Bermudian-based Teekay Tankers Ltd, one of the world’s largest owners and operators of mid-sized crude oil tankers, has reported losses for both the fourth-quarter and full fiscal year 2021.

The company said its fourth-quarter GAAP net loss was $39.8 million, and the loss over the full year was $242.4 million.

The fourth-quarter loss compares with a net loss of $52.1 million in the third quarter of the year and a net loss of $73.3 million in the prior-year fourth quarter.

The net loss for the year compares with net income of $87.3 million in 2020.

“Spot tanker rates in the fourth quarter of 2021 improved due to recovering global crude oil trade; however, spot tanker rates remained well below historic averages due to ongoing Opec+ production cuts related to the Covid-19 pandemic, the emergence of the Omicron Covid-19 variant and higher bunker fuel prices,” said Kevin Mackay, Teekay Tankers president and CEO.

“In early-2022, the impact of the Omicron Covid-19 variant and higher bunker fuel prices continue to weigh on crude spot tanker rates. Although the near-term outlook is uncertain mainly due to Covid-19 and geopolitical tension, we believe that many of the leading indicators for a tanker market recovery continue to improve.”

Mr Mackay added: “Growing oil demand is expected to surpass pre-Covid levels this year, while Opec+ and non-Opec crude oil production continues to increase, and global inventories continue to decline. There are also positive tanker supply fundamentals, including a small order book — particularly from the second half of this year, limited new vessel orders, and increased scrapping.

“Since reporting earnings last quarter, we opportunistically sold two 2004-built vessels and have agreed to sell a third 2004-built vessel at attractive prices, for a total gross proceeds of $42 million, while also entering into term sheets for new, low-cost sale-leaseback financings, all of which will further reinforce our balance sheet.

“Including these transactions, the company’s pro forma liquidity position was approximately $246 million as of December 31, 2021.

“While we anticipate a strengthening of the tanker market as trade volumes continue to recover, we remain financially resilient during this period of low tanker rates, and are well positioned to benefit from the anticipated tanker recovery."

Teekay has a fleet of 47 double-hull tankers and also has three time chartered-in tankers.

The company also owns a very large crude carrier through a 50 per cent-owned joint venture.