Euronav Offers Encouraging News for Tanker Owners of VLCCs
Euronav NV yesterday reported its non-audited financial results for the fourth quarter of 2018 ended December 31, 2018.
Paddy Rodgers, CEO of Euronav said: The VLCC trading performance in Q4 2018 gives an important signal on the structure of the large crude tanker market. VLCC freight rates trading at rates not seen in the last two years demonstrate an already tight balance between tanker demand and supply. The factors impacting the crude tanker market are very dynamic and likely to remain so for the foreseeable future. The fundamentals such as oil demand, ton mile expansion and vessel supply remain on an improving trajectory that should be reflected in a healthy rate environment.
For the fourth quarter of 2018, the Company had a net profit of USD 0.1 million or USD 0.00 per share (fourth quarter 2017: a net profit of USD 19.4 million or USD 0.12 per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 108.5 million (fourth quarter 2017: USD 95.7 million).
The earnings of the fourth quarter were affected by a number of exceptional non-cash items:
– The Company recorded a capital loss of USD 3 million on the Sale of the Suezmax Felicity despite being transacted at values well above market
– The Company updated its assessment of the bargain purchase gain considering information that became available during Q4 2018 and provided additional insights as to certain elements that existed on June 12, 2018, the day Euronav acquired Gener8 Maritime:
o The New York Gen....