Euronav strokes on VLCC newbuild resale triad


image description

Image: Euronav

Euronav NV (NYSE: EURN & & Euronext: EURN) has actually become part of an arrangement for the purchase of 3 VLCC newbuilding agreements.

The 3 VLCCs are presently finishing building at the DSME shipyard in South Korea and also are being gotten for an accumulated acquisition rate of $280.5 million, or $93.5 million per ship. All 3 vessels will certainly be fitted with exhaust gas scrubbers and also ballast water therapy systems.

The vessels are because of be provided early in the 4th quarter 2020 and also in January and also February 2021 specifically and also will certainly as a result be offered for the crucial winter months products markets in 2020/2021.

“The large tanker fundamentals remain constructive despite substantial headwinds surrounding economic activity linked to the coronavirus that we believe and hope will be temporary,” stated Euronav Chief Executive Officer
Hugo De Stoop “Current disruptions to the freight market have provided an opening for Euronav to be opportunistic and deliver what we believe will be long term value for our stakeholders. This transaction demonstrates our flexibility and our capacity to seize opportunities thanks to a strong balance sheet and a robust liquidity position.”

Euronav claims that the purchase follows its core business objectives. It keeps in mind that these vessels are ex-yard resales, which do not contribute to existing vessel supply.

Euronav will certainly fulfill the funding of this purchase with existing loaning centers and also financial debt capability. The settlement account for this purchase implies that the biggest section of the installations on each vessel will certainly be made on shipment of each ship.

Source of This New