Frontline Ltd
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Evercore Downgraded DHT and Revised Companies’ Target Prices
In week 30, the week ending July 27, Evercore downgraded one crude tanker company and revised other companies’ target prices.
How Did the Crude Tanker Industry Fare in Week 30?
In week 30, the week ending July 27, the BDTI rose to 759 from 723. The BDTI has risen ~8.4% in 2018.
Morgan Stanley Revised NAT and DHT’s Target Prices
On July 17, Morgan Stanley raised Nordic American Tankers’ (NAT) target price to $2.5 from $2.25.
Crude Tanker Stocks Fell in Week 29
The BDTI can be used to assess the crude tanker industry. In week 29 (week ending July 20), the BDTI fell from 744 to 723.
Analysts’ Recommendations for Crude Tanker Stocks
In Week 28, analysts made no target price revisions or recommendation changes for crude tanker companies.
Tsakos Energy Navigation: Analysts’ Views before Q2 2018 Results
The consensus 12-month target price for Tsakos Energy Navigation is $5.05, which implies a potential upside of 44.7% from its market price on July 12.
Analysts Recommend a ‘Hold’ on Navios Maritime Midstream Partners
The consensus 12-month target price for Navios Maritime Partners is $4.83, which implies a potential upside of 40.82% from its market price on July 12.
Analysts See a 43% Potential Upside for Teekay Tankers
The consensus 12-month target price for Teekay Tankers is $1.69, which implies a potential upside of 43.2% from its July 11 market price.
Analysts’ Estimates before Euronav’s Q2 2018 Results
The consensus 12-month target price for Euronav is $10.89, which implies a potential upside of 22.36% from its market price on July 12.
Week 26: Analysts’ Ratings for Crude Tanker Companies
In week 26, which ended on June 29, none of the analysts revised their recommendations or target prices for crude tanker companies.
NAT, EURN, TNK: Which One Do Analysts Like the Most?
Analysts’ consensus rating for Nordic American Tankers (NAT) is 3.33, which means a “hold.”
What Analysts Recommend for the Top Two Crude Tanker Stocks
DHT Holdings (DHT) was the best-performing stock among peers on a YTD basis.
Euronav Takes Fourth Place among Crude Tanker Stocks This Year
Euronav’s (EURN) YTD (year-to-date) returns were -1% as of June 28.
NAT Is the Third Best Crude Tanker Stock Performer
Nordic American Tankers’ (NAT) YTD (year-to-date) returns were 7% as of June 28.
DHT Holdings Is the Top Crude Tanker Stock So Far This Year
DHT Holdings’ YTD returns stood at 30.6% as of June 28. The stock is the best performer among its peers so far this year.
Comparing Euronav’s, Frontline’s, and Teekay Tankers’ Earnings
Previously, we compared five crude tanker companies’ Q1 2018 revenue. In this article, we’ll look at their Q1 2018 EBITDA.
Comparing Crude Tanker Companies’ Time Charter Equivalent Rates
In this series, we’ll compare crude tanker companies’ performance and their outlook for future quarters.
Crude Tankers: Wells Fargo’s Revised Recommendations
On June 18, Wells Fargo upgraded DHT Holdings (DHT), Frontline (FRO), and Teekay Tankers (TNK) to “outperform.”
Week 25: How Did the Crude Tanker Index Perform?
Since the beginning of 2018, the BDTI (Baltic Dirty Tanker Index) has fluctuated between 628 and 781. The year started out with the BDTI at 700.
Why Nordic American Tankers Stock Jumped 21% Yesterday
Shares of Nordic American Tankers (NAT) closed at $2.62 on June 18—21.3% higher than the previous day’s closing price.
Frontline: Analysts’ First-Quarter Estimates
According to Reuters, the consensus rating for Frontline (FRO) is 3.33, which means a “hold.”
