers Ltd. (TNK) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $5.46 million, or $ 0.03 a share in the quarter, against a net profit of $40.95 million, or $0.30 a share in the last year period. On adjusted basis, net loss for the quarter stood at $1.48 million, or $0.01 a share compared with a net profit of $40.30 million, or $0.30 a share in the last year period.
Revenue during the quarter dropped 17.23 percent to $104.62 million from $126.40 million in the previous year period. Gross margin for the quarter contracted 1217 basis points over the previous year period to 85.73 percent. Operating margin for the quarter stood at negative 3.63 percent as compared to a positive 35.27 percent for the previous year period.
Operating loss for the quarter was $3.79 million, compared with an operating income of $44.58 million in the previous year period.
"During the third quarter of 2016, we generated free cash flow of $26.6 million and declared a dividend of three cents per share," commented Kevin Mackay, Teekay Tankers' Chief Executive Officer. "Our results during the quarter were impacted by the lowest quarterly crude tanker rates in three years resulting from various factors, including normal seasonality, reduced oil supply due to temporary outages in key export regions, and lower refinery throughput. Many of the seasonal factors and temporary outages have now diminished or passed, resulting in significantly higher tanker rates so far in the fourth quarter compared with this past August. We anticipate rates for mid-size tankers will continue to strengthen into the fourth quarter, allowing Teekay Tankers to continue to generate strong cash flow and strengthen its balance sheet."
Operating cash flow improves significantly
Teekay Tankers Ltd. has generated cash of $181.46 million from operating activities during the nine month period, up 25.28 percent or $36.62 million, when compared with the last year period.
Cash flow from investing activities was $24.85 million for the nine month period as against cash outgo of $801.50 million in the last year period.
The company has spent $243.48 million cash to carry out financing activities during the nine month period as against cash inflow of $574.45 million in the last year period.
Cash and cash equivalents stood at stood at $59.24 million as at Sep. 30, 2016.
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