Inside Euronav’s 2Q17 Results
Euronav’s (EURN) revenues and EBITDA (earnings before interest, tax, depreciation, and amortization) both fell in 2Q17. To be sure, the second quarter was challenging for the entire crude tanker industry.
2Q17 highlights: Euronav
Euronav secured an extension of its two FSO (for services of) contracts for five years. This provides further fixed income to Euronav until 2022. The company also secured two seven-year Suezmax time charters during the quarter, which will give fixed income until 2025.
Below are several more key highlights:
- Euronav revised its dividend policy to fixed dividend.
- The company strengthened its balance sheet and secured financing for two VLCCs (very large crude carriers) delivered in January.
- Euronav’s revenue for the first six months dropped to $290 million from $404 million in the same period last year. Its EBITDA fell to $144 million from $282 million in 1H16.
- The company sold one of its VLCCs in June and recorded a capital loss of $21 million for 2Q17.
Euronav’s stock has fallen 9.43% YTD (year-to-date), compared with the following YTD returns of its crude tanker peers as of August 14, 2017.
- Teekay Tankers (TNK): 31.6% fall
- Frontline (FRO): 24.6% fall
- Nordic American Tankers (NAT): 35.3% fall
- DHT Holdings (DHT): ~7.4% fall
- Navios Maritime Midstream Partners (NAP): 17.9% fall
In this series, we’ll look at Euronav’s 2Q17 results and analyze the company’s key developments. We’ll also focus on the company’s outlook and take a close look at its views of the crude tanker industry. In the last part, we’ll discuss the analysts’ recommendations for Euronav stock.