With a post-IPO lock-up period now ended, however, its stock may experience some volatility should major investors take profit, analysts say.
New York-listed Euronav is tipped to record a bottom line gain of $83m in the three months to the end of June, according to consensus figures circulated by Arctic Securities this morning.
“With the last Maersk vessel delivered, Euronav has been able to take full advantage of the strong market with VLs averaging north of $50,000 per day,” said analyst Erik Nikolai Stavseth, who is predicting a gain of $87m for the quarter.
Analysts at DNB Markets note Euronav consensus estimates have seen several upward revisions since June.
Core operating profit projections from the market now stand at $131.5m up from $117.5m a month ago, Nicolay Dyvik, Oyvind Berle and Petter Haugen say. This compares with the DNB Markets figure of $133m.
Consensus presently forecasts Euronav to record $521m in core operating profit in 2015.
“We expect further positive estimate revisions also for 2016 when analysts reflect the strength of the crude tanker market,” the DNB Markets team said.
Euronav listed in New York in January this year with its lock-up period for investors expiring in the past week.
“As such see the potential for a sell-down from the major shareholders as increasing given the strength of the crude tanker markets,” Stavseth said,
“The fact that some 17% of Euronav is held by three major funds – all with a solid profit at this point – could lead to some pressure on the stock.”
BlueMountain Capital Management is the largest external investor in Euronav with a 5.57% slice.
