Euronav remains bullish going forward

Apr 29 2016

Euronav continued to benefit from the strength of the tanker market by announcing first quarter revenue of $214.9 mill, compared to $204.5 mill in 1Q15.

EBITDA came in at $164 mill, compared with $131.3 mill in 1Q15, due to year-on-year growth in tanker rates. Profit for 1Q16 was $113.5 mill, compared with $80.9 mill in 1Q15.

CEO Paddy Rogers said: “The strongest first quarter for eight years and a robust start to the second quarter with freight rates higher year-on-year are providing Euronav with a strong platform for further growth.

“Demand continues to expand stimulated by a ‘lower for longer’ oil price. The current vessel supply outlook is manageable consistent with our thesis that restricted access to finance is emerging as a barrier to entry, evidenced by virtually no new large tanker orders during the first quarter.

“Euronav remains committed to its policy of distributing 80% of net income to shareholders- excluding exceptional items, such as gains from vessel sales. We believe that the outlook is positive and sustainable for Euronav in the tanker sector,” he concluded.

Euronav’s average vessel daily TCE for 1Q16 was $60,638 for VLCCs operating in the TI pool, $40,847 for VLCCs on timecharter, $38,386 for Suezmaxes in the spot market and $32,251 for Suezmaxes on timecharter.    

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