Paddy Rodgers claims oil majors are demanding scale solutions

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.

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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