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Teekay Tankers posts net losses, takes position against scrubbers

16 Nov 2018

New York listed tanker shipping corporation Teekay Tankers posted losses for the three months ended September 30 (Q3) of 2018.

It posted net loss of $17.5 million in Q3 2018, 21.9% more than losses of $22.4 million in Q3 2017; total revenue was $175.9 million in Q3 2018, a 92.9% increase from revenue of $91.2 million in Q3 2017.

In its latest earnings call, the company’s CEO Kevin Mackay took position on Teekay Tankers’ stance against scrubbers.

“I think it’s important to say that Teekay is supportive of the transition to the industry moving to burning cleaner fuels. And I think as we look at that change, 80% to 85% of the tanker fleet in our estimate is going to have to make that change to lower sulphur fuels as opposed to moving to scrubbers,” he says.

“In our case, there is concerns that we have around the use of scrubbers obviously transferring sulphur pollution, from the air into the ocean isn’t in our view something that is viable long-term for the industry, but there is also operational constraints and one of those is around the fuel quality issue.”

Mackay pointed out about 150 ships contaminated with bad bunkers earlier in the year due to the use of contaminated fuel oil as a marine fuel.

“Our concern is that as we move to 2020 and as the market for high sulphur fuels diminishes to that 15% of the ships on the water, the quality of the fuel may come into question and certainly of the availability of it, outside of the major trading and bunkering hubs of Singapore and Rotterdam and places like that,” he notes.

“So that is one of the reasons why our stance on scrubbers or use of high fuel is that we haven’t taken any decisions or any moves to install scrubbers and the quality issues has been one concern around that.

“Not to mention, the issue of maintaining additional equipment, etcetera on the use of scrubbers.”

Photo credit: Teekay
Published: 16 November, 2018

 

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