Oil shipping company Euronav reported the freight market remained difficult and challenging in the first quarter of 2018 with revenue down at US$98.1 million compared to US$164.2 million in the same period of 2017.
Operating profit, EBITDA, for the 3 months was US$25.8 million, versus US$101.3 million in Q1 2017, and net result was a loss of -US$39.1 million, versus US$34.3 million in Q1 2017.
Paddy Rodgers, CEO, said "Oil demand has been consistently upgraded over the past six months which along with increased levels of recycling, 21 VLCC year to date, are encouraging developments for all tanker operators. However, the rebalancing of the tanker market requires further affirmative action in reducing primarily older tonnage, restraint from contracting and a supportive oil price structure. Freight rates will remain under pressure until this process of rebalancing is much further advanced. Euronav retains both now and going forward substantial balance sheet capacity and fixed income visibility to navigate through such periods and remains confident on the medium-term trends for the crude tanker market."
The proposed merger with US based Gener8, subject to a Gener8 shareholders vote, is forecast to close at the end of Q2 2018.