Teekay Tankers seeks attractive fleet deals and takeover targets
Overseas Shipholding Group, which engages in ocean transportation of crude oil and petroleum products, was floated as a takeover target for Teekay Tankers.
In 4Q14, LR2 product tanker rates touched their highest levels since 4Q08. Record high levels of Asian naphtha imports from the West supported LR2 rates.
Teekay Tankers’s recent delivery of LR2 vessels were already trading in its Taurus pool. The fleet started generating revenues immediately upon delivery.
The global tanker fleet is forecast to grow by 1.7% in 2015, with higher growth weighted toward the product sectors.
During 2015, there is potential for significant levels of floating storage to emerge if the contango price structure steepens.
The impact of low prices and development of floating storage in 1Q15 are expected to support positive tanker demand in the first half of 2015.
TNK CEO Kevin Mackay noted that in the past three months, average crude spot tanker rates were at their highest since the strong 2008 winter tanker market .
As of December 31, 2014, Teekay Tankers had a total liquidity of $289.0 million, compared to total liquidity of $238.7 million as of September 30, 2014.
Spot exposure for the Teekay Tankers fleet increased by ~3,900 revenue days for 2015. If the spot market rates rise, TNK can earn higher revenues.
Since October 2014, Teekay Tankers has secured time charter-in contracts for two additional Aframax vessels and one additional LR2 vessel.
TNK’s chartering strategy includes vessel employment via a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading.
US refinery capacity increasingly serves export markets. As a result, the ton mile growth of refined oil products is outpacing general demand for them.
Led by economies of scale over long distances, crude is more likely to be shipped via very large crude carrier.
A strong increase in tanker rates is allowing Navios Maritime Acquisition to secure attractive contract periods for its fleet of charters.
This global multidirectional trade pattern enables product tankers to triangulate, which minimizes balance time and maximizes revenue.
Navios Acquisition’s product tanker chartering strategy focuses on the upside potential by using profit sharing arrangements on most available days.
For the full-year 2015, Navios Maritime Acquisition expects to pay dividends of $15.7 million. A 4Q 2014 dividend of $0.05 per share will be paid in April.
Navios Acquisition is a low-cost operator. Its current vessel daily operating expenses are about 18% below the industry average.
As current fuel prices fall below log-time inflation, the adjusted average oil price leads to contango, and that drives VLCC rates higher.
In 4Q 2014, revenue increased by $14.6 million, or 25.2%, to $72.4 million, up from $57.8 million for the same period in 2013.
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