Third Quarter Results 2009
The executive committee of Euronav NV (EuroNext Brussels: Eurn) today reported its financial results for the three months ended 30th September 2009.
Antwerp, Belgium, October 25, 2009 --(PR.com)-- For Full Press Release Please Go To Euronav Corporate Website: euronav.com
The company had a net result of USD -21 million (third quarter 2008: USD 158 million) or USD -0.42 (third quarter 2008: USD 3.05) per share, for the third quarter 2009. EBITDA for the same period was USD 35.7 million (third quarter 2008: USD 216.6 million). The average daily time charter equivalent rates (TCE) obtained by the company’s fleet in the Tankers International pool was approximately USD 23,100 per day (third quarter 2008: USD 116,000 per day). The time charter equivalent earnings of the Euronav Suezmax fleet which is mostly fixed on long term time charters, including profit shares when applicable, was USD 29,300 per day (third quarter 2008: USD 46,000 per day) for the third quarter 2009.
Tanker
Since the end of the first quarter, the freight market for seaborne transportation of crude oil has been very low. This is due to a lower demand for transportation caused by a reduced demand for crude oil as part of the global economic recession. As the world economy seems to come out of the recession, demand for crude oil is also picking up. Management remains cautious however in respect of the outlook for the rest of the year.
So far in the fourth quarter, Euronav VLCC fleet operated in the tankers International pool has earned USD 22,400 per day and 33% of the available days have been fixed. These rates remain low for the season but last week’s increased chartering activity and significant improvement in the freight rates could be the start of a seasonal uptick.
FSO
The mechanical completion of the FSO Asia was completed by the end of September as previously announced. An extensive commissioning will be completed by the end of October and the vessel is expected to be delivered to Maersk Oil Qatar (“MOQ”) at the Al Shaheen field in the early days of November.
The conversion work on the FSO Africa is progressing well and productivity has increased since the completion of the FSO Asia. The mechanical completion of FSO Africa is currently foreseen for January 2010. The delivery on the field to MOQ is expected to take place shortly after a commissioning period but Euronav is uncertain as to whether the FSO Africa will be able to commence its services before 19 January 2010. In the event that the vessel is not delivered to MOQ on, or before 19 January 2010, MOQ could, in the extreme case, exercise its right to terminate one or both FSO service contracts. However, management is confident that both FSOs remain a critical part of a multi-billion dollar field expansion at Al Shaheen as they will not only increase the provision of Floating Oil Storage and offloading services but also provide accommodation, transport and storage space for the other facilities in the field.
Also, because the FSO Africa was scheduled to commence its service on 21 September 2009, TI Africa limited, a company owned 50% by Euronav, should have to pay liquidated damages to MOQ until the FSO Africa is delivered to the Al Shaheen field.
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The company had a net result of USD -21 million (third quarter 2008: USD 158 million) or USD -0.42 (third quarter 2008: USD 3.05) per share, for the third quarter 2009. EBITDA for the same period was USD 35.7 million (third quarter 2008: USD 216.6 million). The average daily time charter equivalent rates (TCE) obtained by the company’s fleet in the Tankers International pool was approximately USD 23,100 per day (third quarter 2008: USD 116,000 per day). The time charter equivalent earnings of the Euronav Suezmax fleet which is mostly fixed on long term time charters, including profit shares when applicable, was USD 29,300 per day (third quarter 2008: USD 46,000 per day) for the third quarter 2009.
Tanker
Since the end of the first quarter, the freight market for seaborne transportation of crude oil has been very low. This is due to a lower demand for transportation caused by a reduced demand for crude oil as part of the global economic recession. As the world economy seems to come out of the recession, demand for crude oil is also picking up. Management remains cautious however in respect of the outlook for the rest of the year.
So far in the fourth quarter, Euronav VLCC fleet operated in the tankers International pool has earned USD 22,400 per day and 33% of the available days have been fixed. These rates remain low for the season but last week’s increased chartering activity and significant improvement in the freight rates could be the start of a seasonal uptick.
FSO
The mechanical completion of the FSO Asia was completed by the end of September as previously announced. An extensive commissioning will be completed by the end of October and the vessel is expected to be delivered to Maersk Oil Qatar (“MOQ”) at the Al Shaheen field in the early days of November.
The conversion work on the FSO Africa is progressing well and productivity has increased since the completion of the FSO Asia. The mechanical completion of FSO Africa is currently foreseen for January 2010. The delivery on the field to MOQ is expected to take place shortly after a commissioning period but Euronav is uncertain as to whether the FSO Africa will be able to commence its services before 19 January 2010. In the event that the vessel is not delivered to MOQ on, or before 19 January 2010, MOQ could, in the extreme case, exercise its right to terminate one or both FSO service contracts. However, management is confident that both FSOs remain a critical part of a multi-billion dollar field expansion at Al Shaheen as they will not only increase the provision of Floating Oil Storage and offloading services but also provide accommodation, transport and storage space for the other facilities in the field.
Also, because the FSO Africa was scheduled to commence its service on 21 September 2009, TI Africa limited, a company owned 50% by Euronav, should have to pay liquidated damages to MOQ until the FSO Africa is delivered to the Al Shaheen field.
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Contact
Euronav NV
Jane Finlay
+44 (0)1689 860660
Jane Finlay
+44 (0)1689 860660
Contact
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