Tanker Shipping - 2019Gradual Recovery on Horizon

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Equity Analyst

Nikesh Shukla

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.

Equity Bottom-Up

The worst is behind us We believe that we have reached the bottom of the crude tanker shipping market. While we don’t expect rates to reach anywhere close to the levels seen in 2015 later this year, we believe that the ingredients are in place for the market to see a gradual improvement in vessel earnings over the next two years. Beyond that, an improvement in earnings will be predicated how the orderbook evolves as well as on OPEC’s production levels which are currently not at a level sufficient to employ crude tankers at profitable levels.

The worst is behind us We believe that we have reached the bottom of the crude tanker shipping market. While we don’t expect rates to reach anywhere close to the levels seen in 2015 later this year, we believe that the ingredients are in place for the market to see a gradual improvement in vessel earnings over the next two years. Beyond that, an improvement in earnings will be predicated how the orderbook evolves as well as on OPEC’s production levels which are currently not at a level sufficient to employ crude tankers at profitable levels.

Is It Time to Bottom-Fish Crude Tanker Stocks?

Euronav NV

Is It Time to Bottom-Fish Crude Tanker Stocks?