Euronav hits out at share price drop

Euronav hits out at share price drop

In a trading update today Belgian tanker giant Euronav has reemphasised that prospects for large crude tankers remain robust this year. This comes as crude tanker stocks have taken a hit this year, with investors increasingly favouring product plays.

“Notwithstanding the current capital markets sentiment which seems to be predominantly negative, Euronav wishes to emphasize that it continues to experience robust and fundamental strength in the VLCC and suezmax sectors,” the company stressed. Its average daily time charter equivalent rates this year are higher than in the last quarter of 2015.

Euronav also revealed it is in the final stage of selling the VLCC, one of its two oldest VLCC vessels, for $38.4m. The vessel will be delivered to its new unspecified owner in the course of the first quarter 2016.

Euronav said it feels the recent fall in its share price, even taken in perspective to a wider peer group, does not correctly reflect the current value of the share.

Euronav will release its fourth quarter 2015 unaudited results on January 28.

Speaking with Maritime CEO a week ago, Paddy Rodgers, the firm’s CEO, said: “2016 will be another robust year for tankers.”

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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