Suezmax Resales 10% Below Current Valuation


  • Dong-A Spica & Dong-A Capella said to have been sold @ $48 each to two sperate Greek buyers.
  • 10% below our current generic fair value for a similar vessel, which is under revision for downgrade.
  • Consistent with our September report where we forecast asset values down ~10% by 2Q18E.
  • Last comparable done was the 2018 resale RS Kaystros sold to Polembros @ $49m in late October.
  • Key takeaway: Current asset values below current broker quotes + added downside risk as the Winter market draws to an end around 1Q18.

From our Twitter account: “#Suezmax resales sold @$48m each to #Greek buyers. 10% below or generic $53.5m for similar vessels (graph1), & consistent with our Sept report (LINK) where we argued 2Q18 could mark the through for vessel & share values $FRO $GNRT $EURN $DHT $NAT $TNK Oil Tanker Sector Upgraded to HOLD (SELL): Trade on Volatility as Recovery Looms “

Our September Sector Report:

Source: Gersemi Research, Bloomberg, company data
Disclaimer: The publisher currently owns shares in GNRT. More disclaimers at the end of this document. More disclaimers in the September sector report

This entry was posted in oil tankers, shipping and tagged , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *