Rare movements in the tanker market in the first quarter boost Euronav

Counter-seasonal movements in the first quarter 2023 large tanker market have only been seen twice previously since 1990, according to Euronav’s latest earnings report.
Euronav, the Belgian oil tanker shipping company, has reported a $175m profit in Q1 2022, compared to a loss of $43.4m in Q1 2021, thanks in part to increased demand for crude oil and anti-seasonal strength in the tanker markets. The company said that it predicts the market will continue to grow over the next few years, citing solid fundamentals characterized by limited shipbuilding capacity, few newbuilding orders, supportive fleet capacity and high assets. Euronav also supported OPEC+ production cuts, which are believed to boost the demand per tonne-mile by increasing the volume of crude oil sourced from across the Atlantic. Longer-term time charters are increasingly emerging, which could help to extend the good market times when the cycle turns down. The company has cautioned that further quarterly rate improvements could be difficult given the usual seasonal fluctuations in tanker demand in the second and third quarters, particularly refinery maintenance programs, lower Northern Hemisphere spring energy consumption and inventory planning.

Tags: Finance and Insurance,Europe,Middle East and Africa,Asia


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