Euronav sinks into the red amid ‘challenging’ freight market

The independent tanker company recorded a net loss of $28.1 million or the third quarter of 2016 due primarily to an oversupply of tonnage coupled with new vessel deliveries, according to Euronav’s most recent financial statements.    Independent tanker company Euronav NV posted a net loss of $28.1 million for the third quarter of 2017 amid headwinds from a “challenging freight market,” fueled by the oversupply of tonnage and new vessel deliveries, according to the company’s most recent financial statement.
   By comparison, Euronav recorded a net profit of $0.1 million during last year’s third quarter.
   For the first nine months of 2017, Euronav recorded a net loss of $18 million, compared to a net profit of $153.8 million for the corresponding 2016 period, while revenues sank 26.5 percent to $395.4 million.
   On Oct. 23, the $150 million unsecured bond launched back in May was listed on the Oslo Stock Exchange.
   “Freight rates remained under sustained pressure in both the VLCC and Suezmax sectors during Q3 – particularly in August as seasonally low levels of cargo and new tonnage entering the market combined to drive rates to lowest levels since 2013,” Euronav CEO Paddy Rodgers said of the results. “Whilst there has been an encouraging recent uptick in scrapping activity and crude demand growth continued to see upgrades during the quarter, the delivery schedule of new vessels remains elevated into late 2018.”