Teekay Tankers Minor model adjustments
We have updated our estimates based on Q1 actuals and QTD fixtures (44% of Suezmax spot days at USD62.4k/day and 41% of Aframax/LR2 spot days at USD58.5k/day). Q1 marked the return of shareholder distributions for Teekay Tankers, with a total DPS of USD1.25 (USD0.25 regular and USD1.0 special) and authorisation of a USD100m buyback programme (~7% of the current market cap) against a P/NAV of 0.73x. We expect further distributions, supported by strong cash generation and a solid balance sheet (6% market-adjusted leverage). We do not consider these changes to be material, and we have not changed our BUY recommendation, but have trimmed our target price to USD55.7 (56.1).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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