The Belgian tanker owner on Wednesday turned in a net profit of $1.4m for the three months to 31 March, versus a deficit of $10.7m in the comparable period a year prior.
In the company’s earnings report it noted the result was impacted by $5m worth of extraordinary items that included costs associated with the acquisition of 15 VLCCs from Maersk Tankers.
Earnings before interest, taxes, depreciation and amortization (Ebitda) rose to $47.3m from $29.2m year-on-year despite a negative contribution from the operator’s tanker division, which logged a $5.9m loss.
Had Euronav not adopted new IFRS 10 and IFRS 11 accounting standards at the start of this year, however, and continued to apply the proportionate consolidation method to its joint ventures in the first quarter it claims Ebitda would have stood at $64.1m.
According to a recent report published by researchers at RS Platou Markets equity analysts were expecting Euronav to turn in a net profit of $4m and report $60m in Ebitda, which suggests the owner beat some forecasts but missed others.
As we reported the firm believes the Brussels-quoted company will likely pursue a US listing in the coming months. At last check its largest shareholders included Tanklog, Saverco, York Capital and Blue Mountain Capital.
While Euronav's net income was lower than many expected Wall Street observers tell TradeWinds they are hopeful the gain will set the tone for other publicly-traded tanker owners that are scheduled to report earnings in the weeks to come.
Today, the operator said its VLCCs enjoyed day rates of around $34,777 in the first quarter, which is well above the $21,000 time charter equivalent (TCE) rate average tonnage trading in the spot market recorded during the same stretch of 2013.
Suezmaxes linked to time charters commanded roughly $27,350 daily, which is nearly $4,000 higher than the TCE average the same ships posted 12 months ago, while spot earnings rose to $26,800 per day from $16,750 year-on-year.
