What drove TNK's surprising EPS growth in Q4 2024?

Teekay Tankers (TNK) reported an EPS of $2.37 for Q4 2024, which is a notable figure considering the company's previous performance and the broader market conditions. This growth can be attributed to several key factors:

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|TNK|TNK.N|Teekay Tankers|2024 Q1|-14.693877551020421|4.18|169|
|TNK|TNK.N|Teekay Tankers|2024 Q2|-29.68036529680365|3.08|169|
|TNK|TNK.N|Teekay Tankers|2024 Q3|-28.08510638297873|1.69|169|
|TNK|TNK.N|Teekay Tankers|2024 Q4|-28.614457831325296|2.37|169|

1. **Strong Spot Rates and Market Conditions**: Teekay Tankers has benefited from favorable market conditions in the tanker sector. According to the company's earnings call, mid-size tanker spot rates remained strong, supported by increased exports from the Trans Mountain pipeline expansion. This has likely contributed to the company's improved revenue and profitability.
2. **Fleet Optimization and Asset Management**: Teekay Tankers has been strategic in its fleet management, generating significant free cash flow through a high operating leverage of 96% of its fleet deployed in the spot market. The company's decision to sell older vessels and acquire modern eco-design Aframax tankers suggests a focus on optimizing its fleet to capitalize on market opportunities.

In summary, Teekay Tankers' Q4 2024 EPS growth is a result of a combination of favorable market conditions, strong spot rates, and effective fleet management strategies.