Euronav doubles Q3 core profit yr/yr; beats estimates
Reuters
Published Nov 02, 2023 09:48
(Reuters) - Belgian oil tanker firm Euronav on Thursday beat analysts expectations and more than doubled its core profit in the third quarter from the same year-ago period, helped by higher sales and high freight rates.
The market for very large crude carriers (VLCC) "has improved due to increased frequency of loadings from higher USA crude production", Euronav said in a statement.
Although freight rates fell modestly during the quarter, they still remained strong when compared to historic averages since 1990, Euronav added.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) were $209.6 million in the third quarter, beating the $177 million expected by analysts according to a consensus provided by the company, and more than double the $102.6 million reported in the same year-ago period.
"Since last week both Suezmax as well as VLCCs are enjoying a strong rally as charterers rush to secure supply head of any widening MEG conflict," Euronav said, referring to the Middle East.
Euronav added it wouldn't distribute a dividend for the third quarter, until the deal that will see its shareholder Compagnie Maritime Belge (CMB) take control of it is completed.
As part of that transaction, Euronav is selling 24 VLCC tankers to Frontline for $2.35 billion.
Sales in the quarter grew to almost 25% to $278.4 million, from $223.5 million a year earlier, the group said.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.