Our Next 50%+ Winner In Global Seaborne Transportation is Here--In Global Shippers We Trust!

Hey Subscriber, 


Action to Take: BUY $EURN Euronav Oil Tanker play $12 or better with $18 target 2023

Here is why.

Europe gets 28% of its daily oil shipments from Russia. With the EU-wide sanctions--that oil has to come from somewhere and that oil HAS TO come via oil tankers.

Reuters headlines provide the story behind $EURN's incredible profit potential in 2022 as a leading EU oil tanker service. 

SINGAPORE, March 25 (Reuters) - Oil tanker rates are soaring globally as traders scramble to cope with Russian oil sanctions, as well as war risk premiums for ships plying the Mediterranean region following Moscow's invasion of Ukraine.

The global energy sector is now disrupted with Europe and the United States imposing sanctions on Russian exports that are severely disrupting oil supplies.

Sources were also worried that the now additional widening in sanctions will render most of the Russian oil and fuel supplies off-limits, and trigger a scramble by fuel and oil traders to secure alternative supplies that could tie up vessels on trips to exporters outside the Black Sea region.

Fuel tanker rates from the United States to Europe jumped more than 8% on Thursday, surging to their highest level since May 2020. The cost of bunkering fuel at the world's largest bunkering hub Singapore jumped 6% on Thursday to $555 per tonne, the highest since 2019.

"I'm expecting quite a mess at the moment," a Singapore-based fuel trader said, speaking on condition of anonymity because of the matter's sensitivity. "The war risk premium on shipping rates is expected to increase. Also, many Russian cargoes that are intended to load are being canceled, too."

Rates for one Trafigura-chartered vessel carrying crude oil from Houston to Rotterdam -- the Navig8 Precision -- climbed about $200,000 to $1.9 million, or World Scale 150 compared with 135 earlier this week, according to sources and shipping data.

Rates for another vessel, the Pluto Moon, carrying crude oil from Africa to the United Kingdom, have increased by 83 World Scale points to $2 million.

Top buyers of Russian oil are struggling to secure credit guarantees at Western banks, or find ships to take crude oil from one of the world's largest producers."

Bloomberg Headline: Rates for oil tankers have tripled since Russia invaded Ukraine — and the few owners willing to brave the Black Sea can make $200,000 a day

You get the picture. 1) Nearly 100% of oil needed by Europe to replace Russian oil HAS TO come via chartered oil tankers.
2) With European inflation at 7.5%--the highest since the early 80's--all the oil to be released from strategic reserves and shipped to countries OUTSIDE the reserve nations has to be shipped by oil tankers.

Russia's attack on Ukraine is pushing freight rates higher at a time when the industry is still struggling to recover from the pandemic.

Oil tanker freight rates have tripled since Russia invaded Ukraine on February 24 — jumping from around $10,000 to over $30,000, according to a report from The Wall Street Journal.  In February, the conflict pushed crude futures past $100 a barrel for the first time in nearly eight years.

Russia's invasion has heavily impacted freighters that traverse the Black Sea, a key route for oil and bulk food exports. Russia is the world's second-largest oil exporter and Ukraine is one of the leading exporters of grains. Both Russia and Ukraine account for nearly a third of the global wheat export market. 

Since Russian President Vladimir Putin authorized the attack against Ukraine, several ships have been fired upon or detained, forcing freight companies to reroute and exacerbating congestion at other ports in Europe."

PS less than 5% of EURN business is with Russian oil exporters.

Why buy Euronav now?

Besides all the reasons above, according to my new best friends in the maritime fleet brokerage biz, "EURN has the most ships available and the stock is way undervalued because demand was crushed as from the Omicron rise in October 2021 in Europe. They will literally double or triple their revenues and cash flow vs. 2021 as the world's sanctions on Russian oil exports are not going away any time soon."

In the last oil price boom, 2014-2015, $EURN traded at $16 a share AND paid a nice 9% dividend. 

Bottomline Thesis: now that there are LESS oil tankers in the world than 2015 (new builds dropped to very low numbers by 2018 and many aged out boats scrapped), EURN sits in a unique catbird seat--100% of their ships are needed at premium day rates NOW and for at least most of 2022-2023 as Russian oil exports mostly wind up going to India and China while OPEC + Russia converts to OPEC + North and South America to fill the gap in Europe and other regions boycotting Russian everything. 

Seaborne energy and bulk transport stocks have been very good to us in the last 5 months...$SBLK $FLNG up 50% alone (not including their massive dividends). $EURN is mostly a capital gains play...but they WILL pay a quarterly dividend soon AND buy back a LOT of stock with this windfall.

In seaborne shipping we trust and in the new world order dedicated to the "F YOU RUSSIA"  we are profiting handsomely. 

Let's keep it going with $EURN!

Toby