The figure is a massive surge when compared to a profit of $19.5 million in Q1 2019. The company’s revenue almost doubled from $232 million in the same quarter last year to $416 million in Q1, 2020.<\/p>\n Euronav attributed the record jump in earnings to a very robust freight market driven by increased crude supply and buoyant crude storage demand. As previous reports showed, tankers have been in high demand for storing crude amid a shortage of on-shore storage capabilities and plunging demand for oil due to COVID-19 shutdowns.<\/p>\n The build-up of crude inventory has negatively impacted the demand for seaborne crude oil transportation, but Euronav said that this has been over-compensated by demand for floating storage, resulting in skyrocketing freight rates.<\/p>\n The freight rates in the second quarter remain high, with VLCC rates reaching $ 95,000 per day and Suezmaxes earning $65,500 per day. <\/p>\n “Demand for tanker shipping is currently high and management believes will continue, albeit likely to remain volatile, throughout 2020,” <\/em>Euronav said.<\/p>\n The company believes a substantial oil contango market should be expected over the following 12 months amid gradual economic recovery. <\/p>\n “The longer these dynamics persist the longer and stronger the optionality for tanker owners will be to convert market dynamics into longer duration charters,”<\/em> the company added.<\/p>\n “Markets will become more challenging when a transition away from the current advantageous tanker market structure occurs, but we believe should not impact negatively for a prolonged period given the current age profile of the world tanker fleet coupled with the lowest order book on record in the last 23 years.”<\/em><\/p>\n Specifically, the order book for tankers is at 7 percent of the global fleet and there is a growing number of tankers that will likely become candidates for scrapping by next year due to their age and incompatibility with new regulations.<\/p>\n On the other hand, there seems to be little incentive to order new ships due to the ongoing economic situation and insufficient financial backing to support such orders.<\/p>\n<\/p>\n The post Euronav posts massive surge in Q1 profit<\/a> appeared first on Offshore Energy<\/a>.<\/p>\n world maritime news<\/p>\n","protected":false},"excerpt":{"rendered":" Antwerp-based tanker shipping company Euronav is reaping large profits from strong underlying tanker dynamics having reported $225.6 million of profit in the first quarter of 2020. The figure is a massive surge when compared to a profit of $19.5 million in Q1 2019. The company’s revenue almost doubled from $232 million in the same quarter …<\/p>\n","protected":false},"author":1,"featured_media":9386,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64],"tags":[556,4172,1309,3543,3200],"class_list":["post-9385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maritime-news","tag-euronav","tag-massive","tag-posts","tag-profit","tag-surge"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/9385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=9385"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/9385\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/9386"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=9385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=9385"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=9385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Acquitane\"](\"https:\/\/cdn.offshorewind.biz\/file\/sites\/6\/2020\/05\/07095345\/Eurinav_Acquitane.png\")