- Value Investor’s Edge Live hosted Frontline’s CEO to get the latest ‘on the ground’ (on the water?) viewpoint in the tanker markets.
- CEO Robert MacLeod reviewed the VLCC, Suezmax, and LR2 markets and Frontline’s positioning.
- We discussed spot vs. charter economics, floating storage metrics, and the potential longevity of these rates.
A recently published podcast by the Seeking Alpha gives a glimpse about the tanker market.
J Mintzmyer spoke with Frontline’s (FRO) CEO Robert Hvide Macleod last week on Value Investor’s Edge about how the tanker market is shaping up amidst a lot of commodity price moves and investor interest. Click play above to listen, and watch out for the transcript tomorrow.
Topics Covered
1:00 minute mark – What has changed in the market YTD compared to initial setups?
3:00 – Have we seen something like this in the market before?
4:30 – Preferable data source or metric for global storage balance?
6:30 – Discussion of ‘oil on water’ metric
10:30 – What is LR2 clean/dirty split? What is driving LR2 spike?
11:45 – What time charter offers are available in the markets?
15:00 – Fixtures available anywhere for FRO? Indexes accurate?
18:45 – Comments on Saudi flotilla? What happens if destinations change?
21:00 – How does cash payment flow work for spot vs. TC?
23:30 – Any concerns with CP risk? Precedent for this?
25:15 – Chance of shifting terms of spot market payment?
26:45 – Risk factor of ‘famine’ on the other side of the curve?
31:00 – IMO 2020: Spreads are down, will they come back?
36:30 – Capital allocation priorities now? Any newbuildings? Consolidation?
41:15 – Formally swearing off newbuilds? Yes!
42:30 – What is holding back the tanker stocks in these markets?
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Source: Seeking Alpha
