Teekay Corp’s tankers unit to take over management business

Teekay Corp is transferring its Australian management operations and all other management services companies to its tankers business.

The transaction, likely to close by the end of this year, will see Teekay tankers take over shipmanagement companies in Australia for $65m in cash and the remaining management units at their net working capital value. 

Teekay Australia provides crew management, technical management, asset management, and procurement services primarily to the Australian government, as well as to other oil and gas customers in the country.

Teekay Tankers said the acquisitions will reshape the company into a fully integrated shipping business comprising all shore-based employees and seafarers in one platform.

“Over the past few years, the Teekay Group has taken several important steps to streamline the organisation, including the recent changes to our management team structure. With the planned accretive acquisition by Teekay Tankers of Teekay Australia—the Group’s asset-light ship management operations that currently generate approximately $10m in annual EBITDA—Teekay Tankers becomes the sole operating platform within the Teekay Group, said Kenneth Hvid, Teekay Tankers’ chief executive.

Formed in December 2007, Teekay Tankers currently has a fleet of 42 double-hull vessels, comprising 24 suezmaxes and 18 aframax/LR2s. The company also has six chartered-in ships and a VLCC joint venture in which it holds a 50% stake.