Euronav to Take Full Control of VLCC V.K. Eddie

Antwerp-based tanker owner and operator Euronav NV has reached an agreement to buy out its 50% joint venture partner for full control of the 2005-built Very Large Crude Carrier (VLCC) V.K. Eddie.

Euronav will buy the 305,261 dwt vessel from the joint venture company Oak Maritime (Canada) Inc. at a price of USD 39 million and will receive back 50% of the proceeds.

Under the agreement reached between the parties, the Daewoo-built vessel would be delivered for full control to Euronav in mid-November.

“This is a logical move for both parties. It permits Euronav to further simplify our financial and operating structure. In addition, it reiterates our positive view on the medium-term outlook for the tanker sector by actively increasing our capacity at what, we believe, are attractive asset prices,” Hugo De Stoop, CFO, said.

Earlier this week, Euronav reported that its net profit for the third quarter of 2016 plunged to USD 0.1 million from USD 72.2 million reported in the same period a year earlier.

The company said that seasonal freight rate weakness compounded by vessel supply factors marked the third quarter.

“Freight rates were lower during the third quarter with anticipated seasonal weakness throughout the quarter compounded by higher levels of less favored vessel supply from several sources affecting tanker owners pricing behavior,” Paddy Rodgers, CEO of Euronav, said.

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