Euronav NV reported its non-audited financial results for the first quarter ended 31 March 2022.
Hugo De Stoop, CEO of Euronav said: “The conflict in Ukraine has driven considerable dislocation in tanker market freight patterns as sanctions and so-called self-sanctioning by market participants has driven ton-mile growth. The uplift to freight rates continues to have momentum as oil supplies have increased driven by higher prices, OPEC+ production rising and strategic reserve releases. Medium term industry fundamentals remain constructive with orderbook ratios at a 24 year low and no new VLCC orders for 9 months. These are being augmented with factors such as US crude exports hitting 4 year highs and evidence that surplus tonnage in key markets like the Middle East is reducing. Euronav has been very active in positioning itself for the next stage of the cycle with a programme of fleet rejuvenation, a detailed outline of our decarbonisation pathway, and of course via further sector consolidation since quarter end with our proposed combination with Frontline. We expect to make progress on all fronts during the rest of 2022.”
HIGHLIGHTS
• Further sequential freight rate improvement during late Q1 and into Q2
• Dislocation caused by geopolitical events proving to be positive catalyst
• Application of fleet rejuvenation programme with 7 vessels transacted in 2022
• Q2 to date spot rates 43% fixed at USD 14,000k per day for VLCC with 44% fixed at USD 19,700k per day for Suezmax
