The executive committee of Euronav NV yesterday reported its preliminary and unaudited financial results for the six months ended 30th June 2011.The company had a net result of USD -5 million (first semester 2010: USD 49.7 million) or USD -0.1 per share (first semester 2010: USD 0.99), for the first semester 2011. EBITDA for the same period was USD 104.2 million (first semester 2010: USD 175.5 million). The result of the second quarter is positively affected by the revaluation at marked-to-market levels of non cash items such as hedge instruments on interest rates and rate of exchange for a total of USD 3.2 million.
EURONAV TANKER FLEET
The company has agreed with Samsung Heavy Industries, South-Korea, who showed great flexibility in a difficult market, that the deliveries of its Newbuilding Suezmaxes Hull 1860, to be named Maria (2011 – 159,000 dwt), and Hull 1893, to be named Captain Michael C. (2012 – 159,000 dwt), the remaining two of the four Suezmax tankers owned in 50%-50% joint venture with JM Maritime, will each be postponed to the second half of 2011 and first half of 2012 respectively. Similarly, the delivery of the newbuilding VLCC, Hull 1894, initially intended for 2011 has been postponed to the first half of 2012.
THE TANKER MARKET
Although world oil demand has increased in 2011 so far, mainly due to China’s continuous growth resulting in increased oil usage, the tanker market is still overtonnaged which is the root cause of the low rates. High bunker prices have encouraged many shipowners to introduce or maintain a super slow steaming policy in order to reduce their consumption of fuel so as to lower voyage costs, positively impacting the TCE.
Management remains cautious in respect of the outlook for the rest of the year.
So far in the third quarter, Euronav VLCC fleet operated in the Tankers International pool has earned on average USD 17,800 per day and 36% of the available days have been fixed.
OFFSHORE
The offshore market is becoming more vibrant as increasing discoveries of oil in deepwater at significant distances off shore combined with historically high oil price, is leading the industry to examine ways of processing and storing oil offshore. Therefore Euronav sees an opportunity to exploit this development generally but in particular with the ships uniquely suitable to the offshore business. Following the delivery of the FSO Asia and the FSO Africa and their successful performance for more than one year as well as the necessity to operate these units in the offshore sector for the foreseeable future, it has been decided that Euronav should develop an offshore department. The department will be part of Euronav NV and will be headed by Alex Staring who will relinquish the role of Chief Operating Officer and instead become Chief Offshore Officer and will remain a member of the Executive Committee.
The purpose of this department is the continued operation of the existing offshore units but also to dedicate a team to marketing, tendering and negotiating further projects. The value for all of the stakeholders in Euronav is to establish a portfolio of long term contracts in the offshore sector which give long term earnings support and profitability to offset the cyclical nature of the shipping markets.
EURONAV TANKER FLEET
The company has agreed with Samsung Heavy Industries, South-Korea, who showed great flexibility in a difficult market, that the deliveries of its Newbuilding Suezmaxes Hull 1860, to be named Maria (2011 – 159,000 dwt), and Hull 1893, to be named Captain Michael C. (2012 – 159,000 dwt), the remaining two of the four Suezmax tankers owned in 50%-50% joint venture with JM Maritime, will each be postponed to the second half of 2011 and first half of 2012 respectively. Similarly, the delivery of the newbuilding VLCC, Hull 1894, initially intended for 2011 has been postponed to the first half of 2012.
THE TANKER MARKET
Although world oil demand has increased in 2011 so far, mainly due to China’s continuous growth resulting in increased oil usage, the tanker market is still overtonnaged which is the root cause of the low rates. High bunker prices have encouraged many shipowners to introduce or maintain a super slow steaming policy in order to reduce their consumption of fuel so as to lower voyage costs, positively impacting the TCE.
Management remains cautious in respect of the outlook for the rest of the year.
So far in the third quarter, Euronav VLCC fleet operated in the Tankers International pool has earned on average USD 17,800 per day and 36% of the available days have been fixed.
OFFSHORE
The offshore market is becoming more vibrant as increasing discoveries of oil in deepwater at significant distances off shore combined with historically high oil price, is leading the industry to examine ways of processing and storing oil offshore. Therefore Euronav sees an opportunity to exploit this development generally but in particular with the ships uniquely suitable to the offshore business. Following the delivery of the FSO Asia and the FSO Africa and their successful performance for more than one year as well as the necessity to operate these units in the offshore sector for the foreseeable future, it has been decided that Euronav should develop an offshore department. The department will be part of Euronav NV and will be headed by Alex Staring who will relinquish the role of Chief Operating Officer and instead become Chief Offshore Officer and will remain a member of the Executive Committee.
The purpose of this department is the continued operation of the existing offshore units but also to dedicate a team to marketing, tendering and negotiating further projects. The value for all of the stakeholders in Euronav is to establish a portfolio of long term contracts in the offshore sector which give long term earnings support and profitability to offset the cyclical nature of the shipping markets.