Euronav Trades At $8.26, Paid $1.66 In Dividends And Bought Back 6% Of Shares

Seeking AlphaDividend Ideas | Services  | BelgiumEuronav Trades At $8.26, Paid $1.66 In Dividends And Bought Back 6% Of SharesNov. 13, 2020 5:28 AM ET|| About: Euronav NV (EURN), Includes: DHT, FROby: Bram de HaasBram de Haas Special Situation ReportProfessional risk-taker focused on smart bets and risk control. SummaryEuronav returned 80% of profit to shareholders through 1/2 buyback and 1/2 dividends.
The firm is very cautious about the near future for VLCC rates.
The company managed to partake in a pilot green bond financing.
Shares are very cheap whether you look at price-to-book ratio or price-to-earnings ratio.

Tanker investors recently went through a gut-wrenching experience as many names sold off severely. Euronav (EURN) is no exception. But I have to add that it paid an 18% dividend yield over the trailing twelve months. In addition, it bought back ~6.5% of outstanding shares. A 24.5% shareholder yield is exceptional although we owe it in part to the decline in the share price.
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I've been on- and off interested in the shipping market for years now. But halfway through 2019 I got really interested. Specifically due to IMO 2020 regulation approaching.
Shipping is an extremely cyclical market with intense boom-and-bust periods. But the industry is currently unusually attractive because:
Capital has left the industry (valuations have been low for years, I’ve been an opportunistic holder) Regulation of emissions in 2020 The global fleet is relatively old Regulatory uncertainty disincentivizes capacity investment For an expert take on the market check out my recent interview with Seeking Alpha's shipping expert J Mintzmyer.
This backdrop sets the market up for violent price spikes if demand starts cooperating (Covid is currently messing with this plan).
Price spikes in shipping rates tend to last only a very short while. As I've illustrated in this December 2019 article this is a unique time in history because... Read more