According to DHT Holdings (DHT), in 4Q16, the company earned spot earnings of $34,300 per day for its VLCCs (very large crude carriers), higher than the spot earnings of $20,300…
In December 2016, Maxim Group initiated coverage on three crude (DBO) tanker companies, including Tsakos Energy Navigation (TNP). Maxim gave a “buy” rating to TNP, with a target price of…
In the previous article, we saw how Nordic American Tankers (NAT) has changed its three-year strategy of 100% vessels in the spot market. Also, we saw why the company expects…
Wall Street analysts estimate that Teekay Tankers’ (TNK) revenue will be ~$103 million in the fourth quarter, compared with $104 million in 3Q16 and ~$168 million in 4Q15. With a…
Nordic American Tankers (NAT) expects its cash results for the fourth quarter of 2016 to be ~$20,000 (time charter equivalent) per day, per ship. This figure is higher than Nordic…
Euronav (EURN) will be the first among crude (DBO) tanker companies to release its fourth-quarter earnings. The company is scheduled to release its 4Q16 results on January 26, 2016. On…
Whereas 2015 was spectacular for crude tanker investors, 2016 was lackluster. All crude tanker stocks traded in negative territory in 2016.
Vale (VALE) has a forward EV-to-EBITDA multiple of 6.6x, which is almost same as the average of its last four-year valuation multiple.
On January 11, Cliffs, BHP Billiton, Rio Tinto, and Vale were trading 16%, 6%, 6%, and 16%, respectively, above their 50-day moving averages.
In the past year, analysts have raised their revenue projections for Cliffs from ~$1.8 billion to ~$2.0 billion for the year.
Vale’s total volumes should see a significant boost from iron ore volumes as its S11D project starts commercial production.
Cliff’s Natural Resources has long-term contracts with US steelmakers and is thus affected more by what’s happening in US steel than in seaborne iron ore.
Among the analysts that track Vale (VALE), 21.0% have given the company “buy” recommendations, and 21.0% have given it “sell” recommendations.
Of the 15 analysts covering Rio Tinto (RIO), 53% gave it “buy” recommendations, while 27% gave it “hold” recommendations and 20% gave it a “sell.”
Analysts are concerned about Rio Tinto’s (RIO) overexposure to iron ore. The commodity contributes ~70% of Rio’s EBITDA.
Analysts estimate BHP Billiton to deliver revenues of $37.9 billion for 2017—a fall of 1% YoY (year-over-year).
China has been reeling under its overcapacity in the steel industry. In 2016, China planned to cut 45 million tons but wound up cutting 80 million tons.
Of the 19 analysts covering BHP Billiton (BHP), four analysts issued “buy” recommendations, while 12 issued “holds,” and three issued “sells.”
China has released lots of positive news related to the steelmaking commodity, iron ore, whose prices have subsequently seen a major boost.
While iron ore prices have rebounded once again on the positive news from China, not all analysts believe in the longevity of this rally.