Euronav Reports: Tanker Market is "Full Steam Ahead"

Posted by Greg Trauthwein
Friday, January 15, 2016
Euronav NV (NYSE: EURN) this morning issued a release to set the record straight with investors, from its perspective, on current market conditions in the large tanker market. 
According to Euronav, despite the current capital market's predominantly negative sentiment , Euronav said that it continues to experience robust and fundamental strength in the VLCC and Suezmax sectors. The average daily time charter equivalent rates (TCE) obtained by the company’s fleet in the tankers International pool in the fourth quarter 2015 was approximately $62,000 per day (4Q14: $31,650/day). The time charter equivalent earnings of the Euronav Suezmax spot fleet was above $40,000 per day for the fourth quarter 2015 (4Q14: $24,250 per day).
So far, until January 8, 2016, the Euronav VLCC fleet operated in the Tankers International pool has earned about $77,000 per day and over 25% of the available days have been fixed. 
Euronav also announced that the company is in the final stage of selling the VLCC Famenne (2001 – 298,412 dwt), one of its two oldest VLCC vessels, for $38.4 million. The vessel was wholly owned by Euronav and would be delivered to its new owner in the course of the first quarter 2016.
Demand has been and continues to be solid with a range of supportive factors starting with the price of crude oil. The price for crude oil has indeed fallen by a third since the start of December and continues to benefit tanker companies such as Euronav, as one of the key expenses (bunker costs) is a direct derivative of the price of crude oil. In addition, the demand for oil should be stimulated as a direct result of the lower oil price as we have monitored throughout 2015. Finally, the recent repeal of the U.S. ban on crude oil exports should add additional demand for crude oil transportation. 
Vessel supply remains moderate with only a handful of confirmed additional newbuilding orders placed since the end of the third quarter 2015 and for delivery scheduled in 2018. 
Euronav reports that it strongly feels that the recent fall in its share price, even taken in perspective to a wider peer group, does not correctly reflect the current value of the share. 
Management reaffirms its intention to return to its shareholders at least 80% net earnings for each fiscal year excluding exceptional items such as gains or losses on the disposal of vessels by way of dividends but does not exclude, given where the share price is currently trading to opportunistically buy back shares in the open market. The extent to which Euronav repurchases its shares if at all, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined at the sole discretion of Euronav’s management.
Euronav will release its fourth quarter 2015 unaudited results as planned on January 28, 2016. 

People & Company News

MN100: Viega LLC

The Company: Viega was founded in Germany in 1899. By 1901, the company began to manufacture home plumbing products, growing and expanding internationally. In 1999,

Abu Dhabi Ship Building Commissions First Floating Dock

Abu Dhabi Ship Building PJSC (ADSB) has commissioned its first floating drydock located in Mina Zayed as the company looks to expand its commercial service offering.

MN100: Glosten

The Company: Glosten is an employee-owned full-service consulting firm of naval architects, marine engineers, electrical engineers, and ocean engineers. Founded in 1958,

Tanker Trends

NAT Names 2 New Tankers in South Korea

wo new tankers, Nordic Star and Nordic Space, were named August 24 for owner Nordic American Tankers Limited (NAT).   NAT founder and chairman Herbjørn Hansson was present at the naming ceremony,

BV Classes First LNG-fuel Oil/Chemical Tanker

Leading international classification society Bureau Veritas has classed the first LNG-fuelled newbuilding oil/chemical tanker, the 15,000 dwt Ternsund, built under BV class at Avic Dingheng,

SK Shipping Selects 5X72DF for LNG Carriers

Securing the position of its low-speed low-pressure X‑DF engines as market leaders, Winterthur Gas & Diesel (WinGD) has been selected to supply two 5-cylinder X72DF


OSV firm Farstad Continues Restructuring Talks

Supply firm Farstad Shipping's CEO Karl Johan Bakken repeats is in stand-still agreement with lenders until Oct. 1   Notable disclosures: * CEO says is talking

Banks Halt Support for Hanjin

A bankruptcy would be biggest ever for a container shipper. Hanjin Shipping Co's banks are halting support for the South Korean company, its lead creditor said,

China Cosco Sinks into Red

Dragged by lackluster freight rates in the maritime transport market during the first half of 2016, China Cosco Holdings logged a 7.2 billion yuan ($1.07 billion) net loss for the January-June half,


Jt Study by MOL, Yokohama University for Improving Ocean Shipping Market Forecast

Mitsui O.S.K. Lines, Ltd. today announced that the company and its subsidiary MOL Information Systems, Ltd. have signed a contract with Yokohama National University

DNV GL Launches New Approach to Manage Uncertainty in Risk Assessment

There is increasing emphasis from regulators on addressing uncertainty in risk assessments to improve safety. DNV GL’s new paper, ‘Enabling confidence – addressing uncertainty in risk assessments’,

Gasum, Wärtsilä Join Forces to develop Gas Value Chain

New joint co-operation between Gasum and Wärtsilä aims to develop the utilization and distribution of natural energy gases in marine and land markets. Gasum,

Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0972 sec (10 req/sec)