Euronav posts Q1 net profit of $1.4 million
Net profit of Euronav NV (NYSE EURONEXT BRUSSELS: EURN) for the three months ended March 31 of 2014 totaled $1.4 million or $0.02 per share vs. -$10.7 million and -$0.21 per share in Q1 2013. In its preliminary financial results report published yesterday the Belgian shipping company said EBITDA for the same period was USD 47.3 million $29.2 million in Q1 2013.
The company said the result of the first quarter 2014 is overall negatively affected, when compared to the result of the first quarter of 2013, by exceptional items for a net amount of $5 million mostly related to costs associated to the acquisition of the Maersk Tankers VLCC fleet and the financing of this important transaction. Euronav has applied the new accounting standards IFRS 10 and IFRS 11 as of 1 January 2014. As a result, the consolidation method applied to joint ventures has changed.
So far in the second quarter of 2014, the Company’s VLCC which operates in the Tankers International pool has earned on average USD 26,100 per day and 31% of the available days have been fixed. The Company’s Suezmax fleet trading on the spot market has earned on average USD 16,850 per day and 51% of the available spot days have been fixed. The market is expected to be volatile and the fleet size on both the VLCC and Suezmax sector is expected to grow marginally as we expect fewer newbuildings to be delivered in the next 18 to 24 months. A more balanced tonnage list coupled with increased ton-miles should help to further improve the state of the tanker market for the rest of 2014 and 2015.
Euronav is one of the world's leading independent tanker companies 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 NYSE Euronext Brussels 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 40 double hulled vessels being 1 V-Plus, 2 FSO vessels (both owned in 50%-50% joint venture), 14 VLCCs of which 1 in joint venture (including the VLCC Luxembourg which is already sold but will be delivered between May 2014 and mid-June) and 23 Suezmaxes (of which 4 in joint venture). Deliveries of the remaining Maersk Tanker VLCCs will increase the Company’s tanker fleet by another 13 VLCCs. The Company’s vessels mainly fly Belgian, Greek, French and Marshall Island flags.