Decoding the Fall in Crude Tanker Rates
Since the BDTI (Baltic Dirty Tanker Index) has fallen by 50% from the beginning of the year, crude tanker stock prices have also fallen.
Scorpio Tankers’ shares in Dorian to be registered for resale
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.
Recent Developments for Navios Maritime Midstream Partners
In October, NAP amended its existing management agreement with Navios Tankers Management. It extended the fleet’s fixed-fee period for commercial and technical management services.
China Had the 2nd-Highest Crude Oil Imports in August
August was the first time in 22 months that China has recorded a YoY increase in imports. Crude oil imports for China are now at a record high.
Analysts’ Recommendations for Crude Tanker Stocks
In Week 28, analysts made no target price revisions or recommendation changes for crude tanker companies.
Oil Supply and Refinery Margins Concern Crude Tankers
Refinery margins have fallen throughout most of the world. US Gulf refinery margins for WTI crude lost more than $2 compared to last month’s level.
Must-know: Why products supplied are increasing
For the week ending October 3, 2014, total products supplied were 19 million barrels per day (or bpd)—compared to 18.6 million bpd in the first week of September.
What Analysts Recommend for the Top Two Crude Tanker Stocks
DHT Holdings (DHT) was the best-performing stock among peers on a YTD basis.
Navios Maritime Acquisition fleet enjoys profitable charter rates
A strong increase in tanker rates is allowing Navios Maritime Acquisition to secure attractive contract periods for its fleet of charters.
GasLog Partners’ 2Q17 Results Are Just around the Corner
GasLog Partners plans to release its 2Q17 results before the market opens on July 27. The release will be followed by a conference call on the same day.
China’s March Data and the Crude Tanker Industry
In many ways, China is the most important country for the crude oil tanker industry. In this series, we’ll take a close look at China’s March 2017 import-export data and manufacturing sector performance.
Is US Oil Demand Helping Crude Tankers?
US products supplied for the week ended March 17, 2017, totaled 19,225 Mbpd (thousand barrels per day), 1% less than in the previous week.
Why current secondhand oil tanker values suggest a mixed outlook
While the VLCC data is positive, the picture for the crude tanker business remains mixed. This could portray a short-to-medium-term negative outlook.
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.
What Impacted Nordic American Tankers’ Top Line?
Nordic American Tankers’ revenue in 3Q16 fell to $71 million—compared to $88 million in 2Q16. Its revenue was 29% lower than its revenue in 3Q15.
EIA Crude Oil Inventory Report Supports Bearish Traders
The EIA reported that the US commercial crude oil inventory rose by 2.6 MMbbls (million barrels) to 487.4 MMbbls for the week ending December 25, 2015.
Credit Suisse Downgrades Navios Maritime Midstream Partners
Consensus recommendations On January 13, 2017, Credit Suisse downgraded Navios Maritime Midstream Partners (NAP) to “neutral” from “outperform” and decreased the target price to $12 from $13. Only five analysts give recommendations on Navios Maritime Partners. According to Reuters, the consensus rating for the stock is 2.6, which means a “hold.” One analyst has given a […]
Which Crude Tanker Companies Lost More in 3Q?
The third quarter wasn’t very good for tanker rates. In August 2016, the middle of the third quarter, tanker rates dropped to some of their lowest levels.
Euronav Provided Insights on the Rising Orderbook
Euronav thinks that the rise in the orderbook is partly due to the Tier 3 legislation on nitrogen oxide emissions. The legislation is applicable from January 2016.
Time Charter Rates Fell at the End of November
The time charter rates for one year on VLCCs (very large crude carriers) fell to $43,000 per day on November 25—compared to $45,500 per day the previous week.
Scorpio Tankers adopts a shift in charter mix
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.
VLCC Rates Are near Multiyear Lows
According to Weber’s report, VLCC rates for the route from the Arabian Gulf to China fell from $10,809 per day on August 18 to $8,747 per day on August 25.
China’s Oil Production and Imports Benefit Crude Tanker Industry
China’s crude oil imports in March hit a new record. Its total crude oil imports came in at 39.0 million tons, compared to 31.8 million tons in February.
Week 12: Nordic American Tankers Struggled
In week 12 of 2018, which ended on March 23, the BDTI rose from 635 to 656. In week 11, the index dropped by 18 points.
How the OPEC Production Cut Turned Out for Crude Tankers
Crude oil production has gradually fallen since the beginning of 2016, especially on the non-OPEC (Organization of the Petroleum Exporting Countries) side.
A Look At TGP’s Contracts to Gauge its Future Outlook
Teekay LNG Partners (TGP) has a total fleet of 87 vessels, out of which 27 vessels are newbuilds under construction. The active fleet of 60 vessels consists of 29 LNG carriers, 21 LPG carriers, and eight conventional tankers.
