Bulker newbuilding prices remain “interesting” despite recent rises, according to Euronav.
But during an earnings call to discuss first-quarter results, bosses at the Saverys-owned shipping company sounded unlikely to be adding to their 24-strong ammonia-ready newcastlemax order slate.
Chief executive Alexander Saverys said that for 2028 deliveries from Chinese shipyards, “we are hearing rumours of $80m newcastlemaxes”.
No prices have been disclosed for its own new vessels, but he added: “We’re in the money on our newbuildings. That’s positive for the value of our company.”
In April, John Fredriksen’s private Seatankers Management returned to Qingdao Yangfan Shipbuilding for four conventionally fuelled newcastlemaxes at around $68m each.
Euronav chief financial officer Ludovic Saverys told the call: “On the tanker newbuilding, speculatively ordering, we think the market has topped out in terms of timing of deliveries but also price, which is becoming quite expensive.
“On the dry bulk side, prices are still interesting, but the slots available are quite difficult to justify a large expansion on the newbuildings.
“It is not that we have a fixed target for a capex programme, but yes, we will jump on opportunities should we see … attractive prices or contracts being written before we do newbuilding orders.”
The CFO said the shipowner will tailor its balance sheets towards any contracts.
“I think the policy of financing 65% of newbuilding prices remains. Should we see attractive opportunities and go further, obviously we still can start selling some of the older assets, what we call the optimisation part of the strategy,” he added.
‘Very clear’
Alexander Saverys told the call: “We have been very clear that if we see good prices for older tonnage, we will probably look at selling them and then recycling the cash and investing in more modern ships.
“Is there a specific asset class we will focus on? No, but you just take the age profile of the current Euronav/CMB.Tech fleet: the obvious candidates are more in the Euronav tanker division than in other divisions.”
Whether that is a VLCC or a suezmax will depend on the price, the buyer and the opportunity that presents itself, he said.
