Euronav Cuts Loss

Euronav posted a net loss of USD 3.9 million for the three months ended 31 December 2014, slashing losses from the previous year totaling USD 23.3 million.

The company’s  EBITDA was USD 67.6 million up from USD 20.9 million in the same period in 2013.

For the full year ending 31 December 2014, the net loss amounted to USD 45.8 million, cut by almost a half from USD 89.7 million loss in 2013.

Euronav attributed its rebound to robust and sustained recovery in freight rates in both VLCC and Suezmax sectors during the fourth quarter of 2014, a feature which has continued and expanded into Q1 2015.

In the first quarter, the Euronav VLCC fleet operated in the Tankers International pool has earned on average USD 59,400 per day and 53% of the available days have been fixed.

Euronav’s Suezmaxes trading on the spot market have earned on average  USD 40,300 per day and 69% of the available spot days have been fixed.

“The last three months of the year presented some challenges as owners’ confidence was slow to grow and bunker price gains did not materialise within Q4 as bunker inventory was burned off. However, Euronav delivered creditable returns on our VLCC fleet, where we lost a number of vettings due to the ownership change following the acquisitions, thus leading to a longer time required to book charters,” the company said in its quarterly report.

Euronav believes the fall in the oil price will stimulate demand further in the short and medium term as the company predicts that the vessel supply will remain restricted for at least the next two years.

 “The oil price contango will continue to drive floating storage and reduce vessel supply for transport throughout 2015. Lower bunker costs make speed less of a cost issue but shipowners will not waste fuel so speeds in ballast will vary as to whether the ship is sailing to a cargo or not. No shipowner will want to speed up just to wait. Ships should continue in slow speed until they are fixed for a cargo and then adjust speed to arrive just in time,” Euronav forecasts.

 Euronav has 52 vessels on the water today.