Euronav suffers $89.7M loss in “challenging” Q2

Antwerp-based tanker shipping company Euronav has reported a “challenging” second quarter of 2021 which ended in a $90 million deficit.

For the second quarter of 2021, the company posted a net loss of $89.7 million or $0.44 per share, compared to the second quarter of 2020 when the company suffered a net loss of $259.6 million (or $1.21 per share).

Proportionate earnings before interest, taxes, depreciation and amortisation (EBITDA) for the same period was $22.6 million, down from $362.1 million a year earlier.

Euronav’s loss for the period widened to around $90 million after $71 million in the previous quarter, so the overall net loss for the first half of the year was $160million. In 2020, the deficit for the same period was $485 million.

Euronav’s second-quarter performance is expected to have been affected by coronavirus-induced supply-chain disruptions.

One of the largest tanker companies in the world said COVID-19 restrictions were depressing demand for crude oil and for freight rates to gain traction, crude demand and supply dynamics will need to go back to their normal pattern. However, the timing remains uncertain.

Furthermore, the firm noted that improving crude demand and the tapering of OPEC+ production cuts have yet to translate into freight rate recovery. So far, the long-awaited oil production rises have not translated into sustainable increases in global crude exports.

To cope with the losses at the end of Q1, Euronav signed €80 million (around $93 million) unsecured revolving credit facility.

This new facility, which was significantly oversubscribed, was concluded with a range of commercial banks. The facility will have a minimum duration of 3 years, with two 1-year extension options.

The tanker company has also made counter-cyclical investments in a new generation of ships including eight new eco-vessels.

Euronav reported its best financial performance last year with a profit of $473 million , a major rebound from $ 112 million reported in 2019.