Euronav’s ULCC Oceania is established rearrange to the Singapore location lugging 420,000 statistics lots of IMO 2020 certified reduced sulfur gas
When the IMO 2020 international gas sulfur cap starts on January 1, 2020, vessel titan Euronav NV (NYSE: EURN) ought to have no problem getting certified gas. It currently has 420,000 statistics lots of right stuff tucked away on a ULCC that’s rearranging to the Singapore location at the end of this month.
Releasing information of its IMO 2020 approach, Euronav claimed today that it has actually developed a committed gas purchase group as well as has actually so far acquired 420,000 statistics lots of certified gas oil (0.5% sulfur & & 0.1% sulfur), paying approximately $447 per statistics lot for Very Low Sulfur Fuel Oil versus $400 per statistics lot for HSFO throughout the very same acquisition duration.
“In summary,” states chief executive officer Hugo De Stoop, “Euronav has purchased the equivalent of 420,000 metric ton of compliant fuel and Marine Gasoil at what we believe to be a competitive price. This volume can provide a substantial coverage of our fuel requirements during the initial period of the regulation.”
He included that leveraging the firm’s annual report toughness as well as functional ability to buy as well as safeguard a supply of evaluated certified item ought to “provide a natural hedge for Euronav against any lack of fuel oil availability, poor quality compliant fuel or unwanted price spikes and help establish strong, direct B2B relationships for future fuel sourcing.”
Euronav has the globe’s just just 2 functional ULCC vessels, the Europe (2002– 442,470 dwt) as well as the Oceania (2003– 441,585 dwt). It states that both are one-of-a-kind movable storage space systems for use crude or gas oil provided their dimension as well as age. The Oceania has actually been made use of to save the certified gas Euronav has actually currently acquired as well as is rearranging to the Singapore location later on this month. The Europe is presently under industrial time charter with a 3rd party up until completion of 2019.
Euronav states that according to its approach of preserving a solid annual report to browse the vessel cycle, a brand-new $100 million rotating financing center has actually been safeguarded with a club of financial institutions in order to aid financing of the certified gas supply on the Oceania.
“The terms of this financing are attractive and in line with our other commercial bank funding regarding terms and rates,” states Euronav.”The gas acquired will certainly be represented according to supply monitoring audit regulations.
Euronav states that most of its purchase task up until now as well as moving forward has actually gotten on a brand-new certified gas of 0.5% sulfur material as well as not a mixed item.
“We believe that after a period where the markets will adapt to the new regulations, there will be ample and sufficient compliant fuel available to the shipping industry,” it includes.
Euronav remain to analyze the possible retrofitting of component of its fleet with scrubbers, particularly the non-eco VLCCs (most of Euronav VLCCs are eco-type).
Euronav thinks that it can still completely catch the possible advantages of a financial investment in scrubbers after the beginning of the guideline. “At that time,” it states,” the by-products market of LSFO ought to have created in dimension as well as in quantity, allowingallow Euronav to completely secure the advantages of the spread at the time of making the financial investment.”
It includes that this ought to also offer it a “second mover advantage” in finding out the problems of the preliminary of installments as well as enabling it take a choice based upon realities without needing to hypothesize.
