Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Thematic (Sector/Industry)

Consolidation in the Liner Industry Container shipping companies confront the enormous challenges facing the industry today. One of the options available to lines is consolidation; this is essential for the industry but fraught with difficulty for the lines involved. We at Drewry have prepared a thought leadership paper which looks at the industry context, historical M&amp;A activity, and the benefits and risks to participants and proposes some must dos for successful liner consolidation.

Consolidation in the Liner Industry Container shipping companies confront the enormous challenges facing the industry today. One of the options available to lines is consolidation; this is essential for the industry but fraught with difficulty for the lines involved. We at Drewry have prepared a thought leadership paper which looks at the industry context, historical M&amp;A activity, and the benefits and risks to participants and proposes some must dos for successful liner consolidation. 

• Global macroeconomics: The economists surveyed by Bloomberg expect the US Fed to postpone the next interest rate hike (anticipated to happen in March 2016) because of the global economic turmoil and massive sell-off in emerging markets. Bank of Japan also adopted an aggressive monetary policy as it lowered interest rates to negative 0.1% on excess funds that banks keep with the central bank in an attempt to fight deflation. Meanwhile, the Chinese government has set a lower GDP growth rate of…

• Global macroeconomics: The economists surveyed by Bloomberg expect the US Fed to postpone the next interest rate hike (anticipated to happen in March 2016) because of the global economic turmoil and massive sell-off in emerging markets. Bank of Japan also adopted an aggressive monetary policy as it lowered interest rates to negative 0.1% on excess funds that banks keep with the central bank in an attempt to fight deflation. Meanwhile, the Chinese government has set a lower GDP growth rate of…

Drewry Maritime Equity Research Monthly Insight - Feb 2016

Readers of Smartkarma will remember our piece lamenting how PE was partly to be blamed for the pain in dry bulk shipping. We questioned the wisdom of PE money jumping all guns blazing into dry bulk shipping and in a classic case of the herd mentality speculatively ordered billions of dollars worth new ships.<blockquote><div class="content-remarks">I believe that the shipping industry needed this shake-out. When shipping should have gone rationally out of favour in 2010-14, the collective breed of return seekers and their greed made…</div></blockquote>

Readers of Smartkarma will remember our piece lamenting how PE was partly to be blamed for the pain in dry bulk shipping. We questioned the wisdom of PE money jumping all guns blazing into dry bulk shipping and in a classic case of the herd mentality speculatively ordered billions of dollars worth new ships.I believe that the shipping industry needed this shake-out. When shipping should have gone rationally out of favour in 2010-14, the collective breed of return seekers and their greed made…

We are pleased to announce that Drewry Maritime Equity Research (DMER) has launched a model portfolio, selecting stocks within the global maritime space, ensuring a balanced approach and risks in a low return environment. The recommended stocks have been hand-picked based on the strong underlying fundamentals of each entity, coupled with near-term triggers. Objective of the DMER model portfolio is to generate moderate returns in conjunction with relatively lower risks. Given the weakness in…

We are pleased to announce that Drewry Maritime Equity Research (DMER) has launched a model portfolio, selecting stocks within the global maritime space, ensuring a balanced approach and risks in a low return environment. The recommended stocks have been hand-picked based on the strong underlying fundamentals of each entity, coupled with near-term triggers. Objective of the DMER model portfolio is to generate moderate returns in conjunction with relatively lower risks. Given the weakness in…

DMER Launches Model Stock Portfolio for the Maritime Sector

Seven years after the start of the global financial crisis in 2008, the supply-demand balance of the container shipping industry remains precarious. We expect this to continue in 2016 where imbalances at the trade route level and insufficient measures to reduce ship capacity will further accelerate freight rate reductions and industry losses. We expect 2016 to be dominated by continued weak global trade growth, sustained erosion in freight rates and weakened balance sheets – each unfavourable to a major recovery in share prices, in our view”

Seven years after the start of the global financial crisis in 2008, the supply-demand balance of the container shipping industry remains precarious. We expect this to continue in 2016 where imbalances at the trade route level and insufficient measures to reduce ship capacity will further accelerate freight rate reductions and industry losses. We expect 2016 to be dominated by continued weak global trade growth, sustained erosion in freight rates and weakened balance sheets – each unfavourable to a major recovery in share prices, in our view”

Container Shipping 2016 – Operators Facing Prisoner's Dilemma; Industry Could Lose USD 5bn in 2016

United Kingdom

Dart Group plc, an aviation services and distribution group, operates cargo and passenger aircraft on charter contracts and scheduled low cost services throughout Europe.  The Group also distributes fresh produce and temperature controlled products to supermarkets and wholesale markets throughout the United Kingdom.  Dart conducts freight forwarding services from various airports.

International Distributions Services plc provides postal and delivery services. The Company offers letter and parcel delivery services. International Distributions Services serves consumers, sole traders, SMEs, large businesses, and access operators worldwide.

