Guggenheim Shipping ETF

GasLog earned revenues of $138.5 million in the first quarter compared to $128.3 million a year ago.

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’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.

According to the November Conference board LEI, the core capital goods orders for October totaled ~$38.4 billion, compared to a revised September reading of ~$38.7 billion.

According to the October Conference Board LEI, core capital goods orders for September were valued at $37.85 billion compared to a revised reading of $38.0 billion in August.

To demonstrate the power of efficient scale in creating economic moats, we highlight four companies: U.S.-based wide moats CSX Corporation and UPS, and international narrow moats Telefonica SA (Spain) and CapitaLand Commercial (Singapore).

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 […]

Non-defense capital goods data Data on core capital goods orders, which exclude aircraft and defense purchases, is released by the US Census Bureau monthly. Investments in machinery, tools, and equipment by industries require capital outlay, and companies make them only when there is an expectation of increased demand. All new orders, shipped goods, and company inventories […]

Nondefense capital goods increase three months in a row Nondefense capital goods exclude aircraft and core capital goods. The census bureau releases a monthly report that includes data on core capital goods. All machinery, equipment, and tools used by industries requiring large capital investments are collectively known as core capital goods. The durable goods order […]

Manufacturing activity in Greece In July 2017, the manufacturing PMI (purchasing managers’ index) in Greece (GREK) remained steady. Operating conditions improved marginally, largely driven by a rise in output. The business conditions improved for a second consecutive month as of July 2017. Consumer sentiment is improving in Greece (EEM ), with improved tourism and growth […]

Dry bulk shipping vessel values have fallen to very attractive prices, especially for secondhand vessels. But investors are still wary of the downside ahead.

Recent events such as rising US production and the Iran nuclear deal have added to the oil glut. Contango is currently at $8.50 per barrel, which makes it an attractive trade for speculators and arbitrageurs.

Oil tankers have outperformed shipping peers, generating in excess of 50% year-to-date on a total return, or price return plus cash returns, basis.

In the last five months, Nordic American Tanker (NAT) has performed the best among crude tanker stocks with a gain of 44%.

We can also asses the industry outlook by looking at the time premium. The time premium is the ratio of secondhand vessel value to the current price.

Except for a few days in December 2014 and in January 2015, the Baltic Exchange Dirty Tanker Index has shown positive YoY growth. In May 2015, the index gained 25% on a YoY basis.

With better prospects for the industry, companies are taking advantage of the decreased tanker prices. The newbuild vessel orderbook is on the rise.

In 2014, China’s coal imports recorded their first year-over-year dip in six years. Imports dropped 10.9% to 291.2 million tonnes.

According to customs data, iron ore exports from Brazil accounted for 18% of China’s overseas purchases in 2014 compared to 19% in 2013.

Shipments through Port Hedland represented 55% of Australia’s iron ore exports last year, and more than 80% of cargoes go to China.

China’s official purchasing managers’ index (or PMI) declined to 49.8 in January 2015 from its December 2014 levels of 50.1.

The Baltic Dry Index slid 0.9% to 554 points on February 9, 2015, the same level it fell to in July and August of 1986.

To date in 2015, the Guggenheim Shipping ETF, an index weighted with dry bulk shipping companies, increased 1.3%, while the Baltic Dry Index declined 28.3%.

DHT’s 4Q14 net operating cash was $17.6 million compared to $7.4 million in 4Q13. This quarter’s dividend is 150% higher than the past nine quarters.

DHT’s acquisition of Samco is part of DHT’s growth strategy by acquiring vessels or companies with high-quality vessels.

Stockholders provided the equity through equity offerings, operating cash flows, and long-term borrowings. These funds have been treated as capital expenditures.

For the nine-month period ending on September 30, 2014, voyage revenue increased by $29.9 million, or 34%, to $117.9 million from the same period last year.

An experienced management team strengthens the Tankships’ foundation. George Economou will serve as its chairman, president, and CEO.

Tankships seeks to expand its fleet size through timely and selective acquisitions of additional secondhand modern tankers and the available optional vessels.

Despite a fall in the crude oil prices, tanker firms are looking to raise capital through the US markets. Crude prices recorded a dip of 46.8% in 2014.

Tankships Investment Holdings Inc. (TNKS) is an international shipping company. It provides worldwide seaborne transportation of crude oil petroleum.

Analysts and money managers follow the Baltic Dirty Tanker Index in order to assess the crude oil shipping industry’s revenue and earnings potential.

Angeliki Frangou, head of Navios Group, expects 2015 to be an uncertain period. Factors include anemic growth in Europe and deflationary fears in Japan.

