Wednesday, May 20, 2009

TNK TeeKay Tankers

I've come to a conclusion about my investing, I like learning about new things. I was watching a documentary about large super tankers, and got caught up a bit after the fact in researching all of the different ways to charter a vessel. For example there are time charters where a vessel is chartered at a given rate for a given time, or spot charters, where the going rate is paid. This got me to researching various companies, and I have decided to invest in TNK, Teekay Tankers. Teekay Tankers is owned 54% with a 53% vote by TK, Teekay corporation, and owned 46% with a 47% vote by public shareholders. TNK owns 9 Aframax and 4 Suezmax tankers, and manages their fixed rate and spot contracts to maximize their dividend and limit downside risk. To illustrate, their projected dividends are shown in the following table.

The spot rates for 2009 have been lower than in 2007 and 2008, but TNK seems to have enough fixed contracts to maintain a dividend, even at low spot rates, which lends it more stability than other players like NAT, Nordic American Tanker Shipping Ltd.