LPG shipping stocks: What is ahead?
The year 2021 has been volatile for the LPG shipping industry. VLGC rates hit a peak at USD 110,000pd in January but soon nosedivedby more than 90% in February, with charter rates on the key AG-Japan route touching USD 6,000pd. The wild swings after subsiding in
March-April resumed again in May.
Similarly, LPG stocks also remained unstable/volatile, creating new highs and lows. The upswings in the wild rally and macro-economic
factors such as the availability of refinancing options allowed operators to book strong results, which fuelled stock prices. Meanwhile, Asian
demand weakened along with narrowing US-Asia arbitrage and easing of the Panama Canal waiting period. This dampened the spirits of
charterers and stockholders alike.
All the three LPG shipping stocks under our coverage recently recorded/touched 52-week highs, but it was short-lived, and stock prices
retreated. On 18 May 2021, BW LPG reported its 1Q21 results, following which, the stock rallied almost 12% to a 52-week high of NOK
71.45 on 20 May 2021, before it came crashing down to NOK 58.05 on 27 May. Similarly, Navigator Holdings (NVGS) touched a 52-week
closing high of USD 11.70 on 7 May 2021, before retreating to USD 10.54 by the end of May. Stealthgas was no different, testing the 52-
week high of USD 3.25 on 21 May before settling back on USD 2.97 on 27 May 2021.
Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.
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