Crude Tanker Stocks: Updates and Analyst Recommendations in September
Crude tanker industry
The third quarter of 2017 was one of the worst third quarters in the last few years for the crude tanker industry. Crude tanker rates have dropped significantly, especially at the end of August and September. The primary two reasons for the fall in tanker rates is high fleet growth and the OPEC production cut.
Year-over-year, the VLCC fleet has grown 7%, and the Suezmax fleet has grown 10%. On the other hand, oil supply has decreased, and exports from Saudi Arabia have dropped significantly. All these factors have had a negative impact on the crude tanker industry.
Along with a fall in crude tanker rates, the third quarter saw a fall in most of the crude tanker stock prices. In the last three months, Euronav was the best performer, and Navios Maritime Midstream Partners was the worst performer among the industry peer group.
Following are the last three months’ returns for crude tanker companies on September 27, 2017.
- Navios Maritime Midstream Partners (NAP): fell 23.6%
- Teekay Tankers (TNK): fell 12.2%
- Tsakos Energy Navigation (TNP): rose 0.43%
- DHT Holdings (DHT): fell 0.25%
- Euronav (EURN): rose 2~.7%
- Gener8 Maritime Partners (GNRT): fell 13.7%
- Nordic American Tankers (NAT): fell 11.3%
In the same period, the SPDR Dow Jones Industrial Average ETF (DIA) rose ~4.8%.
In this series, we’ll examine the latest updates and analyst recommendations for crude tanker stocks. Also, we’ll see the latest revisions of target prices and recommendations by analysts.
Changes in analysts’ estimates can be key drivers of short-term price movements. Investors should keep track of changes to these estimates because they offer insight into what the market expects from a given company.