Image:Cmb.Tech
ANTWERP, Belgium, 26 September 2024 – Euronav NV (NYSE: CMBT & Euronext: CMBT), a global leader in the maritime transportation of crude oil, has sold two Suezmax vessels, “Sapphira” (2008, 150,205 dwt) and “Statia” (2006, 150,205 dwt), to a wholly-owned subsidiary of CMB NV as part of its ongoing fleet rejuvenation strategy. This significant sale, conducted at the current market value, is set to generate a capital gain of $61.38 million for Euronav, further solidifying its financial position as it pursues operational optimization.
The vessels are scheduled for delivery to their new owner today, marking a swift and efficient transaction. In line with legal requirements under Belgian law, the sale went through the prescribed related party transaction procedure, given that the purchasing entity, CMB NV, is a significant shareholder of Euronav. The legal compliance of this transaction ensures transparency and adherence to corporate governance practices, safeguarding the interests of Euronav’s shareholders and stakeholders.
This move follows Euronav’s broader strategy to rejuvenate its fleet by divesting older vessels and potentially reinvesting in more modern, fuel-efficient tankers. It’s a clear indication of Euronav’s efforts to stay ahead in a highly competitive and volatile market, where maintaining an efficient and modern fleet is key to profitability and long-term sustainability.
The Suezmax category, capable of carrying around 1 million barrels of crude oil, plays a pivotal role in the global oil transport sector. However, as the industry pushes toward greener and more cost-efficient operations, older vessels like the Sapphira and Statia often face pressure to make way for newer models. By selling these assets at the current market value, Euronav is not only capitalizing on favorable conditions but also making a forward-looking decision that aligns with the company’s long-term goals.
The sale also included a short-term time charter party with Bocimar International NV (BOI), another wholly-owned subsidiary of CMB NV, further demonstrating the interconnected nature of Euronav’s relationships with its parent company. Given that BOI is classified as a related party under International Accounting Standard 24 (IAS 24), the Supervisory Board of Euronav took necessary measures to ensure that the transaction adhered to Article 7:116 of the Belgian Companies and Associations Code (BCAC), thereby ensuring full compliance with related party transaction rules.
Euronav’s decision comes at a time when the maritime industry is navigating significant challenges, including fluctuating charter rates, unpredictable vessel values, and changing regulatory environments. Such sales often reflect a company’s proactive approach to adapting to market conditions, ensuring that they remain agile and financially resilient in an industry known for its cyclical nature.
This transaction offers a glimpse into the broader trend within the maritime sector, where fleet modernization and strategic asset management have become essential for long-term success.
