Belgian oil tanker and storage operator Euronav on Thursday reported stronger than expected second quarter results, driven by high freight rates.

The tanker market, which battled low earnings after the pandemic hit oil demand, got a boost last year when Russia’s invasion of Ukraine diverted oil exports from Europe, mainly to Asia, and many Western buyers turned to other suppliers.

“Euronav has delivered its strongest ever Q2 operating performance outside the exceptional COVID pandemic situation of 2020,” said Lieve Logghe, CFO and interim CEO, in an earnings statement.

The group’s proportionate earnings before interest, taxes, depreciation and amortisation (EBITDA) were $247.6 million in the second quarter, beating a mean estimate of $235.07 million by analysts polled by Refinitiv.

Revenue for the second quarter was $348.1 million, compared to the estimated $318.0 million and a nearly 10% increase from the same period in 2022. Net profit stood at $161.8 million, above estimates of $154.79 million, and rebounding from a loss of $4.9 million in 2022.

Despite a seasonal cargo volume reduction in Q2 and Q3, Euronav says the large crude tanker market’s strength could be sustained because of a significantly smaller impact from seasonal factors than historically observed.

In the third quarter of 2023, Euronav’s very large crude carriers (VLCC) in the Tankers International Pool earned about $44,750 per day with 45% of available days fixed, while its Suezmax fleet trading on the spot market earned an average of about $49,500 per day with 50% fixed, the group added.
Source: Reuters (Reporting by Dina Kartit, editing by Jane Merriman and Barbara Lewis)