Tag Archives: TNK
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...
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...
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...
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...
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...
Oil Tanker Sector Upgraded to HOLD (SELL): Trade on Volatility as Recovery Looms
From being ready to write off the upcoming winter season a very short time ago and looking to mid-2018 for any meaningful recovery in share prices, the recent surge in scrapping has left us with a newfound cautious optimism. Using...
Teekay Tankers (SELL, USD 0.7): Challenging liquidity position ahead of the cyclical trough. TP revised down from 1.2
The company recently announced the acquisition of Tanker Investments in an all-share deal on a NAV-for-NAV basis, leaving TNK’s old shareholders with ~68% of the NewCo. The two companies form a natural fit as TNK owns 11% of TIL and...
Posted in oil tankers, shipping
Tagged tanker investments, Teekay Tankers, til, til-no, TNK, tnk-us
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Tanker consolidation continues with TNK acquiring TIL
Teekay Tankers today announced the acquisition of Tanker Investments in an all-share deal which values TIL at a 21% premium to last close and which reflects a NAV-for-NAV transaction on our estimates. TIL’s shareholder will end up with 38% of...
Posted in oil tankers
Tagged shipping, tanker investments, Teekay Tankers, til, til-no, TNK, tnk-us
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TNK-US: Initiation (SELL, TP 1.1)
Teekay Tankers has a fleet of 41 fully owned Suezmaxes and Aframax/LR2s, a 50/50 owned VLCC in addition to a handful of chartered in vessels. Despite the recently announced divestment of a 1999-built Aframax at USD 7.5m (vs our generic value at...
