Tanker and LPG shipping stocks are outperforming the S&P 500 this year despite the wider industry being out of fashion on Wall Street.
While LNG, car carrier and chemical tanker shares have struggled to date in 2019, overall shipping equities are up 15%, according to data from Clarksons.
The LPG peer group has been the shipping world’s top performer this year, with John Fredriksen and Stolt Nielsen-backed Avance Gas leading the way with a 122% climb.
With Dorian LPG and BW LPG seeing their respective stocks up by two thirds the overall LPG peer group has climbed by 64% in 2019, according to a report from Clarksons analysts led by Frode Morkedal.
The spike in LPG stocks in 2019 comes with rates in the sector recovering from a multi-year slump.
VLGCs have earned $33,400 per day on average this year and are now at close to $60,000 per day.
This marks a major shift from the average of less than $13,000 per day seen through 2018, Clarksons data shows.
Product and crude tanker stocks are up by 27% and 24% respectively this year with Morkedal now stressing a rate recovery is underway in those markets.
Navios Maritime Acquisition, DHT Holdings. Frontline and Euronav have been the best performing crude stocks this year, while Ardmore Shipping and Scorpio Tankers have led the product peer group.
With tanker and gLPG equities on the up, overall shipping shares have climbed by 15% this year, according to Clarksons.
This is in line with the rise seen in the bulk carrier peer group and compares with the 22% jump in the S&P 500 and the 24% climb in the price of Brent.
It also shows shipping stocks globally to be running ahead of the main Oslo Stock Exchange Index, which is up by just less than one tenth, according to data from Morkedal and colleagues Erik Hovi and Henriette Vevstad.
While LPG shipping equities have spiked, LNG owners have been among the worst performers, with an 8% drop this year.
Clarksons data shows Golar LNG and Flex to be down by 15% and 8% respectively in 2019, with GasLog and Hoegh also retreating this year.