Analysts Estimate a 65% Fall in Frontline’s First-Quarter EBITDA
Analysts’ EBITDA estimate for Frontline in the first quarter is $33.2 million—a 65% decrease from $97.3 million in the first quarter of 2017.
DNB Market Raised Frontline’s Target Price
On May 29, DNB Market raised the target price for Frontline to 60 Norwegian kroner from 40 Norwegian kroner.
Analysts Expect Frontline’s First-Quarter Revenue to Fall 30%
Analysts estimate net revenues of $85.2 million for Frontline (FRO) in the first quarter. A sequential fall from $178.5 million in the previous quarter.
Euronav: Recycling Is Encouraging for the Tanker Industry
Euronav (EURN) discussed the crude tanker industry in its 1Q18 conference call. Euronav talked about headwinds and constructive drivers.
Updates on the Euronav and Gener8 Maritime Merger
Euronav (EURN) and Gener8 Maritime Partners’ (GNRT) merger should close towards the end of 2Q18—subject to Gener8 shareholders’ vote.
Frontline: What Do Analysts Expect in 1Q18?
The consensus 12-month target price for Frontline is $5.02, which implies a potential upside of 3.7% from the market price on April 19.
JPMorgan Chase Upgraded Navios Maritime Midstream Partners
On April 20, JPMorgan Chase upgraded Navios Maritime Midstream Partners (NAP) by two notches to “overweight” from “underweight.”
Analysts’ Recommendations: Top 2 Crude Tanker Stocks
DHT Holdings has the best YTD return as of April 5, 2018, among its peers. Analysts’ consensus rating for DHT Holdings (DHT) is 2.25.
Tsakos Energy Navigation: Fifth-Best Performer in 2018
Tsakos Energy Navigation’s (TNP) YTD returns were -12.8% as of April 5, 2018. Tsakos Energy Navigation is the fifth-best performer among its peers YTD.
Gener8 Maritime Partners: Fourth-Best Performer in 2018
Gener8 Maritime Partners’ YTD returns were -10% as of April 5, 2018. Gener8 Maritime Partners is the fourth-best performer among its peers YTD.
Euronav: Third-Best Performer among Crude Tanker Stocks
Euronav’s (EURN) YTD (year-to-date) returns were -9.2% as of April 5, 2018. Euronav is the third-best performer among its peers on a YTD basis.
Analyzing DHT Holdings’ Performance in 2018
DHT Holdings’ (DHT) YTD returns were 1.1% as of April 5, 2018. DHT Holdings is the only crude tanker company with a positive YTD return.
Analysts’ Recommendations for Crude Tankers: A Comparison
Now that we’ve compared crude tanker companies’ 4Q17 performances, let’s discuss analysts’ recommendations.
Which Crude Tanker Company Earned the Highest TCE in 4Q17?
In this article, we’ll compare the TCE (time charter equivalent) rates these crude tanker companies achieved in 4Q17.
JPMorgan Chase: Revisions for TNP and EURN
On March 23, 2018, JPMorgan Chase reduced Tsakos Energy Navigation’s (TNP) target price to $5 from $5.5.
Week 10: UBS Revised Tsakos Energy Navigation’s Target Price
In week 10, the week ending March 9, 2018, one analyst revised Tsakos Energy Navigation’s (TNP) target price.
Week 10: Crude Tanker Industry Overview
In week 10 of 2018, which ended on March 9, the BDTI dropped to 653 from 669. In week 9, the index rose by 23 points.
Week 9: Evercore Revised Frontline’s Target Price
In week 9 of 2018, one analyst revised Frontline’s (FRO) target price. On March 1, Evercore reduced Frontline’s target price to $3.5 from $4.
Week 9: Crude Tanker Industry Update
In week 9 of 2018, which ended on March 2, the BDTI rose from 646 to 669. In week 8, the index fell by three points.
Week 8: Evercore Revised Frontline’s Target Price
In week 8, the week ending February 23, 2018, one analyst revised the target price for Frontline (FRO).
