Double Hull Tankers Gains 8 Percent
Wednesday, November 23, 2005
Boosted by bullish analyst comments, shares of Double Hull Tankers climbed 8 percent to regain the ground lost in the weeks following the company's spinoff from Overseas Shipholding Group Inc., according to a Forbes report.
The oil tanker company owns seven vessels, including three very large crude oil carriers and four Aframaxes - all of which are chartered from five to six and a half years to former parent Overseas Shipholding. The contracts will insulate Double Hull from the increase in tanker capacity expected to hit the market prior to the mandatory phase-out of single-hull tankers in 2010, according to the report.
The company, between dividends and stock value, is expected to provide a 39 percent total annual return in its first year.