Euronav Announces Second Quarter and First Half 2022 Results

[By: Euronav]

Euronav NV reported its non-audited financial results today for the second quarter ended 30 June 2022.

Hugo De Stoop, CEO of Euronav said: “Recent months have proven to be pivotal for Euronav. First, freight markets have improved substantially since March and continued this recovery on a counter-seasonal basis. Second, we have increased future fixed income streams to 2032 via the FSO joint venture partner buyout. Third, during the quarter we undertook a significant rejuvenation resulting in a reduction of the average age of our fleet and still have 10% organic core fleet growth to come from vessels under construction over the next 18 months. Fourth, our decarbonisation strategy and pathway to net zero by 2050 is the first such framework to be applied by a crude tanker company. Finally, the proposed combination with Frontline will further substantially enhance this positioning by adding scale and influence.

Recent trading data points - such as China’s return to crude procurement, vessel supply metrics and improved oil supply - have underpinned a recovery in the freight markets which is unusual for the season. Euronav is ideally placed to benefit from the shorter-term cyclical recovery but also the robust medium-term fundamentals of our market.”

HIGHLIGHTS

Stronger freight rate market gaining traction in third quarter to date
Fleet rejuvenation: 2 VLCCs bought and 4 VLCCs sold & 3 Suezmaxes sold, significantly reducing fleet age
Q3 to date spot rates 47% fixed at 12,700 USD per day VLCC with 49% fixed at 23,900 USD per day Suezmax
Binding combination agreement for merger with Frontline agreed with exchange offer launch expected during fourth quarter of 2022
FSOs contracted to 2032 - fully consolidated 100% under Euronav ownership
Decarbonisation: Commitment to net zero emissions by 2050 with key future milestones