Euronav’s Financial and Liquidity Position after Its 3Q16 Results
On September 30, 2016, Euronav (EURN) had long-term debt of ~$1.0 billion. This increased from $952 million at the start of the year.
What to Expect from GasLog Partners’ Upcoming 1Q18 Results
GasLog Partners (GLOP) plans to release its 1Q18 results before the market opens on April 27.
Morgan Stanley Upgrades GasLog
In June 2017, Morgan Stanley upgraded GasLog (GLOG) to “overweight” from “equal weight.”
Why 5- and 10-year Very Large Crude Carrier prices are consistent
Five-year-old VLCC prices remained consistent, at $75 million, with the previous month’s levels. Year-over-year prices increased by 36%. Ten-year-old VLCC prices stood unchanged at $48 million and increased by 41.2% year-over-year.
Newbuild tanker prices rose, but you should still use caution
October’s increase is generally positive for the long-term prospects of tanker stocks like Frontline ltd. (FRO) or Nordic American Tanker Ltd. (NAT).
Weekly tanker digest: Have fundamentals changed? (Part 4)
Continued from Part 3 The importance of capacity Capacity, in a commoditized industry like shipping, is an important metric that directly impacts companies’ top line, or revenue performance. When capacity grows faster than demand, competition will rise among individual shipping firms as they try to use idle ships and cover fixed costs. This will lower day […]
Tsakos Energy Navigation’s Revenue Fell in 3Q16
Tsako posted revenue of $109 million in 3Q16—9% lower than last quarter’s revenue of $120 million and 23% lower than $141 million recorded in 3Q15.
How Much Will Falling HDD Shipments Impact Western Digital’s Revenues?
Western Digital reportedly shipped ~42.5 million HDD units in fiscal 4Q16—a significant YoY fall of ~12.5% over units shipped in fiscal 4Q15.
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.
China’s Auto Sales Rise 8.8%: The Impact on Crude Oil Tankers
China’s (MCHI) auto sales for the first two months of 2017 were 8.8% higher than sales for the same period in 2016.
Record Oil at Sea: Crude Oil Prices Hit a 10-Week Low
The US benchmark WTI crude oil futures contracts for December delivery fell by 2.9% on November 11, 2015. Crude oil prices hit lows seen in August.
Teekay Tankers’ Earnings: How Do They Compare?
In the first quarter, Teekay Tankers’ EBITDA fell to $80.9 million, from $83.9 million in the previous quarter.
Improved Manufacturing in India, But Recovery?
The Nikkei India Manufacturing PMI for April 2017 matched its reading for the previous month.
VLCC Prices Rose First Time in 2017
Newbuild VLCC (very large crude carrier) prices rose in May 2017, and this is the first time we’ve seen a rise in prices this year.
What Could China’s March Data Mean for Crude Tanker Investors?
After a steep dip to a four-month low in January, crude oil imports in February jumped, which was a good sign for crude tanker investors.
Euronav’s Cash Return Policies to Shareholders
In September 2015, Euronav distributed an interim dividend of $0.62 per share. Euronav has stated that it is committed to distributing 80% of net income.
JAT Capital Eliminates Exposure to SanDisk Corporation
JAT Capital sold its position in SanDisk Corporation (SNDK) in 4Q14. The position had represented 1.2% of the fund’s third-quarter portfolio.
Analysts’ Pre-1Q18 Estimates for Höegh LNG Partners
According to Reuters, the consensus rating for Höegh LNG Partners (HMLP) is 1.38, which means a “strong buy.”
Why Gathering and Processing MLPs Outperformed in 1Q17
Gathering and processing MLPs were the best performing MLPs in the first quarter of 2017. The subgroup rose 14.7%.
Why 15-year ship prices point to negative outlook for tanker stocks and earnings
Why ship prices (value) matter Ship prices (values) are often good indicators of financial health in the shipping industry. When shipping demand grows more than the supply of ships, shipping companies place additional orders of ships, which drives up purchase prices. Additionally, when firms are able to charge higher prices for transporting goods across the […]
What Makes Micron a Key Player in Semiconductor Manufacturing?
Semiconductor manufacturing is complex and involves design, fabrication, assembly, and testing. Building a fab requires investments of $3–4 billion.
Why a high cash breakeven cost is risky for Frontline
The cash breakeven costs are the daily rates of Frontline’s (or FRO) vessels. They have to earn the rates to cover budgeted operating costs and dry dock, estimated interest expense, payable at hire, and corporate overhead costs.
How China’s Manufacturing and Auto Industry Are Impacting Crude Tankers
In May 2017, the Markit China Manufacturing PMI was 51.2 (MCHI)—similar to the previous month.
Baltic Dirty Tanker Index Rose by 67 Points in Week 21
Most of the crude tanker stocks rose in week 21. Euronav and DHT Holdings were the best performers in the sector.
