Euronav, with New CEO at Helm, Sets Sights on Acquiring 120 Ships with Low Carbon Footprint
Under the leadership of its newly appointed CEO, Alexander Saverys, Euronav, a prominent tanker giant, is embarking on a significant strategic shift. Saverys, a member of the shipowning family associated with Compagnie Maritime Belge (CMB), assumed control of Euronav last month following a protracted battle with John Fredriksen’s Frontline
Under the leadership of its newly appointed CEO, Alexander Saverys, Euronav, a prominent tanker giant, is embarking on a significant strategic shift. Saverys, a member of the shipowning family associated with Compagnie Maritime Belge (CMB), assumed control of Euronav last month following a protracted battle with John Fredriksen’s Frontline. Revealing the company’s forward-looking vision on the last Friday, Saverys outlined ambitious plans to diversify into the dry bulk and container segments, with a key emphasis on incorporating low-carbon propulsion technologies.
As part of this new shipbuilding strategy, Euronav aims to acquire up to 120 cutting-edge vessels, all designed to be “future-proof” through features such as reduced carbon emissions or the ability to operate on green fuels. This expansion builds upon existing orders for the CMB.TECH fleet, a highlight of Friday’s presentation by Euronav executives.
After securing a majority stake in Euronav in October, CMB and the Saverys family triumphed in their battle with Frontline. Subsequently, Euronav finalized the acquisition of the Saverys’ CMB.TECH subsidiary for $1.15 billion in cash and $2.5 billion in rollover debt. The subsidiary boasts a diverse fleet, including 52 offshore wind vessels, two bulkers, two chemical tankers, and one boxship. Moreover, it has ambitious plans for additional vessels, all powered by or adaptable for conversion to ammonia.
The expansion plan for the ammonia-powered fleet includes 20 ultramax bulkers, 20 containerships ranging from 4,000 to 10,000 TEU in size, as well as 10 LR2 tankers and 10 chemical tankers. Euronav’s preference for ammonia as the future fuel stems from its existing collaboration with WinGD, which has led to the development of ammonia-powered propulsion options and a well-established ammonia bunkering supply chain. The company plans to construct its production facility in Namibia, capable of producing 185,000 tonnes of green ammonia annually. Additionally, it has secured offtake agreements for substantial quantities of blue ammonia from projects in the United States.
Pending shareholder approval at a general meeting scheduled for February 7, Euronav is set to undergo a transformation, adopting the name CMB.TECH and a new stock ticker symbol, CMBT. Despite this change, the company’s tankers will continue to trade under the well-known Euronav brand.
The overarching goal of this strategic shift is to redefine Euronav from a specialist in traditional, environmentally impactful tankers into a “reference in green shipping” and position it as a “leading green shipping growth stock.” While tankers will remain a crucial component of revenue generation, an increasing share of the business will align with CMB.TECH’s commitment to low-carbon solutions.
This article is built upon information presented in a post by The Maritime Executive on https://maritime-executive.com/article/under-new-ceo-euronav-plans-to-buy-120-low-carbon-ships
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