Euronav Orders Suezmax Duo at HHI

Image Courtesy: Euronav

Belgian tanker owner and operator Euronav has placed an order for two high specification Ice Class Suezmax vessels with Hyundai Heavy Industries (HHI) shipyard in South Korea. 

The company said that the order has been prompted by the signing of an additional two long-term time charter contracts of seven years each with Valero Energy Inc. for two Suezmax vessels with specialised Ice Class 1C capability starting in late 2018.

The latest deal is the fourth Euronav’s long-term (seven years) Suezmax time charter contract, the company added.

Delivery of these vessels is expected in the second half of 2018 when each of the time charter contracts will begin.

“Euronav believes it has secured an excellent price for two high specification vessels in line with its policy of not adding speculative new capacity to the global tanker fleet. Euronav anticipates the new vessels on order will replace its older Suezmax vessels hence this order will not add net tonnage to the global Suezmax tanker fleet,” Euronav said.

The fleet renewal is in line with Euronav’s expectations that asset values are approaching a low point supported by reduced immediate newbuilding berths at the yards and fewer speculative buyers.

Furthermore, the company pointed out that the addition of the further two seven-year contracts greatly increases its fixed income contribution to EBITDA in 2018 and onwards.

“By extending our strong partnership with a key customer, Euronav is also providing high quality and long duration earnings visibility for our stakeholders. Such fixed income capability provides Euronav with enhanced financial optionality as we move forward,” Euronav’s CEO, Paddy Rodgers noted.

In terms of its newbuilding fleet, the company recently acquired two VLCCs under construction which were acquired as resales of existing newbuilding contracts and four Suezmaxes under construction. The latest order brings Euronav’s owned and operated fleet to 57 ships, including also 1 V-Plus vessel, 31 VLCCs, 19 Suezmaxes and two FSO vessels (both owned in 50%-50% joint venture).

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >