Euronav warns of challenging tanker market

Euronav-TI-Hellas

Euronav NV reported its non-audited financial results for the third quarter ended 30 September 2020. Hugo De Stoop, CEO of Euronav said: “A growing divide between rising short-term fleet supply and limited cargo availability, restricted by OPEC+ production cuts and a slower demand recovery for crude, has impacted the sector negatively and is likely to continue throughout the seasonal winter period. With our sector low leverage, supported by over USD 1 billion liquidity, Euronav is well positioned to navigate these challenges and potentially seize value creative opportunities should they arise.”

For the third quarter of 2020, the Company had a net gain of USD 46.2 million or USD 0.22 per share (third quarter of 2019: a net loss of USD 22.9 million or USD 0.11 per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 151.8 million (third quarter of 2019: USD 96.8 million).

EURONAV TANKER FLEET
On 30 September 2020, the Suezmax Bastia (2005 – 159,155 dwt), owned in joint venture, was delivered to her new owners. The vessel was sold for USD 20.5 million. A capital gain of approximately USD 0.7 million was recorded in the same quarter in the joint venture company. The vessel was acquired in November 2019 in a 50/50 joint venture with affiliates of Ridgebury Tankers and clients of Tufton Oceanic. Whilst the holding period was relatively short, the strong tanker market over the past 11 months helped drive an exceptional return, in excess of 50% on this investment.

During Q1 2020, Euronav announced it had entered into an agreement for the acquisition, through resale, of four VLCC newbuilding contracts from the DSME shipyard in South Korea. These modern Eco-type VLCC vessels are identical sister ships that will be fitted with Exhaust Gas Scrubber technology and Ballast Water Treatment systems. All four vessels are now scheduled for delivery during Q1 2021. The payment profile for these vessels requires the largest portion of instalments to be made during Q1 2021. Euronav will meet the financing of these deliveries via existing borrowing facilities and debt capacity.

On 11 September, the Company concluded a new loan facility for 713 million USD which will be partially used for the payment of these vessels. After the quarter end, the Company time chartered-in two modern Eco-type Suezmax vessels for two years. This additional capacity allows Euronav to enhance existing strategic relationships. The economies of scale that Euronav can extract from this transaction provide conviction that this will be value accretive. In order to counter the challenging freight rate market in the short term, Euronav has brought forward nine required dry dockings. This flexibility allows 15% of Euronav’s fleet to execute its regulatory dry dock requirement during a depressed market whilst also providing the potential benefit of an improved freight rate market in the future.

FUEL PROCUREMENT STATUS (UPDATE) D
uring 2019, Euronav purchased 420,000 metric tonnes of compliant fuel and stored it on one of its vessels, the Oceania (2003 – 441,561 dwt) ahead of the new IMO 2020 fuel regulation applicable from 1 January 2020. In view of the significant drop in oil and fuel oil prices owing primarily to COVID-19, the Company has actively managed its fuel position by procuring its fuel requirement from both the open market and its stored compliant fuel.

The quantity onboard the Oceania on 30 September was approximately 200,000 metric tonnes of compliant fuel and the marked-to-market value was USD minus 14 million, another quarterly sequential improvement in our position from the last two quarters (Q2: – USD 32 million and Q1: – USD 56 million). The Company continues to conclude that no write down is required at this time. Euronav will continue to assess its position each quarter, in full compliance with the relevant accounting policy.

CAPITAL ALLOCATION STRATEGY IN ACTION
Euronav remains committed to its target return to shareholders of 80% of quarterly net income. It is important to stress that this return to shareholders is from net income generated quarterly. The 20% of net income that is retained is used to temporarily or permanently reduce its borrowings by mostly repaying revolving credit facilities. In case the Company does not make a profit over a quarter, a quarterly fixed dividend of USD 3 cent will be paid to shareholders.

LEAVE A COMMENT

Comments (49)

