The oil tanker industry is involved in the transportation and storage of crude oil, natural gas, and related products. Companies in the industry own, operate, or lease various types of oil tankers and facilities. Some of the biggest oil tanker companies include: Canada-based Teekay Corp. (TK), which owns Teekay Tankers Ltd. (TNK) and Teekay LNG Partners LP (TGP); Belgium-based Euronav NV (EURN); and Monaco-based Scorpio Tankers Inc. (STNG). Depressed demand for oil due to the COVID-19 pandemic has reduced demand for oil transportation. That's been partly offset by relatively elevated levels of oil supply, which have increased demand for storage.
Oil tanker stocks are part of the broader shipping industry and are best represented by the Dow Jones Global Shipping Index, which has underperformed the broader market. The index has provided a total return of 17.3% over the past 12 months, below the Russell 1000's total return of 23.2%, as of December 4, 2020. All statistics in the tables below are as of December 7.
Here are the top 3 oil tanker stocks with the best value, fastest growth, and strongest performance.
Best Value Oil Tanker Stocks
These are the oil tanker stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Oil Tanker Stocks|
|Price ($)||Market Cap ($M)||12-Month Trailing P/E Ratio|
|Teekay Tankers Ltd. (TNK)||12.40||417.9||1.9|
|Euronav NV (EURN)||8.34||1,701||2.6|
|DHT Holdings Inc. (DHT)||5.53||944.5||2.7|
- Teekay Tankers Ltd.: Teekay Tankers is a Canada-based provider of oil transportation services through its fleet of mid-size tankers. The company typically employs its vessels through a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading. Teekay Tankers reported a net loss of $44.4 million as revenue fell 9.2% in Q3 2020, which ended September 30, 2020. The company said that while global oil demand has gradually recovered from a low in April, it still remains below pre-pandemic levels as of October of this year. By contrast, refined product inventories remained well above long-term averages.
- Euronav NV: Euronav is a Belgium-based provider of crude oil transportation and storage. The company also offers crew, ship, and fleet management services.
- DHT Holdings Inc.: DHT Holdings is a Bermuda-based provider of transportation services to oil companies through its fleet of crude oil tankers. It operates through its integrated management companies located in Monaco, Singapore, and Norway. The company reported net income of $50.7 million on a 35.8% rise in shipping revenue in Q3 2020, which ended September 30, 2020. The net income was a positive change from the net loss of $9.4 million posted in the year-ago quarter. The company said that reduced global consumption of refined oil products due to the pandemic has hurt demand for crude oil transportation services.
Fastest Growing Oil Tanker Stocks
These are the oil tanker stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Oil Tanker Stocks|
|Price ($)||Market Cap ($M)||EPS Growth (%)|
|SFL Corp Ltd. (SFL)||6.80||822.2||275.0|
|DHT Holdings Inc. (DHT)||5.38||918.9||N/A|
|International Seaways Inc. (INSW)||18.38||514.4||N/A|
- SFL Corp Ltd.: SFL is a Bermuda-based oil tanker company that owns and operates a fleet of crude oil tankers, bulk and ore vessels, dry bulk carriers, container ships, and jack up oil rigs. The company posted net income growth of 317.5% on a 3.8% rise in operating revenue in Q3 2020, which ended September 30, 2020. Net income was boosted by lower operating expenses compared to the year-ago quarter. SFL said that there has been no material operational impact on its 84 vessels, despite the pandemic.
- DHT Holdings Inc.: See above for company description. (The company reported positive earnings in the most recent quarter compared to negative earnings in the year-ago quarter).
- International Seaways Inc.: International Seaways owns and operates a fleet of oceangoing vessels that are used in the transportation of crude oil and petroleum products. (The company reported positive earnings in the most recent quarter compared to negative earnings in the year-ago quarter).
Oil Tanker Stocks with the Best Performance
These are the oil tanker stocks that had the best returns or smallest declines in total return over the past 12 months out of the companies we looked at.
|Oil Tanker Stocks with the Best Performance|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Nordic American Tankers Ltd. (NAT)||3.47||524.7||6.8|
|DHT Holdings Inc. (DHT)||5.53||944.5||-2.9|
|Euronav NV (EURN)||8.34||1,701||-7.3|
|Dow Jones Global Shipping Index||N/A||N/A||17.3|
- Nordic American Tankers Ltd.: Nordic American Tankers is a Bermuda-based shipping company that owns and charters tankers for oil transportation. The company reported a net loss of $10.0 million in Q3 2020, ended September 30, 2020, compared to a net loss of $13.7 million in the year-ago quarter. Net voyage revenue grew 15.3%. Nordic American Tankers said that the pandemic has had a short-term impact on the oil market, and now is beginning to see signs of recovery.
- DHT Holdings Inc.: See above for company description.
- Euronav NV: See above for company description.
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YCharts. "Financial Data." Accessed Dec. 7, 2020.
Teekay Tankers Ltd. "TEEKAY TANKERS LTD. REPORTS THIRD QUARTER 2020 RESULTS." Accessed Dec. 7, 2020.
DHT Holdings Inc. "DHT Holdings, Inc. Third Quarter 2020 Results," Pages 2 & 10. Accessed Dec. 7, 2020.
SFL Corp. Ltd. "Preliminary Q3 2019 results and quarterly cash dividend of $0.35 per share," Page 8. Accessed Dec. 7, 2020.
SFL Corp. Ltd. "Preliminary Q3 2020 results and quarterly cash dividend of $0.15 per share," Page 8. Accessed Dec. 7, 2020.
SFL Corp. Ltd. "Preliminary Q3 2020 results and quarterly cash dividend of $0.15 per share," Page 2. Accessed Dec. 7, 2020.
Nordic American Tankers Ltd. "Nordic American Tankers Limited (NYSE: NAT) – Report for the 3 rd quarter – 2020 as a whole is expected to be a very good year for NAT," Pages 1-5. Accessed Dec. 7, 2020.