Amazing results from GE Shipping. From what I saw on various forums, everyone was expecting a fall in profitability. Even most of its US-listed pure tanker companies have seen a fall in their profits (Scorpio Tankers and Euronav are the ones that I track).
This quarter, even the offshore business became EBIT-positive due to the repricing of one of their rigs.
They currently own 19 offshore vessels and 5 are going to be repriced in H1FY24 and another 4 in H2FY24.
Another trigger will be the repricing of one of their VLGCs. The spot rates are USD 50000- 60000.a day. Currently, it is priced at USD 30000/ day. This will result in an approximate increase of 60-90 crores of revenue annually that will directly flow down to the PBT.
It is still trading at 0.58 its NAV whereas even its cheapest peers in the US market are trading far above it. Just for reference:
This divergence is probably because of the niche of this sector.
Both the future of the tanker market and the valuations seem very juicy.
Subscribe To Our Free Newsletter |