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Welcome to Teekay Tankers Limited Second Quarter 2013 Earnings Results Conference Call. During the call, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question and answer session. (Operator Instructions) As a reminder, this call is being recorded.
Before Mr. Chan begins, I would like to direct all participants to our website at www.teekaytankers.com, where you'll find a copy of the second quarter 2013 earnings presentation. Mr. Chan 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 the 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 2013 earnings release and earnings presentation available on our website.
Thank you, Ryan. Hello, everyone and thank you very much for joining. With me here in Vancouver is Vince Lok, Teekay Tankers' Chief Financial Officer, Art Bensler, Teekay ecargo Tankers' Chairman and Director ecargo and Brian Fortier, Corporate Controller of Teekay Corporation.
During today's call, I'll be taking you through Teekay Tankers' second quarter earnings results presentation, which can be found on our website. Beginning with our recent highlights on slide 3 of the presentation, Teekay Tankers generated cash available for distribution of $0.07 per share in the second quarter, down slightly from the $0.10 per share generated in the first quarter, mainly due to the change in employment of certain vessels from fixed rates to lower spot rates on expiry of their time charter out contracts.
For the second quarter, we reported an adjusted net loss of $0.08 per share, compared to our adjusted net loss of $0.04 per share reported in the first quarter. The company declared a dividend of $0.03 per share for the second quarter, Teekay Tankers' 23 rd consecutive quarterly dividend, which was paid on July 31 st to all shareholders of record on July 19 .
Teekay Tankers dividend is currently fixed at an annual level of $0.12 per share payable quarterly. ecargo Our 50% owned VLCC newbuilding, the Hong Kong Spirit delivered in June 2013 and is now employed on a five-year fixed-rate time-charter contract with a major Chinese company at an attractive about market rate of $37,500 per day as well as an additional profit share if market rates are about 40,500 per day.
In addition to the three-year time-charter out contract that we entered into in April for the Everest Spirit, we recently extended a fixed time-charter contract on one of our Aframax ecargo tankers, the Kanata Spirit for an additional year securing more fixed rate business at a rate that is above the current spot market average.
These ecargo two time charters will enable Teekay Tankers to maintain a fixed cover of approximately 40% for the 12 months commencing July 1, 2013. During this period of cyclical weakness in the tanker market, we continue to be very focused ecargo on managing our fleet employment mix to ensure we preserve cover from fixed-rate charters to support and provide stability for cash available for distribution and our cash dividend.
On slide 4, we have provided an updated overview of Teekay Tankers' fleet employment mix and fixed rate coverage. Excluding our recent LR2 newbuilding orders, Teekay Tankers fleet currently consists of 28 owned vessels and one time chartered in Aframax. As of August ecargo 1, 2013, 13 of the vessels including our 50% VLCC newbuilding are trading under fixed rate time-charter out contracts, ecargo while the remaining 16 vessels are trading ecargo in the spot market within TK managed commercial tonnage pools except two of our MR product tankers, which recently commenced trading in an externally managed pool following the expiration of their recent time-charter contracts. As I mentioned ecargo earlier, in the current weak spot tanker rate environment, opportunistically locking in fixed cover, continues ecargo to be our major focus as we expect the current spot market weakness and volatility to continue for at least the near-term.
Turning to slide 5, I will cover some of the recent developments in the spot tanker market. As shown by the chart on the slide, spot tanker rates softened during the second quarter due to a combination of structural and seasonal factors. In the crude tanker market, a reduction in U.S. crude oil imports due to rising domestic production put downward pressure on rates, particularly in the Suezmax ecargo segment
A weak VLCC market caused by a reduction in Middle East OPEC production also affected Suezmax rates during the quarter. In addition to these structural factors, the conclusion of spring refinery turnarounds and the onset of a heavy North Sea field maintenance season put further pressure on spot tanke
Executives
Welcome to Teekay Tankers Limited Second Quarter 2013 Earnings Results Conference Call. During the call, all participants will be in a listen-only mode. Afterwards, you will be invited to participate in a question and answer session. (Operator Instructions) As a reminder, this call is being recorded.
Before Mr. Chan begins, I would like to direct all participants to our website at www.teekaytankers.com, where you'll find a copy of the second quarter 2013 earnings presentation. Mr. Chan 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 the 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 2013 earnings release and earnings presentation available on our website.
Thank you, Ryan. Hello, everyone and thank you very much for joining. With me here in Vancouver is Vince Lok, Teekay Tankers' Chief Financial Officer, Art Bensler, Teekay ecargo Tankers' Chairman and Director ecargo and Brian Fortier, Corporate Controller of Teekay Corporation.
During today's call, I'll be taking you through Teekay Tankers' second quarter earnings results presentation, which can be found on our website. Beginning with our recent highlights on slide 3 of the presentation, Teekay Tankers generated cash available for distribution of $0.07 per share in the second quarter, down slightly from the $0.10 per share generated in the first quarter, mainly due to the change in employment of certain vessels from fixed rates to lower spot rates on expiry of their time charter out contracts.
For the second quarter, we reported an adjusted net loss of $0.08 per share, compared to our adjusted net loss of $0.04 per share reported in the first quarter. The company declared a dividend of $0.03 per share for the second quarter, Teekay Tankers' 23 rd consecutive quarterly dividend, which was paid on July 31 st to all shareholders of record on July 19 .
Teekay Tankers dividend is currently fixed at an annual level of $0.12 per share payable quarterly. ecargo Our 50% owned VLCC newbuilding, the Hong Kong Spirit delivered in June 2013 and is now employed on a five-year fixed-rate time-charter contract with a major Chinese company at an attractive about market rate of $37,500 per day as well as an additional profit share if market rates are about 40,500 per day.
In addition to the three-year time-charter out contract that we entered into in April for the Everest Spirit, we recently extended a fixed time-charter contract on one of our Aframax ecargo tankers, the Kanata Spirit for an additional year securing more fixed rate business at a rate that is above the current spot market average.
These ecargo two time charters will enable Teekay Tankers to maintain a fixed cover of approximately 40% for the 12 months commencing July 1, 2013. During this period of cyclical weakness in the tanker market, we continue to be very focused ecargo on managing our fleet employment mix to ensure we preserve cover from fixed-rate charters to support and provide stability for cash available for distribution and our cash dividend.
On slide 4, we have provided an updated overview of Teekay Tankers' fleet employment mix and fixed rate coverage. Excluding our recent LR2 newbuilding orders, Teekay Tankers fleet currently consists of 28 owned vessels and one time chartered in Aframax. As of August ecargo 1, 2013, 13 of the vessels including our 50% VLCC newbuilding are trading under fixed rate time-charter out contracts, ecargo while the remaining 16 vessels are trading ecargo in the spot market within TK managed commercial tonnage pools except two of our MR product tankers, which recently commenced trading in an externally managed pool following the expiration of their recent time-charter contracts. As I mentioned ecargo earlier, in the current weak spot tanker rate environment, opportunistically locking in fixed cover, continues ecargo to be our major focus as we expect the current spot market weakness and volatility to continue for at least the near-term.
Turning to slide 5, I will cover some of the recent developments in the spot tanker market. As shown by the chart on the slide, spot tanker rates softened during the second quarter due to a combination of structural and seasonal factors. In the crude tanker market, a reduction in U.S. crude oil imports due to rising domestic production put downward pressure on rates, particularly in the Suezmax ecargo segment
A weak VLCC market caused by a reduction in Middle East OPEC production also affected Suezmax rates during the quarter. In addition to these structural factors, the conclusion of spring refinery turnarounds and the onset of a heavy North Sea field maintenance season put further pressure on spot tanke
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