There are a few challenges to NNA prosperity ahead of us.
Yahoo’s summary of analyst projections show an increase in profits for 2013. I have to assume they are seeing a strengthening of rates for MR’s. Alternately, their projections could just be nonsense.
Five newbuild MR’s need to be chartered during this year. STNG recently chartered a MR newbuild for three years at 15,750/day in yr one, $16,250/day in yr two, and 16750/day in yr three. This is with two 1 yr options: yr one at 17,500, yr two at 18,000/day. This is likely an eco vessel and no profit-sharing is involved.
It’s unclear if the above represents an improved rate when compared to the most recent NNA MR (non-eco) three year charter at 13,825/day with 50/50 profit sharing. This has a one yr option at $15,306 where the first $1,000 profit-sharing goes to the charterer. The next $1,000 goes to the owner, then 50/50.
The STNG charter may well suggest a firming of rates, depending on how much of a premium you assume the eco feature commands.