In the fourth quarter of 2024, Euronav reported a significant capital gain of $323.3 million from the sale of 23 VLCCs to Frontline as part of a $2.35 billion fleet sale. Another gain of $374.2 million is anticipated in Q1 2024. The resolution of a deadlock with Frontline in October 2023 marked a turning point, with CMB acquiring Frontline’s 26.12% stake in Euronav. The company also offloaded ULCC Oceania, realizing a $34.8 million capital gain as part of its fleet optimization strategy.
Strategic Moves and Fleet Expansion
Euronav’s CEO, Alexander Saverys, highlighted the company’s transformative quarter, emphasizing its commitment to becoming a reference in sustainable shipping. Additionally, Euronav chartered out two newbuilding ice-classed Suezmaxes to Valero and expanded its order book with four VLCCs from Qingdao Beihai.
Charter Rates Overview: Q4 2023 vs. Q4 2022
Charter rates in Q4 2023 exhibited a mixed trend compared to the same period in 2022. While average spot rates were lower for VLCCs, average time charter rates saw an increase. The full-year comparison, however, showed stronger rates in 2023 for both VLCC and Suezmax spot and time charters compared to 2022.
Key Charter Rate Figures (USD per day)
Fourth Quarter 2023
- VLCC Average Spot Rate (TI Pool): $41,700
- VLCC Average Time Charter Rate: $47,500
- Suezmax Average Spot Rate: $42,800
- Suezmax Average Time Charter Rate: $30,700
Fourth Quarter 2022
- VLCC Average Spot Rate (TI Pool): $57,400
- VLCC Average Time Charter Rate: $34,400
- Suezmax Average Spot Rate: $57,800
- Suezmax Average Time Charter Rate: $30,400
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Source: Seatrade Maritime