The international LPG shipping market is volatile in profitability, charter rates, and vessel values, adversely affecting businesses during downturns.

Navios Maritime Midstream Partners seeks to continue growing and diversifying its fleet of owned and chartered-in vessels though strategic acquisitions.

Since its listing on November 14, 2014, until January 16, 2015, Navios Maritime Midstream Partners recorded a 4.2% increase in its share price.

For 2014, the total coal imports were 291.22 million tonnes—compared to 327.1 million tonnes in 2013. This was after many years of double-digit growth.

The National Bureau of Statistics revealed that the December crude steel output in China increased 7.6% to 68.09 million tonnes. Steel output was up 1.5% YoY.

On a weekly basis, vessel prices indicate the current trading prices of Capesize, Panamax, Supramax, and Handymax vessels. They also indicate the weekly changes.

The Baltic Dry Index, or BDI, measures the price of transporting dry bulk. It’s a combination of rates for different ship sizes.

China accounts for a major share of dry bulk commodities’ imports and exports. In the past three months, the Guggenheim Shipping ETF (SEA) dropped 6.1%.

As of September 30, 2014, DHT Holdings (DHT)—including Samco—had interest-bearing debt totalling to $519.9 million.

For the third quarter of 2014, DHT Holdings’ earnings estimates per share are at $0.071. Meanwhile, sales are estimated at $47.6 million.

Most of the vessels in DHT Holdings’ fleet portfolio were built in the year 2000 and onwards. The exception is one vessel that was built in 1999.

DHT Holdings is an independent crude oil tanker company whose fleet consists mostly of VLCCs and a few Suezmax and Aframax vessels trading internationally.

As the supply of vessels increases in the shipping market, the newbuilds entering the markets affect the tanker market rates.

In December 2014, Nordic announced that it had entered into a preliminary agreement to build two Suezmax tankers of 158,000 deadweight tons.

In its recent press release to shareholders, Nordic American Tankers (NAT) commented that low oil price is good for crude tanker companies.

Nordic American Tankers has an operating model that is sustainable in both a weak and a strong tanker market.

The drastic drop in crude oil prices created a situation in which the price of near-term crude is cheaper than the price of long-term crude.

Weekly vessel values have been on the rise, with positive week-over-week and significant year-over-year growth.

Depending on its size, a tanker takes two to three-plus years to build, with each tanker costing upward of ~$60 million.

The US has produced more oil than Saudi Arabia since the fourth quarter of 2012, and the country’s oil production surpassed Russia’s output in 2011.

Increased crude supply should affect the shipping industry in the days to come, which may put freight rates under pressure.

Navios Maritime Partners has a modern, diverse fleet of 32 vessels with 3.3 million DWT and an average age of 7.5 years for its combined fleet.

Dividend yield for Navios Maritime Partners currently stands at 15.8% with the company recently paying a dividend of $0.4425 per common unit.

Since its IPO in May 2007, Navios has grown its distribution by 26.4% and its fleet capacity by over 400%.

Since Navios Maritime Partners (NMM) reported its earnings, the stock has dipped 28.3%, touching its 52-week low of $9.67 on December 15.

Contango allows traders to lock in profits by buying oil now and selling it forward for later delivery. In July, the oil market flipped into prolonged contango for the first time since 2010.

With faster deliveries and employment of vessels, secondhand vessels tend to reflect industry participants’ expectations for medium-term fundamentals.

Newbuild VLCC (very large crude carrier) prices for the month of November 2014 decreased to $97.7 million compared to $98.1 million in October 2014.

With product supplied rising on a year-over-year comparison, crude tanker companies are likely to be in the positive.

India’s overall imports for the month of November totaled 3.86 million barrels per day (or bpd), a growth of about 6.8% from a year ago.

For the last four-weeks as of December 12, 2014, US crude oil imports were 1.9% lower than the same period in 2013 due to high domestically produced oil.

The Baltic Dirty Tanker Index widened to 862 on December 24, 2014, from 639 on October 1. It recorded a 34.9% increase as China increased imports of raw goods.

Energy transport is driven by global economic growth and dislocation of consumption and production, reflected in cyclical freight rates that vary according to vessel supply and demand.

Vessel prices are very close to bottom levels that occurred back in the period from December 2012 to January 2013.

For bulk carriers, Capesize vessel prices stood at $54.2 million in November as compared to $54.8 million in October.

China imports almost 60% of the world’s seaborne iron ore while its coal trade accounts for almost a quarter of the global trade.

Brazil is the second largest iron ore exporting country, accounting for almost 25% of market share.

Numerous factors like world economic growth and commodity supply and demand affect the dry bulk shipping industry.

