Teekay Corporation reported sharply higher second-quarter earnings as its subsidiary, Teekay Tankers, delivered the strongest adjusted quarterly profit in its history amid record spot tanker rates.

The Bermudian-based company posted net income attributable to shareholders of $69.5 million, or 79 cents per common share, for the three months ended June 30, more than triple the $18.7 million, or 22 cents per share, net income in the same period last year.

Revenue increased to $379.1 million from $232.2 million, while income from operations more than quadrupled to $220.8 million from $52.7 million. Teekay also improved on the first quarter of 2026, when it earned $47.7 million on revenue of $285.8 million.

The strong performance was driven by Teekay Tankers, which achieved record spot tanker rates during the quarter, as hostilities continued in the Middle East region, disrupting maritime traffic through the Strait of Hormuz.

Average Suezmax spot rates reached $109,200 per day, while Aframax/LR2 tankers earned an average of $74,100 per day, both records for the company.

The positive momentum has continued into the current quarter. For the approximately 44 per cent of third-quarter spot days booked so far, Suezmax tankers are averaging $104,800 per day, while Aframax/LR2 vessels are earning an average of $59,900 per day.

Teekay Tankers has also continued its fleet renewal programme.

Since its previous earnings release in May, the company completed the acquisition of two Korean-built Suezmax tanker newbuilding contracts for a total of $190 million, with delivery expected in 2027.

The company also completed the sale of a 2009-built Suezmax tanker during the second quarter for proceeds of $138 million, generating a gain of $32.3 million. A previously announced sale of a 2013-built VLCC (very large crude carrier) was completed in the third quarter and is expected to generate an additional gain of $22.9 million.

Gains from vessel sales contributed $10.5 million, or 12 cents per share, to Teekay's second-quarter earnings, compared with $4.6 million, or 5 cents per share, in the same period last year.

In line with its dividend policy, Teekay Tankers declared a regular quarterly cash dividend of 25 cents per share for the quarter ended June 30. The dividend is scheduled to be paid in August.

At the parent company level, Teekay Corporation paid a special cash dividend of $1 per common share in June, representing a total distribution of $87.4 million to shareholders.

• This story was generated by machine and edited by The Royal Gazette newsroom