Euronav announces final half year results

During its meeting of 28 August 2013, the board of directors of Euronav NV approved the final consolidated financial statements for the period ended 30 June 2013. This press release refers also to the one distributed on 16 July 2013.
So far in the third quarter, the Euronav VLCC fleet operated in the Tankers International pool, has earned on average USD 16,000 per day and 75% of the available days have been fixed. The spot Suezmax fleet operated by Euronav directly has earned on average USD 14,700 per day and 68% of the available days have been fixed.
Highlights and activity report for the first half year of 2013
January
On 31 January 2013, the Company successfully launched an exchange offer on all outstanding bonds with maturity 31 January 2015 in exchange for newly issued convertible bonds maturing 31 January 2018. In total 1,250 bonds (USD 125 million) were tendered in exchange. Today only USD 25 million of the bonds maturing in 2015 remain outstanding.
February
In February, no transactions of particular significance for Euronav took place.
March
On 15 March 2013, the Company sold the Suezmax Cap Isabella (2013 – 157,648 dwt) upon her delivery from Samsung Heavy Industries and chartered the ship back on bareboat for a fixed period of 2 years with 3 options in favour of the charterer to extend for one further year. In case of a sale by the owner during the bareboat charter, the Company will share in any surplus if the vessel value exceeds a certain threshold. This transaction enabled Euronav to eliminate its only remaining capital expenditure whilst using very limited cash to take delivery of the vessel.
April
The Company fixed its Suezmax Cap Diamant (2001 – 160,044 dwt) on time charter contract for a period of 8 months with an additional option in favour of the charterer of one month.
May
Euronav continued to implement measures to reduce fuel consumption across its spot fleet. The Company retrofitted a number of vessels with a Mewis Duct, thus improving propeller efficiency, which has demonstrated to be one of the most efficient energy saving devices. In addition, electrical heaters are being installed across the fleet. These electrical fuel heaters provide substantial fuel and cost savings since they allow the heating of the fuel at a fraction of the cost than standard boilers when the ship is either idle or at slow steaming speed.
June
The Company’s biggest tanker vessel, the TI Europe, was drydocked in Brest to complete a full special survey.
On 24 June 2013 the Company has signed an extension of 4 years (until April 2018) on its USD 300 million senior secured credit facility originally signed in April 2009 and which at the time of the extension had an outstanding of USD 221 million. The facility continues to finance 6 vessels:  the VLCCs Olympia (2008 – 315,981) and Antarctica (2009 – 315,981 dwt) and four Suezmaxes: the Cap Felix (2008 – 158,764 dwt), the Cap Theodora (2008 – 158,800 dwt), the Felicity (2009 - 159,000 dwt) and the Fraternity (2009 -159,000 dwt) and kept the same amortization profile of USD 20 million per year.
Given the current circumstances in the tanker market, the board of Euronav NV has carefully reviewed all potential impairment indicators such as the current low freight rates environment as well as the current market value of the fleet compared to its carrying amount. The board tested the assets for impairment and at this point does not believe that an impairment loss needs to be recorded on its tankers. The board will continue to closely monitor developments in the tanker market during the second half of 2013 and review possible impairment indicators again at the end of the current year.
The board of directors, represented by Marc Saverys, its Chairman, and the executive committee, represented by Paddy Rodgers, Chief Executive Officer and Hugo De Stoop, Chief Financial Officer, hereby confirm, in the name and for account of Euronav that, to the best of their knowledge, the condensed consolidated interim financial statements for the six months ended 30 June 2013 which have been prepared in accordance with IAS 34 “Interim Financial Reporting” as adopted by the European Union, give a true and fair view, of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation as a whole. The half year management report includes a fair overview of the important events that have occurred during the first half year and of the major transactions with the related parties, and their impact on the condensed consolidated interim financial statements, together with a description of the principal risks and uncertainties for the remainder of the financial year.
To read the full report, click: http://www.euronav.com/Documents/IR/Press%20Releases/Final%20half%20year%20results%202013.pdf
Source: Euronav