Teekay Tankers Ltd (NYSE:TNK) Q3 2022 Earnings Conference Call November 3, 2022 11:00 AM ET
Company Participants
Kevin Mackay - President & CEO
Stewart Andrade - CFO
Christian Waldegrave - Director, Research & Commercial Performance
Conference Call Participants
Omar Nokta - Jefferies
Jonathan Chappell - Evercore ISI
Kenneth Hoexter - Bank of America Merrill Lynch
Operator
Welcome to Teekay Tankers Limited's Third Quarter 2022 Earnings Results Conference Call. [Operator Instructions]. As a reminder, this call is being recorded. Now for opening remarks and introductions, I would like to turn the call over to the company. Please go ahead.
Unidentified Company Representative
Before we begin, I would like to direct all participants to our website at www.teekaytankers.com, where you will find a copy of the third quarter 2022 earnings presentation. Kevin and Stewart will review this presentation during today's conference call.
Please allow me to remind you that our discussion today contains forward-looking statements. Actual results may differ materially from results projected by those forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the third quarter 2022 earnings release and earnings presentation available on our website.
I will now turn the call over to Kevin Mackay, Teekay Tankers' President and CEO, to begin.
Kevin Mackay
Thank you, Ed. Hello, everyone, and thank you very much for joining us today for Teekay Tankers' third quarter 2022 earnings conference call. Joining me on the call today are Stewart Andrade, Teekay Tankers' CFO; and Christian Waldegrave, our Director of Research.
Moving to our recent highlights on Slide 3 of the presentation. Teekay Tankers generated total adjusted EBITDA of approximately $92 million in the third quarter of 2022, an increase of over $33 million or 57% from the second quarter of this year. We reported an adjusted net income of nearly $58 million or $1.70 per share during the third quarter, an improvement from nearly $26 million or $0.76 per share in the prior quarter.
Our improved results quarter-over-quarter were primarily due to higher spot tanker rates. In a counter seasonally strong market, we benefited from having 98% of our fleet in the spot market, which in turn enabled us to reduce our net debt to capitalization to 35% at the end of the quarter and to increase our liquidity to more than $250 million. The strong charter market for mid-sized tankers is being driven by both tanker market fundamentals and geopolitical factors.