Euronav splashes $112 million on VLCC newbuild

Belgian tanker shipping major Euronav has entered into a deal to buy a Very Large Crude Carrier (VLCC) newbuild from an undisclosed party, paying $112.2 million for the vessel.

Under the deal, the company has an option for an additional VLCC newbuild. Euronav said that it has two months to decide whether it would exercise the option.

The purchased VLCC is expected for delivery in the third quarter of 2026.

Euronav’s owned and operated fleet consists of 1 V-Plus vessel, 41 VLCCs, 22 Suezmaxes and 2 FSO vessels.

The Antwerp-based tanker company already has five ships under construction, including one LNG-ready VLCC and four Suezmaxes.

South Korean shipbuilding firm Daehan Shipbuilding Co. is building two Suezmaxes from the batch. The scrubber-fitted units have the structural notation to be liquefied natural gas (LNG) ready and are also expected to be ammonia and methanol ready. This provides the option to switch to other fuels at a later stage, according to the company.

Hyundai Samho Heavy Industries is building the remaining two Suezmaxes which will also be fitted with scrubbers.

The quartet is set for delivery in 2024.

Earlier this month the tanker owner revealed it had signed a sustainability-linked loan to finance four newbuildings entering service in 2023.

The loan covers VLCC Clovis, and Suezmaxes Brugge, Brest and Bristol.

The VLCC Clovis was delivered on 30 May 2023 and Suezmax Brugge, joined the company’s fleet on 11 July 2023. Both ships are scrubber-fitted, compliant with IMOs Tier III emission reduction standards, and were built by Hyundai Samho Heavy Industries.

Euronav posted a net income of $161.8 million in Q2 2023, against a net loss of $4.9 million in the second quarter 2022. This represents the company’s strongest Q2 operating performance on record outside the Covid pandemic of 2020, when floating storage of surplus oil drove a surge in freight rates.