Impact of India-Russia Tariff and Trade Shifts on VLCC Market
Management noted a 20% reduction in Russian oil exports to India in July, roughly 400,000 barrels per day, with some of this volume shifting to Middle Eastern sources.
The trend suggests a move towards larger ships for sourcing feedstock, which could benefit the VLCC market.
Management sees the ongoing trade adjustments, including potential U.S.-India deals, as early indicators of a possible positive impact on VLCC demand and chartering activity.
The shift in sourcing and trade routes is viewed as a structural change that could support higher utilization of larger tankers in the future.
Global Expansion and Growth Opportunities in Saudi Arabia and Middle East
Helmerich & Payne (H&P) is actively pursuing growth opportunities in Saudi Arabia and the broader Middle East, despite rig suspensions affecting the region.
The company expects the upcoming tender in Saudi Arabia to be a significant growth driver, with potential opportunities emerging in 2026.
The firm has a strong foundation of rigs, relationships, and operational capabilities in the Middle East, which they believe will lead to incremental activity gains.
Progress on the phased integration of KCA's operations in Saudi Arabia has already unlocked cost synergies and operational gains.
H&P is leveraging its broader operational footprint and expanded customer base to differentiate itself on the global stage, aiming for further international growth.
Average TCE rates were $48,700 per day for spot vessels, $42,800 per day for time charters, and a combined average of $46,300 per day.
DHT reported Q2 2025 revenues on TCE basis of $92.8 million and adjusted EBITDA of $69 million.
Net income was $56 million or $0.35 per share, with an adjusted net profit of $38.6 million or $0.24 per share after a $17.5 million gain on vessel sales.
The company ended the quarter with $82.7 million in cash and total liquidity of $299 million, with financial leverage at 14.1%.
Vessel operating expenses were $19.6 million and G&A expenses were $4.6 million for the quarter.
Resilience of Offshore and International Markets Amid Geopolitical Instability
Oil States highlighted the resilience of offshore and international markets despite geopolitical instability, lower crude oil prices, and fluctuating U.S. trade policies.
The company achieved the midpoint of its EBITDA guidance due to strong product and service mix, driven by offshore activity and backlog growth.
Management emphasized that offshore project visibility is high, with projects being multi-year and multi-decade developments, less impacted by short-term macroeconomic issues.
Jeff Miller highlighted that the oilfield services market is softer than previously expected due to trade uncertainties, geopolitical unrest, and accelerated OPEC+ production cuts.
North American operators are planning significant schedule gaps in H2 2025.
International markets, especially large NOCs, are reducing activity and discretionary spend.
Despite short-term softness, demand fundamentals for oil and gas remain strong, with expectations of market improvement as OPEC+ production is absorbed.
Dafinchi