Euronav believes it can capitalise on buoyant shipping markets by locking in huge amounts of revenue before the end of the year.
The Saverys family-controlled VLCC and suezmax company now incorporates more than 100 low-carbon bulkers, chemical tankers, boxships and offshore wind ships from its takeover of the clan’s private CMB.Tech.
Chief executive Alexander Saverys told an earnings call that it is “very important” to increase the charter backlog.
“We have $2bn of contract backlog today. We would like by the end of the year to bring that to $3bn,” he said.
“It’s important for us that we show this cash flow and that we have cash flow visibility going forward. Our outlook for 2024 and beyond, it’s difficult to be negative, apart from the containers.
“I think all the segments we are operating in are in good markets. There’s always potential headwinds that nobody can see coming. But I would say that supply/demand-wise, in all the major markets we are operating in, it looks very, very strong, not only for 2024, but also for 2025.”
On the tanker side, the company said owners are closely monitoring geopolitical tensions for potential disruptions to oil supply routes.
“This has led to increased geopolitical risk premiums and a ‘buy and fix first’ attitude, shifting some power to owners,” Euronav added.
Regarding container line Delphis, however, Saverys told the call: “We are not positive; there are too many vessels.
“There’s a big disconnect with the amount of ships that are being delivered and the amount of growth that we see. It is countered a little bit by, of course, the larger tonne-miles for ships that are avoiding the Red Sea.”
Insulated from rate falls
And the CEO fears that once the Houthi situation is resolved, rates will fall again.
This will not really affect the group, as all its ships are fixed on long-term charters at “very good rates”, he maintained.
Two super-eco boxships are on the water today, with two more coming in the summer and a 1,400-teu dual-fuel ammonia feeder unit due in the middle of 2026.
All are on 10-year deals and the latter has been fixed for 15 years.
“But I’m afraid that we are not very, very positive for ships that would be spot,” Saverys added.
He also reiterated that the Belgian company intends to remain listed in Brussels and New York “in the short to medium term”.
There had been industry speculation that the family might be preparing to take the group private as a series of share buybacks diminished the free float.
Euronav has now spent $123m on its own shares since March.
Following the repurchases, the company owns 25.54m of its shares or 11.61% of the outstanding amount.
When added to the Saverys’ holding of 80.52% through its shipping company Compagnie Maritime Belge and investment operation Saverco, the family has 92.23% ownership in Euronav.
