Leading oil tanker stocks this quarter include TORM PLC, Teekay Tankers Ltd., and Ardmore Shipping Corp., which have each climbed by more than 100% in the last year amid a broad rally following Russia's invasion of Ukraine last year.
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 energy sector. Energy stocks, as represented by the Energy Select Sector SPDR ETF (XLE), have provided a total return of -5% over the past year, while the Russell 1000 Index has returned 3% in the same period.
Here are the top three oil tanker stocks with the best value, fastest growth, and most momentum. The market performance numbers above are as of May 14 and all statistics in the tables below are as of May 2, 2023.
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 ($)||Market Capitalization (Market Cap) ($B)||12-Month Trailing P/E Ratio|
|Tsakos Energy Navigation Ltd. (TNP)||16.58||0.5||2.8|
|Ardmore Shipping Corp. (ASC)||13.66||0.6||4.0|
|TORM PLC (TRMD)||28.88||2.4||4.2|
- Tsakos Energy Navigation Ltd.: Tsakos is a Greek tanker company transporting crude oil, refined petroleum products, and related liquids. Tsakos shares have climbed 42% in the last year, a relatively modest increase compared to other tanker stocks.
- Ardmore Shipping Corp.: Ardmore Shipping is a Bermuda-based company that owns and operates product and chemical tankers. It provides voyage charters, time charters, and commercial pools. Ardmore's revenue almost doubled in the latest quarter while vessel operating expenses declined year-over-year.
- TORM PLC: TORM is a tanker company that transports oil products worldwide while also developing and producing green marine equipment.
Fastest-Growing Oil Tanker Stocks
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 year-over-year (YOY) percentage revenue growth and 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 figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 1,000% were excluded as outliers.
|Fastest-Growing Oil Tanker Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Dorian LPG Ltd. (LPG)||21.88||0.9||209.8||50.6|
|Euronav NV (EURN)||16.30||3.3||N/A (see company description)||213.5|
|Ardmore Shipping Corp. (ASC)||13.66||0.6||N/A (see company description)||153.2|
- Dorian LPG Ltd.: Dorian is a liquefied petroleum gas shipping company with operations in the U.S., Denmark, and Greece. Revenue and EPS surged for the last quarter, primarily due to an increase in average time charter equivalent (TCE) rates.
- Euronav NV: Euronav is a Belgian independent tanker company engaged in the ocean transportation and storage of crude oil in Europe, Asia, and elsewhere around the world. Revenue roughly tripled in the latest quarter as TCE rates surged. Euronav does not have an EPS growth figure in the table above because EPS went from negative to positive over the period in question.
- Ardmore Shipping Corp.: See company description above. Ardmore does not have an EPS growth figure in the table above because EPS went from negative to positive over the period in question.
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 ($)||Market Cap ($B)||12-Month Trailing Total Return|
|TORM PLC (TRMD)||28.88||2.4||235.7|
|Teekay Tankers Ltd. (TNK)||38.76||1.3||143.8|
|Ardmore Shipping Corp. (ASC)||13.66||0.6||113.7|
|Russell 1000 Index||N/A||N/A||2.5|
|Energy Select Sector SPDR ETF (XLE)||N/A||N/A||-5.3|
- TORM PLC: See company description above.
- Teekay Tankers Ltd.: Teekay is a Bermuda-based oil transportation company. It offers services through a fleet of mid-size oil tankers. Teekay shares surged in early May after the company announced a special dividend and a $100-million share repurchase program.
- Ardmore Shipping Corp.: See company description above.
How Demand and Supply Factors Affect Oil Tanker Stocks
Oil tanker stocks typically benefit when supply outstrips demand, creating more crude to transport and store. For example, the sector posted solid gains during the early stages of COVID-19, when oil demand suddenly plummeted as economic activity reached a standstill. As a result, energy producers and refineries turned to oil tankers for storage solutions, pushing up their share prices.
Reduced demand and excess supply also lower oil prices, resulting in declining bunker fuel costs for oil tanker companies. Lower operational costs help companies in the sector boost their bottom line, which may benefit their share prices. Conversely, high fuel costs can weigh on earnings when oil demand surpasses supply.
Finally, a demand/supply imbalance can benefit oil tanker stocks through contango—a situation where the current oil spot price drops below its future price. This encourages companies to purchase the commodity in the spot market and store it to sell at a later date, hence creating higher demand for transportation and storage.
Risks of Oil Tanker Stocks
Oil Spills: Oil spills can lead to considerable economic losses for oil tanker companies and cause significant reputational damage. Not only could the company responsible for the accident be liable for cleanup and compensation costs, but it would also face a substantial increase in insurance premiums. Perhaps the most infamous oil tanker spill occurred in 1989 when the Exxon Valdez ran aground on Prince William Sound's Bligh Reef in Alaska. The accident cost Exxon Mobil Corporation (XOM) over $5 billion in cleanup costs, fines, penalties, and claims.
Geopolitical Tensions: Oil tanker stocks face potential challenges from geopolitical flare-ups that could disrupt global shipping lanes. For example, in 2019, Iran seized two oil tankers in the Strait of Hormuz amid heightened tensions between Tehran and Washington. The incident temporarily disrupted shipping through the waterway, which carries around 19 million barrels of crude and other petroleum products daily.
Investor's Business Daily. "This Industry Quietly Emerges As Leader Thanks To Several Fast-Rising Stocks."
YCharts. "Financial Data."
Ardmore Shipping Corp. "Ardmore Shipping Corporation Announces Financial Results For The Three Months Ended March 31, 2023."
Dorian LPG Ltd. "Dorian LPG Ltd. Declares Irregular Cash Dividend of $1.00 Per Share and Announces Third Quarter Fiscal Year 2023 Financial Results."
Euronav NV. "EURONAV ANNOUNCES FIRST QUARTER 2023 RESULTS," Pages 1-2.
Teekay Tankers Ltd. "TEEKAY TANKERS LTD. REPORTS FIRST QUARTER 2023 RESULTS," Page 1.
Barron's. "Oil Tanker Stocks Jump as Storage Crunch Leads to a 'Bonanza' for Ship Owners."
Treehugger. "The Exxon Valdez Oil Spill: History and Impact."
The Guardian. "Iran Stokes Gulf Tensions by Seizing Two British-Linked Oil Tankers."