Antwerp, Belgium - January 30, 2023
Euronav files request for emergency arbitration
Antwerp, Belgium - 2 February 2023
• Large crude tanker recovery delivers highest earnings for Euronav since Q2 2020
• Fleet rejuvenation brings operational leverage to upcycle
• Seasonal demand patterns and Russian dislocation augment robust fundamentals
• Summary Arbitration Proceedings regarding termination of combination agreement with Frontline expected to conclude on 7 February
• Q1 2023 to date spot rate: 50% fixed at 55k USD per day for VLCC and 50% fixed at 54k USD per day for Suezmax
Hugo De Stoop, CEO of Euronav said: "Constrained vessel supply conditions within all segments of the large crude tanker market were supplemented further by two key factors during Q4 2022. Firstly, seasonal demand for crude gained traction as consumption rose into the 22/23 winter. Secondly, the EU embargo on Russian oil, effective 5 December 2022, created additional shipping demand as crude trading patterns required longer voyages and therefore captured more shipping capacity. These supportive catalysts helped drive freight rates to a 30-month high and we believe that the solid base of sector fundamentals (orderbook, fleet age, incoming regulations) will continue to underpin positive conditions within the tanker market for multiple quarters ahead.
Recent events have also been dynamic but have never affected the operational performance of the Company as we remain focused and committed to maintain our position of market leadership and have managed to rejuvenate the fleet at a critical time in the market cycle both in buying and ordering modern vessels at good prices as well as be patient and dispose of older assets when the value became interesting.
Whilst we regret the current situation, we will continue to act professionally and to work to a solution which is in the interests of all of our shareholders and stakeholders."
About Euronav NV
Euronav is an independent tanker company engaged in the ocean transportation and storage of crude oil. The company is headquartered in Antwerp, Belgium, and has offices throughout Europe and Asia. Euronav is listed on Euronext Brussels and on the NYSE under the symbol EURN. Euronav employs its fleet both on the spot and period market.
VLCCs on the spot market are traded in the Tankers International pool of which Euronav is one of the major partners. Euronav's owned and operated fleet consists of 1 V-Plus vessel, 40 VLCCs (with further two under construction), 22 Suezmaxes (with a further five under construction) and 2 FSO vessels under long term contract.
Euronav NV press release