TTM - Scorpio Tankers: Future Prolonged Undersupply Should Drive Outsized Earnings
- IMO 2020 emission regulation is freezing the supply side in shipping markets.
- This sets an otherwise terrible industry up to generate very high returns in a potential prolonged state of undersupply.
- So far, COVID-19 disruption has caused this dynamic to remain isolated to bulk shipping and container shipping.
- Meanwhile, many shipping companies trade at a fraction of tangible book value.
- A positive refinery backdrop and the roll-out of the vaccines could serve as a catalyst in 2021.
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Scorpio Tankers: Future Prolonged Undersupply Should Drive Outsized Earnings