Source article: https://www.asiamarkets.com/shipping-stocks-in-perfect-storm-following-nord-stream-attack/
TLDR: Shipping stocks are at the start of a major bull market, that’s being accelerated by the Nord Stream pipeline attack. This is because Europe will now need to rely on LNG imports, via tankers like never before.
Shipping companies have already rallied but remain WAY off previous highs.
Hedge find manager quotes:
“With a dramatic increase in profits from tanker companies, you would be forgiven for thinking that they would be inclined to start building again. But perhaps not. Think about it — virtually all tanker companies have either gone through bankruptcy or have had to issue significant amounts of equity to stave off bankruptcy. They (and their investors) are in no mood to take on more risk,” he says.
He believes the world is “light years away” from an oversupply situation, with regards to tankers.
“These companies are reminiscent of the same position shale oilers were in after the shale oil bust some 7 years ago.
“We think the upside is just getting into gear and will persist for some time. We anticipate continued margin expansion in the sector as well as strong dividends to be paid out.”
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