Teekay Tankers Ltd. (NYSE:TNK) dividend policy continues to attract a good number of investors if a recent bull run is anything to go by. However, the stock powering higher in recent trading sessions comes as a surprise, given that the international provider of transportation to oil companies is fresh from posting a net loss of $5.5 million for the recent quarter.

 Teekay Tanker’s Dividend Policy

Even with the recent push higher, the stock is still a shadow of its 52-week high of $7.81 a share its sentiments on the street having taken a hit on growing uncertainty in the oil business. Prior to the company tanking to the current lows, it had proposed a dividend policy in which it was going to pay 30-50% of its quarterly income as dividend.

The policy never came into effect as the oil tankers market continued to hit lower lows with oil prices edging to multi-year lows. Entry of new players into the ones lucrative oil business meant a decline in deals and revenues for Teekay Tankers as demand failed to edge higher as expected. Ever since, the company’s dividend payment has continued to dwindle every quarter and is currently at lows of $0.03 a share.

 Teekay Long Term Prospects

While the dividend policy has helped Teekay Tanker free a good chunk of its debt this year, things could start to look up for the company especially with the recent deal on oil production that could help push prices higher. The fact that company was able to meet some of its debt obligations in a tough year should point to a good run on the larger energy sector picking itself from the current lows.

Teekay Tankers revenues in the previous quarter had taken a hit from reduced oil supply from key production regions and lower refinery output. Many of these challenges have eased out, leading to higher tanker rates according to chief executive officer, Kevin Mackay.

We anticipate rates for mid-size tankers will continue to strengthen into the fourth quarter, allowing Teekay Tankers to continue to generate strong cash flow and strengthen its balance sheet,” said Mr. Mackay.