Buoyant Market Sees Tanker Firms Eye $275M in U.S. Listings

Dryships is seeking to raise $100 million through a Nasdaq float

Tanker companies are seeking U.S. listings amid an upturn in the market, Reuters reports.

This week, Belgian crude oil tanker group Euronav NV said it would go ahead with a New York Stock Exchange (NYSE) listing that was originally postponed in October 2014.

The group aims to raise $175 million from the offering.

Tankships Investment Holdings Inc. (Tankships), a subsidiary of George Economou-led Dryships Inc., is said to be seeking to raise $100 million through a Nasdaq listing.

Tankships is said to be planning to use part of the proceeds to acquire an additional three tankers, increasing its crude tanker fleet by 30 percent.

The tanker market has been improving, particularly in recent weeks as oil traders have sought to cash in on low spot prices for oil.

Floating storage demand has been cited as pushing charter rates far above their levels for the same period last year, which, according to the report, have this week peaked above $83,000 per day for very large crude carriers.

"The sharp increase in tanker rates and voyage activity is likely to continue as OPEC members maintain their high production levels," said Tankships in its listing prospectus.

"Should crude oil prices remain under pressure, the existing contango along the crude oil curve could widen and thereby increase oil stockpiling and the potential use of tankers for floating storage."

The developments come in deep contrast to where the market was less than two years ago, with Katharina Stanzel, managing director of tanker trade group INTERTANKO saying in March 2013 that its members were in such dire straits they were "actually paying oil companies to transport their oil."

This week, it was estimated that there are currently 40 million barrels of oil stored at sea, up from 25 million last week, and the number is likely to rise if 2009 trends are repeated.