Crude tankers (DNB Markets) - Downgrade follow-up - Set for nine weak months
OPEC output changes have always had a large impact on the tanker market, and we believe this one will too. The 0.8mbpd OPEC production cut is smaller than the 1.2mbpd in November 2016 when it took more than nine months for VLCC rates to recover. In H1 2017, 29 VLCCs were delivered versus a H1 2019 orderbook of 35 VLCCs. As the US exports only 20–30% (in recent months) of its growth in production, due to bottlenecks, we do not believe US exports or scrapping will save the tanker market this time around (15 year old VLCC value up USD5m in two months, to close to 2x scrap).
Euronav is a provider of maritime shipping and offshore services engaged primarily in the transportation and storage of crude oil. As of Apr. 4, 2017, Co. owned and operated a modern fleet of 55 vessels (including four chartered-in vessels) with an aggregate carrying capacity of approximately 13.7 million deadweight tons, or dwt, consisting of 31 very large crude carriers, one ultra large crude carrier, 21 Suezmax vessels, and two floating, storage and offloading vessels. Co. has two operating segments: the operation of crude oil tankers on the international markets (tankers) and the floating production, storage and offloading operations.
Hunter Group is developing the Badger Explorer, a revolutionary technology for exploration and verification of hydrocarbon prospects, without the risks, cost and complexity of drilling an exploration well with a rig. The Badger Explorer tool acquires exploration data as it drills, and once installed at its target depth, can continue to monitor subsurface parameters to enhance development and production activities.
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.
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