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Week 44 Was Another Week of Falling Tanker Stocks

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Baltic Dirty Tanker Index

Week 44 ended on November 4, 2016. The BDTI (Baltic Dirty Tanker Index) rose from 660 to 665 at the beginning of the week. The index rose sharply by 15 points mid-week, while it fell on other days.

The BDTI tracks shipping rates for the transportation of crude oil (DBO) on representative routes. Researchers and analysts follow the index to assess companies’ revenues and earnings potentials.

In week 44 of 2016, the index was lower than the level last year. On average, the index was 18% lower than the same period last year. Since the crude tanker business is seasonal, it’s important to look at its year-over-year performance.

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Stock performance

All of the stocks traded in negative territory in week 44. Below are the stock returns of crude tanker companies for the week ending November 4, 2016, compared to their prices in the previous week.

  • Teekay Tankers (TNK) fell 8%.
  • Tsakos Energy Navigation (TNP) fell 13%.
  • General Maritime Partners (GNRT) fell 12%.
  • Frontline (FRO) fell 5%.
  • Euronav (EURN) fell 6%.
  • DHT Holdings (DHT) fell 11%.
  • Nordic American Tankers (NAT) fell 9%.
  • Navios Maritime Midstream Partners (NAP) fell 18%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA fell 3% during week 43. If you’re interested in broad exposure to the industrials sector, you can invest in the SPDR Dow Jones Industrial Average ETF (DIA).

Earnings release

Navious Maritime released its third-quarter results in the previous week. DHT Holdings and Teekay Tankers released their results this week. Other tanker companies will release their earnings in week 45 and beyond. To learn what Wall Street analysts expect from the results, investors can read Analysts’ Views on Crude Tankers Ahead of 3Q16 Results.

Series focus

We looked at tanker stock performances in week 44. Next, we’ll see which tanker performed better during the week. We’ll also look at the cost side of the tanker industry by reviewing bunker fuel costs

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