Euronav posts decline in profits, revenues

The international oil shipping services provider, which paid Bretta Tanker Holdings $15.1 million in the second quarter of 2016, saw profits for the first half of 2016 slip 11.3 percent year-over-year to $153.7 million.    Euronav, an international oil shipping services provider based out of Antwerp, had profits of $153.7 million for the first six months of 2016, an 11.3 percent decline from the corresponding period in 2015, according to the company’s preliminary financial results.
   Earnings per share for the first six months of the year totaled $0.97 per share, a decline from the $1.13 per share for the first six months of last year.
   Revenues slipped 2.9 percent year-over-year to $404.5 million.
   Euronav’s final half year results will be announced Aug. 25.
   In May of this year, Euronav and Bretta Tanker Holdings, Inc. agreed to terminate their Suezmax joint venture. The joint venture covered four Suezmax vessels including the Captain Michael, the Maria, the Eugenie and the Devon.
   In early June, Euronav assumed full ownership of the two youngest vessels, which were the Captain Michael and the Maria, while Bretta assumed full ownership of the other two vessels. Consequently, Euronav compensated Bretta $15.1 million for the difference for taking ownership of the two younger ships, along with the voyages that were still in progress.
   Euronav also took delivery of the very large crude carrier (VLCC) Anne in May, the fourth and last vessel from the acquisition of the four sister vessels announced in June 2015.
   On June 2, Euronav announced the formation of a commercial joint venture called Suezmax Chartering with Diamond S Shipping LLC and Frontline Ltd. to establish a single point of contact for cargo owners to access a large fleet of 43 modern Suezmax vessels, including newbuildings operating on the spot market.
   “A larger fleet will provide more flexibility and more options for cargo owners, reduce voyage related expenses through optimization of voyages and thereby reduce greenhouse gas emissions as a direct consequence of using less fuel for cargo movements,” Euronav said.
   Looking ahead into this quarter, the company said, “So far in the third quarter of 2016, the Euronav VLCC fleet operated in the Tankers International Pool has earned about $31,800 per day and 50 percent of the available days have been fixed and Euronav’s Suezmax trading on the spot market has earned about $20,900 per day on average with 39 percent of the available days fixed for the third quarter of 2016.”