Concordia Maritime is an international tanker shipping company focusing on the transportation of crude oils, oil products, chemicals, and vegetable oils. The company owns a fleet of ten P-MAX product tankers, two IMOIIMAX chemical/product tankers, one Suezmax, and shares in six-contracted MR (ECO)-vessels. Concordia’s position within the Stena Sphere helps the company to achieve meaningful access to financing and top-tier operational competence.
While declining asset values and day rates are risks for oil tanker companies, increasing asset values and day rates would, all else equal, be positive. A tight freight market results in increased day rates, which consequently drives asset values. Increasing net asset values would be supportive for valuations across the sector, whilst sustained day rates at healthy levels mean increased dividend capacity with the potential for highly attractive dividend yields.
Declining asset values and day rates are, in our view, the biggest risks for listed oil tanker companies. Low day rates and lack of funding could lead to deteriorating asset values, which in turn would put pressure on NAVs. Furthermore, sustained day rates at depressed levels could lead to balance sheet issues for ship owners. A more balanced oil market is likely to lead to higher oil prices and less tanker demand for stockpiling.