Euronav’s Q1 net profit falls nearly 70%

The Independent tanker company recorded a net profit of $34.3 million for Q1 2017, falling 69.8 percent year-over-year, and is expecting challenging freight rate conditions to persist for the remainder of 2017.    Independent tanker company Euronav recorded a net profit of $34.3 million on revenues of $164.2 million for the first quarter of 2017, falling 69.8 percent and 23.6 percent, respectively, from the first quarter of 2016.
   Although demand for crude oil remains robust, the tanker market is facing headwinds from the concentration of tanker deliveries, according to Euronav.
   The first quarter of 2017 saw 27 very large crude carrier (VLCC) equivalents delivered to the global fleet (based on VLCC and Suezmax deliveries only), a number that will be repeated this quarter, Euronav said.  
   The return of VLCC newbuilding orders during the first quarter of 2017, “implies a lower for longer tanker freight market given the already high concentration of new tanker capacity due for delivery primarily in 2017 but also in 2018,” the company said. “This is likely to generate challenging freight rate conditions during the remainder of 2017.”
   Antwerp-based Euronav’s owned and operated fleet consists of 55 double hulled vessels, including 31 VLCCs; 19 Suezmaxes; two Suezmaxes under construction; two floating, storage and offloading (FSO) vessels (both owned in 50-50 joint ventures); and one V-Plus vessel.