In International Shipping News 23/03/2015
The continued plunge in oil prices has left a lot of collateral damage in its wake. From oil service firms to shale drillers, basically anything that is related to energy has seen its share price dwindle over the last six months or so.
That’s left some value hounds to begin sniffing around the energy patch.
While you can make the case for snagging up shares of still-profitable exploration and production firms or the latest oilfield technology providers, some subsectors of the energy market are best left untouched.
And one of the biggest could be the tanker stocks.
As tempting as it may be, there are still too many warts covering the faces of tanker stocks. For investors, the tanker stocks may be a “value” best left alone.
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Oil Prices Are Killing Tanker Stocks
Life for the operators of Suezmax, VLCC (very large crude carrier) and ULCC (ultra large crude carrier) vessels that ship and move crude oil hasn’t really been so sweet since about 2007. That was when the world’s thirst for crude oil had day rates for ships hitting record highs as capacity was insanely tight. Profits and dividends for the tanker stocks were huge and share prices continued to move up.
