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: Belgium-based Euronav NV (EURN); Monaco-based Scorpio Tankers Inc. (STNG); and Teekay Corp. (TK), which has ownership interests in publicly traded sister companies Teekay Tankers Ltd. (TNK) and Teekay LNG Partners LP (TGP).
There is no unique benchmark for the oil tanker industry. However, oil tanker stocks may, though not always, exhibit similar performance to companies operating within the broad energy sector. Energy stocks, as represented by the Energy Select Sector SPDR ETF (XLE), have outperformed the broader market. XLE has provided a total return of 54.2% over the past year, above the Russell 1000's total return of 37.1%. These market performance numbers and all statistics in the tables below are as of Sept. 14, 2021.
Here are the top 3 oil tanker stocks with the best value, fastest growth, and most momentum.
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 ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Teekay LNG Partners LP (TGP)||16.23||1.4||7.5|
|DHT Holdings Inc. (DHT)||5.61||0.9||13.2|
|Frontline Ltd. (FRO)||7.72||1.5||32.2|
- Teekay LNG Partners LP: Teekay LNG Partners is a Bermuda-based provider of marine transportation services for liquefied natural gas (LNG), liquefied petroleum gas, and crude oil. As mentioned above, Teekay LNG Partners is an entity of Teekay, a separate public company. Teekay LNG Partners announced in early August financial results for Q2 of its 2021 fiscal year (FY), the three-month period ended June 30, 2021. Net income rose 14.2% on revenue growth of 0.4% compared to the year-ago quarter.
- 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.
- 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. The company announced in August the appointment of Lars H. Barstad as chief executive officer (CEO), effective Sept. 1, 2021.
These are the top oil tanker stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Growing Oil Tanker Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|SFL Corp. Ltd. (SFL)||7.98||1.1||45.5||-1.4|
|Teekay LNG Partners LP (TGP)||16.23||1.4||15.2||0.4|
|Teekay Corp. (TK)||3.40||0.3||N/A (see company description)||-32.6|
- 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 announced on Sept. 14 that it has agreed to sell seven handysize dry bulk vessels for an aggregate price of approximately $100 million. A week earlier, SFL agreed to acquire three Suezmax tankers with long-term charters to a world-leading commodity trading and logistics company. Financial terms of the transaction were not disclosed.
- Teekay LNG Partners LP: See above for company description.
- Teekay Corp.: Teekay is a Bermuda-based holding company that provides international crude oil and gas marine transportation services. The company also offers offshore oil production, storage, and offloading services. As mentioned above, Teekay holds ownership interests in both Teekay LNG Partners and Teekay Tankers Ltd. Because the company posted negative EPS in the most recent quarter, an EPS growth rate could not be calculated for the table above.
These are the oil tanker stocks that had the highest total return over the last 12 months.
|Oil Tanker Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Teekay LNG Partners LP (TGP)||16.23||1.4||61.1|
|Teekay Corp. (TK)||3.40||0.3||35.5|
|Scorpio Tankers Inc. (STNG)||15.93||0.9||19.3|
|Energy Select Sector SPDR ETF (XLE)||N/A||N/A||54.2|
- Teekay LNG Partners LP: See above for company description.
- Teekay Corp.: See above for company description.
- Scorpio Tankers Inc.: Scorpio Tankers is a Monaco-based shipping company active in the oil transportation industry. It provides seaborne transportation of crude oil and other petroleum products. The company announced in early August financial results for Q2 FY 2021, the three-month period ended June 30, 2021. Scorpio Tankers posted a net loss of $52.8 million, a significant deterioration from net income of $143.9 million reported in the year-ago quarter. Revenue sank 59.7% YOY.
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YCharts. "Financial Data." Accessed Sept. 15, 2021.
Teekay LNG Partners LP. "TEEKAY LNG PARTNERS REPORTS SECOND QUARTER 2021 RESULTS." Accessed Sept. 15, 2021.
Frontline Ltd. "FRO – Appointment of CEO." Accessed Sept. 15, 2021.
SFL Corp. Ltd. "SFL – Sale of seven handysize bulk carriers." Accessed Sept. 15, 2021.
SFL Corp. Ltd. "SFL – Acquisition of modern Suezmax tankers and long term charters." Accessed Sept. 15, 2021.
Teekay Corp. "TEEKAY CORPORATION REPORTS SECOND QUARTER 2021 RESULTS." Accessed Sept. 15, 2021.
Scorpio Tankers Inc. "SCORPIO TANKERS INC. ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2021 AND DECLARATION OF A QUARTERLY DIVIDEND." Accessed Sept. 15, 2021.