Euronav slumps to $339m loss in 2021, omicrom derails Q4 recovery

In a dire year for tanker markets Euronav reported revenues of $419m for 2021, compared to $1.21bn in the previous year. The company slumped to $339.2m loss for 2021 as a whole against a $473.2m profit in 2020.

Hugo De Stoop, CEO of Euronav said: “The encouraging tanker market recovery evidenced at the time of our Q3 results was unfortunately deferred by the spread of the omicron variant from mid-November and the associated swift restrictions on economic activity.”

In Q4 average VLCC spot rates for vessels traded in the Tankers International (TI) pool were just $12,500 per day, although this was slightly above the full year average of $11,300 per day. For Suezmaxes traded on spot in the TI pool the Q4 average was $11,300 per day, while the full year average for 2021 was just $11,100 per day.

Despite the continued loss making spot rates in Q4 for large tankers Euronav remains confident that it is a temporary set back and that the market is set for a rebound.

De Stoop said: “Prospects for a strong rebound in oil supply, restocking requirements of global crude inventory, and consumption returning to 2019 levels are all on track for delivery during 2022. Euronav maintains a strong balance sheet and liquidity position and is using the downturn in the cycle to upgrade its fleet through an intense drydock programme and rejuvenate it.”

The company believes a 25-year low in the orderbook/existing fleet ratio and incoming environmental regulations will provide a supportive base for recovery.

“The catalyst for recapturing higher and sustained freight rates will come from delivery in oil supply, consumption, and inventory restocking that key commentators such as the IEA are forecasting for fiscal 2022,” Euronav said.

Euronav added two newbuild suezmaxes in January and will take delivery of a further three suezmaxes and three VLCCs in the coming 18 months. The company is redelivering four older, non-eco, VLCCs.

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