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TEEKAY TANKERS CL A (TNK)

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Last Post: 8/29/2016 8:27:49 AM - Followers: 31 - Board type: Free - Posts Today: 1


WHY INVEST IN TNK

http://www.teekaytankers.com/Investors/Why-Invest-in-TNK/default.aspx


Tanker rates are a function of the balance between two main factors:

  • Tanker demand
  • Tanker supply

View Current Tanker Rates

Tanker demand
An increase in tanker demand will generally have a positive effect on prevailing spot tanker rates.

Demand for conventional oil tankers is a function of two main factors:

  • World oil demand and supply, which determines the amount of crude oil and refined products available to be transported in tankers
  • The relative locations of oil production, refining and consumption, which affects the distance over which the oil or refined products are transported

The combination of these two factors creates "ton-mile demand", which is a measure of the amount of oil transported in tankers multiplied by the distance over which it travels.

Oil demand and supply
The tanker market cannot exist without the demand for oil and in particular how much of the demand can be met by domestic production / pipeline supply and how much needs to be imported on tankers. The main driver of oil demand is the global economy while population growth is also an important factor, particularly in the developing economies where the emergence of a growing middle class is leading to a rapid increase in vehicle ownership and therefore transportation fuel demand.

As of February 2010, the International Energy Agency estimates that global oil consumption will grow from 84.9 million barrels per day (or mb/d) in 2009 to 86.5 mb/d in 2010 as a result of the expected recovery in the global economy. The majority of the growth is expected to come from emerging economies led by China.

The distance factor
The longer the distance over which oil needs to be transported, the greater the number of ships are required to service the demand. The majority of known oil reserves are located in areas far from major consuming regions, which contributes positively towards demand for oil tankers. The distance over which crude oil or refined petroleum products are transported is determined by seaborne trading and distribution patterns, which are principally influenced by the relative advantages of the various sources of production and locations of consumption. Seaborne trading patterns are also periodically influenced by geopolitical events, such as wars, hostilities and trade embargoes that divert tankers from normal trading patterns, as well as by inter-regional oil trading activity.

Historically, the level of oil exports from the Middle East has had a strong effect on the tanker market as a whole due to the relatively long distance between this supply source and typical discharge points. Over the past few years the growing economies of Asia, and in particular China, have increased and diversified their oil imports, resulting in the growth of import volumes from longer haul producers such as those in the Atlantic Basin and an overall increase in transportation distances for tankers.

Limited growth in refinery capacity in developed nations (the largest consumers of oil in recent years) and increasing refinery capacity in the Middle East and parts of Asia where surplus capacity supports exports have also altered traditional trading patterns and contributed to an increase in transportation distances for products tankers.

Tanker supply
An increase in tanker fleet supply will generally have a negative effect on prevailing spot tanker rates.

The supply of oil tankers is a function of:

  • The construction and delivery of new vessels into the fleet
  • The removal of vessels for scrapping or conversion to other ship types

The level of new vessel orders is primarily a function of newbuilding prices in relation to current and prospective charter market conditions. Available shipyard capacity for newbuildings is another factor that affects tanker supply. The level of scrapping activity is primarily a function of scrap prices in relation to current and prospective charter market conditions and operating, repair and survey costs. Industry regulations also affect scrapping levels, such as the IMO mandated phase-out of single hull tankers which takes effect from 2010.

One-off factors can also impact tanker supply. Examples include the use of ships as floating storage and slow steaming, both of which have the effect of reducing available fleet supply

