Shipping and valuation of Tanker Investments Ltd.

Abstract

This dissertation is an analysis of the shipping sector and valuation of Tanker Investments Ltd. The information the paper is based upon is publically available information and market sentiments. The analysis is performed by theoretical framework and current market direction for the shipping sector. Tanker Investments Ltd. (TIL) is a new vehicle set up by industry leader Teekay, in order to do exactly as the name says, which is to acquire a fleet of vessels when believed to be undervalued, retrofitted to optimize the fuel conception, and sold when the market reaches up. The sector is highly cyclical and volatile, hence a valuation of Tanker Investments Ltd. encounters challenges. The subprime crisis on the downturn of Tanker Investments Ltd.’s Stock value on Oslo Stock Exchange makes the estimation of future cash flows and asset valuation a comprehensive task, hence also interesting. A fundamental valuating is performed and presented based on internal and external data. What the future holds for Tanker Investments is highly uncertain. The net asset valuation (NAV) delivers a estimate of USD 12,06.