Teekay Corp. (NYSE:TK) is flush with soaring sales that topped analyst estimates, the company, which is operationally based in Vancouver, announced August 6.
The news comes a day after news that one of the energy shipper's related companies, Teekay Tankers Ltd. (NYSE:TNK), announced that it plans to spend US$662 million to buy 12 Suezmax tankers from Principal Maritime Tankers.
Teekay Corp. generated US$592.7 million in the quarter that ended June 30. That’s up 31% from US$452.2 million in the same quarter a year ago and was US$32.66 million more than analysts expected.
Its profit, however, was disappointing for analysts.
At US$215.2 million in the quarter, or US$0.27 per share, Teekay missed analyst estimates by US$0.07.
The transaction to buy the dozen Suezmax tankers, which are largest ships capable of crossing the Suez canal, makes Teekay Tankers one of the largest owners of Suezmax tankers in the world, with what will be a total of 22.
The Suez Canal is expected to become more prominent in world trade given the US$8.6 billion recently spent on widening the corridor – a widening that the Egyptian government coincidentally also launched August 6.
B.C. companies – even those with business in the region – told Business in Vancouver that they did not expect much of a bump from the widening.
Even Teekay Corp. spokesman Jonathan Anthony told BIV last week that reducing transit time by a few hours is “not the defining trigger” in rising demand for Teekay ships.
Regardless, investors seemed to be enamored by Teekay’s revenue and the Suezmax transaction and pushed the company’s long-lagging stock price up about 7% to US$34.48 at around noon Pacific Time. The stock has fallen more than 49% from its 52-week high of US$67.98.
The global shipping giant is partly a holding company given its complex web of stakes in other ventures, such as oil shipper Teekay Tankers Ltd. (NYSE:TNK), LNG shipper Teekay LNG Partners LP (NYSE:TGP) and deep-water shipper Teekay Offshore Partners L.P. (NYSE:TOO).
Those companies also reported earnings before the market opened August 6.
