Revenue Performance: Teekay Tankers' revenue declined from $338.34 million in QQ1 2024 to $296.59 million in QQ2 2024, reflecting a YoY drop from $370.65 million. The decrease is attributed to reduced charter rates and competition. Gross profit decreased to $116.09 million, yielding a gross profit margin of 39.14%. Despite operational challenges, EBITDA for QQ2 2024 stood at $124.51 million, indicating a respectable operating income margin of 34.44%.
Profitability Metrics: The net income of $106.97 million translates to an earnings per share (EPS) of $3.11, with a net income margin of 36.07%. The effective tax rate remained low at 2.09%, favorably impacting the net margins.
Cash Flow Analysis: Operating cash flow saw strong performance at $146.38 million, contributing to a free cash flow figure of $136.04 million, underscoring liquidity despite the adverse revenue situation. Cash at period end was $427.52 million, providing a solid cushion for future investments and operational resilience.