Euronav first-half net profit soars

Euornav posted a net income of USD 208.4 million (1H07: USD 135.5 million) or USD 4.03 (1H07: USD 2.58) per share, for the first half of 2008. EBITDA for the same period was USD 313 million (1H07: USD 250.6 million).

The average time charter equivalent rates (TCE) obtained by the company? VLCC fleet in the Tankers International (TI) pool was approximately USD 97,950 per day in the second quarter (2Q07: USD 56,250 per day) and USD 99,900 in the first half of 2008 (1H07: USD 54,600 per day).

The average time charter equivalent earnings of the Euronav Suezmax fleet, which is fixed on long term time charters (including profit shares on 9 ships at this time of the year), was USD 44,800 per day in the second quarter (2Q07: USD 34,000 per day) and USD 40,750 per day for the first semester 2008 (1H07: USD 34,850 per day).

The result of the second quarter was positively affected by the revaluation at marked-to-market levels of non-cash items such as hedge instruments on interest rates for a total of USD 17 million (1Q08: USD -18.6 million).

The outstanding earnings of the company are the result of the high crude freight rates that have remained extremely strong since the beginning of the year and also during the normally slow summer period.

This strength underlines a very tight market balance that in turn is explained by the early phase-out of single hulls due to scrapping, but also unwillingness of many charterers to use such vessels after the Hebei Spirit oil spill in November 2007 as well as the strong demand for conversion of both single hull and double hull ships into ore carriers and FSO/FPSO units.<Korea Shipping Gazette>