Tanker Stocks Hit 52-Week Highs As One Posts 18% Gains In 2023

Two tankers stocks briefly hit 52-week highs Friday, showing strength in the group. One of the companies is expected to post 82% earnings growth in 2023.

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Teekay Tankers (TNK) hit a 52-week high and tapped the 36.71 buy point of a cup base on Friday before pulling back.

The marine oil transporter is the largest operator of midsize tankers, with a fleet of 58 vessels. It offers ship-to-ship oil and liquefied gas cargo transfer service, as well as ship refueling services.

European sanctions on imports from Russia are disproportionately benefitting midsize tankers as oil trade patterns shift, the company said in its most recent earnings report.

Teekay beat Q3 EPS and sales expectations in November, posting earnings per share of $1.70 vs. a year-ago loss of $1.48, according to MarketSmith. Quarterly sales soared 141% year over year. Analysts expect 20% full-year EPS growth in 2022 and an impressive 82% in 2023.

Teekay reports Q4 earnings on Feb. 23.

Tanker Looks For Profitability In 2022

Scorpio Tankers (STNG), which provides marine transportation of refined petroleum products, poked above a 57.81 buy point. But price and volume action was weak even as the stock made new highs.

Its fleet consists of 113 wholly owned, leased or chartered tankers, serving oil giants including Chevron (CVX) and BP (BP).

Scorpio beat on Q3 top and bottom lines in early November. The company posted profits in the last two quarters, after a string of losing quarters. Quarterly EPS grew dramatically to $4.29 in Q3 vs. the year-ago quarter, and up from $3.13 in the June quarter.

Analysts expect 2022 EPS of $11.83, up from a loss of $4.17 in 2021, and $11.08 projected for 2023.

Scorpio reports Q4 earnings on Feb. 16.

Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.

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