International Distributions Services (IDS LN)

Novorossiysk Commercial Sea Port PJSC owns and operates the Novorossiysk Port on the BlackSea. The Company processes, loads, and unloads cargo. Novorossiysk Commercial Sea Trade Port handles mainly crude oil but also services dry cargo such as metals, cement, sugar, grain and containers.

Clarkson PLC provides integrated shipping services, The Company provides shipbroking, ship management, financial services, fund management and property services.  Clarkson operates throughout the world.

Stolt-Nielsen Ltd. is a global company with significant operations within various maritime related industries. The Company, through its subsidiaries, provides integrated transportation services for bulk liquid chemicals, edible oil, and other specialty liquids.

Gama Aviation Plc provides business aviation services. The company offers aircraft management services for aircraft owners, such as fuel and insurance, crew, and maintenance services; aircraft chartering services; aero-medical services; and contract air services. It also provides phased or base maintenance, line maintenance, and design and modifications services; fixed base operations comprising parking, hangarage, and fueling, of aircraft and the processing of passengers; rotary maintenance, general aviation maintenance, aviation engineering design, avionics upgrades, and flight training services; and Airops software for third party FBO and flight management departments. It has operations in Europe, Asia, North America, and the Middle East. Gama Aviation Plc was founded in 1983 and is headquartered in Farnborough, the United Kingdom.

FirstGroup plc is an international passenger group which has bus and rail operations in the United Kingdom and North America.  The Group's operations comprise bus and passenger rail franchises, in addition to transit management, school bus operations, and fleet maintenance.

Northgate PLC is a light commercial vehicle rental business operating in the United Kingdom and Spain. The Company's core business is flexible vehicle rentals.  Northgate also sells former rental vehicles to both retail and trade customers.

Wincanton plc provides a variety of consumer and industrial logistics services. The Group's business consists of the operation, design and procurement of automated warehouses and storage systems.  Wincanton also provides fleet management services, which encompass the planning, operation and maintenance of customer distribution networks and vehicle fleets.

Mobico Group PLC operates as a passenger transportation company. The Company offers shared mobility solutions to cities, businesses, education, healthcare, and customers. Mobico Group conducts its business worldwide.

China Eastern Airlines Corporation Limited, together with its subsidiaries, operates in the civil aviation industry. It offers passenger, cargo, mail delivery, ground, cargo handling, and other extended transportation services.

China Airlines Limited provides scheduled international air transportation for passengers and cargo freight throughout cities in Europe, America, Asia, and Australia.

SkyWest, Inc. operates regional airlines that offer scheduled passenger service to destinations in the United States, Canada, Mexico, and the Caribbean.

Hanjin KAL Corporation is a holding company. The Company, through its subsidiaries, engages in airline, hotel, and travel related services. Hanjin also invests in real estates.

Alaska Air Group, Inc. is an airline holding company. The Company, through its subsidiaries, provides air service to passengers in multiple destinations. Alaska Air also provide freight and mail services, primarily to and within the state of Alaska and on the West Coast.

EVA Airways Corp. is an air carrier that transports passengers and cargos. The Company operates primarily in Taiwan and serves international route networks in North America, Asia, Europe, and Australasia.

Air Canada provides domestic and international carrier service. The Company provides scheduled and charter air transportation for passengers and cargo. AirCanada services Canada, the United States, Europe, Asia, the Middle East, and the Caribbean.

Pegasus Hava Tasimaciligi AS offers scheduled air passenger transportation services. The Company offers air transport services within Turkey and between Turkey and other European destinations.

Juneyao Airlines Co. Ltd. supplies air transportation services. The Company provides domestic and international routes for passengers and cargoes. Juneyao Airlines also offers ticket home delivery and electronic ticketing services.

Cathay Pacific Airways Limited operates scheduled airline services. The Company also provides related services, including airline catering, aircraft handling, and engineering.

easyJet plc, a low-cost passenger airline, conducts operations throughout the United Kingdom and mainland Europe.  The Company sells the majority of its tickets through its Web site.

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easyJet PLC (EZJ LN)

Consolidation in the Liner Industry

Consolidation in the Liner Industry Container shipping companies confront the enormous challenges facing the industry today. One of the options...

Drewry Maritime Financial Research

Drewry Maritime Equity Research Monthly Insight - Feb 2016

• Global macroeconomics: The economists surveyed by Bloomberg expect the US Fed to postpone the next interest rate hike (anticipated to happen in...

Drewry Maritime Financial Research

Deja Vu - They Are Throwing in the Towel

Readers of Smartkarma will remember our piece lamenting how PE was partly to be blamed for the pain in dry bulk shipping. We questioned the wisdom...

Drewry Maritime Financial Research

DMER Launches Model Stock Portfolio for the Maritime Sector

We are pleased to announce that Drewry Maritime Equity Research (DMER) has launched a model portfolio, selecting stocks within the global maritime...

Drewry Maritime Financial Research

Container Shipping 2016 – Operators Facing Prisoner's Dilemma; Industry Could Lose USD 5bn in 2016

Seven years after the start of the global financial crisis in 2008, the supply-demand balance of the container shipping industry remains...

Drewry Maritime Financial Research

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