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 separately-investable sister companies 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 outperformed the broader market. The index has provided a total return of 113.9% over the past 12 months, above the Russell 1000's total return of 74.3%. These market performance numbers and all statistics in the tables below are as of March 16, 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|
|Frontline Ltd. ( FRO)||7.75||1.5||3.7|
|DHT Holdings Inc. ( DHT)||6.34||1.1||4.0|
|Euronav NV ( EURN)||9.20||1.9||4.1|
- 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. The company announced in February financial results for its 2020 fiscal year (FY), which ended December 31, 2020. Net income rose 195.0% as revenue for the year climbed 27.6%. Frontline noted that global oil demand is growing and that leading commodity markets indicate a strong recovery for the world economy in 2021.
- 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.
- Euronav NV: Euronav is a Belgium-based provider of crude oil transportation and storage. The company also offers crew, ship, and fleet management services.
These are the oil tanker stocks with the highest year-over-year (YOY) operating income, also called operating earnings, growth or least 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. Operating income excludes non-operating income and expenses (such as investment gains or losses), one-time items, as well as interest and taxes. This helps investors get a clearer picture at the strength of the underlying business without the effect of unusual one-off events, such as large tax credits, asset sales, or lawsuit settlements. If you decided to invest in a company, it's still important to look at these one-off non-operating expenses and incomes, as they can still influence a company's overall financial health.
|Oil Tanker Stocks With the Most Profit Growth or Least Profit Decline|
|Price ($)||Market Cap ($M)||Operating Income Growth (%)|
|Teekay LNG Partners LP ( TGP)||14.83||1,289||2.3|
|SFL Corp. Ltd. ( SFL)||8.06||935.3||-14.8|
|Teekay Corp. ( TK)||3.58||362.0||-67.3|
- 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 figure for operating income growth in the table above is for Teekay LNG Partners' Q4 FY 2020, which ended December 31, 2020. It excludes several items, including a write-down, gains, and restructuring charges in the latest quarter or in Q4 FY 2019. Revenue grew 3.5% for the quarter while net income fell 45.4%.
- 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 figure for operating income growth in the table above is for SFL's Q4 FY 2020, which ended December 31, 2020. It excludes several items, such as vessel impairment charges. Revenue fell 4.1% compared to the year-ago quarter. SFL posted a net loss of $165.2 million compared to net income of $23.6 million in Q4 FY 2019. The company noted that while the pandemic caused disruptions and operational challenges throughout the past year, demand for transportation increased during the fourth quarter.
- 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. The figure for operating income growth in the table above is for Teekay's Q4 FY 2020, which ended December 31, 2020. It excludes several items in Q4 FY 2020, including a write-down and loss on sale of assets. It also excludes a write-down and gain on the sales of assets, and restructuring charges in Q4 FY 2019. Revenue fell 36.5% compared to the year-ago quarter. Teekay also posted a net loss of $45.1 million compared to net income of $122.5 million in Q4 FY 2019. The company said that it expects tanker demand to improve in 2021 as vaccination programs are implemented worldwide.
These are the oil tanker stocks that had the highest total return over the last 12 months.
|Oil Tanker Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|Teekay LNG Partners LP (TGP)||14.83||1,289||95.8|
|Nordic American Tankers Ltd. ( NAT)||3.51||530.7||54.7|
|Teekay Corp. (TK)||3.58||362.0||43.2|
|Dow Jones Global Shipping Index||N/A||N/A||113.9|
- Teekay LNG Partners LP: See above for company description.
- Nordic American Tankers Ltd.: Nordic American Tankers is a Bermuda-based shipping company that owns and charters tankers for oil transportation.
- Teekay Corp.: See above for company description.
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