I would invest in modern LR2s, in the age range between resale newbuilding and five years old. The sector is relatively small but it has undergone a transformation over the past decade. It has evolved into a multi-region and multi-route shipping segment, as the bottleneck in refining capacity has created the need for LR2s to travel further than before, stretching the fleet’s availability and allowing for triangulated earnings opportunities.
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Omar Nokta: Modern LR2s are best investment for $1bn
Jefferies analyst says current three-year charter rates on modern LR2s allow for 50% earn-back on investment
3 January 2023 6:37 GMT
Updated
10 January 2023 20:18 GMT
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