Welcome to the Teekay Group's Second Quarter 2025 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 it over to the company. Please go ahead.

Before we begin, I would like to direct all participants to our website at www.teekay.com, where you'll find a copy of the Teekay Group's Second Quarter 2025 earnings presentation. Kenneth 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 second quarter 2025 Teekay Group earnings presentation available on our website. I will now turn the call over to Kenneth Hvid, Teekay Corporation and Teekay Tankers' President and CEO, to begin.

Thank you, Ed. Hello, everyone, and thank you very much for joining us today for the Teekay Group's Second Quarter 2025 Earnings Conference Call. Joining me on the call today for the Q&A session is Brody Speers, Teekay Corporation's and Teekay Tankers CFO; Ryan Hamilton, our VP, Finance and Corporate Development; and Christian Waldegrave, our Director of Research. Starting on Slide 3 of the presentation, we will cover Teekay Tankers' recent highlights. Teekay Tankers reported GAAP net income of $62.6 million or $1.81 per share and adjusted net income of $48.7 million or $1.41 per share in the second quarter. Second quarter spot rates were counter seasonally strong with rates outperforming the last 2 quarters and above long-term averages for second quarter. Further, with spot rates well above our free cash flow break-even levels, the company generated approximately $62.8 million in free cash flow from operations and at the end of the quarter, had a cash and short-term investment position of $712 million and no debt. With strong free cash flow generation and cash position, Teekay Tankers is well positioned to continue actively executing on our fleet renewal strategy. This includes reducing our exposure to 18- to 19-year old vessels as well as opportunistically selling some 2009-built Suezmaxes in today's historically higher asset price environment as well as making incremental purchases of modern vessels. In July, we acquired 1 modern Suezmax, and we agreed to acquire the remaining 50% ownership interest in the Hong Kong Spirit VLCC from our joint venture partner. This VLCC acquisition was opportunistic based on relative market values and our belief in the near-term strength of the tanker market. In addition, the company agreed to sell 4 Suezmaxes and 1 LR2, which will be delivered to the new owners in the third and fourth quarters for…

[Operator Instructions] Our first question is going to come from Omar Nokta from Jefferies.

Thanks for the update. I just wanted to ask quickly, maybe if you wouldn't mind just expanding on the comments you made earlier in the presentation, you're referencing the purchasing of the latest ship and then some of the sales you did. And you mentioned that you would be looking to change the pace given the need to renew. And so I just wanted a bit more clarity. Are you talking about accelerating the pace of acquisitions or maybe rightsizing the ratio between purchasing and then selling?

Omar, thanks for that question. I think what we wanted to point out, as everybody can see, we've been fairly active in selling some of our older ships in the first half of this year. So we sold a total of 11 ships. And then at the same time, we've started picking up a couple of younger ships. Last year, we picked up a couple of Aframaxes. With Suezmax now and then we simplified the ownership structure around the VLCC that we own 50% of. So the point that we're making here is that I think we said that the selling is largely done for now. And what we're looking to do is we are going to recycle a lot of the capital that we will be collecting from those sales and gradually start adding newer ships to the fleet again.

Okay. And you mentioned the opportunistic transaction to take the full ownership of the VLCC. You've also got, I guess, the opportunistic stake in Ardmore given your exposure to MRs and obviously, have your bread and butter, Suezmax and Aframax. How are you thinking about further capital deployment as you renew the fleet are you looking within the same -- your main asset class? Or do you look towards a larger or perhaps a smaller segment?

Yes. I would say our #1 priority is finding good purchase candidates within our core segments of Aframaxes and Suezmaxes. We are, of course, looking at where we are and trying to square making sense of selling at what we think are quite strong prices for the older assets and then recycling the capital into younger assets where we can find good value, and there's some relative price movements there, and we think that there are the other opportunity that allows us to kind of create a positive arbitrage on that. So in the near term, I think that you'll see us finding single vessels in our core segments, Aframaxes and Suezmaxes. And over the medium term, we might be going in a little bit bigger with newbuildings if we think that's the right time or we may be looking at other asset classes. But the priority right now and in the near term here is really just reloading on our core asset classes.

And our next question is going to come from Ken Hoexter from Bank of America. Ken, are you there? Do you perhaps have your mute function button on?

This is [ Tim Chang ] on for Ken Hoexter with BofA. You mentioned OPEC+ unwinding production cuts in September, an increase in non-OPEC production in the Atlantic Basin as favorable for demand uplift later in the year. Do you see this lifting rates mainly in 4Q, just given that rate softening due to seasonality in the third quarter?

It's Christian here. Yes, we definitely see more oil volumes coming on the market later in the year with OPEC+. It's not just a production increase, but the fact that the Middle Eastern countries have been keeping more oil domestically during the summer months for power generation. So as we get through the summer and probably into September, we should see more Middle East volumes hitting the water. And then we do expect more oil coming from Guyana and Brazil in the second half as well. And we still have the normal seasonality in tanker rates. The summer months, as we've seen in the last couple of months here tend to be a bit flatter. The winter do tend to be seasonally stronger months. So with more export volumes coming online in the second half and also some of the geopolitical complexities as well that Kenneth touched on in terms of more sanctions on Russia and Iran, which just makes trade in general less efficient. We certainly think that there will be some more volatility and stronger rates as we go into the latter part of the year.

Got it. And then secondly, other revenue stepped up materially to $42 million from around $33 million last quarter. How should we think about run rate going forward there?

Yes. This is Brody. Yes, the other revenues were a bit higher this quarter because we had a one-time restructuring charge in our Australian business that was funded by one of our customers for an FPSO that the contract had expired on. So it's about $6 million higher this quarter than it otherwise would be because of that. So that was a flow-through cost to Teekay.

And there are no further questions in the queue at this moment. I'll turn the conference back over to the company for any additional or closing remarks.

Well, thank you very much for tuning into our call this morning, and we look forward to reporting back to you next quarter. Have a great day.

And this concludes today's call. Thank you for your participation. You may now disconnect.