Teekay Tankers Ltd, the Bermudian-based owner and operator of mid-sized crude-oil tankers, more than doubled its net income in the 2023 fiscal year to set a record for the company.

Teekay reported net income of $513.7 million, which compares with $229.1 million in 2022.

The company said: “Strong 2023 mid-sized tanker spot rates coupled with the company’s high operating leverage resulted in the highest fiscal year net income in the company’s history.”

The company had fourth-quarter net income of $111.7 million. That compares with $81.4 million in the third quarter and $146.4 million in the fourth quarter of 2022.

Teekay gave notice to exercise purchase options on eight vessels under sale-leaseback arrangements for a total of $137 million. After completing these repurchases in the first quarter of this year, the company said, it is expected to be debt-free.

The company declared a cash dividend of $0.25 per share for the quarter ended December 31.

“Firm oil demand, increased tonne-miles due to the Russia-Ukraine war, record export volumes from the US Gulf, and low fleet growth laid the foundation for a very strong tanker market throughout 2023, while seasonal factors and geopolitical tension added to rate volatility,” said Kevin Mackay, Teekay Tankers’ president and chief executive.

“With our fleet of mid-size vessels almost exclusively trading in the spot market, Teekay Tankers achieved our best financial results in the company’s history.

“By remaining disciplined and focusing our efforts on reducing debt levels and building financial strength, we have materially enhanced Teekay Tankers’ strategic optionality and ability to continue creating shareholder value moving forward."