Euronav takes USD 100 Mn loan to prepare for IMO 2020

Belgium’s tanker shipping company Euronav has arranged a further financial boost amid preparations for the International Maritime Organization’s 2020 sulphur cap.

During the company’s second quarter conference call, Euronav Chief Executive Officer, Hugo De Stoop, said that the company took out an additional USD 100 million credit facility.

He explained that the loan was taken in order to help the company prepare for the switch, in particular for the changes in its fleet fueling strategy.

De Stoop did not unveil any further details related to the facility, but said that a separate webinar on the company’s IMO 2020 preparations would be held in early September.

“Euronav leverage remains amongst the lowest in sector and we have no outstanding CapEx links to newbuildings,” he noted.

The company ended the second quarter of this year with a net loss of USD 38.5 million, compared to a profit of USD 19.5 million reported in the first quarter of the year, mainly due to a longer than expected freight rate weakness.

Revenues amounted to USD 169.3 million in the second quarter of this year, against USD 232.6 million recorded a quarter earlier.