Tanker carrier Euronav reduced its deficit in a first quarter characterized by a proposed merger with Frontline. The company eyes a strengthening in freight rates. Being updated.
Photo: PR / Euronav
Euronav sets out with a deficit in the first months of the year, which for the Belgian tanker company’s part will probably be remembered first and foremost for a proposed merger with rivaling Frontline.
The carrier books a net Q1 deficit of USD 43.4m. Despite these red figures, business has improved since the corresponding period of last year, when Euronav lost an entire USD 71m on its bottom line.
Like a number of tanker carriers, Euronav, too, reports a recent strengthening of tanker rates as the war in Ukraine and sanctions against Russia have altered trade patterns.
According to the company, the end of Q1 saw a ”further sequential freight rate improvement,” which has continued into Q2.
”The conflict in Ukraine has driven considerable dislocation in tanker market freight patterns as sanctions and so-called self-sanctioning by market participants has driven ton-mile growth,” says Chief Executive Huge De Stoop in a financial statement.
”The uplift to freight rates continues to have momentum as oil supplies have increased driven by higher prices, OPEC+ production rising and strategic reserve releases.”
Being updated.
English edit: Jonas Sahl Hollænder
