Spot tanker markets had a disappointing first half of the year. File Image / Pixabay
Tanker company Euronav has reported its financial results from the 'challenging' second quarter, posting a loss for the period.
The firm lost $89.7 million in the three months to June 30, down from a $259.6 million profit in the same period a year earlier, Euronav said in a statement on its website on Thursday.
The company's average VLCC spot rate was $11,250/day in the second quarter, down from $81,500/day a year earlier. For Suezmaxes the Q2 average spot rate was $10,500/day, down from $60,750/day in the same quarter of 2020.
"Improving crude demand and the tapering of OPEC+ production cuts have yet to translate into freight rate recovery," Hugo De Stoop, CEO of Euronav, said in the statement.
"Key market signals such as global crude inventory levels, rising asset prices and improved recycling rates suggest solid foundations are being established for cyclical recovery.
"However, for freight rates to gain traction crude demand and supply dynamics will need to go back to their normal pattern and this timing remains uncertain.
"Our confidence in the development of the medium-term tanker market remains positive."