While Fotis Giannakoulis of Morgan Stanley believes the chances of returning to profitability in the near-term are unlikely and is urging investors to stay on the sidelines he says there is still some upside potential in New York-listed OSG.
“Provided that lenders agree to a new favourable debt restructuring and OSG manages to renegotiate its lease obligations at lower levels, a tanker rates rebound above cash breakeven would allow the company to significantly improve its liquidity position and move it closer to profitability,” he told clients Tuesday.
“We
