The result brought Euronav’s first-half profits to a hefty $173.2m, compared to the $21.2m loss realised in H1 2014.
Thanks to what Poten & Partners referred to in May as a VLCC market “firing on all cylinders”, newly-delivered VLCC, 302,550 dwt Hakata, was able to take advantage of average Q2 VLCC fleet spot rates of $55,570, more than double the $21,464 average recorded in Q2 2014. Average time charter rates also increased to $38,148 in Q2 2015 from $27,655 in Q2 2014.
Meanwhile average suezmax spot rates also doubled generating $41,886 per day versus $18,445 in the same period 2014, and suezmax average time-charter rates hit $35,258 per day from $19,797 a year earlier.
In June, the company announced the purchase of four VLCC newbuilds currently under construction at Hyundai Heavy Industries (HHI), from Metrostar Management at a cost of $96m each, with options for four extra vessels at $98m each. The tankers are slated for delivery between September 2015 and May 2016.
“Euronav has made further progress during Q2 by securing four modern VLCCs with the option for four more - at a very competitive price,” said Paddy Rodgers, Euronav ceo. “This fleet rejuvenation was supported by a strong and stable rate environment during the second quarter which has continued into the current quarter.
Looking at the market outlook the company commented: "The current quarter has started positively with freight rates rising in what is usually a seasonally weak period. Industry fundamentals remain healthy with limited vessel supply, growing demand stimulated by a lower oil price, increased supply of oil from record production and the continuing theme of ton mile expansion of Atlantic Basin Oil heading East."
The company also flagged up port congestion as an "important and growing theme" taking capacity out of the market.
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