TNK is a subsidairy of a larger business, Teekay Shipping (TK). TNK's parent is TK. TNK has no employees. All of its operatins are run by employees of TK. TNK President is an employee of TK. TK is TNK largest shareholder. Everything that TNK does is for the benefit of TK, and TK is one of the world's largest shipping companies. This is a big advantage for TNK. TNK has no issue regarding long term debt, first because the debt load is totally managable and second because its parent, TK, has great relationship with its banks. Operating wise, TNK also benefits from all of the expertise and most importantly teh reputation of its parent. Anyone doing business with TNK knows they are doing business with one the largest and most stable shipping companies in the world, TK.
agree - and heard this many times ..
just remember that even if TK is the parent etc' - TNK is a diff ENTITY.. and between them there is no "parental" relationship (as in your parents and you ..)
if tomorrow LNG rules the world and crude oil dies - TNK will be history faster than you can type - while TK and TK-LNG will skyrocket ..
Also, I encourage everyone to go and read the transcript from the TK conference call where the Pres. of TK discusses their TNK subsidiary at the first Q and A. Explaining the change in TNK's dividend policy, he says that TNK was set up to be a "cash flow vehicle" for TK, but that does not work very well in these countercyclical times. The policy was to expand and raise capital through share issuances, but that doesnt make much sense given the current share price. therefore, at least for a while, they are going to raise captial for new ship purchases throgh operations. TNK is agreat buy here!