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Euronav bullish on tanker market after strong results

Euronav bullish on tanker market after strong results
Euronav has reported sharply improved Q4 and full-year 2015 results, adding that tanker market fundamentals “remain healthy and look sustainable.”

The NYSE-and Euonext-listed tanker operator’s Q4 EBITDA of $160.6m was its highest quarterly result since 2008, and more than double the $67.5m recorded in Q4 2014.

Full-year 2015 EBITDA was $562.1m, more than three times 2014’s $172.4m, on revenue up 78% to $846.5m.

‘”The winter market started in Q4 with higher TCE averages than in any other quarter of 2015 and has even strengthened in Q1 2016,” said Euronav ceo Paddy Rogers. ‘With a lower oil price (it fell 18% during Q4 and further since year end) tanker freight nets [are] back to higher results through a reduction in variable cost.

“Furthermore, one should expect additional stimulation of demand for crude and therefore for crude tankers over 2016. Current vessel supply is well spread over the next three years and should therefore be capable of being absorbed by the demand. Consequently, management remains confident of further progress.”