Report
Nicolay Dyvik
EUR 862.54 For Business Accounts Only

Back to BUY, June call did not play out

We have upgraded our LPG stocks to BUY (HOLD) as fundamentals have changed since our 21 June call to take a breather ahead of Q1 2020, as: 1) we underestimated the impact that fully utilised US export capacity in Q2 had on US propane inventory build; and 2) the Saudi Arabian attack boosted rates in September, and as we speak, Enterprise is expanding its terminal capacity at a time of wide open price arbitrage and full US inventories.
Underlyings
AVANCE GAS HOLDINGS LTD

Avance Gas Holding is principally engaged in the transportation of Liquefied Petroleum Gas ("LPG"). Co. operates a fleet of 14 Very Large Gas Carriers, providing transportation services to oil majors and traders of LPG on a global basis. Co. transports LPG from the Middle East and the U.S. Gulf or U.S.loan facility from BCBloan facility from BCB(excludes dividends satisfied by issue of shares) East Coast to destinations in Europe, South America and Asia.

BW LPG LTD

Dorian LPG

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Nicolay Dyvik

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