New York-listed Teekay Tankers is continuing to prioritise liquidity improvements in weak markets with buyback and charter deals.

As part of efforts to cut capital costs, the company has declared options to repurchase two unnamed suezmaxes for $57m, financed by a sale-and-leaseback company.

The ships will join the owned fleet again in May.

In November, the owner bought back two leased aframaxes for $29.6m in cash.

It also confirmed the sale of two debt-free aframaxes for a combined $32m this year.

TradeWinds reported the 106,000-dwt Explorer Spirit and Navigator Spirit (both built 2008) as being acquired by Greek tanker owner IMS.

And Teekay said it has also agreed to charter in an eco-aframax newbuilding for seven years, plus options.

The company did not give further details, but said the ship is due for delivery in the fourth quarter of 2022.

Chief executive Kevin Mackay called the move "opportunistic" and said it had been concluded at an attractive rate.

The vessel should be delivered "into a strong tanker market in the fourth quarter of 2022, enabling us to increase our scale in a less capital-intensive manner," he added.

Costly quarter

The fourth-quarter net loss was $73.3m, against a profit of $63m in 2019.

Revenue dropped to $127.8m from $311m.

The company was hit by an $18.1m freight tax accrual adjustment last year.

Fearnley Securities said the result was below expectations, with the numbers "distorted" by tax provisions and write downs.

Ebidta was $10m, compared with Fearnley's estimate of $16m, but beat a consensus of $9m.

The company was impacted primarily by lower average spot tanker rates and a higher number of scheduled dry dockings during the fourth quarter, as well as the sale of four suezmax tankers during December 2019 and the first quarter of 2020.

Revenue was also reduced by the sale of the non-US portion of its ship-to-ship support services and LNG terminal management business in the second quarter of 2020.

Vessel costs cut

These decreases were partially offset by lower vessel operating expenses and interest expense in the fourth quarter.

Annual profit was $87.3m, while net debt was cut by $419m over 2020.

Mackay said: "Crude spot tanker rate weakness persisted into the fourth quarter … as a result of Opec+ production cuts resulting from reduced oil demand related to the Covid-19 pandemic and the unwinding of floating storage.

"Despite the pronounced weakness in the fourth quarter and unprecedented challenges faced throughout 2020, Teekay Tankers nevertheless reported one of our best ever annual results."

Liquidity grows

Mackay said the financial position is "resilient".

Liquidity has grown by more than $220m over the year, hitting $373m.

Mackay believes underlying tanker supply fundamentals remain positive and should result in "meaningfully improved" conditions as the global economy and oil demand become more normal.

The fleet consists of 52 suezmaxes, aframaxes and LR2s.

Meanwhile, parent Teekay Corp posted adjusted net profit of $2.84m in the fourth quarter, against $31.28m a year ago.

Chief executive Kenneth Hvid said: "We also continued to prioritise balance-sheet strength and made significant progress in that effort."

"In 2020, we reduced our consolidated net debt by approximately $890m, or over 20%, and increased our consolidated total liquidity position to $1bn as of year-end," he added.