Euronav’s stock has so far withstood the shock news long-term chief executive Paddy Rodgers is leaving the company.
Tanker giant Euronav announced this morning Rodgers would depart this year when a successor has been found.
Shares in the world’s largest publicly traded crude tanker owner slipped a little in early trading in Brussels as the news was digested.
However, it has been in positive territory for the day since mid-morning and was up a little less than 1% at €6.80 each at the time of writing on Monday.
In New York some of shipping’s best known analysts suggested the move was a surprise but would not mark a major shift for Euronav.
Jon Chappell of Evercore said Rodgers was one of the most well-regarded and outspoken chief executives in shipping who had spearheaded two well-timed fleet deals.
The transactions had contributed to a four-fold growth in the company’s fleet, Chappell added.
“Still, much of Euuronav’s growth over Rodgers’ tenure can also be attributed to a deep management team and experienced board,” he said.
“As such, we do not expect Euronav’s strategic direction, specifically its focus on maintaining substantial liquidity while still acting as a leading consolidator in the crude tanker market, to change, regardless of whether Rodgers’ successor comes from the current management team or externally.”
Rodgers and Amit Mehrotra of Deutsche Bank have had some differences of opinion in the past. However, Mehrotra offered a parting tribute in a research note today.
“We always respected him as one of the best stewards of capital in the shipping industry,” the analyst wrote.
”Paddy and team built the world’s preeminent crude tanker company through bold, but prudent acquisitions…including the VLCC fleet of Maersk in 2013/14 and more recently, Gener8.”
Mehrotra said it was key for Euronav to bring in someone that shares Rodgers’ bold visions for growth with his penchant for risk management.
“In this sense we hold Euronav’s CFO Hugo De Stoop in high regard,” the analyst wrote.
