Admitting current markets remain difficult, Paddy Rodgers has issued a comment on the growing demands from clients for a more consolidated tanker fleet. The Euronav boss was speaking on the successful takeover of fellow tanker operator Gener8 this week.
“Completing this transaction provides the crude tanker market with a global player of substantial size. Increasingly our customers and clients are demanding flexibility and scale solutions to their transportation requirements. The enlarged operation will allow Euronav to meet these specifications,” Rodgers said.
The Gener8 transaction makes Euronav a sector leader by some distance with a fleet of 74 crude tankers and two FSO vessels. The tanker fleet consists of 43 VLCCs, 27 suezmaxes, two ULCCs and two LR1s. Balance sheet assets of the combined company are worth more than $4bn. Moreover, Euronav pointed out in a release today that it has liquidity of more than $800m to hand, suggesting the company could look to take on more assets.
Many of the newly acquired VLCCs will head into the spot market-orientated Tankers International Pool, which can now boast 65 VLCCs with Euronav claiming it offers the lowest commercial fees as a percentage of revenue in the sector.