Thu, Nov. 5, 2:28 AM
Fri, Oct. 2, 7:05 AM
Thu, Aug. 6, 2:21 AM
Tue, Jul. 21, 10:32 AM
- The crash in oil prices is good for business for operators of the supertankers capable of hauling more than 2M barrels of crude around the world, such as Frontline (FRO +9.1%), Teekay Tankers (TNK +4.2%), Nordic American (NAT +2.6%), DHT Holdings (DHT +2.4%) and Euronav (EURN +1.5%), whose stocks have been moving up in recent weeks.
- The oil market rout that started in 2014 is a boon that could allow the companies to reduce debt, invest in new vessels and reward shareholders that have stuck with them through some very lean years, FT reports.
- Since the start of the year, the cost of hiring a VLCC has jumped more than 50%, with the rate for shipping oil from Saudi Arabia to Japan - the benchmark supertanker route - rising to $93.6K/day, a seven-year seasonal high.
- The supply of supertankers also has fallen sharply since 2008.
- Other related tickers: GLNG, GNRT, SFL, NAO, ASC, TOO, TK, TGP
Fri, Jul. 10, 10:33 AM
- Notable movers in the shipping sector include DryShips (DRYS +3.1%), Danaois (DAC +5.6%), and Paragon Shipping (PRGN +1.6%).
- Some names in the volatile sector has been trading off of developments in Greece even with many of the Greece-based companies deriving nearly all their revenue outside the nation.
- On a broader look, the Baltic Dry Index is +21 to 874. The breakdown shows the Cape index is 1279 with a spot price of 9612 vs. 11,149 a year ago, the Panamax index is 1052 with a spot price of 8380 vs. 5432 a year ago, and the Supramax index is 767 with a spot price of 8021 vs. 7099 a year ago.
- The Baltic Tanker Clean Index is 837 vs. 521 a year ago and the Baltic Dirty Index is 857 vs. 786 a year ago.
- The Guggenheim Shipping ETF (NYSEARCA:SEA) is +1.43% on the day and -4.12% YTD.
- Related stocks: TNK, EURN, TGP, NMM, SSW, SFL, TK, SMM, TOO, GMLP, DHT, NM, MATX, NAT, FREE, DSX, SB, FRO.
Mon, Jun. 15, 11:38 AM
- Teekay LNG Partners (TGP +1.2%) says it signed a 13-year time-charter contract with BP for one liquefied natural gas carrier newbuilding, plus an option exercisable by BP by the end of Q3 for an additional LNG carrier under similar terms.
- The vessels, including the optional vessel if exercised, will provide LNG transportation services for BP's LNG volumes from the Freeport LNG project in Texas scheduled for start-up in 2018.
- In connection with the signings, TGP is ordering two 174K cm LNG carrier newbuildings to be constructed by South Korean shipbuilder Hyundai Samho Heavy Industries, scheduled for delivery in early 2019.
Thu, May 28, 11:15 AM
- Despite crude oil’s rebound from six-year lows, the tanker market is sending a clear signal that the rally is under threat, according to a Bloomberg analysis.
- A surge in demand for supertankers drove benchmark charter rates 57% higher in the two weeks through May 20; OPEC will have almost 500M barrels of oil in transit to buyers at the start of June, the most this year, while analysts say ~20M barrels is being stored on ships in another indication the supply glut has yet to dissipate.
- Daily rates for supertankers on the industry’s benchmark route reached $83,412 on May 20, from $52,987 on May 6, according to the Baltic Exchange; while rates have since retreated to $65,784, they are still the highest for this time of year since at least 2008.
- "There still seems to be a lot of physical activity, a lot of oil on the water," says the head of research at Hartland Shipping in London; while Q2 is usually quieter as refineries switch to summer fuels for the Northern Hemisphere, “the market is still busy and rates are incredibly high.”
- Relevant tickers: FRO, TK, TNK, TOO, TGP, TNP, GLNG, STNG, NAT, DHT, EURN
Fri, May 15, 2:59 PM
- Rates for the world’s biggest oil tankers surged to the highest since January as shipments accelerated from Saudi Arabia and Iraq, Bloomberg reports.
