Euronav says ‘too many ships are chasing too few cargoes’ in financial update
Euronav NV has reported its final financial results for the full year to December 31, 2020.
Hugo De Stoop, CEO of Euronav, said: “2020 will be recorded as one of the most tumultuous in tanker market history.
“Euronav’s positioning ensured shareholders were able to benefit from record freight rate performance over the first half of 2020, with $371 million returned via cash dividends and share repurchases. Whilst the second half rapidly gave way to a highly challenging tanker market, Euronav’s balance sheet strength and strategy of modern fleet allow the company to navigate such volatile periods.
“Current market conditions are amongst the most challenging in recent memory for crude tanker operators. COVID-19 consequences continue to impact operations and more importantly the demand for crude oil. This has led OPEC+ to extend production cuts.
“As a result, the market remains unbalanced with too many ships chasing too few cargoes. Whilst some encouraging signs are emerging, like the price of scrap steel, a driver of ship recycling activity, traction with crude consumption returning to more normalised pre- COVID-19 levels is required to drive a return to the sector profitability. Despite these headwinds Euronav remains focused through cycle on long term value generation which may validate vessel acquisitions whilst retaining balance sheet strength.”
For more information visit www.euronav.com
6th April 2021