Tanker shipping equities: State of the market and rising asset prices
With investors experiencing a massive upside in earnings as well as stock returns in container and dry bulk shipping, expectations have risen to similar levels for tanker shipping as well. However, unlike container and dry bulk sectors the story for tanker shipping has been marred by several factors, with demand being the primary factor.Global oil demand surpassed 100 mbpd in 2H19 before plunging by 9% to an annual average of 90.80 mbpd in 2020 due to the pandemic-linked demand destruction in 2Q20. OPEC’s latest report forecasts demand growth of 5.95 mbpd for 2021 followed by another 3.28 mbpd next year, effectively restoring the lost demand by 4Q22. For its part, the IEA sees global oil demand recovering from 90.80 mbpd on average in 2020 to 96.20 mbpd in 2021 and 99.30 mbpd in 2022, slightly more bearish than OPEC.
Be that as it may, a production cut of ~10 mbpd by OPEC+ in May 2020 coupled with well shut-ins by several oil majors continue to have cascading effects on the tanker shipping industry.
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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