- Ships hauling 2M-barrel cargoes of Saudi crude to Japan, a benchmark route, earned ~$81.5K/day, a 13% gain from Thursday and the highest for the time of year since at least 2009.
- Tanker rates rose on 15 out of 16 routes tracked by the Baltic Exchange, led by advances in prices from the Persian Gulf.
- Relevant tickers: FRO, TK, TNK, TOO, TGP, TNP, GLNG, NAT, DHT
Thu, May 14, 4:39 AM
Thu, Apr. 9, 2:59 PM
- Royal Dutch Shell's (RDS.A, RDS.B) planned acquisition of BG Group (OTCPK:BRGXF, OTCQX:BRGYY) would create a giant operator of liquefied natural gas ships, offering owners that charter the ships more opportunities for lucrative, long-term contracts in an otherwise depressed shipping industry.
- Energy producers such as Shell and BG lease rather than own most of the ships moving their products, and the leases go to a handful of trusted owners, generating ~$75K/day for a ship that carries 160K cm of LNG; the break-even point for such a ship is $50K at most.
- A main beneficiary is GasLog (GLOG, GLOP), which has chartered its vessels to Shell, BG and other energy producers for nearly 15 years; GLOG, whose shares gained 4% yesterday on news of the merger, charters 15 LNG carriers to BG and two to Shell from a total fleet of 27 carriers.
- The deal is "a strong signal from Shell that they see their future in LNG... [it] shows their desire to grow the business and puts us in a good place to grow with them," says GLOG CEO Paul Wogan.
- Teekay LNG Partners (NYSE:TGP) is another LNG vessel operator expected to benefit from LNG demand.
Thu, Apr. 2, 5:21 PM
Fri, Feb. 20, 10:23 AM
- Canada's government is planning tax breaks for developers of liquefied natural gas export projects in an effort to kick-start investment amid a low energy price environment.
- The government says the changes will allow LNG companies to deduct a higher share of capital costs, and expects the move to reduce corporate tax revenue by ~C$50M over the next five years.
- British Columbia, which is counting on LNG development and shipments to stimulate future growth, had lobbied for such tax breaks, as did the LNG industry.
- Potential LNG stocks include LNG, GLNG, SRE, GTLS, TGP, GMLP, GLOG, CQP, GLOP, DLNG.
Thu, Feb. 19, 5:48 AM
Fri, Jan. 9, 12:25 PM
- Frontline (FRO +10.1%) has now jumped 63% this week amid speculation that a plunge in crude prices is spurring demand for the vessels to store cargoes.
- “The re-emergence of floating storage is what could move the crude tanker market this year from being rather good to possibly very very good," says a shipping analyst at Pareto Securities in Oslo.
- Traders may park as much as 60M barrels of oil on tankers in the coming months, according to consulting firm JBC Energy.
- Among other tanker companies: TK +1.2%, TNK +3.4%, TOO -0.3%, TGP -0.1%, TNP -0.7%, GLNG -1.9%, NAT -0.6%, DHT +3.1%.
- Earlier: Reuters: Oil glut sparks top traders to book supertankers for storage at sea
Thu, Jan. 8, 12:36 PM
- Some of the world's largest oil traders are hiring supertankers to store crude at sea, Reuters reports: Trading firms including Vitol and Trafigura, and energy major Shell (RDS.A, RDS.B) are said to have booked crude tankers for up to 12 months in the past week.
- Freight brokers and shipping sources consider the flurry of long-term bookings unusual and suggests that traders could use the vessels to store excess crude at sea until prices rebound, repeating a popular 2009 trading gambit when prices last crashed.
- Analysts at JBC Energy say floating storage, while a sign of an oversupplied market, may provide some temporary support for oil prices in the coming weeks.
- Related tanker companies: TK, TNK, TOO, TGP, TNP, FRO, GLNG, NAT, DHT.
Fri, Jan. 2, 10:56 AM
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