In week 16, which ended on April 21, 2017, the BDTI (Baltic Dirty Tanker Index) rose from 800 to 812. The BDTI tracks shipping rates for crude oil tankers on representative routes. Researchers and analysts follow the index to assess companies’ revenue and earnings potential.
Since the crude oil tanker business is seasonal, it’s important to look at its year-over-year performance. In week 16, the index was higher than the previous year’s level. On average, the index was 4% higher than the same period last year.
Below are the stock returns of crude oil tanker companies in the week ending April 21, 2017—compared to the previous week:
- Teekay Tankers (TNK) rose 0.5%.
- Gener8 Maritime (GNRT) fell 0.56%.
- Tsakos Energy Navigation (TNP) returned 0%.
- Nordic American Tankers (NAT) rose 2.7%.
- Frontline (FRO) fell 0.3%.
- Euronav (EURN) rose 0.64%.
- Navios Maritime Midstream Partners (NAP) rose 3.2%.
Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA fell 1.4% during week 16. If you’re interested in broad exposure to the industrials sector, you can invest in the SPDR Dow Jones Industrial Average ETF (DIA). To see how crude tanker stocks performed in the previous week, read Crude Tanker Industry: Mixed Performances in Week 15.
What’s next in this series?
In the next part of this series, we’ll see how crude oil tanker rates fared in week 16. After that, we’ll take a look at the cost side of the tanker industry—bunker fuel prices. Finally, we’ll see if any analysts changed their recommendations or target prices for crude oil tanker companies. We’ll also look at analysts’ consensus recommendations.