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VLCC earnings are up 80% for the third quarter compared with the third quarter last year, Antwerp-based tanker company Euronav said in its third quarter results for 2014.

The company said that the outlook for the seasonally stronger fourth quarter is looking stronger than in the last four years as “the fleet growth is minimal and the average distance over which cargoes need to be transported by ships is increasing.”

“This is being further supported by a lower oil price which is reducing voyage expenses and should stimulate demand for crude oil.

Asset prices have risen steadily since the start of the year on the expectation of improved prospects,” Euronav explained.

For the third quarter 2014, the company had a net result of USD -20.6 million, cutting the third quarter loss from 2013 that amounted to USD -27.1 million.

EBITDA for the same period was USD 36.3 million (third quarter 2013: USD 16.6 million).

The company’s stock jumped by almost to 5% this morning in the wake of published results.

The financial result is said to be affected by USD 12.4 million of amortization of financial expenses (non-cash) of which the main part is related to the financing of the Maersk fleet.

In terms of Maersk fleet deliveries, the following VLCCs joined Euronav’s fleet: the Iris (2012 – 314,000 dwt), the Nectar (2008 - 307,284 dwt), the Neptun (2007 – 307,284 dwt), the Noble (2008 – 307,284 dwt), the Simone (2012 – 314,000 dwt), the Sonia (2012 – 314,000 dwt) and the Sandra (2011 – 323,527 dwt), the fifteenth and last vessel of the Maersk acquisition announced on 5 January 2014.

Euronav operates its spot VLCC tonnage through the Tankers International Pool of which it is a founding member. Since the 6th of October 2014, the Pool has been operating in a joint venture with Frontline.