|Bid||3.32 x 900|
|Ask||3.75 x 300|
|Day's Range||3.59 - 3.66|
|52 Week Range||3.11 - 5.27|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.20 (5.45%)|
|1y Target Est||N/A|
Crude tanker rates went through a tough period in 2017. In 3Q17, crude tanker rates hit extremely low levels and were below the break-even point. The rate decline continued into 1Q18. Tanker rates have remained weak since the beginning of 2018. VLCC (very large crude carriers) and Suezmax rates dropped below $10,000 per day in 1Q18.
Previously in this series, we discussed that most of the crude tanker stocks rose in the week 16—the week ending April 20. VLCC (very large crude carrier) rates rose but are still below $10,000. Suezmax rates also rose in week 16. In this part of the series, we’ll see how bunker fuel prices fared in week 16.
According to Weber’s weekly report, the demand in the VLCC (very large crude carrier) market was strong in week 16—the week ending April 20—due to a rebound in the demand for China-bound voyages after a recent lull. In the Middle East market, 39 VLCC fixtures were reported—77% higher week-over-week and the highest weekly tally since December 2017.
When assessing the crude tanker industry, it’s important to look at the BDTI (Baltic Dirty Tanker Index). In week 16, which ended on April 20, the BDTI fell from 640 to 637. In week 15, the index fell by 3 points. The index shows the direction that crude tanker rates are heading. The index has fallen ~9% since the beginning of 2018.
Previously in this series, we discussed that most of the crude tanker stocks rose in the week ended April 13, 2018. VLCC (very large crude carrier) rates dropped below $10,000, while Suezmax rates dropped below $5,000. In this part of the series, we’ll see how bunker fuel prices fared in week 15.
According to Weber’s weekly report, VLCC demand was slower than expected last week, creating a fresh surplus of availability. The demand in the Middle East market declined 12% week-over-week to 22 fixtures. The VLCC fixtures in the West Africa market remained unchanged at five.
In the previous part, we discussed Wall Street analysts’ recommendations for the two top performing crude tanker stocks on a YTD (year-to-date) basis—DHT Holdings (DHT) and Frontline (FRO). In this part, we’ll discuss analysts’ recommendations for the other top crude tanker stocks on a YTD basis as of April 5, 2018.
Previously in this series, we discussed that crude tanker stocks had mixed returns in week 14, which ended April 6, 2018. VLCC (very large crude carrier) rates, Suezmax rates, and Aframax rates fell. In this part of the series, we’ll see how bunker fuel prices fared in week 14.
According to the Weber weekly tanker report, in week 14, the demand for VLCCs (very large crude carriers) fell from recent highs due to weak demand in the three key markets of the Middle East, West Africa, and the Americas. The turnaround time at Chinese ports fell, which added to the surplus of vessels. The surplus has put additional negative pressure on tanker rates.
In this part, we’ll discuss Wall Street analysts’ target prices for the top two crude tanker stocks with the best returns YTD (year-to-date) as of April 5, 2018. Analysts expect both of these companies to have positive returns in the next 12 months.