April 25 (Reuters) - Belgian tanker operator Euronav’s average spot rates for its very large crude carriers (VLCCs) fell 53.8 percent to $18,725 per day in the first quarter, as challenging conditions continued in the freight market, the company said on Wednesday. Tanker companies have been suffering from a glut of excess capacity which has weighed on rates, while OPEC oil production cuts have added to the pressure. “The rebalancing of the tanker market requires further affirmative action in reducing primarily older tonnage, restraint from contracting and a supportive oil price structure,” Chief Executive Paddy Rodgers said in a statement. “Freight rates will remain under pressure until this process of rebalancing is much further advanced.” So far in the second quarter the company’s VLCC fleet has earned about $13,187 per day and 42 percent of the available days have been fixed, Euronav said. The company has 29 VLCC and V-Plus tankers, out of a fleet of 53 vessels, according to its website. The company posted an 74.6 percent decrease in first-quarter core profit (EBITDA), which came in at $25.8 million. Reporting by Alan Charlish, editing by Louise Heavens
Average spot rates for tanker operator Euronav declined by more than half during Q1 2018, falling to $18,725 per day, largely due to the excess capacity in the market, along with the OPEC production cuts. The Belgian company also reported a 74.6% drop in core profit for the quarter, at $25.8m. CEO Paddy Rodgers said he expected the tight rates to continue until the tanker market had rebalanced, and called for a reduction in "primarily older tonnage, restraint from contracting and a supportive oil price structure".