The net gain on disposal of tangible assets contributed $407.6m to Euronav’s $495m first quarter profit.
This result can be compared to a net gain of $175m in the first quarter of 2023. The disposal of VLCC’s brought a capital gain to the company in the first quarter of 2024.
Belgium’s Euronav tanker owner has sold the 2008-built VLCC Nectar 307,284 dwt, the 2009-built VLCC Newton 307,208 dwt, and the 307,284-dwt VLCC Noble, built in 2008. The delivery of the vessels is expected during the second quarter of 2024 and a capital gain of around $82.7m will be booked.
The remaining 13 VLCC’s were delivered to Frontline. The total capital gain in the first quarter amounted to $372.7m.
The company’s proactive approach towards fleet modernization and diversification was evident in selling three older VLCCs and ordering new, technologically advanced vessels. Euronav’s orderbook now consists of two newcastlemaxes, two bitumen tankers and one container vessel.
The two newcastlemaxes, expected for delivery in the first half of 2027, will bring the total newcastlemax fleet to 4 ships on the water and 24 on order for delivery in 2024-2027.
Euronav also ordered two bitumen tankers during the quarter with China Merchants Jinling Shipyard (Yangzhou) Dingheng Co, as well as an ammonia-powered container ship.
The quarter was about financial gains and marked Euronav’s foray into sustainable shipping practices.
The launch of the first hydrogen-powered vessel in Africa, backed by Cleanergy, together with CMB.TECH, port of Antwerp Bruges and Namport, and the hydrogen production and refuelling station in Walvis Bay, Namibia, underscores Euronav’s commitment to green energy and innovation.
Additionally, this quarter also saw the owner reporting Ebitda of $550.5m, a significant increase compared to $258.5m in the first quarter of 2023.
