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 partially 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 -5.8% over the past 12 months, well below the Russell 1000's total return of 12.6%, as of September 21, 2020. All statistics in the tables below are as of September 22.
Here are the top 3 oil tanker stocks with the best value, growth, and the most momentum.
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)||11.27||379.8||1.5|
|DHT Holdings Inc. (DHT)||5.42||925.7||3.3|
|Euronav NV (EURN)||9.43||1,929||3.3|
- 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 net income of $98.2 million in Q2 2020, which ended June 30, 2020, after posting a net loss in the year-ago quarter. Revenue for the quarter rose 19.1%. The company reported an increase in demand for floating storage due to a major mismatch between rising oil supply and depressed oil demand related to the impact of COVID-19.
- 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. DHT posted net income of $135.8 million in Q2 2020, which ended June 30, 2020, following a net loss of $10.5 million in the year-ago quarter. Revenue for the quarter was up 131.6%.
- Euronav NV: Euronav is a Belgium-based provider of crude oil transportation and storage. The company also offers crew, ship, and fleet management services.
Oil Tanker Stocks with the Most Profit Growth or Least Profit Decline
These are the oil tanker stocks with the highest year-over-year (YOY) earnings per share (EPS) growth or lowest EPS decline for the most recent quarter. A company’s ability to maintain profitability in a difficult business environment can be a sign of good management and/or a strong business model.
|Oil Tanker Stocks with the Most Profit Growth or Least Profit Decline|
|Price ($)||Market Cap ($M)||EPS Growth (%)|
|Frontline Ltd. (FRO)||6.63||1,311||10,000|
|Teekay LNG Partners LP (TGP)||10.90||947.2||283.3|
|SFL Corp. Ltd. (SFL)||8.18||976.7||-62.1|
- Frontline Ltd.: Frontline is a Bermuda-based international shipping company focused on the transportation of crude oil and oil products. It owns a fleet of very large crude carriers and tankers that are managed by ship management companies.
- Teekay LNG Partners LP: Teekay LNG Partners is a Bermuda-based provider of marine transportation services for liquefied natural gas, liquefied petroleum gas, and crude oil. The company reported net income growth of 158.7% despite a 3.2% decline in revenue in Q2 2020, which ended June 30, 2020. Net income was largely boosted by equity income for the quarter.
- SFL Corp. Ltd.: SFL is a Bermuda-based oil tanker company that owns and operates a fleet of crude oil tankers, bulk and ore vessels, dry bulk carriers, container ships, and jack up oil rigs.
Oil Tanker Stocks with the Most Momentum
These are the oil tanker stocks that had the highest total return over the last 12 months.
|Oil Tanker Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Nordic American Tankers Ltd. (NAT)||3.64||544.9||91.9|
|Euronav NV (EURN)||9.43||1,929||28.0|
|Teekay Tankers Ltd. (TNK)||11.27||379.8||10.9|
|Dow Jones Global Shipping Index||N/A||N/A||-5.8|
- Nordic American Tankers Ltd.: Nordic American Tankers is a Bermuda-based shipping company that owns and charters tankers for oil transportation. The company reported net income of $49.2 million in Q2 2020, which ended June 30, 2020, following a net loss in the year-ago quarter. Revenue rose 205.9%. The company noted that its tanker fleet has not been materially affected by the pandemic.
- Euronav NV: See above for company description.
- Teekay Tankers Ltd.: See above for company description.
YCharts. "Financial Data." Accessed Sep. 22, 2020.
Teekay Tankers Ltd. "TEEKAY TANKERS LTD. REPORTS SECOND QUARTER 2020 RESULTS." Accessed Sep. 22, 2020.
DHT Holdings Inc. "DHT Holdings, Inc. Second Quarter 2020 Results," Page 10. Accessed Sep. 22, 2020.
Teekay LNG Partners LP. "TEEKAY LNG PARTNERS REPORTS RECORD SECOND QUARTER 2020 RESULTS." Accessed Sep. 22, 2020.
Nordic American Tankers Ltd. "Nordic American Tankers Limited (NYSE: NAT) – Report for the first half and second quarter ending June 30, 2020 – The Strategy of NAT Continues to Pay Off," Pages 2 & 5. Accessed Sep. 22, 2020.