In its third quarter financial results Euronav said it was seeing a strong recovery in tanker freight rates “albeit from a very low base”.
The third quarter of 2021 was seen as a low point with the company reporting a $105.9m loss for the three-month period, compared to a $46.2m profit in the same period a year earlier. Year-to-date losses for Euronav stand at $266.6m.
Euronav reported average VLCC spot rates for Q3 of $9,000 per day, and a $10,250 per day average for suezmaxes.
An upturn in the fourth quarter is fuelling optimism.
Hugo De Stoop, CEO of Euronav said: “We have every reason to be confident that we have now come through the trough of this particular cycle, after a third quarter that was among the most challenging for our market in recent memory. Alongside a seasonal uplift ahead of winter, several catalysts have driven a sustained upward movement in freight rates during the current quarter.
“The demand for oil transportation is recovering thanks to an improved crude demand as part of post-Covid global economic recovery, additional demand for fuel oil as energy producers are switching to a cheaper solution, and an OPEC+ production growth translating into exports,” he said.
The company did however, raise the caveats of possible return to Covid-19 restrictions and crude oil already being a seven-year price
De Stoop was though confident about the medium term. “Whilst this has come from a low base level, we believe this trajectory will be maintained as oil demand continues to recover toward pre-Covid levels of consumption, and the robust medium term tanker market fundamentals gains traction going forward.”
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