IMO 2020 - Alternatives and Investment Case
Conclusion - "The Perfect Storm"
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Fleet is old (75 vessels turn 20 years in 2019 and 2020)
Orderbook is relatively thin, but growing
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NB prices are on the rise
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Steel prices are now around USD 430/t, i.e. scrap value is around USD 16.5 million
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Rates are significantly below CBE which is good for scrapping
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Costs of installing scrubbers are going up and taking longer than before.
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Owners have not made money for quite some time, which means maintenance may
have been suffering and banks may not be as willing to fund 5th SS, which may be
costly with BWTS and perhaps a scrubber
Oil stock piles are below average
Oil prices are going up, which should lead to increased US production
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OPEC may be opening up production again
Source: Company Filings
H
HUNTER
GROUP
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