In a note to clients Benjamin Nolan of Stifel argued that the liquidation of OW Bunkers, new regulations driving low-sulphur fuel sales in the Atlantic and the recent opening of a new storage facility in Fujairah will lead to increased earnings and cash flows.
“Management indicated it is already seeing a much higher level of direct inquiry as a result of OW's absence,” the Chicago-based forecaster continued in reference to revelations from the company’s third-quarter conference call, adding:
“We believe the volumes are likely to increase as a result, and spreads could also improve as Aegean could capture the margin previously garnered by the intermediary.”
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