Euronav,which last night reported a larger than expected third quarter loss, will boostits cash reserves by $7.3m following the departure of the 289,900-dwt Algarve(built 1999).
Followinga scrip dictated by DNB earlier this week, Euronav says the vessel fetched$35.88m from a conversion buyer.
“The vessel will be converted in a FPSO by her newowner and will therefore leave the worldwide VLCC trading fleet,” it toldinvestors.
“The firm price of this sale reflects on the company’sstrategy to have set up an offshore department last year capable ofunderstanding the needs of potential offshore buyers as well as having alwaysmaintained the ship well above industry standards.”
TheBelgian tanker owner reported negative net income of $34.9m in the third quarter, versus a loss of$40.5m in the same period a year ago.
Analysts had forecast a $32m reversal forthe period.
AsTradeWinds reported earlier this week DNB analyst Nicolay Dyvik had tippedEuronav to sell off vessels to prevent the need for an equity issue next year.
“Basedon our VLCC rate forecast of $21,000/day for 2013 and suezmax forecast ofUSD18,000/day, we calculate Euronav will be in breach of its cash covenant inQ4 2013, and the cash balance will be reduced from the current $123m to $23m byQ4 2013,” he said in a note this morning after the results were announced.
WhileEuronav did not reveal a full balance sheet at the end of the third quarter, RSPlatou Markets notes it had cash of $123m at the end of the first half.
“However, with quarterly debt repaymentsrunning at $41m, cash is being drawn by up to $30m,” Platou’s analysts wrote ina report this morning.
“Webelieve Euronav could struggle to meet debt maturities unless the market picksup.”
