40 min
Value Investor's Edge Live #8: Diamond S's Management On The Product Tanker Market The Razor’s Edge
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- Investimenti
Craig Stevenson, CEO of Diamond S Shipping (DSSI), and Kevin Kilcullen, CFO, joined Value Investor's Edge last Thursday, December 12th, to discuss the product tanker and Suezmax crude shipping markets ahead of pending IMO 2020 regulations. We reviewed capital allocation priorities and why they believe their stock price has been underperforming, and what they plan to do going forward. This conversation is relevant for anyone long the product tanker or the crude tanker sector, including Ardmore Shipping (ASC), DHT Holdings (DHT), Euronav (EURN), Frontline (FRO), Navios Maritime Acquisition (NNA), Nordic American Tankers (NAT), Scorpio Tankers (STNG), Teekay Tankers (TNK), Torm plc (TRMD) or Tsakos Energy Navigation (TNP).
Topics Covered
0:45 minute mark - Start of discussion- Market review: any IMO 2020 impacts
2:25 - Product rates are lagging crude, what is driving this separation?
5:25 - Should we expect a significant spike in rates? Any disruptions yet?
7:55 - DSSI trades at a significant discount? How to address PE overhang?
11:20 - How is the market shaping up for product/crude versus Q3 guidance?
16:10 - Any new charters? Looking for cover here? Current 1-2y charter rates?
18:35 - Any desire to add additional scrubbers to the Suezmax fleet?
22:25 - What trade flows are we seeing with MGO and VLSFO? Sources?
27:15 - What efforts can DSSI take to reach to peer valuation levels?
29:45 - How do you view capital allocation priorities?
32:25 - Tackling 2021 maturities yet? Timing on those?
35:35 - How is management compensation structured? Fleet growth?
37:35 - Is DSSI available for sale at the right price?
Craig Stevenson, CEO of Diamond S Shipping (DSSI), and Kevin Kilcullen, CFO, joined Value Investor's Edge last Thursday, December 12th, to discuss the product tanker and Suezmax crude shipping markets ahead of pending IMO 2020 regulations. We reviewed capital allocation priorities and why they believe their stock price has been underperforming, and what they plan to do going forward. This conversation is relevant for anyone long the product tanker or the crude tanker sector, including Ardmore Shipping (ASC), DHT Holdings (DHT), Euronav (EURN), Frontline (FRO), Navios Maritime Acquisition (NNA), Nordic American Tankers (NAT), Scorpio Tankers (STNG), Teekay Tankers (TNK), Torm plc (TRMD) or Tsakos Energy Navigation (TNP).
Topics Covered
0:45 minute mark - Start of discussion- Market review: any IMO 2020 impacts
2:25 - Product rates are lagging crude, what is driving this separation?
5:25 - Should we expect a significant spike in rates? Any disruptions yet?
7:55 - DSSI trades at a significant discount? How to address PE overhang?
11:20 - How is the market shaping up for product/crude versus Q3 guidance?
16:10 - Any new charters? Looking for cover here? Current 1-2y charter rates?
18:35 - Any desire to add additional scrubbers to the Suezmax fleet?
22:25 - What trade flows are we seeing with MGO and VLSFO? Sources?
27:15 - What efforts can DSSI take to reach to peer valuation levels?
29:45 - How do you view capital allocation priorities?
32:25 - Tackling 2021 maturities yet? Timing on those?
35:35 - How is management compensation structured? Fleet growth?
37:35 - Is DSSI available for sale at the right price?
40 min