Uncertainty surrounding US trade tariffs continues to cloud the economic outlook, with most major forecasting agencies having lowered their outlook for global gross domestic product and trade growth since the start of the year.

This, from Teekay Tankers Ltd, one of the world’s largest owners and operators of mid-size crude tankers, which redomiciled to Bermuda in October.

The company said that as a result, the International Energy Agency has lowered its outlook for global oil demand growth in 2025 to 0.7 million barrels per day, compared to forecast growth of 1.0 mb/d at the start of the year, with further growth of 0.7 mb/d projected in 2026.

This came as the company reported net income of $62.6 million, or $1.81 per share, and adjusted net income of $48.7 million, or $1.41 per share, in the second quarter, excluding items related to acquired operations.

Kenneth Hvid, president and chief executive, said: “Spot tanker rates were counter-seasonally strong during the quarter with rates outperforming the last two quarters and at levels well above the historical average for a second quarter.

“So far in the third quarter, we have seen rates soften slightly in line with normal seasonal trends.

“Looking ahead, with Opec+ unwinding production cuts at an accelerated pace, an increase in non-Opec+ production in the Atlantic basin and low global oil inventories, we believe Teekay Tankers is well-positioned to benefit from the potential seasonal tanker demand uplift later in the year.”

Geopolitical events continue to have an outsized influence on global oil and tanker market.

The company’s report stated: “While the recent conflict between Israel and Iran did not have a material impact on regional oil production, exports, or tanker movements, it did highlight the importance of the region to the global oil trade with over 20 mb/d of oil flowing from the Middle East Gulf.

“More recently, Houthi rebels have resumed attacks on shipping in the Red Sea, which is likely to constrain vessel transits through the region and support tonne-mile demand as vessels take longer routes.

“The conflict between Russia and Ukraine continues, with the EU recently implementing a new sanctions package that includes a lowering of the price cap from $60 per barrel to $47.60 per barrel, a ban on the import of refined products made from Russian crude and the addition of 105 tankers to the sanctioned vessel list.

“Following the most recent round of sanctions, a total of 530 Aframaxes, Suezmaxes and VLCCs (or 19 per cent of the fleet) with an average age of 20 years is now under some form of sanction.

“Should there be a reversal of sanctions, we believe that the majority of these vessels will have difficulty returning to conventional trading given that 60 per cent are aged 20 years or older."

The company believes the near-term outlook for spot tanker rates will be positive after the seasonally weaker summer months. However, there are economic and geopolitical uncertainties that make it difficult to predict how the tanker market will unfold.

Mr Hvid stated: “Since reporting earnings in May 2025, the company continues to be active on its fleet renewal plan, acquiring one modern Suezmax vessel and opportunistically agreeing to purchase the remaining 50 per cent ownership interest of the Hong Kong Spirit VLCC.

“Simultaneously, we continue to realise historically high values for older vessels by agreeing to sell an additional five vessels for total combined proceeds of approximately $158.5 million, which we expect to result in estimated book gains on sale of approximately $46 million.

“With our low cashflow break-even levels and significant balance sheet strength, we believe Teekay Tankers is very well positioned to continue to generate significant free cashflow while we continue to take incremental steps on fleet renewal and return capital to shareholders.”

The company has declared a dividend of $0.25 per share for the quarter ended June 30.