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TNK
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SureTrader
TNK News: Report of Foreign Issuer (6-k) 08/25/2016 06:05:43 AM
TNK News: Report of Foreign Issuer (6-k) 05/31/2016 03:10:02 PM
TNK News: Report of Foreign Issuer (6-k) 05/20/2016 12:52:02 PM
TNK News: Report of Foreign Issuer (6-k) 04/29/2016 05:09:49 PM
PostSubject
#245   "tanker rates go up" is the key here. conix 08/29/16 08:27:48 AM
#244   Teekay Has Hit Bottom MisterEC 08/26/16 05:24:42 PM
#243   TNK Chart conix 08/26/16 01:52:58 PM
#242   Time To Go Long Teekay? MisterEC 08/25/16 06:11:17 PM
#241   Ex-Div is 8-11-16, only .06 MisterEC 08/10/16 01:52:57 PM
#240   TNK IS GOING to BE BIG. Pays great DIVS-AND-GROWTH 08/05/16 11:34:54 AM
#239   Teekay Tankers: Easy Double On Improved PR (Open Letter) MisterEC 06/07/16 09:26:37 AM
#238   Teekay Tankers Will Be Owned By Creditors For MisterEC 06/01/16 05:23:07 PM
#237   Mid to long term I do expect it Love4Money 05/27/16 04:04:31 PM
#236   The author I read suggested that ~6.00 was MisterEC 05/27/16 03:38:38 PM
#235   I'm looking for 3.80-4.00 short term price target. Love4Money 05/27/16 02:45:19 PM
#234   What is your upside target price? MisterEC 05/27/16 02:20:22 PM
#233   Uptrend in effect Love4Money 05/27/16 01:46:15 PM
#232   Could see a new 52wk low here before joesco 05/20/16 02:27:19 PM
#231   I agree man, I just know how this joesco 05/20/16 01:46:22 PM
#230   I buy for a longer hold than just MisterEC 05/20/16 01:43:05 PM
#229   We've passed the 11am mark and we've continued joesco 05/20/16 11:15:00 AM
#228   I've got my eye on it. I'll see joesco 05/20/16 10:28:20 AM
#227   I got more at 3.42 on the open. MisterEC 05/20/16 09:54:22 AM
#226   TEEKAY TANKERS DECLARES DIVIDEND joesco 05/20/16 09:42:09 AM
#225   If you subscribe to J Mintzmyer: http://seekingalpha.com/research/839737-j-m MisterEC 05/19/16 07:31:37 PM
#224   Teekay Tankers' (TNK) CEO Kevin Mackay on Q1 MisterEC 05/19/16 07:17:10 PM
#223   Teekay Tankers misses by $0.08, beats on revenue MisterEC 05/19/16 08:17:41 AM
#221   Earnings before Thursday’s open MisterEC 05/18/16 07:57:47 PM
#220   Conference call on the 19th. We will MisterEC 05/10/16 03:57:32 PM
#219   Yep, doesn't bid well..they $.12 in Jan...probably, gonna wiredawg 05/10/16 01:20:05 PM
#218   That is 10 days to go, mmmm. MisterEC 05/09/16 02:56:30 PM
#217   With the adoption of Teekay Tankers' new dividend krays 05/09/16 02:47:14 PM
#216   Up 0.25 today could be a sign the MisterEC 05/09/16 02:36:31 PM
#215   HAMILTON, BERMUDA–(Marketwired – May 2, 2016) – Teekay MisterEC 05/05/16 10:53:57 AM
#214   TEEKAY GROUP ANNOUNCES FIRST QUARTER 2016 EARNINGS RESULTS joesco 05/04/16 11:21:26 AM
#213   I've been waiting for the Divi release... Any joesco 04/27/16 11:45:28 AM
#212   I have been following this for a while. MisterEC 04/27/16 11:36:15 AM
#211   Surging Here. Wall at $3.81 Before. joesco 04/15/16 01:55:46 PM
#210   TNK Up 9% to $3.81 joesco 04/13/16 02:08:05 PM
#209   TNK up 8% to $3.76 joesco 04/13/16 12:01:00 PM
#208   TNK Up 6% to $3.70 joesco 04/13/16 11:08:01 AM
#207   "TNK" can't get no love...its probably the parent wiredawg 04/12/16 11:24:46 AM
#206   Teekay Tankers Upgraded at J.P. Morgan joesco 04/07/16 01:51:48 PM
#205   Today I bought TNK $3.5s this tanker has dude iligence 04/01/16 11:11:07 AM
#204   Teekay Corporation Declares Dividend joesco 04/01/16 07:36:37 AM
#203   February ASO's: Bank of America, T. Rowe Price, joesco 03/30/16 12:50:41 PM
#202   The attack on $3.70 Revisted joesco 03/30/16 12:35:21 PM
#201   NEW 52WK LOW $3.26 joesco 03/24/16 09:46:24 AM
#200   NEW 52Wk LOW $3.51 joesco 03/23/16 03:42:06 PM
#199   Yeah man, I bought on the previous Dip, joesco 03/23/16 03:11:57 PM
#198   Great entry point. I can't see this Hardy 03/23/16 03:07:09 PM
#197   Seems to be Bouncing from here, I added joesco 03/23/16 11:11:06 AM
#196   NEW 52WK LOW $3.55 joesco 03/23/16 11:10:15 AM
#195   ~.05 or ~1.5% OFF 52WK LOW joesco 03/23/16 10:42:58 AM
PostSubject