A Must Watch Stocks In Oil Tankers

3917

tanker.jpg

Investors looking to invest in oil tankers tend to back only major companies and overlook other opportunities.  The oil shipping industry is an important part of the overall oil and gas business.  Two-thirds of all oil transportation is by ship.  Major oil demand of the world comes from the developing market, China followed by India, Europe and  Southeast Asia.  China’s projected imports, India’s increasing population and 50% increase in consensus projection will lead to increased oil shipping.

Oil tanker companies and their investors are poised to receive well above-average returns on investment due to the steadily increasing worldwide demand for oil shipping.  Here are three stocks that attract attention in the oil shipping industry.

COMPANY

STOCK

CORE BUSINESS

FLEET

MARKET CAP

DIVIDEND YIELD

P/B RATIO

Nordic American Tankers Ltd

NAT

Operates on spot market – Each ship is hired and paid for individual trip

24 double-hull Suezmax tankers

$1.3 billion

10.5%

1.5

Ship Finance International Ltd

SFL

Operates on medium-term to long-term charter or leasing agreements

Suezmax tankers,

VLCC tankers,

Container ships,

Offshore oil rig supply ships,

Chemical transport ships Car carriers

$1.5 billion

10.2%.

1.2

Teekay Tankers Ltd.

TNK

Operates on

1) Spot market basis,

2) Short-term to medium-term charter contracts

12 Suezmax tankers

9 double-hull Aframax-class         oil tankers

$678 million

1.7%

These companies generate more revenues and are more stable in providing investment opportunities.

Source: Investopedia

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.