Asset sales brought a bumper profit for Euronav in the first quarter 2024, with net gains on disposal of assets contributing $407.6m to the company’s $495m first quarter profit. The result compares to a $175m profit in the first quarter 2023.
The quarter included the 100% purchase of CMB.Tech by Euronav for $1.1bn, along with its fleet of 60 vessels and 46 newbuilds on order. A mandatory takeover bid for Euronav by CMB was also carried out in the period, resulting in CMB and its affiliates owning 88.6% of Euronav shares.
A capital gain of $372.7m was booked in the quarter for the delivery of the last 13 VLCCs to Frontline under the stalemate-breaking deal struck in 2023. A further $82.7m will be booked in Q2 from the sale of three other VLCCs.
Time charter equivalent rates for its tank fleet were down across the board compared to the same period last year for both VLCCs and suezmaxes. Dry bulk vessels, container vessels, chemical tankers and offshore wind vessels were added to the company’s earnings report for the first time.
Euronav ordered two bitumen tankers during the quarter, as well as two newcastlemax bulkers and an ammonia-powered container ship.
The company had 57 vessels on order at the end of the quarter with commitments totalling $2.98bn through 2027.
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