Euronav 2008 profit quadruples

Liquid bulk carrier Euronav reported year-end after-tax profit of $400 million for 2008, a quadrupling of profit from the previous year.

   In December, the company saw profit of $36 million, a $12 million decline from the same month in 2007.

   VLCC rates throughout the year 2008 have been exceptional and by far the highest ever seen during a full year, the company said in comments accompanying the results. The high rate environment that the tanker market enjoyed underlined a very tight balance between supply and demand for double-hull quality ships caused in part by negative growth in the VLCC world fleet. This exceptional environment was mostly due to a flood of conversions of VLCCs.

   Euronav expects oil consumption in 2009 to be aided by low prices.

   The global economy for 2009 will be characterized by recession or low growth, the company said. Demand for oil and consequently its transportation will be aided by current low prices. The current shortage of quality tankers will decrease as newly constructed vessels are delivered in 2009. This should be offset by the number of single-hull ships expected to become commercially obsolete between now and 2010.

   Euronav will maintain its position as a top quality operator of modern double-hull large crude oil tankers. The company will also continue to balance the employment for its young fleet between fixed rate (time charter contract) and variable rate (spot charter). At the start of 2009, 18 out of 29 owned vessels are contracted on period charter. The remaining vessels employed in the spot market are all traded in the Tankers International pool, which has proven to perform better than the market in general.

Source: American Shipper