Star Bulk believes the recent coal import restrictions were minimal, while the freight rate agreement signing between Australia and China can be a positive development.

Star Bulk management stated that commodity demand remains healthy, while substantial supply expansion has resulted in surpluses across various commodity markets.

This part covers Star Bulk’s cash flow numbers given the company’s rapid expansion of its fleet size through acquisitions and other related developments.

Star Bulk’s management fee income is at $0.3 million compared to $0.5 million for 3Q13, due mainly to a decrease in the number of vessels under management.

Due to rapid expansion, Star Bulk’s financing levels are higher compared to its industry peers.

Star Bulk’s depreciation and interest costs Star Bulk Carriers Corp.’s (SBLK) depreciation expense increased to $10.7 million for the third quarter of 2014, compared to $4.0 million for the third quarter of 2013. The increase was due to the increase in the company’s average number of vessels in its fleet and the corresponding increase in […]

Star Bulk merged with Ocean Bulk in July, right after the high price levels of March weakened. It took advantage of even lower vessel prices in its Excel acquisition in August.

Star Bulk Carriers’ fleet includes 52 operating vessels, 16 second-hand vessels yet to be delivered, and 35 newbuilding vessels still under construction.

Frontline recorded better vessel earnings compared to the second quarter. Improved fleet utilization was due to increased travel distance driven by crude moving from the Atlantic Basin to China.

As of September 30, 2014, Frontline Ltd.’s (FRO) cash and cash equivalents increased to $104.6 million from $79.3 million as of September 30, 2013.

Frontline Ltd. (FRO) is engaged mainly in the ownership or operation of oil tankers used to transport crude oil. It’s owned by Norwegian shipping magnate John Fredriksen.

Looking ahead to 2015, Teekay Tankers Ltd. (TNK) forecasts 2.0% net global tanker fleet growth with major contribution from the product tanker sector. There is a negative fleet growth estimate for the Suezmax and uncoated Aframax sectors.

Teekay Tankers generated $16.2 million, or $0.19 per share, in the third quarter of 2014 of cash available for distribution (or CAD). This compared to $8.7 million, or $0.10 per share, in the third quarter of 2013.

The revenue mix for Teekay Tankers Ltd. (TNK) is largely contributed by the net pool revenues. The company has developed secured charter-in contracts and created a significant base for the company’s future growth.

On July 28, 2014, the board of directors of Scorpio Tankers (STNG) approved a new stock buyback program with authorization to purchase up to $150 million of its common stock.

Dorian will be registering for resale, under the Securities Act of 1933 as amended, all the Dorian shares that Scorpio Tankers (STNG) owns. Scorpio Tankers currently owns approximately 9.4 million shares, or 16.3%, of Dorian.

For the third quarter of 2014, the charter hire expense increased $1.1 million to $32.9 million, from $31.9 million in the year ago quarter.

Navios Maritime Acquisition’s (NNA) management commented that for 2004–2013, transportation demand—expressed in ton miles—is expected to increase by ~77%.

For 2014, 99.4% of NNA’s fleet is contracted. It’s expected to have a contacted daily charter-out rate of $18,549 per day. For 2015, 56.9% of the fleet is contracted out.

NNA’s senior notes mature at the end of 2021. There aren’t any debt maturities on bank debt until 2016. NNA estimates that leverage ratios will continue to decrease.

As of September 30, 2014, cash and cash equivalents, including NNA’s restricted cash, totaled $72.3 million—compared to $107.8 million recorded as of December 31, 2013.

For the week ending November 21, total product supplied was 20.5 million barrels per day—compared to 20.1 million barrels per day in the third week of October.

In order to determine the crude oil shipping industry’s revenues and earnings, analysts and money managers follow the Baltic Dirty Tanker Index.

Looking ahead, many factors are likely to positively influence the shipping market and the companies that play in it. For example, India’s increasing appetite for coal has caused Capesize and Panamax rates to surge by 94% and 49%, respectively.

Orderbooks of Suezmax and Aframax fleets remain at manageable levels, with the majority of new orders due for delivery in the second half of 2016 or later.

George Economou, the company’s chairman, president, and chief executive officer, purchased $80 million, or 57.1 million shares of common stock at the public offering price. With this purchase, Economou increased his ownership in DryShips to 16.9%.

DryShips notes that it has significant leverage in the dry bulk and tanker spot markets. So, positive developments in these sectors will result in substantial cash flow to its bottom line.

With rising energy demand from the economic powerhouse of Asia, China has been buying more oil from abroad amid a slowdown in the economy’s growth rate.

The number of US oil products supplied indicates the consumption of petroleum products. It measures the disappearance of these products from primary sources like refineries.