Adam Rusckowski's questions to Teekay Tankers Ltd (TNK) leadership • Q2 2024
Question
Adam Rusckowski, on behalf of Ken Hexter at Bank of America, asked about the sustainability of LR2 tankers shifting to the clean product trade and its tightening effect on the Aframax market. He also questioned if the initial voyages from the Trans Mountain pipeline have altered the company's long-term ton-mile outlook.
Answer
CEO Kevin Mackay described LR2s as fungible assets that move between crude and clean trades based on earnings, suggesting the current shift is not a short-term phenomenon due to expected strength in the product tanker market. Director of Research Christian Waldegrave added that while the TMX pipeline is not yet at full capacity, it has already boosted Aframax demand, and he expects a greater ton-mile impact as volumes increase and more long-haul voyages to Asia are established.