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Euronav posts ‘landmark’ full-year result

Euronav posts ‘landmark’ full-year result
Tanker operator Euronav booked a $350m profit in 2015, its best since 2008, in what ceo Paddy Rodgers described as a “landmark year”.

The result reverses a $45.7m loss for 2014 and represented a tripling of EBITDA from $172m in 2014 to $562m. Revenue was up $473m to $846m year-on-year.

Rodgers remained bullish on the outlook for 2016. "The first quarter of 2016 is not only substantially better than the first quarter of 2015 but it should also beat the fourth quarter of 2015 which was the best of the four quarters for that year,” he said.

Addressing a downward trend in his company’s share prices, Rodgers said: “We believe the current market fundamentals are not reflected in our share price."

Addressing fears concerning approaching tonnage oversupply, he added: "In the context of robust oil demand (IEA forecast 1.2 mbpd growth for 2016) and with potential for further demand stimulation from a low oil price, we believe that the supply of VLCCs and Suezmaxes is a manageable prospect for the tanker sector.” 

“At the same time, capital markets delevering and a structural restriction of availability of financing for tankers have substantially reduced the rate of large tanker ordering in the past six months,” Rogers continued. "This critical factor along with a sustained positive ton-mile expansion and the likelihood of persistently high global oil production provide support for a positive outlook for large tanker markets through 2016 and beyond."