Euronav to purchase four VLCCs being built at Hyundai Heavy Industries

16 June 2015 (Last Updated June 16th, 2015 18:30)

Belgium-based Euronav has agreed to a $384m purchase of four VLCCs that are completing construction at Hyundai Heavy Industries.

Belgium-based Euronav has agreed to a $384m purchase of four VLCCs that are completing construction at Hyundai Heavy Industries.

Under the agreement, the company will acquire the vessels that are being built for Greece’s Metrostar Management through resale at $96m per unit.

Euronav CEO Paddy Rodgers said: "Euronav is delighted to enhance our fleet with the addition of four high-specification modern VLCCs.

"This accretive transaction further cements Euronav’s position as the largest, independent quoted crude tanker platform."

"The tanker sector continues to perform strongly with a positive outlook. This accretive transaction further cements Euronav’s position as the largest, independent quoted crude tanker platform."

The new vessels are expected to be delivered as early as September this year, and then January, March and May 2016.

In addition to payment of an option fee of an aggregate amount of $8m, Euronav will be allowed to acquire up to four further VLCCs at a price of $98m each.

As the vessels are ex-yard resales, this transaction does not add supply to the market and therefore meets the company’s aim to only add existing vessels to its fleet.

Moreover, the time lag between the purchase and deliveries will be akin to buying a fleet on the water, allowing the capital deployed to be imminently rewarded by the freight market.

The company will be able to rejuvenate its fleet and enhance its operational strength, as the four vessels are of the latest design and similar or better than those acquired last July.