Author Archives: admin
Cleaves Securities acquires Gersemi Research
We are pleased to announce that Cleaves Securities AS has acquired Gersemi Research and appointed the founder and CEO of Gersemi Research, Joakim Hannisdahl, as Head of Research. Cleaves Securities AS is a specialized investment bank focused primarily on the … Continue reading
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Weekly Wrap 30
Capesize ($23.8k/d, -4% w/w, +165% y/y) VLCC ($8.0k/d, +21% w/w, -38% y/y) VLGC ($23.0k/d, -3% w/w, +269% y/y) LNGC ($75k/d, -1% w/w, +88% y/y)...
Posted in dry bulk, LNG carriers, LPG shipping, oil tankers, Private Nework, shipping, VLGC
2 Comments
Weekly Wrap
Capesize ($24.5k/d, +9% w/w, +179% y/y) VLCC ($6.5k/d, -14% w/w, -58% y/y) VLGC ($24.4k/d, +21% w/w, +257% y/y) LNGC ($75k/d, -4% w/w, +88% y/y)...
Posted in dry bulk, LNG carriers, LPG shipping, oil tankers
8 Comments
Private Network Weekly Wrap
Short updated on shipping markets below. There will be limited publication activity in the coming weeks due to vacation...
Posted in Private Nework
7 Comments
Quarterly Shipping Update: Q2 Actuals vs Forecast
As Q2 came to an end, we analyse the actual data vs our forecast sector by sector, including latest developments going into Q3. We have also added updated peer tables for each sector. Key takes: Oil Tankers (BUY) and Dry … Continue reading
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OET-NO (BUY, TP NOK 136/$17): Okeanis Eco Tankers Initiation
Okeanis Eco Tankers just concluded a $100m IPO in Oslo and is expected to start trading July 4. The timing is exquisite in our view, with 77% of the fleet to be delivered from now until YE’19, just as the … Continue reading
LPG Shipping (BUY): Trump’s Total Trade War (27-page report)
With an escalating trade war between the US and China seemingly gathering momentum, we estimate VLGCs to be one of the hardest hit shipping sectors (excl. containers). The US-Sino trade constitutes ~8% of the global VLGC demand, but we find … Continue reading
Private Network: LNGC earnings rally, VLGC/LPG update, Portfolio update
LNG Carrier earnings rally! Latest broker quotes are for LNG spot rates at $77.5k/d (+19% w/w, +38% m/m, +94% y/y) with 1y TC at $80k/d (+14% w/w). Spot rates are close to five-year-highs in what is usually the seasonally low...
Posted in Private Nework
9 Comments
GBLK-US (BUY, TP $26/NOK 212), IPO Launched: All Systems Go for GoodBulk (v2)
As we wrote in our initial IPO update in early June, we assumed 8m new shares at $15.8/sh, or a 5% discount to NAV. Today, GoodBulk launched the IPO for 8.5m shares at a range of $15.5-$17.5/sh, well in time...
Genco Shipping (BUY, TP 24): Value Destruction
Genco Shipping raised new equity this week with concurrent vessel acquisitions, which were highly dilutive towards existing shareholders. We calculate a direct loss of $0.86/sh (-4.7%) for existing shareholders and reduce our target price to $24/sh (from $26) based on...
Posted in _Public, dry bulk, shipping
9 Comments
Private Network: Bought GLOG, GNK, GoodBulk, LPG/BWLPG, General news, Portfolio update
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Posted in Uncategorized
13 Comments
Genco Shipping (BUY, TP 26): Equity Raise Amidst Fleet Renewal (short comment)
Genco Shipping files for equity raise amidst fleet renewal 2xCape + 2xUltra firm 14% above our latest generic valuation. Mainly a sign of rising asset prices Positive read-across to the dry bulk sector in general...
Posted in dry bulk, shipping
6 Comments
Private Network: LNGC rates surge, VLGC/LPG update, Portfolio update
LNG rates surge Strong demand for coal and LNG is leading a surge in natural gas prices in the Far East (+41% since end-March), with increasing price differential towards the...
