Euronav’s decision to sell some of its youngest VLCCs to John Fredriksen’s Frontline was not by design, chief executive Alexander Saverys said.
Speaking at DNB’s Energy & Shipping Conference on Thursday, Saverys said it was the result of negotiations with the Norwegian shipping magnate.
“We wanted to keep all the ships and John [Fredriksen] wanted all the ships,” he said, responding to a question about Euronav’s mix of VLCCs and suezmaxes.
“I think both of us are probably a little unhappy, but we found a good deal.”
The deal in question was the sale of 24 VLCCs to Frontline for $2.35bn following a takeover attempt by Fredriksen and Frontline.
The sale was a significant boost to Frontline’s fleet and allowed Euronav to spend $1.15bn to buy the Saverys family’s privately-held start-up CMB.Tech to capitalise on the plan to use proceeds from moving oil to finance a sustainable shipping company.
The CMB.Tech acquisition added bulkers, offshore vessels and container ships to its fleet.
At the conference, held at DNB headquarters in Oslo, Saverys said the company has begun rebuilding its fleet slightly, but would not commit to a certain ratio of suezmaxes to VLCCs.
“We’re very happy with our existing fleet of suezmaxes,” he said, while seated next to Frontline chief executive Lars Barstad. “We’re very happy with our existing fleet of VLCCs.
“We’re going to renew the fleet at the right price and today I believe VLCCs are better priced in newbuilding terms than suezmaxes.”
The company has three VLCC newbuildings on order at CSSC Qingdao Beihai Shipbuilding, according to its fleet list. The ships are ammonia-ready.
It goes alongside an order for a duo of bitumen tankers ordered last month and orders for 26 ammonia-powered bulkers.
