Crude tanker industry
In 2015, the crude tanker industry enjoyed one of the highest freight rates in the past seven years. However, 2016 was a little slow as freight rates took a step down from the levels observed in 2015. Although freight rates were still profitable in 2016, the situation was reversed in 2017.
After the crude tanker supply surpassed demand, rates went downhill. With this, the industry didn’t remain profitable in 2017. The first half of 2018 was one of the slowest periods for the crude tanker industry. In this period, crude tanker rates and utilization rates fell to record low levels.
Crude tanker stocks
Crude tanker stocks have given mixed returns from the start of the year. Among these companies, Navios Maritime Midstream Partners was the lowest performer while DHT Holdings was the best performer on a year-to-date basis.
The year-to-date returns for crude tanker stocks on July 12 were as follows:
- Teekay Tankers (TNK): fell 15.71%
- DHT Holdings (DHT): rose 33.15%
- Euronav (EURN): fell 1.62%
- Tsakos Energy Navigation (TNP): fell 10.23%
- Nordic American Tanker (NAT): rose 8.13%
- Navios Maritime Midstream Partners (NAP): fell 64.39%
- Frontline (FRO): rose 19.39%
During the same period, the SPDR Dow Jones Industrial Average ETF (DIA) fell 0.12%.
Toward the end of July, crude tanker companies expect to start releasing their second-quarter earnings. In this series, we’ll discuss analysts’ estimates for these companies’ second-quarter revenues and EBITDA. We’ll also look at analysts’ recommendations for these stocks.