Tuesday, April 21, 2009

Tanker operator Euronav gets new loans

Lloyds List reports Euronav has secured loans to finance new ships.

Is this really a good thing? Some are existing ships, and 2 are newbuildings.

They don't give details, but unless they got these ships at "fire sale" prices, I question if this is good investment.

The tanker market has dropped dramatically. This, from yesterday, April 20, 2009

TANKERS are being chartered for voyages at spot rates that fail to cover bunker and port costs, as earnings dramatically plunge across all tanker types in both dirty and clean trades.


Unless oil consumption picks up, there won't be increased business for tanker operators.




EURONAV has accompanied sharply lower first quarter profits with the positive news that Belgium’s leading tanker operator has secured a $300m loan to help finance six vessels.

Net profit dropped to $16.78m from $80.74m in the opening three months of 2008, or to $0.34 per share from $1.56.

Euronav said it remained “cautious” about the outlook for the rest of the year after rates had “softened significantly” in recent weeks to a level lower than expected.

“This is due to a lower demand for transportation caused by a reduced demand for crude oil as part of the global economic recession,” the company said.

Euronav said it had signed a $300m senior secured facility with Nordea, Calyon, Société Générale, Bank of America and Scotiabank acting as lead arrangers, and Nordea, Calyon and Société Générale acting as bookrunners.

The credit facility will finance two very large crude carriers and four suezmaxes.

The VLCCs are the 2008-built, 315,981 dwt Olympia and the 2009-built, 315,981 dwt Antarctica.

The suezmaxes comprise two existing vessels: the 2008-built 158,764 dwt Cap Felix and the 2008-built 158,800 dwt Cap Theodora, and two newbuildings for delivery in June and November of this year.

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