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Euronav expecting bumper Q4 as Q3 loss narrows

Euronav expecting bumper Q4 as Q3 loss narrows
Expanding tanker owner Eurnoav has reported a $20.6m loss for the third quarter, improving on a $27.1m loss in the same period last year.

The company's EBITDA more than doubled from $16.6m in Q3 2013 to $36.6m in the third quarter this year.

The company's FSO division made an $8m profit in the three month period, but those gains were wiped by a $28.8m loss from the main tanker business. The result brings Eurnoav's year to date loss to $41.8m, and the losses for its tanker division to $64m for the first nine months.

Average spot rates were up to $25,000 per day from $14,000 per day in Q3 2013, with suezmax rates up from $17,000 per day to $22,750 per day between the same periods.

"Compared with the third quarter last year VLCC earnings are up 80% for the third quarter," the company stated in its earnings release. "The outlook for the seasonally stronger fourth quarter is looking stronger than in the last four years: the fleet growth is minimal and the average distance over which cargoes need to be transported by ships is increasing."

Lower oil prices are also keeping voyage expenses down while stimulating demand for crude, and the value of ships is rising as market prospects improve.

During the quarter the company took delivery of six ships from its acquisition of the Maersk VLCC fleet. The final ship from the Maersk deal, the 15th, was delivered in early October.

Earlier this week, Euronav announced that it was postponing its IPO on the New York Stock Exchange due to unfavourable capital market conditions.