Euronav cautious after 3rd quarter loss

Euronav cautious after 3rd quarter loss Antwerp, Belgium-based independent tanker owner Euronav issued a cautious outlook for the rest of 2007 and start of next year after reporting a third quarter loss of $23.3 million, compared to a profit of $53.8 million in the same quarter 2006.
   “The freight market for seaborne transportation of crude oil was lower than expected for a third quarter,” Euronav said in a statement. “This is mostly due to a combination of lower demand for transportation and a greater availability of ships especially in the Arabian Gulf. Furthermore, the low freight rates were exacerbated by sharply rising bunker costs.”
   Operating profit for the quarter was $5.6 million, down from $75 million a year ago while revenue declined 52 percent to $81.9 million from $170.6 million.
   After three quarters, Euronav posted a net income of $112.2 million, a 37 percent drop from $178.5 million in the comparable period last year. Operating profit after nine months was $179 million against $229.8 million last year, while revenue dropped to $411 million from $519.6 million.
   “Management believes that the long-term outlook for the crude tanker markets is attractive but remains cautious on the outlook for the rest of the year and the start of 2008,” the company said.
   Euronav’s fleet comprises interests in 26 very large crude carriers (VLCC) and ultra large crude carriers (ULCC), of which 11 vessels are chartered in from third parties either directly or jointly with partners. Twenty-three VLCCs and two ULCCs are managed in the Tankers International pool of which Euronav is one of the major partners. The company owns and also operates 14 Suezmaxes and two Aframaxes on bareboat charter. A further four Suezmaxes and two VLCCs are under construction.