Investors– What Do They Know?

Tanker rates and equity values have parted company once again. In this opinion we look at the historical values of the Poten Tanker Index and the Equity Index. The tanker index is the average timecharter equivalent rate for crude carrier categories (Panamax to VLCC) weighted by the number of vessels in each category. The Equity Index is the monthly average price per share of the principal publicly traded tanker owning companies. Both are indexed to a value of 100 for January 1997. Currently, the PTI is 157.2, near its historical average of 140.3, whereas the Equity Index is 397.4, more than double its average of 169.7. Download here