Financial Data and Key Metrics Changes - For Q3 2025, the company achieved an adjusted EBITDA of $150.5 million and a net profit of $91.5 million, marking the best quarterly result of the year [4][17] - The net loan-to-value (LTV) ratio improved from 24.1% in Q2 to 20.5% in Q3, supported by strong operational cash flows [6][19] - The total cash dividend declared for the quarter was $73.2 million, corresponding to a payout ratio of 80% [7] Business Line Data and Key Metrics Changes - The fee-based business in pools contributed $7.1 million in fee income, maintaining steady performance [17] - Time Charter Equivalent (TCE) income for the quarter was $247 million, with an average TCE of $26,040 per day [18] Market Data and Key Metrics Changes - The product tanker market showed significant strength in Q3, driven by higher trading volumes and strong refinery margins, particularly from increased export flows out of the Middle East and Asia [4][8] - Clean petroleum product volumes on water for 2025 continued to track above the four-year average, with Q3 showing an unseasonal increase [8][9] Company Strategy and Development Direction - The company is focused on fleet renewal, having sold four older vessels and announced a preliminary agreement to acquire 14.45% of TORM shares [5][6] - Hafnia aims to maintain a transparent and consistent dividend policy, having delivered dividends consistently over the past several years [6][7] - The company is advancing its sustainability initiatives and technological capabilities to strengthen its competitive edge in the maritime sector [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying market strength and anticipated that seasonal demand would support the oil market, driving higher earnings [25] - The company expects to maintain a solid financial position with an operational cash flow break-even of below $13,000 per day for 2026 [21] Other Important Information - The company has been actively managing its liquidity position, ending the quarter with over $630 million in total available liquidity [20] - The company has recorded approximately 740 off-hire days in Q3 due to dry dock delays, but expects off-hire days to decline in Q4 [18][19] Q&A Session Summary Question: Coverage of LR2 fleet in 2026 - The company has covered more of its LR2 fleet for three years, with three ships on three-year deals and one on a two-year deal [27][28] Question: Impact of Russian CPP exports decline - The decline in Russian clean petroleum product exports has been positive for the company, with no significant competition from the dark fleet observed [29][30] Question: Red Sea reopening impact - The analysis indicated that the reopening of the Red Sea would have a limited impact on fleet supply, with a net effect of approximately 43 MR units [32][35] Question: Purchase options on vessels under sale and leaseback - The refinancing has improved cash flow break-even significantly, expected to be below $13,000 per day for next year [40][41] Question: Net LTV forecast and dividend policy - The net LTV at the end of Q3 was 20.5%, and the dividend payout ratio will depend on market values in the quarter [44][45]

Financial Data and Key Metrics Changes - Teekay Tankers reported GAAP net income of $62.6 million or $1.81 per share and adjusted net income of $48.7 million or $1.41 per share in Q2 2025 [4] - The company generated approximately $62.8 million in free cash flow from operations and ended the quarter with a cash and short-term investment position of $712 million and no debt [5] - The company declared a regular quarterly fixed dividend of $0.25 per share [7] Business Line Data and Key Metrics Changes - Teekay Tankers experienced counter-seasonally strong spot rates in Q2, outperforming the last two quarters and exceeding long-term averages [5][8] - The company sold or agreed to sell 11 vessels for total gross proceeds of $340 million and estimated book gains of approximately $100 million [6] Market Data and Key Metrics Changes - Global oil production is expected to sharply increase due to the unwinding of OPEC plus supply cuts and higher production from South America, with a full unwind of 2.2 million barrels per day expected by September 2025 [10] - The average age of the global tanker fleet is at a 25-year high of 14 years, with the order book stabilizing at approximately 15% of the global tanker fleet [12][13] Company Strategy and Development Direction - Teekay Tankers is focused on renewing its fleet by reducing exposure to older vessels and opportunistically selling older Suezmaxes while acquiring modern vessels [5][6] - The company aims to gradually change the pace of acquisitions, focusing on core segments of Aframaxes and Suezmaxes while considering larger newbuildings in the medium term [21][24] Management's Comments on Operating Environment and Future Outlook - Management believes there are potential tailwinds for the tanker markets towards the end of the year, despite uncertainties due to geopolitical factors [6][11] - The company expects to continue generating strong cash flows and taking incremental steps on fleet renewal while returning capital to shareholders [17][16] Other Important Information - The company noted that periods of oil inventory builds have historically been positive for tanker rates, which could provide support as they move into the seasonally stronger winter months [11] Q&A Session Summary Question: Can you expand on the comments regarding the purchasing of the latest ship and the sales? - Management indicated that selling older ships has been active, with 11 ships sold, and they plan to recycle capital from these sales to gradually add newer ships to the fleet [20][21] Question: How are you thinking about further capital deployment as you renew the fleet? - The priority is to find good purchase candidates within core segments of Aframaxes and Suezmaxes, with potential for larger newbuildings in the medium term [22][24] Question: Do you see the increase in oil production lifting rates mainly in Q4? - Management expects more oil volumes coming to market later in the year, with stronger rates anticipated in the latter part of the year due to increased export volumes and geopolitical complexities [26][28] Question: Other revenue stepped up materially; how should we think about the run rate going forward? - The increase in other revenues was attributed to a one-time restructuring charge funded by a customer, which is not expected to recur [29][30]