Hana Securities said on the 19th that after the Middle East war, the global energy supply and demand have become precarious, highlighting the presence of energy transport shippers such as Pan Ocean.
It maintained its investment opinion at "buy" (BUY) and raised the target price by 28.5% to 9,000 won from the previous 7,000 won. The previous day's closing price was 5,950 won.
Hana Securities analyzed that this year operating profit of about 192 billion won is expected from liquefied natural gas (LNG) vessels (long-term contracts). This is an increase of 47 billion won from last year.
Ahn Do-hyun, a researcher at Hana Securities, said, "We can also look forward within the year to Korea Gas Corporation (KOGAS) placing charter contracts for LNG carriers to bring in additional LNG (expected from the United States)," and noted, "As medium-range (MR) oil product tankers are also being投入 into the pool, second-quarter profitability will improve."
Ahn added, "Freight rates for tankers and chemical carriers are set to surge before and after the reopening of Hormuz," saying it will serve as "the biggest additional upside for Pan Ocean's results this year."
Ahn predicted that starting in the second half of this year, as very large crude carriers (VLCCs) begin operations, Pan Ocean will expand its portfolio as an energy shipper.
Ahn said, "Pan Ocean purchased 10 secondhand VLCCs from SK Shipping, which are fleets under long-term contracts with SK Energy and SK Incheon Petrochem, with 2–4 years remaining on the contracts," and expected, "After those periods end, Pan Ocean will enter full-scale VLCC operations."