Let's sort it out:
Scrubber vs ECO vs Size. The $OET & #2020Bulkers advantages and... are there risks to scrubbers from politicians? What would that mean?
1. ECO is about ships using less fuel due to propulsion and general features. That also means less CO2, carbon emissions.
2. Scrubbers is not so much about CO2, only removes like 2%. It is all about cleaning sulphur or the black smoke. The controversy is about putting that into the ocean. The argument for is -a silly low addition vs all the sulphur in the ocean & that sulphur is an airproblem only.
Looking at the current situation scrubbers are an economic failure for all that did retrofits but those that installed when the ships were built got it cheaper and with no offhire time. Being ECO is important, being larger ships is important, being modern is important=premium pay
Scrubber is right now due to covid not that important vs the other factors. About 1-2k USD per day advantage for our $OET & 2020B vessels. Hence any threat to scrubbers is of less importance. My experience is that many people mix up ECO ships with Scrubbers. Don't do that...
Could scrubbers become more valuable again? Yes, for sure, the numbers could double as jetfuel use gets used for planes instead of marine fuel again.

Will scrubbers be banned? They allowed in the open sea where they are good, some ports ban them. EU, Canada could ban wider but..
No 2020Bulkers and few OET ships sail those areas. It is more STNG etc.

Still, I very much doubt we see any such wide "unfair" policies anytime soon. Shippers bought scrubbers as an environmental investment backed by the IMO. Would look very bad. So expect a few more small ban
And yes, looking at my tweet serie above there should have been a lot of "advantage emphasis" on that ECO comes first, then the larger size (of the OET VLCCs and 2020Bulker Newcastlemaxes), then general age and 4th scrubber (with quite a small amount at this time)

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More from @OriginalBraila

29 Nov
$OET is not complicated They guide all we need to know. This includes a worst case scenario. Today the market is crap. In this crap market OET just took a 11m VL deal at 30k and a Smax deal at 20k So how do things look if it does not turn Q4 2021? What if bad times continue 2022?
This is projected earnings at the stated rates (spot for vessels not on charter) $OET amortizes faster than depreciation so remove 11 musd (guided) from these numbers and divide by 32.4 m shares and you basically have dividend 2022. 52-11=41 musd/32.4=11nok div or almost 20%yield
In a bad/delayed market, $OET simply stays with Koch and those charters increasing mid 2021 for as long as needed. As they amortize faster than depreciation LTV etc becomes less of an issue every quarter. IF it gets bad for longer.. this is when OET is even more superior to peers
Read 6 tweets
6 Nov
$NMCI has 29 ships. By Jan 2021 my calculation is that 17 of those have reset on average 10k usd higher on 12m contracts.10k x350daysx17=60 musd in increased profits=current MCAP.
My highest possible conviction play coming 6 months at 1.79 usd per share. Feb-May another 6 ships
Rates for 4250TEU Panamaxes keep rising according to the latest info. Could the latest Harpex later today Friday break 20k? harpex.harperpetersen.com/harpexVP.do . To me $NMCI would really surprise if they did not put in at least another short term double. Charters probably re set early.
I think most investors are under the influence of having just watched the tanker spot market and they fail to take in that this is not spot. Container resets now are 12m deals. It is also very hard to see any "12m wind down of excessive storage" as we are going through in tankers
Read 4 tweets
5 Sep
1. Most companies do not want to shrink out of business
2. This means old tanker Companies WILL renew fleets.
3. When you renew you buy at 100% of NAV
4. When you sell old tankers the payment is not material.
5. Means 50% NAV in old Co is not worth much. Will be diluted upwards.
The best example of this right now is Teekay Tankers $TNK imo. But it is a general rule. The fan club of $DSSI also called for divs and buybacks before that hope was crushed by management. In the DSSI case you also have too high leverage vs coming losses, debt level, fleet age.
HOWEVER, a cheap NAV valuation in an already renewed fleet is a gift. The renewal is already done and the material part of the cashflow is only likely to go to scheduled amortizations & return of cash when times are good. For the old tonnage it all goes to big amortization
Read 6 tweets
24 Jul
Y-day I wrote about locked in charter averages Okeanis for the future, now I am going to write about costs per day to later compare. Three main parts for me as a simple investor: 1. OPEX 2. Interest costs 3 Amortization/Depreciation together forming all in break even AVERAGE #OET
OPEX, well we pretty much are given that here as 2019 average and Q1 2020 actually was lower (larger fleet lowering costs?) so 8200 it is for me:
Interest costs: Well those have fallen and #OET is fully exposed to that.. As we are kind of doing a stress test of the company later comparing to the work of much appreciated @JHannisdahl assumptions it is not likely Libor would go up in a world where newbuild prices crash 15%..
Read 6 tweets

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