In order to fulfil two new long-term time charter contracts with Valero Energy, Euronav has ordered two Ice Class Suezmax vessels from Hyundai Heavy Industries.
Starting in late 2018, this brings the number of Euronav’s long-term (seven years) Suezmax time charter contracts to fo[ds_preview]ur.
In order to fulfil these two new contracts, Euronav has ordered two high specification Ice Class Suezmax vessels from Hyundai Heavy Industries shipyard in South Korea. Additional specifications for these vessels include substantially increased steel structure, specific emissions controls and other bespoke operational capabilities. Delivery of the ships is expected in the second half of 2018 when each of the time charter contracts will begin.
Euronav believes it has secured an »excellent price« for the ships in line with its policy of not adding speculative new capacity to the global tanker fleet. Euronav anticipates the new vessels on order will replace its older Suezmax vessels hence this order will not add net tonnage to the global Suezmax tanker fleet.
During its recent first quarter results commentary, the Company stated its belief that asset values were approaching a low point supported by reduced immediate newbuilding berths at the yards and fewer speculative buyers. »This transaction underlines this belief. The addition of a further two seven-year contracts greatly increases our fixed income contribution to EBITDA in 2018 and onwards which differentiates the Company from its peer group,« Euronav said in a statement.
