Crude tankers in 3Q17
The weakness in crude tanker rates that started in the second quarter lingered through the start of the third quarter and then got even worse in August and September. The crude tanker industry saw one of its worst third quarters this year in the last three to four years.
The VLCC rates in September were on average ~27% down year-over-year, and Suezmax rates were down ~47%.
Just like the crude tanker rates, most crude tanker stocks also fell in the third quarter. Among the industry players, Navios Maritime Partners, and Gener8 Maritime Partners were the worst performers. Frontline and Euronav were the best performers, as only these two companies traded in the green in the third quarter. The stock returns for the third quarter of 2017 in the industry are as follows:
- Teekay Tankers (TNK) fell 13.8%.
- DHT Holdings (DHT) fell 4.1%.
- Euronav (EURN) rose 2.5%.
- Tsakos Energy Navigation (TNP) fell 6.5%.
- Nordic American Tanker (NAT) fell 15%.
- Navios Maritime Midstream Partners (NAP) fell 20%.
- Frontline (FRO) rose 7.6%.
- Gener8 Maritime Partners (GNRT) fell 20%.
In the same week, the SPDR Dow Jones Industrial Average ETF (DIA) rose 5%.
Crude tanker companies’ revenues are closely related to the performance of crude tanker rates. In this series, we’ll see what analysts estimate for these companies’ third-quarter revenues and EBITDA. Also, we’ll look at analyst recommendations in this weak market.