• Sustained pressure on freight rates driven by mix of reduced demand from COVID-19 restrictions, lower crude supplyon OPEC cuts & over supply of available tonnage
• Extension to current FSO contracts for further 10 yearsto 2032
• Fixed cash dividend of USD 3 cents per share in line with distribution policy
• Up to an additional USD 50 million share repurchases
• Q1 2021: 46% VLCC spot booked at 16,396 USD per day, 54% of Suezmax booked at USD 9,207 per day
• Freight rate pressureto remain until crude demand recovery which is tied toCOVID-19 vaccine implementation from Q2 onwards
Antwerp, Belgium - 4 February 2021
Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) today reported its non-audited financial results for the fourth quarter ended 31 December 2020.
Hugo De Stoop, CEO of Euronav said: "The last quarter of 2020 and the present market conditions are amongst the most challenging in recent memory for crude tanker operators. COVID-19 restrictions 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 driving the ship recycling activity, traction with crude consumption returning to more normalized pre-COVID-19 levels is required to drive a return to stock and sector profitability.
Despite these headwinds Euronav remains focused through cycleon long term value generation which validates additional buy back focus and vessel acquisitions whilst retaining balance sheet strength".
Euronav is an independent tanker company engaged in the ocean transportation and storage of crude oil. The Companyis headquartered in Antwerp, Belgium, and has offices throughout Europe and Asia.
Euronav is listed on Euronext Brussels and on the NYSE under the symbol EURN. Euronav employs its fleet both on the spot and period market. VLCCs on the spot market are traded in the Tankers International pool of which Euronav is one of the major partners.
Euronav’s owned and operated fleet consists of 2 V-Plus vessels, 45 VLCCs (two to be delivered), 26 Suezmaxes (one of which is in a joint venture and two vessels time chartered in) and 2 FSO vessels (both owned in 50%-50% joint venture).
Euronav NV press release