Euronav in Belgium has long believed that it is facing a long-term upturn in the tank market, and an increasingly strong market is shown in the results for the second quarter.
Total revenues ended at $348.2 million, up from $148.7 million last year. It posted a net profit of $161.8 million, down from a loss of $4.9 million a year ago.
– The results for the second quarter are the best ever for Euronav, if you exclude the exceptional pandemic situation in 2020, says Acting CEO Lieve Logghe.
The dividend is proposed at 0.8 dollars. This means that the total payments amount to a good 2.6 dollars per share so far this year, which corresponds to an annual dividend yield of around 30 per cent.
Admittedly, $1.1 is an extraordinary dividend for last year, which was initially held back as a result of the stranded merger with John Fredriksen’s Frontline, and which was paid out with the ordinary dividend of $0.7 for the first quarter.
Strong rates
The rates for large tankers, also known as VLCCs (very large crude carriers), have taken a breather recently, in line with the fact that the market is now in the quiet summer season.
According to an overview by Fearnley Securities, VLCC rates for the Persian Gulf to China route are quoted at USD 23,000 per day – a plunge of 37 per cent in the past month.
Nevertheless, Euronav has secured surprisingly strong rates for the third quarter, which is historically the weakest period of the year for tanker shipping. 45 percent of the capacity of the VLCC fleet equipped with cleaning facilities in the form of scrubbers is guaranteed an average earnings of 44,750 dollars per day. For the suezmax fleet, 50 per cent of the capacity is leased for an earnings of a very strong 49,500 dollars a day.
In comparison, the VLCC and Suezmax fleets sailed in rates of USD 55,000 and USD 68,000 respectively. day in the first quarter.
The Euronav share rises 3.4 per cent on the Brussels stock exchange.
2023-08-03 07:34:25
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