The Investment Doctor • Sun, Oct. 19
There are 2 articles on this stock available only to PRO subscribers.
- Euronav’s Q3 release is filled with semi-hidden positive statements.
- This is a very nice surprise, as the company is expecting its best winter season in four years.
- I might have to upgrade Euronav to Buy, as I bought a small position on Friday.
- Euronav signs a cheap credit facility, but withdraws its IPO plans on the NYSE.
- Both are unexpected surprises. The credit facility is a positive catalyst, whilst postponing the IPO is a negative move.
- The investment thesis doesn’t change based on these facts, but the low oil price might be a reason for concern.
Update: Euronav's Tankers International Pool Will Team Up With Frontline
- Tankers International, a joint venture which Euronav is part of, is teaming up with Frontline to form a bloc in the VLCC market.
- This was unexpected and is a great move, as a few strong market parties will have more pricing power than operators working on their own.
- This doesn’t change the investment thesis, as for now it largely depends on the daily rates and the listing on the NYSE.
- Euronav has filed a registration form and appointed Deutsche Bank, JP Morgan and Morgan Stanley as book runners.
- This was expected, Euronav’s CEO has been hinting at an US-listing for quite a while.
- This could have a positive impact on the investment thesis as Euronav will receive more coverage and will have access to more financial resources.
Euronav Is Serious About Its Ambition To Be A Major Consolidator In The Tanker MarketThe Investment Doctor • Tue, Aug. 12
- Euronav didn't go into hibernation after acquiring 15 VLCCs from Maersk, as it purchased another 4 vessels.
- The acquisition price of $85M per 3-year old vessel is higher than what the company paid for the Maersk acquisition.
- This means the current fleet could be undervalued on the company's balance sheet, as the market value seems to be higher than the book value.
- The company hints at more second-hand acquisitions.
Euronav - An Earth-Moving Acquisition, But Is The Company Still Cheap?
- Euronav is up 38% since my first article on a smart acquisition.
- The company acquired 15 young VLCC vessels from Maersk shipping to rejuvenate its fleet and to become a dominant player.
- The oil tanker sector still is under severe pressure, but the oversupply should decrease.
- Traditionally, the summer season is weaker for oil tanker companies which could result in an opportunity to get in cheaper.
- However, I'm not too impressed with Euronav's decision to place discounted shares and an (extremely) high yield bond without giving the public a chance to participate.
There are no Related articles on EONVF.
There are no Transcripts on EONVF.
Mon, Jan. 6, 8:24 AM
- Shipping giant A.P. Moeller Maersk (AMKAF, AMKBY) agrees to sell 15 oil tankers to Euronav (EONVF) for $980M, the latest step toward streamlining the conglomerate that runs the world's largest container fleet.
- Maersk Tankers operates a fleet of over 200 tankers, but its aim is to focus on the transportation of refined oil products rather than crude oil, so it is selling off the VLCC tankers it owns.
EONVF vs. ETF Alternatives
Other News & PR