Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) announces it has entered into an agreement for the acquisition through resale of one VLCC newbuilding contract.
Currently completing construction at the DSME shipyard in South Korea this modern eco- VLCC is being acquired for USD 93 million and will be fitted with Exhaust Gas Scrubber technology and Ballast Water Treatment System. The vessel is due for delivery early in the first quarter of 2021 and is an identical sister ship of the 3 VLCCs acquired last month.
Hugo de Stoop, CEO said: “Management and the board continue to believe that the fundamentals of the large tanker market remain constructive despite substantial headwinds surrounding economic activity linked to the Corona Virus. We believe and hope these will be temporary albeit likely to impact tanker markets until the end of the summer 2020.”
Acquisition rationale and funding
This transaction is consistent with our core company objectives with the vessel being an ex-yard resale, thus not adding to existing vessel supply. Euronav will meet the financing of this acquisition with existing borrowing facilities and debt capacity. The payment profile for this transaction means that the largest portion of the instalments will be made on ship delivery. Balance sheet debt leverage will continue to remain appropriate in order to allow the Company to retain its strength and flexibility.