A price spread approaching $600 per tonne between high-sulphur fuel oil (HSFO) and very low-sulphur fuel oil (VLSFO) on a fully delivered basis is keeping an equity analyst bullish on Star Bulk Carriers despite recent weakening in capesize rates.
Investors may not be fully taking into account the hidden earnings benefits for the Greek owner, which has exhaust gas scrubbers on 95% of the fleet, according to a research note by Deutsche Bank analyst Amit Mehrotra.
