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Euronav tanker losses rise

Euronav tanker losses rise
Antwerp: Euronav announced a full year loss of $118m in 2012, an increase on 2011's $96m loss as the tanker market remains firmly in the doldrums.

Turnover for the year rose from $394m in 2011 to $410m in 2012 but expenses for shipping activities rose $15m to $247m, losses on vessel disposals rose $7m to $32m and depreciation and amortisation expenses rose $9m to $177m.

Whilst the tanker segment of the company saw an increase of losses to $135m in 2012 from $103m the year before, Euronav's two FSOs performed much better, staying on hire for the entire year and returning an increased profit of $16m, up from 2011's $7m.

The company fully repaid a $1.6bn credit facility signed in 2005 and drew down part of a $750m revolving credit facility in March 2012, the new facility is secured against 21 of Euronav's wholly owned fleet.

On its prospects for 2013, Euronav foresees continued low rates as the industry suffers the supply overhang from the ordering boom a few years earlier. The company is hopeful that pressure on rates will push owners of older tonnage to the scrapyards and this, coupled with reduced ordering of new vessels, should cause a rebalancing of the market in the medium term.

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