Teekay Tankers' policy is to pay a variable quarterly dividend equal to its Cash Available for Distribution, subject to any reserves its board of directors may from time to time determine are required. Since the Company's initial public offering in December 2007, it has paid a dividend in five consecutive quarters, which now totals $3.98 per share on a cumulative basis.

On June 24, 2009, the Company acquired a 2003-built Suezmax tanker (the Ashkini Spirit) from Teekay Corporation (Teekay) for $57.0 million. To finance this acquisition, the Company issued 7.0 million Class A common shares (excluding the underwriters' overallotment option), raising gross proceeds of $68.6 million. Proceeds in excess of the purchase price were used to repay a portion of debt outstanding under the Company's revolving credit facility. In addition, as part of the acquisition of the Ashkini Spirit, the undrawn availability under the revolving credit facility immediately increased by a further $58.0 million. Any amounts drawn under this facility are not subject to any scheduled principal repayments until at least November 2012.

"The addition of the Ashkini Spirit to the Teekay Tankers fleet enhances our Suezmax profile while further improving the Company's financial strength," commented Bjorn Moller, Teekay Tankers Chief Executive Officer. "The vessel comes with $58 million of undrawn revolver capacity which, together with the excess proceeds from the equity offering, nearly doubles the Company's available liquidity and reduces our financial leverage."

Mr. Moller continued, "Following the purchase of our initial two Suezmax tankers in April 2008, which were financed entirely with debt, we believe it was prudent to finance the purchase of the Ashkini Spirit using equity to ensure our capital structure remains appropriately balanced. Despite a weakening spot tanker market from the record rates achieved in 2008, Teekay Tankers is well-positioned with strong liquidity and approximately 60 percent of its fleet presently on fixed-rate charters at levels well above current spot charter rates. As a result, Teekay Tankers is able to pay an attractive dividend even in today's relatively weak tanker market and will benefit from a recovery in the global economy as our spot market exposure gradually increases from 2010 onwards."

(1) Cash Available for Distribution represents net (loss) income plus depreciation and amortization, unrealized losses from derivatives, non-cash items and any write-offs or other non-recurring items less unrealized gains from derivatives.

(2) Please refer to Appendix A to this release for the calculation of the cash dividend amount.

Estimated Second Quarter 2009 Dividend

The table below presents the estimated cash dividend per share for the quarter ending June 30, 2009 at various average rates earned by the Company's spot tanker fleet and reflects the contribution from its existing fixed-rate time-charter contracts. These estimates are based on current assumptions and actual dividends may differ materially from those included in the following table:

 ----------------------------------------------------------------------- ---- Q2 2009 Estimated                 Suezmax Spot Rate Assumption (TCE basis per day) Dividend               ---------------------------------------------------- Per Share(i)           $10,000  $20,000  $30,000  $40,000  $50,000  $60,000 ---------------------------------------------------------------------------               $10,000    $0.24    $0.27    $0.30    $0.34    $0.39    $0.43               -------------------------------------------------------------               $15,000    $0.29    $0.32    $0.35    $0.40    $0.44    $0.48               ------------------------------------------------------------- Aframax       $20,000    $0.34    $0.37    $0.40    $0.45    $0.49    $0.53 Spot Rate     ------------------------------------------------------------- Assumption    $25,000    $0.39    $0.42    $0.45    $0.50    $0.54    $0.58 (TCE basis    ------------------------------------------------------------- per day)      $30,000    $0.45    $0.48    $0.50    $0.55    $0.58    $0.63               -------------------------------------------------------------               $35,000    $0.50    $0.53    $0.56    $0.59    $0.64    $0.68               -------------------------------------------------------------               $40,000    $0.55    $0.58    $0.60    $0.65    $0.69    $0.73 --------------------------------------------------------------------------- (i) Cash Available for Distribution represents net (loss) income plus     depreciation and amortization, unrealized losses from derivatives,     non-cash items and any write-offs or other non-recurring items less     unrealized gains from derivatives. Estimated dividend per share is     based on Cash Available for Distribution, less $0.9 million for     principal payments related to one of the Company's debt facilities and     less $2 million reserve for estimated dry docking costs. Includes     approximately $0.10 per share to reflect the estimated annual profit     share from the Ganges Spirit and the effect of the 7 million Class A     common share offering completed on June 24, 2009. 

Tanker Market

Average spot rates for crude oil tankers have declined in the first half of 2009, primarily due to three main factors:

- Global oil demand has contracted as a result of the economic downturn with the International Energy Agency (IEA) forecasting a decline of 2.5 million barrels per day (mb/d) in 2009;

- OPEC has announced production cuts of 4.2 mb/d since September 2008, which has reduced the amount of oil available for transportation; and

- The tanker fleet has grown at an above-average pace in the first half of 2009 with net growth of 18.2 million deadweight tonnes (mdwt), or 4.5 percent, since the start of the year.

Seasonal factors such as oil refinery maintenance and the onset of the North Sea oil field maintenance season have further affected crude oil tanker demand in the second quarter. The removal of up to 40 Very Large Crude Carriers (VLCCs) from the world tanker fleet for use as floating storage has helped tighten active fleet supply to some extent and was one of the reasons for the run-up in crude tanker rates during June 2009.

As of July 10, 2009 the IEA projected global oil demand to average 83.3 mb/d for 2009 which represents a 2.5 mb/d, or 2.9 percent, decline from 2008. The IEA projects that oil demand will recover in 2010 to 85.2 mb/d, an increase of 1.4 mb/d, or 1.7 percent, based on a recovery in the global economy.

The tanker orderbook for the remainder of 2009 and 2010 is larger than in previous years, which could lead to continued above-average fleet growth. However, delays at greenfield shipyards, an increase in order cancellations as a result of the global credit crunch and an acceleration of single-hull tanker removals ahead of the 2010 IMO phase-out target could moderate tanker fleet growth in the coming quarters.

Financial Summary

The Company reported adjusted net income(1) of $11.8 million, or $0.47 per share, for the quarter ended March 31, 2009, compared to adjusted net income of $13.0 million, or $0.52 per share, for the quarter ended December 31, 2008. Adjusted net income excludes an unrealized gain of $2.4 million (or $0.10 per share) and an unrealized loss of $13.8 million (or $0.55 per share) relating to changes in the fair value of an interest rate swap for the three months ended March 31, 2009 and December 31, 2008, respectively, as detailed in the summary table below the footnotes to the Consolidated Statements of Income (Loss) included in this release. Including these items, the Company reported net income, on a GAAP basis, of $14.1 million, or $0.57 per share, for the quarter ended March 31, 2009, compared to a net loss, on a GAAP basis, of $0.8 million, or $0.03 per share, for the quarter ended December 31, 2008. Net voyage revenues(2) for the first quarter of 2009 decreased to $29.9 million from $32.0 million for the three months ended December 31, 2008.