Reference Date:
Bonds still attractive in a almost zero debt company (Traded ~400bps on report date. bonds are unsecured ranking below secured debt.), with very strict payout policy, note expected to change in the future. Capital allocation here is key, but they are not going to do any XO dividends or anything similar. Credit is very much supported. Stock is undervalued on traditional measures but also lacks any repricing events soon. Latest dividends of 0.42 (per quarter) makes an annual divd yield of 2.89% on 58 USD stock price. Capital alloc: no need to renew, fleet is still young. Around 100 vessels on water trading spot. Clarksons expects this dividend to continue until end of 2026, and then adjust to 50% of Free cash flow (FCF Being positive, which implies roughly 200% increase from current levels). Great slide deck on product tankers market.