Euronav Doubles Q3 Core Profit Yr/yr; Beats Estimates
Belgian oil tanker firm Euronav on Thursday beat analysts' expectations and more than doubled its core profit in the third quarter from the same year-ago period, helped by higher sales and high freight rates.
The market for very large crude carriers (VLCC) "has improved due to increased frequency of loadings from higher USA crude production", Euronav said in a statement.
Although freight rates fell modestly during the quarter, they still remained strong when compared to historic averages since 1990, Euronav added.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) were $209.6 million in the third quarter, beating the $177 million expected by analysts according to a consensus provided by the company, and more than double the $102.6 million reported in the same year-ago period.
"Since last week both Suezmax as well as VLCCs are enjoying a strong rally as charterers rush to secure supply head of any widening MEG conflict," Euronav said, referring to the Middle East.
Euronav added it wouldn't distribute a dividend for the third quarter, until the deal that will see its shareholder Compagnie Maritime Belge (CMB) take control of it is completed.
As part of that transaction, Euronav is selling 24 VLCC tankers to Frontline for $2.35 billion.
Sales in the quarter grew to almost 25% to $278.4 million, from $223.5 million a year earlier, the group said.
(Reuters - Reporting by Olivier Sorgho and Nathan Vifflin; editing by Miral Fahmy)