Frontline (NYSE: FRO)
Based in Bermuda, Frontline Ltd is an international shipping company focusing on transporting crude oil and oil derivative products. Frontline’s main fleet consists of 24 crude carriers, plus 20 Aframax and 28 Suezmax tankers. Frontline’s stock has seen volatile trading conditions since the COVID-19 pandemic began, but the company had one of its most profitable years in 2020 with a net yearly income of $412.9 million or $2.09 per diluted share.
In its latest quarter ending March 31, 2021, Frontline’s net income declined 82% and its revenue fell 53%. That decline put pressure on the company’s share price and was partly due to oil production cuts by Russia, Saudi Arabia and the OPEC nations. Frontline stock pays a $2.00 yearly dividend that yields 22.99%, which could make it a good candidate for income investors. At its recent price of $8.56 per share, the stock also qualifies for Benzinga’s stocks under $10 list. It presently has a 6.74 price-to-earnings (P/E) ratio on a trailing 12 month basis (ttm).
DHT Holdings (NYSE: DHT)
Based in Hamilton, Bermuda, DHT Holdings Inc. provides transport services to the oil industry through its fleet of 27 very large crude carrier (VLCC) ships. The company’s fleet of Aframax and Suezmax ships has a capacity of 8,360,850 deadweight tons. DHT Holdings’ integrated management operates in Norway, Singapore and Monaco.
DHT’s latest earnings report released on May 4th, 2021 showed the company had an EPS of $0.05 per share, which beat analyst expectations of $0.02 to $0.03 per share. Over the past year, the company also has generated earnings of $1.74 per share, giving it a current P/E ratio (ttm) of 5.25. The stock also pays a $0.16 quarterly dividend that results in a 2.54% yield.
Nordic American Tankers (NYSE: NAT)
Also based in Hamilton, Bermuda, Nordic American Tanker Ltd was originally known as Nordic American Tanker Shipping Ltd until it changed its name in June 2011. The company operates a homogenous fleet of 33 Suezmax tanker ships that the company charters and leases internationally. Nordic American had an extremely rough 2021 thus far that saw the company operate with a negative cash flow that cost the oil shipper $20 million in its 1st quarter.
NAT stock currently trades at $3.00 per share and could appreciate with a recovery in the sector, although some countries have cut oil production levels since demand has been less than expected. Additionally, Nordic American’s cash levels have decreased significantly, leading some analysts to question the company’s long-term solvency. At current levels, NAT stock qualifies for Benzinga’s penny stocks under $5 list.
Euronav (NYSE: EURN)
Antwerp, Belgium-based Euronav is an oil tanker company that also runs the world’s largest independent quoted crude tanker platform. This software allows users to access services like fleet management, protection management and operational management.
The company’s vast fleet consists of 65 VLCC and Suezmax floating, storage and offloading vessels (FSOs) that the company leases through its headquarters in Antwerp and its offices throughout Europe and Asia. The company’s latest earnings report was released on May 6th, 2021, and showed EPS of $0.35 on $92.24 million in revenue. EURN stock pays a $0.03 quarterly dividend, and the stock currently trades at the $9 level with a P/E (ttm) of 12.83.
Scorpio Tankers (NYSE: STNG)
Based in Monaco, Scorpio Tankers operates a fleet of 131 product tankers of different specifications, including 14 Handymax ships. The company’s most recent earnings report for Q1 2021 showed a net loss of $62.4 million, which compares to its net income of $46.6 million for the same period last year. The steep loss was attributed to low oil demand caused by the COVID-19 pandemic and inventories building up from the previous year.
STNG stock currently trades at $19.76, which qualifies it for Benzinga’s stocks under $20 list. The stock’s yearly range is $8.28 to $24.67, suggesting considerable volatility. Despite a ttm loss of -$0.35 per share, the company’s President, Robert Bugbee, recently bought 5,000 call options struck at $25 expiring in January 2022 for $1.56 million, which could portend some good news for the company.
Source: Benzinga