Euronav makes half a billion dollars in profit in the first quarter

(ABM FN) Euronav was highly profitable in the first three months of 2024. This became apparent on Wednesday morning from figures from the Antwerp shipping company.

Euronav posted a profit of $495.2 million in the first quarter. At the bottom line, this resulted in earnings per share of $2.46.

In the first quarter of 2023, the company achieved net income of $175.0 million, or $0.87 per share.

EBITDA was $550.5 million, compared to $258.5 million in the first quarter of 2023.

Euronav will pay out a dividend of $4.57 per share for 2023. And during a special shareholders’ meeting in July, Euronav plans to propose a distribution of $1.15 per share for the first quarter.

Global oil demand remained resilient in the first few months of 2024, Euronav saw.

In addition, continued growth in ton-mile crude oil trade is expected by the International Energy Agency, with estimates pointing to a 4.3 percent increase in 2024 and a 2.5 percent increase in 2025, driven primarily by U.S. oil exports reaching a record high in mid-April 2024.

The acquisition of CMB.TECH in mid-March and the sale of 24 large oil tankers has made Euronav a “diversified shipping conglomerate” with its main businesses in crude and dry bulk, Kepler Cheuvreux said.

Euronav plans to gradually green its fleet, by selling old ships and purchasing new ones that are more environmentally friendly.

According to the analysts, this slows down the growth of cash flow and the scope to pay out dividends.

Source: ABM Financial News

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