Crude Oil Rates and Bunker Fuel Prices in Week 7
On February 15, 2018, the average bunker fuel price was $400.5 per ton—compared to $416 per ton on February 8.
How Navios Maritime Midstream Partners’ Revenues Trended in 4Q17
Navios Maritime Midstream Partners’ (NAP) 4Q17 revenue of $22.7 million fell $0.1 million from the $22.8 million revenue recorded in 4Q16.
Where Did Oil Prices and Bunker Fuel Prices Head in Week 5?
On February 1, 2018, the average bunker fuel price was $444 per ton—compared to $445 per ton on January 25.
Euronav and Gener8 Maritime Partners’ Merger
On December 21, 2017, Euronav (EURN) and Gener8 Maritime Partners (GNRT) announced a stock-for-stock merger.
Navios Maritime Midstream Partners’ Revenue Could Fall 7%
Analysts expect revenues of $21.18 million for Navios Maritime Midstream Partners in 4Q17—compared to $20.7 million in the previous quarter.
Key Updates from the Crude Tanker Industry Last Week
In week three of 2018, which ended on January 19, the BDTI rose from 684 to 705.
J.P. Morgan Revises Target Price for Two Crude Tanker Companies
On January 19, 2018, J.P. Morgan reduced its target price for Euronav to $8 from $9.
Where Are Bunker Fuel Prices Heading?
Last week, Brent crude oil prices touched $70 per barrel on Tuesday following preliminary data published by API that US crude oil inventories fell.
Week 2: Analysts’ Ratings for Crude Tanker Stocks
In the week ending January 12, 2018, none of the analysts revised their recommendations on crude (DBO) tanker companies.
Analyzing Bunker Fuel Prices in Week 2
On January 11, 2018, the average bunker fuel price was $437 per ton—compared to $431 per ton on January 4, 2018.
UBS Downgraded Gener8 Maritime Partners
On January 4, 2018, UBS downgraded Gener8 Maritime Partners (GNRT) to “neutral” from “buy” and raised the target price to $6.75 from $6.5.
Oil Price Reach 3-Year High: What about Bunker Fuel Prices?
On January 4, 2018, the average bunker fuel price was $431 per ton—compared to $413 per ton on December 21, 2017.
Frontline: Analysts Recommend a ‘Hold’
One analyst gave a “buy” recommendation, four analysts gave a “hold” recommendation, and one analyst gave a “sell” recommendation for Frontline stock.
Euronav: Analysts’ Target Price and Estimates
The consensus rating for Euronav is a “buy.” Out of the 12 analysts that gave recommendations on Euronav, 67% are bullish on the stock.
Crude Tankers: Analysts’ Recommendations Heading into 2018
Crude tanker rates increased slightly in the fourth quarter. The rates were supported by refineries returning from seasonal maintenance.
Week 51: Analysts’ Recommendations for Crude Tanker Companies
None of the analysts revised their recommendations or target prices for crude (DBO) tanker companies in week 51 (week ending December 22, 2017).
Why Gener8 Maritime Partners Rose Steeply Last Week
On December 21, 2017, Euronav confirmed that it will acquire Gener8 Maritime Partners for ~$493 million in an all-stock transaction.
Top 5 Crude Tanker Stocks in 2017 by Market Returns
It hasn’t been a good year for the crude tanker industry. Tanker rates experienced a steep fall this year. VLCC rates have fallen almost 70% year-to-date.
Week 50: Crude Prices Touch $65
Brent crude oil prices rose to $63.3 per barrel on December 15, 2017, from $62.2 per barrel on December 8, 2017.
Why Did Nordic American Tankers Fall Last Week?
Nordic American Tankers offered new equity shares below its recent trading price. It was the main reason behind the recent fall in its stock prices.
US Crude Oil Exports to China: Highest in November
China’s crude oil imports from the US were the highest in November. In the past month, almost 289,000 barrels per day of US crude hit China’s shores.
