Abstract Aerial Art/DigitalVision via Getty Images When I first wrote an article about Okeanis Eco Tankers ( ECO ), the thesis was quite simple, especially if we compare it to today. It was and still is a modern tanker operator, which I consider to be one of the most effective in the sector. The company at the time had new VLCC and Suezmax fleet, which allowed them to generate around 35% EBIT marg...
Abstract Aerial Art/DigitalVision via Getty Images When I first wrote an article about Okeanis Eco Tankers ( ECO ), the thesis was quite simple, especially if we compare it to today. It was and still is a modern tanker operator, which I consider to be one of the most effective in the sector. The company at the time had new VLCC and Suezmax fleet, which allowed them to generate around 35% EBIT margin and around 22% net profit margin. Many of it's competitors never reached these kind of numbers. Also, ROE was around 19% which immediately put it on my screener and was almost double the sectors average. At the time of my article it was a good cyclical buy, as it was high quality stock which was not priced in yet. Since then, the situation has changed quite a lot. The stock went from $25 to around $50 level. It is now quite obvious that part of the upside is already realised. The market started valuing this business and the sentiment become more bullish on shipping stocks. This is apparent especially now when the tanker rates are high and the companies results are better than expected. As of now, the company is not a play for me anymore, yet I believe it has some upside potential. I like stocks that are overlooked, which this company is not anymore, ECO is now more on the radar. The most important change however is not in the price, but in overall setup. When I wrote an article it was cheap cyclical bet with clear upside logic. Now, I believe it is more of a geopolitics play. Why? Because earnings are now dependent more on events in Middle East region than from cycle. In other words, ECO is now more of a geopolitics driven play than a tanker company play. Business If we look at the results themselves, the company is in better condition since my first article. Q4 2025 was a strong quarter, which mainly was driven by higher tanker rates. TCE earnings increased to $76 thousand a day , which is completely different regime than a year ago. It is important to understand, that ...
sankai/iStock via Getty Images By Michiel Tukker , Senior UK & Eurozone Rates Strategist Start of a long weekend will keep markets on edge The hope was that US President Donald Trump would appease markets with concrete steps towards ending the war in the Middle East. Unfortunately, the rhetoric appeared largely unchanged, keeping markets on edge. Today is the last day before the start of a long we...
sankai/iStock via Getty Images By Michiel Tukker , Senior UK & Eurozone Rates Strategist Start of a long weekend will keep markets on edge The hope was that US President Donald Trump would appease markets with concrete steps towards ending the war in the Middle East. Unfortunately, the rhetoric appeared largely unchanged, keeping markets on edge. Today is the last day before the start of a long weekend, with US markets closed on Friday; in Europe, Monday will also be a bank holiday. As such, we doubt oil can move materially lower, and risk sentiment should stay fragile. In effect, that means the upward pressure on the front end of the curve will stay. The 5Y and 10Y points might face less upward pressure as growth concerns over the medium term intensify. Inflation markets continue to be positioned for a short-lived inflation spike, which then begs the question of how much easing central banks follow up with after their hiking cycle. This will all depend on the resilience of the economy after tightening policy while facing higher energy costs. In the worst outcome, central banks might have to cut aggressively into accommodative territory to mitigate recession risks. Such a scenario helps explain why the belly of the curve can outperform in the current environment. Markets are set on a hawkish Bank of England Sterling rates are showing a higher sensitivity to oil prices than EUR and USD rates, and even dovish pushback from the Bank of England is achieving little. Our screen now shows almost 50bp of hikes being priced in for this year, which is a complete turnaround from the two cuts being priced in February. For every $10 increase in the oil price, GBP rates are adding 34bp of tightening over the next year. This is just 25bp for euro rates and 18bp for dollar rates. Even BoE Governor Andrew Bailey didn't meaningfully move the needle to a more dovish stance despite being very vocal that “markets are ahead of themselves”. The hawkish reaction from markets is mainly a pr...
Footage shows US president saying UK ‘should be our best’ ally and accusing PM of prevarication over sending ships • Middle East crisis – live updates Footage has emerged of Donald Trump mocking Keir Starmer by claiming the prime minister said he would have to consult with his team before deciding whether to send UK aircraft carriers to the Middle East. In a new low for UK-US relations, Trump appe...
Footage shows US president saying UK ‘should be our best’ ally and accusing PM of prevarication over sending ships • Middle East crisis – live updates Footage has emerged of Donald Trump mocking Keir Starmer by claiming the prime minister said he would have to consult with his team before deciding whether to send UK aircraft carriers to the Middle East. In a new low for UK-US relations, Trump appeared to impersonate Starmer during an Easter lunch speech at the White House. Continue reading...
Ma Xingrui, a member of China’s Politburo and the former Communist Party boss of Xinjiang, is being investigated by the anti-corruption watchdog, state news agency Xinhua reported on Friday. He is the third member of the ruling party’s elite body to come under investigation in the current term that began in 2022 – a situation unseen in decades. He Weidong, former vice-chairman of the powerful Cent...
Ma Xingrui, a member of China’s Politburo and the former Communist Party boss of Xinjiang, is being investigated by the anti-corruption watchdog, state news agency Xinhua reported on Friday. He is the third member of the ruling party’s elite body to come under investigation in the current term that began in 2022 – a situation unseen in decades. He Weidong, former vice-chairman of the powerful Central Military Commission (CMC), is also being investigated and was expelled from the party and...