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Euronav Dives into $112 Million Deal for New VLCC, With Option for Another
By Sea and Coast | 16/08/2023
Euronav, a prominent Belgian tanker shipping major, has clinched a substantial deal to acquire a cutting-edge Very Large Crude Carrier (VLCC) vessel. The company has reportedly invested a hefty $112.2 million in securing this vessel from an undisclosed party.
This high-value transaction not only marks a significant investment for Euronav but also includes a compelling option for the acquisition of an additional VLCC newbuild. With a grace period of two months, Euronav will meticulously assess the potential of exercising this option, reinforcing its strategic approach to fleet expansion.
The eagerly awaited VLCC vessel is primed for delivery in the third quarter of 2026, projecting Euronav's forward-looking perspective. The company, known for its diverse fleet composition, currently boasts ownership and operation of 1 V-Plus vessel, 41 VLCCs, 22 Suezmaxes, and 2 FSO vessels. This acquisition further cements Euronav's influential presence within the maritime industry.
Euronav's foresight is evident in its ongoing shipbuilding initiatives. Apart from the VLCC acquisition, the company is actively constructing five additional vessels, including a notable LNG-ready VLCC and four Suezmaxes. These vessels, poised for delivery in 2024, are being developed in collaboration with reputable shipbuilders, thereby strengthening Euronav's global footprint.
Notably, the Suezmaxes being constructed are equipped with advanced features such as scrubbers and the structural capacity for future adaptation to alternative fuels, including liquefied natural gas (LNG), ammonia, and methanol. This innovative approach enhances operational flexibility while aligning with evolving industry trends.
Euronav's strategic acumen extends beyond acquisitions and construction, as evidenced by its recent attainment of a sustainability-linked loan. This financial milestone was aimed at bolstering the financing for four newbuildings set to enter service in 2023, reflecting Euronav's commitment to sustainable practices and responsible growth.
Furthermore, Euronav's robust financial performance is evident in its second quarter results, where the company achieved a remarkable net income of $161.8 million. This starkly contrasts with a net loss of $4.9 million in the corresponding period of the previous year, showcasing the company's resilience and adaptability, even outside the context of the pandemic-driven freight rate surge observed in 2020.
With this latest move, Euronav continues to assert its influence and prominence in the shipping industry, setting its sights on a future characterized by technological innovation, sustainable practices, and strategic growth. The VLCC acquisition, coupled with its ongoing shipbuilding endeavors and impressive financial performance, solidifies Euronav's position as a trailblazer in the maritime realm.