Tanker Euphoria Drives Ratings Bump

Monday, July 17, 2000
The cyclical nature of the tanker market continues its trend upward, a development which has Lazard & Freres & Co. stamping both Nordic American Tankers (ASE: NAT) and Knightsbridge Tankers Ltd. (OTC- VLCCF) as shares that will “outperform.” In a pair of separate corporate profiles released June 29, Lazard & Freres’ James L. Winchester noted that “VLCC freight rates are continuing their meteoric climb in the second quarter, averaging $46,688/ship day, up an impressive 76.3% from $26,489/ship day in the first quarter and up 127.9% from $20,488/ship day generated in the second quarter of 1999.” In accordance with this information, Winchester has raised VLCCF’s 2000 dividend estimate to $2.32 from $2.29, a dividend which implies of yield of 11.9%. There are a myriad of factors driving the current VLCC surge, chief among them increased oil production and a lack of qualified tonnage. Oil production was boosted by a 708,000 bpd rise in OPEC quota, agreed June 21 to help keep oil pricing in the desired $22-$28 range. In addition, there has been increased scrapping activity, as older tonnage has paid a high price due to recent disasters such as Erika. Scrapping is running an estimated 14% ahead of 1999 rates, and delivery of new tankers is expected to slow to 16.1 mdwt from 20.7 mdwt. In exploring Nordic American Tankers, Winchester noted that average Suezmax tanker freight rate has averaged $34,883/ship day through the second quarter, up 134 percent from $14,910/ship day generated in 2Q 1999. For NAT, Lazard Freres raised 2000 dividend estimates to $2.15 from $2.08, implying a yield of 12.7%. In its analysis, based on the OPEC increase and a five percent increase in worldwide oil demand projected by IEA, Lazard Freres believes these trends will continue to benefit demand for tankers into 2001.
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Bollinger Fourchon: 13 Years Without a Lost Time Accident

Bollinger Shipyards, Inc. announced that their Bollinger Fourchon, L.L.C. facility has worked 13 years without a lost time accident. Building on a philosophy that starts at the top,

Regulations Threaten Superyacht Innovation

To increase innovation within the superyacht industry, designers need to work with flag states, classification societies and naval architects to ensure regulations are workable, as said by experts.

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at

Finance

DMR Publish Latest Container Census Report

Drewry Maritime Research (DMR) says it has just published it's latest Container Census report, providing a wealth of information on the container equipment market.

Höegh LNG Partners Launch IPO

Höegh LNG Partners LP ("Partnership"), a Marshall Islands limited partnership formed by Höegh LNG Holdings Ltd. ("Company"), announced today that it has commenced an initial public offering of 9,

BP Reports Better Second Quarter 2014 Results

BP today announced its financial results for the second quarter of 2014. Underlying replacement cost profit for the quarter of 2014 was $3.6 billion, 34% higher than the $2.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1227 sec (8 req/sec)