Tankers could have COVID-19 immunity - Jefferies

Teekay Tankers

04/05/2020 20:35

** Crude and refined products tanker cos well-positioned to
weather COVID-19 storm, writes Jefferies in a research note
    ** Amid crude supply glut and plunging demand, need for
floating storage has boosted tanker rates, writes lead analyst
Randy Giveans
    ** Scorpio Tankers  STNG.N , DHT Holdings Inc  DHT.N ,
International Seaways  INSW.N , Teekay Tankers  TNK.N  Ardmore
Shipping  ASC.N , Diamond S Shipping  DSSI.N  shares up ~5% to
~12% on Mon; Giveans ups PTs for all in note
    ** Giveans sees healthy near-term spot charter rates when
energy demand recovers and inventories draw down 
    ** DHT, INSW, TNK, ASC, DSSI are down between ~10% and ~25%
so far this year, handily outperforming the S&P 500 Energy
index's  .SPNY  ~39% drop; STNG sole outlier, falling ~41% over
same time period

 (Reporting by Stephen Culp)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))