Crude Tanker Index Rose in Week 16
In week 16, the BDTI was higher than the previous year’s level. On average, the index was 4% higher than the same period last year.
7 points that reflect tanker fundamentals say recovery isn’t looming (Part 4)
Continued from Part 3 The importance of capacity Capacity, in a commoditized industry like shipping, is an important metric that directly impacts companies’ top line, or revenue performance. When capacity grows faster than demand, competition will rise among individual shipping firms as they try to use idle ships and cover fixed costs. This will lower […]
Teekay in the Gulf of Mexico: What’s the Ship-To-Ship Business?
Teekay’s acquisitions complement the company’s ship-to-ship transfer business and expand its presence in the US Gulf of Mexico.
US oil production expected to hit record in 2013, negative for tankers
US oil rig count is a leading indicator of US oil production and oil imports. Since 2008, a boom in US oil industry has negatively impacted demand for tankers (see Tankers will likely underperform dry bulk ships in 2013)— vessels that transport oil across ocean. Higher US oil production, due to application of technologies called […]
Crude Tanker Index and Stocks Fell in Week 14
In week 14, the BDTI (Baltic Dirty Tanker Index) fell from 790 to 775. The BDTI tracks shipping rates for crude oil tankers on representative routes.
Teekay LNG Partners: Top-Performing LNG Carrier Stock in 2017
Teekay LNG Partners (TGP) was the best-performing stock in 2017 among the LNG carrier companies. TGP reported a year-to-date return of 36.6% on December 20, 2017.
These MLPs Rose More Than 9% in Week Ended January 5
CVR Partners (UAN) was the top MLP gainer last week, which ended on January 5, 2018. It rose 23.2%.
On Deck with Crude Tankers: Positives and Negatives
Crude tanker stocks have given mixed returns in 2017. Gener8 Maritime has been the best performer YTD, while Nordic American has been the worst.
Egypt tension pushes oil past $109, shipping rates rise, but downside for tankers
Tanker stocks tied to oil prices Tanker stocks often move in tandem with oil prices in a demand-driven market. But because tanker companies also use oil to run their ships, a price increase in oil due to supply shocks (such as political disruptions in the Middle East) also affects tanker firms differently. To get a […]
Midstream Stocks: How Returns Affect Implied Volatility
Teekay LNG Partners (TGP) stock has risen 37.9% in the past year as of March 20, 2017.
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.
How Do These 6 Crude Tanker Companies Compare?
After a spectacular 2015, the crude tanker industry is going through a rough patch in 2016. All crude tanker stocks have given negative year-to-date returns.
Game Changer: API Crude Oil Inventory Data and Cushing Stocks
The API crude oil inventory rose for the fourth consecutive week. The rising crude oil inventory will continue to put pressure on crude oil prices.
Frontline Management’s Outlook for Tanker Rates
Even though industry tanker rates were strong compared to 1Q15, the company recorded negative growth of -7% in 2Q15 compared to 1Q15.
China’s Auto Sales Rose in August, Impacted Crude Tankers
In August 2017, China’s auto sales rose 4.1% YoY (year-over-year). Its total vehicle sales rose 5.3% to 2.19 million in August.
Why Frontline is on the verge of bankruptcy
Industry analysts suggest that investors should avoid Frontline because of the bankruptcy risk. Currently, the company is facing bankruptcy. This is led by the $190 million bond that’s due in April 2015.
Micron Technology’s Lower Position in Point72 Asset Management
Point72 reduced its position in Micron Technology. It sold 4,792,200 shares during 4Q14. The shares accounted for 0.28% of the fund’s total 4Q14 portfolio.
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.
What’s Micron’s View on Toshiba’s NAND Business Acquisition?
The second-largest NAND supplier, Toshiba (TOSBF), recently put its NAND business up for sale to avoid bankruptcy.
Why high shipping capacity growth will continue to pressure tanker earnings
Update to Shipping capacity growth drops but outpaces demand, negative for tanker stocks The importance of capacity In a highly commoditized industry, like the shipping industry, capacity is an important metric that directly impacts companies’ top line, or revenue performance. When capacity grows faster than demand, competition will rise among individual shipping firms as they try […]
Tanker Fleet Mixes and Their Effects on Company Performance
At the onset of 4Q15, tanker rates started to climb as refineries completed their maintenance programs. The rate spike was especially lead by VLCCs.
Will Fleet Growth Prove Negative for the Crude Tanker Industry?
In the first week of 2017, the number of VLCCs (very large crude carriers) in the world was 686. Halfway into 2017, the VLCC fleet has grown to 713.
Must-Knows about Euronav’s Fleet and Recent Acquisitions
The day after Euronav (EURN) announced its 3Q16 results on October 31, it announced that its agreed to purchase the 50% of the joint venture it does not own in the VLCC VK Eddie.
