HIGHLIGHTS
- Sustained pressure on freight rates driven by mix of reduced demand from COVID-19 restrictions, lower crude supply on OPEC cuts & over supply of available tonnage
- Extension to current FSO contracts for further 10 years to 2032
- Fixed cash dividend of USD 3 cents per share in line with distribution policy
- Up to an additional USD 50 million share repurchases
- Q1 2021: 46% VLCC spot booked at 16,396 USD per day, 54% of Suezmax booked at USD 9,207 per day
- Freight rate pressure to remain until crude demand recovery which is tied to COVID-19 vaccine implementation from Q2 onwards
Euronav NV reported its non-audited financial results for the fourth quarter ended 31 December 2020 on February 4.
Hugo De Stoop, CEO of Euronav said: “The last quarter of 2020 and the present market conditions are amongst the most challenging in recent memory for crude tanker operators. COVID-19 restrictions continue to impact operations and more importantly the demand for crude oil. This has led OPEC+ to extend production cuts. As a result, the market remains unbalanced with too many ships chasing too few cargoes.”
“Whilst some encouraging signs are emerging, like the price of scrap steel driving the ship recycling activity, traction with crude consumption returning to more normalized pre-COVID-19 levels is required to drive a return to stock and sector profitability. Despite these headwinds Euronav remains focused through cycle on long term value generation which validates additional buy back focus and vessel acquisitions whilst retaining balance sheet strength.”
Sea News, February 8
