Euronav Buying Maersk Tankers VLCCs

by Ship & Bunker News Team
Tuesday January 7, 2014

Euronav NV [EBR:EURN] says it has reached an agreement with Maersk Tankers to buy 15 very large crude carriers (VLCCs) for a total of $980 million.

"The outlook for the large crude tanker market has improved significantly over the last months indicating a resurgence of demand and an improved near term outlook," Euronav said.

"Euronav considers the acquisition as a first step towards a wider consolidation of the world tanker fleet, with the concurrent benefits of synergy and logistical enhancement to the benefit of all stakeholders."

Fourteen of the vessels will be delivered between late January and June, while one ship that is now under charter will be delivered toward the end of the year.

The vessels, with an average age of four years, will join Euronav's current fleet of one ultra-large crude carrier (ULCC), 11 VLCCs, and 23 Suezmaxes.

The ships will operate in the Tankers International VLCC Pool.

Euronav said in a separate statement that it will raise $50 million with the issuance of 5.5 million new shares in connection with the deal.

It will also convene an extraordinary shareholders' meeting in February to consider issuing another 32.8 million shares to raise $300 million.

Ship & Bunker News Team
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