Posted in Private Nework
5 Comments
Private Network: Another all-time-high, SOFF, GNK, updated dry bulk peer table
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Posted in Private Nework
8 Comments
Private Network: Another all-time-high, SOFF +15% d/d , VLGC/LPG & Dry Bulk update
Yet again can my private network and I enjoy a new all-time-high for the portfolio, up 0.5% d/d (2.7% w/w) to reach a total return since fully invested in June/’17 of 38%....
Posted in Private Nework
13 Comments
BULK-NS (BUY, TP NOK 212), IPO Announced: All Systems Go for GoodBulk
As we highlighted in our Get Ready for Launch update in March, the then expected Q2/Q3 New York listing was announced on Friday through an F-1. Assuming a 5% discount to our current NAV, we forecast 8m new shares to...
Private Network: Weekly Wrap-up
Portfolio reached a new all-time-high (CAGR = 34%). A myriad of changes to the portfolio. Updated Dry Bulk valuation and peer table....
Posted in Private Nework
11 Comments
Private Network Update 23-May/18: DHT, OPEC news, LPG, Portfolio update
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Posted in Private Nework
22 Comments
TNK Upgraded to BUY: Our Liquidity Concerns Are Finally Mitigated
As we have argued time and again since our initiation in May 2017, Teekay Tankers would need to abolish dividends, seek a debt moratorium and/or do more sale/leasebacks in order to survive the trough without a dilutive equity issuance. In...
HUNT-NO (BUY, TP NOK 5.8) Hunter Is Hitting All the Targets (7-page report)
Since our initiation in early April, Hunter has moved ahead on its three options and have added another three to its portfolio. Today, the company announced an equity raise of gross ~$64m which would leave the company fully financed until...
Oil Tanker Sector Upgraded to BUY: Finally, Time to Tank Up
We upgrade the Oil Tanker sector from HOLD to BUY So far, we have perfectly timed our recommendations as far back as 2015 as we foresaw the cyclical peak and have since been awaiting the expected mid’18 inflection point. Given...
Gersemi Membership
We do currently not accept new public subscribers. Feel free to contact us for more information
Posted in _Public
6 Comments
LPG Shipping (BUY): Do Not Liquidate Palatable Growth (34-page report)
Recent chatter on the street is that the cyclical VLGC expansion has been cancelled for 2018. Shares fell 8% today and are down 16% since our March sector report. Thus, it would be prudent to reiterate why we believe 3Q...
SALT (BUY, TP 9.5) 1Q18 Review: Indirect Dividend Yield of 5.3% (7-page report)
Short Comment: 1Q18 Review EBITDA of $18.3m slightly below our $19.4m forecast and consensus at $20.8m Realized TCE/d in the quarter of $10,726 was in-line with consensus but above GR at $10,352 Offset by both opex and G&A 8% above...
SBLK-US (BUY, TP $23) Vessel Acquisition: The Star Shines Stronger (20-page report)
The company adds 16 vessels to one of the largest listed fleets in the industry to create a dry bulk behemoth. The deal is neutral on NAV but adds some value per share in terms of forward NAV and earnings...
LNG Carriers: The Best Is yet to Come (25 page report)
As expected, LNG Carrier earnings have fallen since the peak in December. The start of the year is nevertheless the best over the past four years and spot rates are 60% above 2017 YTD. We see continuously rising annualized utilization...
HUNT-NO (BUY, TP NOK 3.3): Initiation of New VLCC Pure-Play
Mr. Arne Fredly is in the process of re-branding failed Oslo-listed oil service company Hunter Group (former Badger Explorer) into a VLCC pure-play, infusing four VLCC newbuilds plus three optional berths at DSME. Given our view of ~70% asset price appreciation...
Dry Bulk Shipping: Enough Dry Powder Left for the Next Boom (78 page report)
As we stand in the seasonally weakest dry bulk market of the year, we cannot help notice that spot rates YTD are up 25%, 1y time charters are at 3y highs and that FFAs reflect the same. The only pieces...
LPG Shipping: Imminent Seasonal & Cyclical Upside (31-page report)
We see the cycle turning to expansion in 2018 as supply growth turn negative and annualized demand growth continues around 10%. We also see signs of seasonal factors materializing, including more US LPG available for export, a rising price differential...