usa generic dapoxetine without subscription

Euronav warns of challenging tanker market | Shipping Herald

hydroxychloroquine prophylactic coronavirus

Euronav warns of challenging tanker market | Shipping Herald

what is ivermectin used for

Euronav warns of challenging tanker market | Shipping Herald

ia there a generic for viagra

Euronav warns of challenging tanker market | Shipping Herald

difference between tadalafil and vidalista

Euronav warns of challenging tanker market | Shipping Herald

hydroxychloroquine 100mg

Euronav warns of challenging tanker market | Shipping Herald

order keflex

Euronav warns of challenging tanker market | Shipping Herald

hydroxychloroquine buy from india

Euronav warns of challenging tanker market | Shipping Herald

ivermectin to treat scabies

Euronav warns of challenging tanker market | Shipping Herald

online doctor for rx

Euronav warns of challenging tanker market | Shipping Herald

which is better viagra levitra or cialis

Euronav warns of challenging tanker market | Shipping Herald

why does vidalista cause heartburn

Euronav warns of challenging tanker market | Shipping Herald

albuterol inhaler for sale

Euronav warns of challenging tanker market | Shipping Herald

cost of fda approved generic 60mg dapoxetine

Euronav warns of challenging tanker market | Shipping Herald

hydroxychloroquine dosing guidelines

Euronav warns of challenging tanker market | Shipping Herald

hydroxychloroquine coronavirus dosage

Euronav warns of challenging tanker market | Shipping Herald

cefixime at costco

Euronav warns of challenging tanker market | Shipping Herald

generic cenforce without a doctor prescription subscription

Euronav warns of challenging tanker market | Shipping Herald

Google

That would be the end of this article. Here you’ll find some websites that we believe you will enjoy, just click the links.

viagra without doctor prescription

Euronav warns of challenging tanker market | Shipping Herald

tadalafil generic tadalafil for sale

Euronav warns of challenging tanker market | Shipping Herald

cheapest vidalista online

Euronav warns of challenging tanker market | Shipping Herald

maltipoo puppies for sale

[…]Every once inside a when we decide on blogs that we study. Listed beneath are the newest websites that we opt for […]

top recruitment Agency in Nigeria

[…]below you’ll uncover the link to some websites that we assume you must visit[…]

safestore auto

[…]very handful of sites that happen to be in depth below, from our point of view are undoubtedly very well really worth checking out[…]

pc app

[…]although internet sites we backlink to below are considerably not related to ours, we really feel they may be really really worth a go as a result of, so possess a look[…]

download free apps apk for pc

[…]check beneath, are some entirely unrelated internet sites to ours, on the other hand, they are most trustworthy sources that we use[…]

apps download for pc

[…]please take a look at the web-sites we adhere to, like this one, as it represents our picks from the web[…]

divorce lawyer singapore

[…]Here is a superb Weblog You might Uncover Interesting that we Encourage You[…]

mp3 music

[…]Here are a number of the web sites we advocate for our visitors[…]

Louisiana Fake driver’s license

[…]that may be the end of this write-up. Here you will find some web-sites that we believe you’ll value, just click the hyperlinks over[…]

psychedelic mushroom growing kit usa

[…]here are some links to web pages that we link to simply because we feel they are really worth visiting[…]

MAGIC MUSHROOM GROW KIT

[…]very few sites that transpire to be detailed beneath, from our point of view are undoubtedly very well really worth checking out[…]

https://trippydelics.ca

[…]please go to the internet sites we comply with, including this 1, as it represents our picks in the web[…]

click here

[…]below you will discover the link to some web pages that we believe you’ll want to visit[…]

liquid herbal incense

[…]just beneath, are numerous totally not connected websites to ours, nevertheless, they are surely really worth going over[…]

Herbal incense

[…]we came across a cool web page that you just may well appreciate. Take a appear in case you want[…]

Jewelry

[…]here are some hyperlinks to sites that we link to due to the fact we feel they’re worth visiting[…]

shipping containers for sale craigslist

[…]very couple of web-sites that transpire to become comprehensive beneath, from our point of view are undoubtedly well worth checking out[…]

Canada services

[…]although web sites we backlink to below are considerably not connected to ours, we feel they’re essentially worth a go via, so have a look[…]

virtual card buy

[…]just beneath, are several totally not associated web-sites to ours, even so, they are surely worth going over[…]

Weed Delivery In Ireland

[…]Sites of interest we have a link to[…]

used shipping containers for sale

[…]Wonderful story, reckoned we could combine a handful of unrelated information, nonetheless genuinely really worth taking a appear, whoa did one particular master about Mid East has got more problerms as well […]

24 gauge wire

[…]Here are some of the web pages we suggest for our visitors[…]

virtual card buy

[…]although websites we backlink to beneath are considerably not connected to ours, we really feel they are actually worth a go as a result of, so possess a look[…]

sig sauer p320 for sale

[…]check below, are some completely unrelated web sites to ours, having said that, they may be most trustworthy sources that we use[…]

order cocaine online

[…]check beneath, are some absolutely unrelated sites to ours, having said that, they may be most trustworthy sources that we use[…]

샌즈카지노

[…]just beneath, are quite a few entirely not associated internet sites to ours, nevertheless, they may be surely really worth going over[…]

메리트카지노

[…]Every the moment in a even though we decide on blogs that we study. Listed below are the most recent web pages that we select […]

×

Comments are closed.