- Teekay Corp. (TK -7.7%) falls as much as 16% for its largest intraday drop since June 2017 after reporting a wider than expected Q1 loss and warning that its Teekay Tankers (TNK -4.7%) subsidiary may face weak tanker rates for most of this year.
- “While tanker rates are expected to remain weak in the near-term, we are anticipating a gradual improvement in fleet utilization and tanker rates from late-2018," TK CEO Kenneth Hvid says.
- On Teekay LNG (TGP +0.3%), Hvid says the company " is in the early innings of a multi-year cash flow ramp-up with an additional 11 LNG carriers and a regasification facility scheduled to start-up through early-2020."
- On Teekay Offshore (TOO +3.3%), "We have now completed all our near-term offshore growth projects, which we expect will also allow Teekay Offshore to naturally delever its balance sheet... From a macro perspective, global deepwater oil production is expected to grow by approximately 25 percent by 2025.”