Crude Tanker Stocks and the BDTI Index in Week 39
In week 39, the week ending September 29, the BDTI rose to 776 from 772. In week 38, the index rose by 28 points. It rose for the fifth consecutive week.
Joint Ventures in US Shale Plays Are Helping Chinese Companies Bring Down Well Drilling Costs
To get expertise in shale gas exploration, China has invested more than 20% of the total investments in US shale gas exploration.
Crude Oil Prices Rose Due to Geographical Tensions
The US benchmark WTI crude oil futures contracts for December delivery rose by 2.5% on November 16. Crude oil prices rose due to possible supply disruptions.
Must-know: Why the crude tanker orderbook is expanding
In order to assess the industry’s fundamental outlook, managers use the oil tanker orderbook. It’s an important yardstick. It includes the number of ships that have been ordered and the number of ships under construction. A rising orderbook usually suggests that oil tankers have a better expectation for future supply and demand dynamics.
The Top MLP Winners of 2017
The top three MLP gainers in 2017 were downstream MLPs Calumet Specialty Products Partners (CLMT), Alon USA Partners (ALDW), and CVR Refining (CVRR).
Tankships seeks to expand its fleet size through acquisitions
Tankships seeks to expand its fleet size through timely and selective acquisitions of additional secondhand modern tankers and the available optional vessels.
Kinder Morgan Lowered Its Project Backlog by $3.1 Billion
Kinder Morgan (KMI) decided to slash its quarterly dividend by 75% in the 2016 outlook it released few days ago.
GasLog Partners: Top-Performing Stock among LNG Carriers
On a year-to-date basis, GasLog Partners (GLOP) was the top-performing stock among the LNG carrier companies.
Must-read: Financial woe abroad drags tankers down, outlook negative
Continued from Why oil price is a key driver of tanker stocks The impact of China’s financial industry The financial industry is an essential part of any economy. Without a stable financial system—one that supplies liquidity to businesses and individuals and bridges the gap between savers and borrowers—an economy can’t function as efficiently and productively […]
VLCC Rates Rise by 127% Month-over-Month, BDTI Rises 15% YoY
VLCC rates (very large crude carrier) for the benchmark route Gulf to Japan rose from $49,400 per day last month to $112,100 per day for the week ending October 2, 2015.
Top MLP Losers in the Week Ending February 2
Teekay Offshore Partners (TOO) was the top MLP loser in the week ending February 2. The partnership fell 13.5% last week.
Why Canadian crude exports to the US are on a high
According to the U.S. Energy Information Administration (or EIA), for the week ending September 12, 2014, U.S. crude oil imports from Canada hit a record high of 2.99 million barrels per day (or bpd). This was a 20% increase from the same period last year. Meanwhile, the four-week average on September 12 was 2.93 million bpd.
Outlook for global growth and tanker fleet for Teekay Tankers
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.
GasLog Partners: Analysts Expect Revenues to Rise 30%
Wall Street analysts expect revenues of $75.39 million for GasLog Partners (GLOP) in 4Q17—compared to $73.4 million in the previous quarter.
How HP Views the A3 Copier Market
In September 2016, HP (HPQ) announced its intention to acquire Samsung’s (SSNLF) Printing business for $1.1 billion.
What Is Teekay Tankers’ Outlook for the Crude Tanker Industry?
In its first-quarter conference call, Teekay Tankers gave insights on the crude tanker market.
Why the Baltic Dirty Tanker Index going south
Analysts and money managers follow the Baltic Dirty Tanker Index (or BDTI). They follow the Index to assess the crude oil shipping industry’s revenue and earnings potential. The Baltic Dirty Tanker Index decreased to 699 on August 29, 2014. It was 826 at the beginning of the month.
Five Key Crude Tanker Companies: A Comparison
The crude tanker industry is highly fragmented. The total world fleet of VLCCs (very large crude carriers) stood at 640 at the end of 2015.
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.
Frontline has options, but they’ll likely put the company behind
There are several things Frontline can do to pay its maturing $190 million bonds. But activities such as selling assets or raising additional capital would likely put Frontline behind its peers.
WTI Crude Oil Holds above $50 per Barrel
WTI crude oil for May delivery trading in NYMEX gained marginally by 0.73% in yesterday’s trade. WTI oil prices closed at $50.79 per barrel on April 9, 2015.
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.
Teekay Offshore Partners’ Upgrade Last Week
Teekay Offshore Partners (TOO) was the only MLP to see a rating update last week. Let’s take a closer look.
Crude Oil Prices Fell Due to the Appreciating US Dollar
December WTI crude oil futures contracts trading in NYMEX fell by 2.6% on November 17. Crude oil prices resumed a downward trend.
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 […]
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.
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.