Transport Sector, China and Asia-focused Research

Charles De Trenck

Equity Bottom-Up

Nordic American Tankers / Equity Bottom-Up

<p>The tanker sector experienced a substantial sell-off on 17 December as a result of three Teekay group companies slashing their distributions. Teekay Offshore (TOO) and Teekay LNG (TGP) slashed their distrubutions by 80%, while the parent Teekay (TK) slashed its distribution by 90%. Ironically, the Tanker arm (the one we follow more closely), had raised its distribution guidance only a few days ago! TK took the biggest share hit with share price falling some 59%, while TGP and TOO fell 51% and 52%, respectively. TNK shares fell some 9% in sympathy, while other tanker shares took hits as well.</p>

The tanker sector experienced a substantial sell-off on 17 December as a result of three Teekay group companies slashing their distributions. Teekay Offshore (TOO) and Teekay LNG (TGP) slashed their distrubutions by 80%, while the parent Teekay (TK) slashed its distribution by 90%. Ironically, the Tanker arm (the one we follow more closely), had raised its distribution guidance only a few days ago! TK took the biggest share hit with share price falling some 59%, while TGP and TOO fell 51% and 52%, respectively. TNK shares fell some 9% in sympathy, while other tanker shares took hits as well.

Tanker's Hit Broadside by Teekay Distrution Cuts