Euronav (Hold, TP: USD13.30) - The could-be heavyweight
With Euronav’s AGM approaching and the two main owners competing for votes and board seats, investors are asking what makes most sense. While a futuristic shift in strategy might sound appealing, we believe it could cap the upside for Euronav investors from a potential tanker market recovery. The fundamentals for an upswing have been building and Euronav now has the opportunity to reach unprecedented size and share liquidity for a commodity shipping company. Hence, a tie-up with Frontline should be preferred, as suggested by the share price leading up to the announcement about the proposed merger.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.
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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