(Reuters) – Euronav (NYSE:) swung to a loss on Thursday in what the oil delivery and storage operator mentioned was a “challenging” third quarter, but the corporate pointed to a robust restoration in freight charges and exercise.
The group, one of many largest oil tanker corporations on the earth, reported a third-quarter internet loss of $105.9 million, in opposition to a revenue of $46.2 million a yr earlier.
“We have every reason to be confident that we have now come through the trough of this particular cycle,” Chief Executive Hugo De Stoop mentioned in a press release, “after a third quarter that was among the most challenging for our market in recent memory.”
The tanker business has been underneath strain this yr as world exports have been constrained by OPEC+ output cuts and as COVID-19 outbreaks continued to depress demand.
The Antwerp-based group, which gives crude oil delivery and storage providers, nonetheless flagged plenty of optimistic developments which have emerged since early September.
“The demand for oil transportation is recovering thanks to an improved crude demand as part of post-COVID global economic recovery, additional demand for fuel oil as energy producers are switching to a cheaper solution, and an OPEC+ production growth translating into exports,” De Stoop mentioned.
The Organization of the Petroleum Exporting Countries, Russia and their allies, often known as OPEC+, restricted oil exports final yr through the pandemic, but agreed in July to increase output.
Ministers from the OPEC+ group are set to meet afterward Thursday to resolve output coverage.
Euronav additionally pointed to the seasonal uplift in demand forward of winter, enhanced by excessive and sudden value rises for fuels which have elevated the relative attractiveness of crude and prompted some substitution.
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