Week 49: Deutsche Bank Revised Frontline’s Target Price
In week 49, which ended on December 8, one analyst revised its target price for Frontline. Deutsche Bank raised Frontline’s target price to $5 from $3.
Frontline’s Target Price Was Cut in Week 47
In Week 47, Morgan Stanley reduced the target price for Frontline (FRO) to $5 from $5.50. In Week 46, Teekay Tankers’ (TNK) target price was reduced to $2 from $5 by Deutsche Bank.
Frontline’s Current Fleet and Newbuild Updates
Frontline had 61 vessels in its fleet on September 30. The 61 vessels include 22 VLCCs, 18 Suezmax tankers, 20 LR2/Aframax tankers, and one MR vessel.
Frontline’s Stock Has Fallen 10.5% in November
Frontline (FRO) stock closed at $5.4 on November 27. The stock is trading 30% lower than its 52-week high and 12% higher than its 52-week low.
China’s Auto Sales in October Helped the Crude Tanker Industry
In October 2017, China’s automobile sales rose 2% YoY (year-over-year) to 2.7 million. China’s automobile sales have been rebounding since June.
Why TNK Thinks Merger with TIL Is of Strategic Importance
In the third quarter conference call, Teekay Tankers (TNK) gave updates on TNK’s merger with Tanker Investments (TIL).
A Look at Teekay Tankers’ 3Q17 Cost Side
Teekay Tankers’ (TNK) central cash costs include voyage expenses and vessel operating expenses.
Teekay Tankers Highlights Positive Industry Developments
In its third quarter conference call, Teekay Tankers (TNK) gave insights on the tanker market, how it fared in the third quarter, and the outlook for the coming quarters.
Analysts’ Recommendations before Frontline’s 3Q17 Results
The 12-month consensus target price for Frontline is $6.2. Compared to the current market price, the target price implies a potential upside of 7.5%.
Analysts Revised the Target Price for Teekay Tankers and NAT
In week 45, which ended on November 10, 2017, Teekay Tankers’ (TNK) target price was cut to $1.3 from $1.6 by Bank of America Merrill Lynch.
Week 45: Crude Tanker Industry Update
In week 45, which ended on November 10, 2017, the BDTI fell to 803 from 843. In week 44, it fell by 71 points.
Wells Fargo Revised the Target Prices for NAT, EURN, and FRO
In week 44 (week ending November 3), Wells Fargo reduced the target price for Nordic American Tankers (NAT) to $3.5 from $4.
Week 44: Weekly Crude Tanker Industry Update
In week 44, many of the crude tanker stocks traded in the red. Only Frontline and Navios Maritime Midstream Partners traded in the green.
Target Price for NAP Revised in Week 42
On October 20, 2017, Citigroup raised the target price for Navios Maritime Midstream Partners (NAP) to $8 from $7.
Analysts’ Recommendations for Crude Tankers in Week 41
The crude (DBO) tanker index rose in week 41. Aframax rates had enormous gains, while VLCC and Suezmax rates also rose during the week.
Analyst Recommendations for Crude Oil Tankers in Week 40
None of the analysts have revised their recommendations or target prices for crude oil tanker companies in the past three weeks.
US Crude Takes Longest Route to Reach Destinations
According to preliminary weekly US data, total crude exports have averaged ~0.77 MMbpd in 2017—substantially higher than the same period last year.
Key tanker stock drivers: China’s crude oil import volume
China’s crude oil import: The most important factor An indicator that has a first-degree (direct) influence on tanker rates is China’s crude oil import volume. When import volume rises, more tankers will be in use, which pushes up shipping rates. Conversely, lower import volume means an increased number of idled ships, which leads to increased […]
How China’s Manufacturing and Auto Industries Fared in March
China’s oil demand is closely related to its manufacturing activities. Higher manufacturing activities translate to higher demand for oil.
