The international oil shipping services provider reported net profits attributable to owners of the company tumbled 37.4 percent year-over-year for the first nine months of 2016, while revenues fell 13.3 percent from the same 2015 period.
Euronav NV, an international oil shipping services provider based out of Antwerp, reported net profits attributable to owners of the company totaled $153.8 million for the first nine months of 2016, down 37.4 percent from the corresponding period in 2015.
Revenues for the first nine months of 2016 tumbled 13.3 percent year-over-year to $538 million.
For the third quarter of 2016, Eurovav reported net profits attributable to owners of the company of $72,000 on revenues of $133.5 million.
“Freight rates were lower during the third quarter with anticipated seasonal weakness throughout the quarter compounded by higher levels of less favored vessel supply from several sources (returning dry dock, new builds, older tonnage) affecting tanker owners’ pricing behavior,” Euronav CEO Paddy Rodgers said. “This was exacerbated, in particular for Suezmax vessels, by dislocation from reduced Atlantic basin oil production negatively impacting on ton miles.”
Freight rates have now improved, resulting from seasonal trading patterns and continued demand from the Far East, along with a short term boost by cargo activity from the Arabian Gulf.
Euronav expects a regular seasonal pattern for the fourth quarter in terms of freight rates. However, scheduled vessel supply remains at elevated levels, which combined with no scrapping, will continue to present headwinds for tanker operators into 2017, Euronav said.
Euronav reports drop in profits, revenues
