Valuations for the Crude Oil Tanker Industry in September
On September 22, 2015, the average forward EV-to-EBITDA multiple was 6.58x, and the median multiple was 6.23x. An average of 6.73x and a median of 5.94x were recorded a month ago.
Morgan Stanley downgraded DHT Holdings (DHT) to “equal weight” from “overweight” and reduced the target price to $5.50 from $7.
The price of Brent crude oil was $45.50 per barrel at the beginning of September 2016. It vacillated to $50 and then went back to $45.90 on September 23, 2016.
US products supplied for the week ended September 16, 2016, totaled 19,431 mbpd (thousand barrels per day), which was 3.9% less than the prior week.
Markit’s manufacturing PMI is an indicator of a country’s economic health. It was 50.4 for China (MCHI) (FXI) in August 2016 compared to 49.9 in July.
The crude oil tanker orderbook has fallen every month since the start of the year. Orderbook data tell us how many ships have been ordered and how many are under construction.
Newbuild vessel prices fell once again in August 2016. From the start of this year, newbuild vessel prices have been on a downward trend.
Crude oil imports from China in August 2016 rose 5% to 7.7 MMbpd from 7.4 MMbpd in July. August imports were the second-highest since December 2015.
According to the EIA (U.S. Energy Information Administration), the total world’s oil production is estimated to fall 0.38 MMbpd in 2016. It’s expected to rise in 2017.
The lifting of the US oil export ban is expected to change the trade dynamics of crude oil tankers. This is the first full year in which US crude oil is available for exports.
The BDTI (Baltic Dirty Tanker Index) has taken a steep fall since the start of the year, falling almost every month. But September was different.
On September 23, 2016, crude oil tanker stocks had an average -3% return compared to the beginning of the month. In this series, we’ll assess current oil prices and where they’re heading.
Oshkosh Corporation (OSK) has a market cap of $3.9 billion. It rose 3.0% to close at $52.42 per share on September 26.
The biggest gains in the steel space this year were seen in flat rolled steel prices, where US steel companies managed to have stiff duties imposed on imports from countries such as China.
According to data released by the American Iron and Steel Institute, US steel production fell 4.9% YoY (year-over-year) in the week ended September 24, 2016.
In this series, we’ll provide a detailed analysis of August 2016’s steel imports. We’ll analyze what these figures mean for the US steel industry.
The rate on the Suezmax benchmark route (TD20) rose to $38,866 per day on September 23 from $16,124 per day on September 16, 2016.
For the week ending September 23, the average bunker fuel price was $297–$305 per ton. Bunker fuel prices are 5% higher than the same period in 2015.
Eighteen of the 24 analysts covering Honeywell (HON) have a “buy” rating on the stock. The remaining six analysts have a “hold” rating.
Honeywell’s (HON) Defense & Space unit has reeled from weakness in its Commercial Helicopter business for the past few quarters due to a slump in the oil industry (XOP).