Report: Euronav Cancels Suezmax Contract
January 18, 2012
Euronav NV (EURN) canceled an order for a suezmax tanker to preserve cash following six quarters of unprofitable rates for its biggest vessels, according to a Bloomberg report. The 4Q net loss widened to $50.7 million from $17.6 million a year earlier, it reported. The results included a charge of $25.5 million related to advance payments made to Samsung Heavy Industries Co. (010140) for a suezmax on order that has now been canceled.
Euronav, which operates half of its fleet in the single-voyage market, said its very large crude carriers, or VLCCs, earned an average $22,250 a day for a single voyage so far this quarter, compared with $14,200 in the fourth quarter and less than the $34,700 it says it needs to break even.
