Euronav Decides Against Option for Order of Four VLCCs

by Ship & Bunker News Team
Friday October 30, 2015

Belgium-based Euronav NV (Euronav) says it has decided not to exercise its option to have four addititonal newbuilding very large crude carriers (VLCCs) built, noting that the option was retained in case the value of the vessels increased from its acquisition of an original four VLCCs in June.

"The value of the option was to have a sort of hedge against any significant vessel price inflation, which in the meantime has not materialised," explained Euronav.

"After careful consideration, the Board has decided not to exercise the option to purchase four VLCCs."

Euronav says the value of the potential newbuilds have been written off to zero, with the company taking an $8 million non-recurring charge for the third quarter of 2015.

The company says that its current fleet of 54 vessels, with three VLCCs set to be delivered by early 2016, make Euronav "ideally positioned to benefit from this positive freight market environment."

In August, it was reported that earnings growth in the oil and crude segment during the first half of 2015 had surprised international shipping analysts by “significantly” exceeding forecasts.

Ship & Bunker News Team
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