Belgian tanker owner and operator Euronav posted a US$71M loss in the company’s Q1 2021 results
The company blamed the “stunted demand recovery and restricted crude supply” caused by the pandemic for the losses. The ongoing disruptions to crew changes has also contributed to stifling crude consumption.
Revenue for Q1 2021 plummeted to US$113.4M from US$416.6M in the same period in 2020, posting a loss of US$71M compared to last year’s profit of US$225.6M for the same period.
The average VLCC time-charter rate is up to US$39,500 per day from US$37,000 per day in 2020 but the average spot rate is down to US$14,000 per day from US$72,750 in 2020.
For Suezmax vessels, the time-charter rate in 2021 is US$29,500 compared with US$30,250 in 2020. Spot rates fell to US$11,500 per day, compared with US$59,250 per day last year.
So far in Q2 2021, Euronav reported its spot VLCC fleet has earned just US$10,000 per day and 48% of the available days have been fixed. The spot Suezmax fleet has managed US$10,500 per day, and 41% of the available days have been fixed.
The company, which operates 47 VLCCs and 28 Suezmax tankers, said it would continue to accelerate its drydocking programme with 27 ships scheduled to do so this year of which eight have been completed.
With OPEC+ agreeing to gradually ease oil output cuts from May, oil exports are scheduled to deliver an additional 2.1M barrels of crude oil per day between May and July and the tanker market is expected to see corresponding gains. However, estimates suggest global demand could take two years to get back to prepandemic levels.
Euronav chief executive Hugo De Stoop said, “We remain confident the market will recover in the medium-term, and that is why we took advantage of available low asset prices to make counter-cyclical investments in both the VLCC and Suezmax segments during Q1.”
Euronav has acquired two Suezmax resales and ordered two ammonia-ready VLCCs with Hyundai Samho shipyard, with an option for a third. The vessels are scheduled for delivery in 2022 and 2023.
At the end of March, Euronav had liquidity of US$1.1Bn.
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