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Euronav loses $27.2m in third quarter

Euronav loses $27.2m in third quarter
Euronav has announced a net loss of $27.2m for the third quarter 2013 as oversupply prevents a tanker market recovery.

The results are an improvement on a loss of $34.9m in the same period of 2012, although the total red ink for the first nine months of this year, $66.4m, is worse than the $54.8m the company had on the books for the first three quarters of 2012.

The average spot rate for Euronav's nine VLCCs in the Tankers International (TI) pool rose from $11,500 per day in Q3 2012 to $14,000 per day in the same quarter this year.

So far in the fourth quarter, Euronav's TI fleet has earned $15,000 per day, with 41% of the available days fixed while its suezmaxes on the spot market have fixed 35% of available days at an average of $8,100.

In its assessment of the tanker market, the company highlighted the strong oil demand supporting the sector and the oversupply of tonnage preventing a recovery. "In order to rebalance the market, older tonnage needs to be scrapped, existing tonnage needs maintenance and no orders for newbuildings should be placed. Further consolidation of the market should be welcome," Euronav said in its earnings release.

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