2Sem.·

Tankerinvest

I have been interested in buying some tanker stock to add some more dividend stocks to my portfolio. I am aware that the market is volatile and it is highly cyclical. There is plenty of alternatives to invest in, but I have narrowed down on either Torm or Hafnia, which - from what I understand - are both product tanker companies. Both have very high dividend yields however one is based in Britain, the other one is based in Singapore.

I am looking into investing about 40K and I am unsure whether to pick $TRMD A (-8,83 %) or $HAFNI (-4,46 %) . Or both each 50% (I am sure someone will say 'none').

Is there anybody out there who has looked more detailed into these companies and would be willing to share some insight?

For those who are concerned about my finacial health: No, I am not investing all my money into tanker stocks. It is an addition to an otherwise fairly conservative portfolio. 😉

8 Commentaires

Jo'@Jo_Wolf

2Sem.

If you want to pick a single one I advise HAFNIA. For the following reasons :
- Larger fleet ( 115 vs 94 )
- Younger fleet ( 9.1 years vs 11.6 )
- Vessel Value ( 3.9B$ vs 3.5B$ )
- Debt management ( 907M$ vs 947M$ - although recent spikes in debt for TORM is due to recent vessel acquisition )
- HAFNIA does buy backs which ultimately help the company finances and share price appreciation, TORM do not and put it all in the dividend ( question of appreciation, but I prefer a bit of growth and dividend in opposition to dividend only )

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NichtRelevant@NichtRelevant

2Sem.

@Jo_Wolf I was hoping for a comment from you and I have been following your tanker news updates on a regular basis. Thank you for your insight. I also looked into your portfolio and you are obviously invested in Hafnia - so your choice is clear.
Most likely I will invest the larger part in Hafnia, the smaller one in Torm. Thank you for your detailed insight. 👍🙂

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Jo'@Jo_Wolf

2Sem.

@NichtRelevant I am not invested in HAFNIA as I prefer the flexibility of $INSW ( both product and dirty shipping ) but I'm glad you appreciate my updates and that they are useful to you 😉 I hope you will enjoy the ride in this niche market !

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NichtRelevant@NichtRelevant

2Sem.

@Jo_Wolf ah, ok sorry. I must have seen the Hafnia position somewhere else then. Thank you anyways for your detailed information on this topic. I did not have $INSW on my list yet. In fact i came across the whole shipping sector because of some news about Frontline. I have a tiny position in this company which i will however most likely sell sometime soon and invest otherwise.

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Jo'@Jo_Wolf

2Sem.

@NichtRelevant Frontline is quite a good company ! Their specificity is that they are invested majority in VLCC ships ( the big tankers ) all ECO or ECO Scrubber fitted with a smaller part of their fleet in Suezmax and LR2. Downside is that their breakeven level is very high for 2025 and probably only their VLCCs and Suezmax will be able to make profits ( but it's the far far far biggest part of their fleet so not a very big problem ).

But the dirty tanker market , especially for VLCCs is bright in the future, most of the global fleet is too old and there's far not enough new building planned which will push rates even higher 😉

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NichtRelevant@NichtRelevant

2Sem.

Ok. Sounds good. I wish there was some sort of high dividend yield shipping ETF where one could spread the risk and get a broad coverage of the market.

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Rob B.@Redspar

2Sem.

i choose Torm myself. Now in for about 50k but at -34% as the last two months some hedgefonds have been shorting the stock reducing its value. I also noticed that for March the dividend seems suddenly decreased (problably due to these firms that are deliberately lowering the stock value as according to analysts should be around 220 DKK (not 123). We will see by end of the month. At least i was now able to lower my average by DCA from 224 to now 188 DKK. Hoping the dividend will go up again by June.

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NichtRelevant@NichtRelevant

2Sem.

@Redspar Thank you for sharing. So far I have only a small position. I will add a bit more every month and hopefully get some more cash to invest in 2-3 month. I think both Torm and Hafnia are undervalued. People are afraid of cyclical stocks.
Good luck with your (our) investment.

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