Posted in LPG shipping, shipping, VLGC
Tagged AVANCE, avance-no, bw lpg, BWLPG-NO, dorian, Dorian LPG, LPG-US
16 Comments
Sign up for free membership
Sign up today to take advantage of our limited time offer for a free membership and for unlimited access to all our content. We have extensive experience from equity research at Fearnley Securities and Nordea Markets Be the first to … Continue reading
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TNK (SELL, TP 0.5) 4Q17 Review: Liquidity Concerns Remain
Teekay Tankers posted 4Q17 numbers slightly above or forecast and far above consensus. More important was a liquidity position in-line with our expectations, which assuming a successful refinancing of the Aug/18 balloon payment still leaves the company in a very...
GOGL (BUY, TP 12.5) 4Q17 review: Dividends Begin
Golden Ocean declared a $0.10 DPS for 4Q17, spot on our forecast but taking consensus by surprise. The numbers were roughly in-line with our estimates but above consensus. The share price reacted accordingly and ended the day +2.8% d/d in...
AVANCE (BUY, TP 60) 4Q17 review: Massive upside ahead
The 4Q17 numbers were in-line with expectations, with few surprises emerging in the report or presentation. Avance rallied 7% on the day amongst a general appreciation of the VLGC segment. As we enter the seasonally strong period from April to...
2018: Firing on all Cylinders (26-page report)
Never before have we been so optimistic across all sub-segments of the shipping/oil service sectors simultaneously as we now are for 2018. All segments have either just entered the expansionary phase of the business cycle, or will experience the inflection...
Posted in _Public, dry bulk, LNG carriers, LPG shipping, Oil services, oil tankers, rig, shipping, VLGC
Tagged 2020-no, ALNG-NO, avance-no, BDRILL-NO, bulk-no, BWLPG-NO, DHT-US, dsx-us, egle-us, ESV-US, EURN-US, FLNG-NO, FRO-US, GLOG-US, gnk-us, gogl-us, LPG-US, NAT-US, NE-US, NODL-NO, RDC US, salt-us, sb-us, sblk-us, sbulk-no, ship-us, SOFF-NO, tnk-us
2 Comments
Oil Tanker Sector Update (SELL): Disappointing Winter Market
Although we cannot rule out another dead cat bounce, this year’s winter market has been disappointing. As we predicted, VLCC spot rates peaked at $32k/d, and volatility created opportunities for the attentive investor. However, oil tanker spot rates have averaged...
2020 Bulkers Initiation (Hold, TP NOK 31)
2020 Bulkers is the newly established dry bulk investment vehicle of Mr Tor Olav Trøim (50% ownership), in partnership with Titan Opportunities Fund (20%) and former Clarksons Platou partner Fredrik Halvorsen (20%). We estimate a NAV of NOK 16.3/sh, but...
LNG Carrier Sector Update (BUY): Earnings Surge to Three-Year High
The dynamics for LNG carriers have changed and the cyclical inflection point is definitively behind us as spot rates surge towards levels not seen in three years. We see utilization rising steadily towards the end of this decade, with corresponding...
Posted in LNG carriers, shipping
Tagged ALNG, ALNG-NO, Awilco LNG, Flex LNG, FLNG, FLNG-NO, GasLog, GLOG, GLOG-US, LNG, LNG carriers
6 Comments
Suezmax Resales 10% Below Current Valuation
Summary 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...
SBLK-US (BUY, TP 14) 3Q17 Review: Weak 3Q17 but TP unchanged
The 3Q17 report was a bit soft in our view, with average TCE of $9.6k/d vs our 10.7 forecast and G&A $2m higher than expected. Thus, EBITDA of $26m came in below our $35m forecast and consensus at 30m. EPS...
SHIP-US (BUY, TP 2.9) 3Q17 Review
Highlights: TCE at USD 9.2k/d vs our forecast of 13.5k/d (100% utilization basis). Opex at USD 5.2k/d (+13% q/q) vs our forecast of USD 4.6k/d. Above weakness somewhat mitigated by G&A at USD 1.3m vs our USD 1.6m forecast. EPS...
