Euronav surged by ~24.6% in the last three months on the back of a strong tanker market, and in 1Q15, the company posted record net earnings of ~81m. On 16 June, it announced the acquisition of four VLCCs under construction for an aggregate purchase price of USD 384m, which will boost its earnings. We maintain our Attractive rating with a fair value of USD 17 per share.

The Samco acquisition and strong tanker market enabled DHT Holdings to quadruple its TCE revenue to USD 73.5m in 1Q15 and post record net earnings of 23.3m. Although price correction in June was a mere 1.5%, it has gained ~11.3% over the last three months. It also announced adjustment to the conversion price of its 4.5% senior notes due in 2019 to factor in the recent dividend pay-outs. We reiterate our Attractive rating with a fair value estimate of USD 10 per share.

A lean business model, high technical standard and homogeneous fleet enabled NAT to maintain low cash breakeven. The company reported a 56% increase in TCE revenue and record earnings of ~30.3m in 1Q15, with the stock gaining ~10.2% in June. We believe current prices take into account the growth prospects as the stock is trading at more than 40% premium to its NAV. We thus continue to rate it Neutral with a fair value of USD 11.5 per share.

Teekay Tankers entered into an equity distribution agreement to issue Class A common stocks with an aggregate offering price of up to USD 80m. These funds could be used to repay debt or meet the working capital requirements. The stock has undergone a correction of ~2.1% in June and has moved upwards by 15.2% in the last three months. We believe it will gain further as the company is expected to post better earnings in a buoyant tanker market.

Tsakos Energy Navigation acquired two Suezmaxes in 2014 and has 13 newbuilds on order. It has completed the pre-delivery financing arrangements for the newbuilding programme. The company reported a 25% increase in TCE revenue and net income of 37.3m in 1Q15. Although the share price declined by a marginal 0.3% in June, we believe the company is well positioned to reap the benefits from the current supply-demand dynamics of the tanker market.
Source: Drewry Maritime Equity Research