What Do Analysts Recommend for NAP before 3Q17 Results?
Navios Maritime Midstream Partners (NAP), an MLP, hasn’t had a good run this year.
What Analysts Expect for DHT Holdings’ 3Q Performance
DHT Holdings (DHT) stock closed at $4.02 on October 5, 2017. The stock has fallen 2.9% year-to-date.
FRO Stock Is 15% down Year-to-Date: What Do Analysts Have to Say?
Most crude oil tanker stocks haven’t had a good year so far. Frontline (FRO) is no exception.
How Crude Tanker Stocks Performed in 3Q17
Just like crude tanker rates, most crude tanker stocks also fell in 3Q17.
How Bunker Fuel Prices Are Faring as Oil Prices Hit a 2-Year High
Oil prices are back in bull market territory. Brent crude oil traded at $59 per barrel on September 25—its highest level in two years.
Crude Tanker Fleet Growth: An Industry Headache
As we saw in the previous part of this series, crude tanker rates have fallen significantly in 2017—especially in the third quarter.
Analyst Recommendations for Frontline in September
According to Reuters, the consensus rating for FRO is 3.4, which means a “hold.”
Maxim Group Revised Tsakos Energy Navigation’s Target Price
After Tsakos Energy Navigation released its 2Q17 results, Maxim Group reduced its target price to $6 from $7 and maintained a “buy” rating on the stock.
Maxim Group Cut Tsakos Energy Navigation’s Target Price
In week 37, Tsakos Energy Navigation (TNP) released its second-quarter earnings. Maxim Group reduced the target price for Tsakos Energy Navigation.
Why China’s Manufacturing Activity Expanded
In August 2017, China’s manufacturing PMI (purchasing managers’ index) was 51.7, which was higher than Reuters’ forecast of 51.3.
Gauging Tsakos Energy’s Estimated Revenue Fall for 2Q17
For 2Q17, analysts estimate that Tsakos Energy Navigation (TNP) will see revenues of $109.8 million, compared with the $138 million we saw in 1Q17.
Analysts’ Recommendations for Crude Tankers in Week 36
The crude tanker index rose in week 36. However, crude tanker stocks had a mixed performance. Average VLCC rates rose from multiyear lows.
Frontline’s Fleet and Its Newbuilding Program
Frontline (FRO) had 57 vessels in its fleet on June 30, 2017. The 57 vessels include 20 VLCCs (very large crude carriers), 18 Suezmax tankers, 18 LR2/Aframax tankers, and one MR (medium-range) vessel.
A Look at Frontline’s 2Q17 Costs and Earnings
Frontline’s (FRO) vessel operating expenses increased by $6.9 million from 1Q17 to $37.5 million in 2Q17.
How Frontline Views the Crude Tanker Industry’s Outlook
Frontline (FRO) expects the current market weakness to continue in the short term. It believes the market could improve in 2018 as the pace of newbuild deliveries decelerates and scrapping activity increases.
Frontline’s 2Q17 Revenue Expected to Fall 45%
Wall Street analysts estimate net revenue of $104.3 million for Frontline (FRO) in 2Q17. This compares to $177 million in 1Q17.
Analyst Recommendations for Crude Tanker Companies in Week 33
Article focus Previously in this series, we saw that crude tanker stocks fell again in Week 33 (ended August 18, 2017). Average VLCC (very large crude carrier) rates rose from multiyear lows, whereas Suezmax rates fell. The cost side proved beneficial for tankers as bunker fuel prices slipped. In this part, we’ll look at analysts’ target prices. […]
Key Highlights from Euronav’s Balance sheet
Crude tanker companies like Euronav, Frontline, Nordic American Tankers, Teekay Tankers, and DHT Holdings are highly leveraged, which makes their balance sheets vital.
Dissecting Euronav’s 2Q17 Revenue
Euronav (EURN) recorded revenues of $126 million in 2Q17—lower than the $164 million it recorded in 1Q17.
