Product tanker companies have seen their share prices soar this year as “exploding” refining margins propel a rate recovery.
Clarksons Platou Securities sees the sector as the winner so far in 2022, with stocks up 48% on average following a 9% gain in the last week.
US-listed Scorpio Tankers added 15% in seven days after reporting better-than-expected first-quarter earnings and strong forward fixing for the second three months.
Analysts Frode Morkedal and Even Kolsgaard said cash flows are now so strong for product tanker companies that return of capital is back on the agenda, mainly in the form of stock repurchases, given remaining discounts to net asset value (NAV).
