Louis Navellier points to Star Bulk Carriers and Shell as beneficiaries of tight shipping and refining supplies. Star Bulk’s second-quarter earnings rose 1,000% year over year to $1.21 a share; Shell’s second-quarter adjusted earnings climbed 131% to $9.84 billion.
Star Bulk expects its fleet’s average time-charter-equivalent rate to be $23,547 a day in the third quarter, including about $33,087 for its Newcastlemax and Capesize vessels. Analysts forecast earnings of $1.18 a share for the quarter. Analysts expect Shell to earn $3.47 a share, up 86.6% year over year, after raising estimates 30.5% in two months. Navellier’s grading system gives both stocks an A, with buy-below levels of $35 for Star Bulk and $100 for Shell.
The article says about 20 Middle East refineries were damaged or temporarily shut, reducing global refining capacity by about 3.52 million barrels per day; attacks on Russian refineries cut capacity further. U.S. diesel inventories fell to 107.9 million barrels on Sept. 11, the lowest for that time of year since 1982, while the average price reached $6.29 a gallon.
