‘Transformative’ Q4 at Euronav marks a change in direction

The company recorded a $323.3m capital gain in the quarter from the sale of vessels to Frontline, and it expects a further $374.2m gain Q1 2024. Of the 24 VLCCs sold to Frontline, 23 have now been delivered and the last ship Camus is expected to be delivered in March.

Separately, Euronav has offloaded ULCC Oceania as part of its fleet optimisation strategy. The ship was delivered to its new owners on January 15 and will bring a capital gain of $34.8m.

Alexander Saverys, CEO of Euronav said: “The fourth quarter of 2023 has been a transformative one for Euronav. A solution for the deadlock with Frontline was found, CMB solidified its position as anchor shareholder and the CMB.TECH transaction was announced… Euronav is quickly gearing up to become the reference in sustainable shipping.”

The agreement on 9 October 2023 brought an end to a bitter back and forth between Euronav and Frontline over Euronav’s future, with the parties agreeing to drop pending arbitration in return for the sale of the 24 VLCCs to Frontline and for CMB to acquire Frontline’s 26.12% stake in Euronav.

The company also said it had chartered out two newbuilding ice classed Suezmaxes on order at Daehan Shipbuilding to Valero from their delivery dates in April and May 2026. The company also took its orderbook to four VLCCs by firming options at Qingdao Beihai.

Charter rates were a mixed bag in Q4 2023 compared to the Q4 2022, with average spot rates lower and average time charter rates high. Comparing the full year, VLCC and Suezmax spot and time charter rates were stronger in 2023 than the prior year.

In USD per day	Fourth quarter 2023	Fourth quarter 2022	Full Year 2023	Full Year 2022
VLCC
Average spot rate (in TI Pool)*	41,700	57,400	47,600	27,600
Average time charter rate**	47,500	34,400	48,500	42,900
SUEZMAX
Average spot rate***	42,800	57,800	55,700	31,200
Average time charter rate	30,700	30,400	30,500	30,400

*Euronav owned ships in TI Pool (excluding technical off-hire days)
**Including profit share where applicable
*** Including profit share where applicable (excluding technical off-hire days)

Source: Euronav

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