Euronav Releases Half Year Results
The executive committee of Euronav NV today reported its preliminary and unaudited financial results for the six months ended 30th June 2013.
More Financial Reports:CMB Releases First Half Results
The company had a net result of USD -41.4 million (first semester 2012: USD -20 million) or USD -0.83 per share (first semester 2012: USD -0.40), for the first semester 2013. EBITDA for the same period was USD 68 million (first semester 2012: USD 98.2 million). During the first semester the company took 2 Suezmax, 1 VLCC and 1 ULCC to drydock which increased the regular operational expenses by USD 6.2 million.
The result of the second quarter is positively affected by the revaluation at marked-to-market levels of non-cash items such as hedge instruments on interest rates and rate of exchange for a total of USD 1.5 million.
The average daily time charter equivalent rates (TCE) can be summarized as follows:
Euronav Tanker Fleet
At present, Euronav commercially manages 16 Suezmax vessels on the spot market (of which 14 are owned or partially owned) whilst 9 VLCCs are traded by the Tankers International pool on the spot market. 2 FSOs, 9 Suezmax and 3 VLCC vessels are under time charter contract at the present time.
The Tanker Market
The tanker market remains oversupplied with crude tankers. This oversupply must be reduced before rates can reach levels which make the crude transportation business sustainable. Fortunately, no speculative new orders have been placed since 2010. This is due to the fact that so-called “eco-ships” do not exist in the large tanker sector. Indeed, most “eco gains” can be replicated through retrofitting fuel saving devices which can be done to existing ships at a fraction of the cost of a newbuilding. There is no ship over ship competitive advantage in an oversupplied market. Furthermore the market needs to absorb the remaining newbuildings already on order. Older tonnage needs scrapping, existing tonnage needs maintenance and minor investment and no new ships should be ordered.
Outlook
So far
, in the third quarter, Euronav VLCC fleet operated in the Tankers International pool has earned on average USD 19,400 per day and 28% of the available days have been fixed. Euronav’s Suezmaxes trading on the spot market have earned on average USD 12,700 per day and 26% of the available spot days have been fixed.
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