"The counter seasonal strength recorded in Q1 underpins our view that strong and durable drivers are in place to continue a multi-year upcycle in large crude tanker freight markets," CEO Hugo De Stoop said in an earnings statement.

Euronav, one of the largest oil tanker companies in the world, said rates in both very large crude carriers (VLCCs) and Suezmax vessels improved month over month in the January-March period.

Brokerage KBC notes the group's results were strong in a typically weaker quarter, noting that the pattern of vessel rates increasing in the first three months of the year occurred only three times since 1990.

Euronav added that although rates in both segments had declined since end-March and the decision by Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to cut output create headwinds, some losses should be offset by a positive ton-mile dynamic.

The group said the OPEC+ production limit means alternative crude sourcing would have to come from Atlantic producers, resulting in transportation of about twice the distance.

OPEC+ agreed in April to cut production by 1.16 million barrels per day (bpd) from May through the end of the year.

To reflect its confidence in strong freight market for the foreseeable future, the company said it would propose a $0.70 payout for the first quarter, adding to the full year dividend of $1.10.

KBC noted the payout compares to $0.03 per share for the final quarter of 2022, adding that Euronav was able to "treat its shareholders to a strong interim dividend" as there is no longer a deadlock of the combination agreement with Oslo-listed transporter Frontline .

In January, Frontline terminated the $4.2 billion deal to merge with Euronav, and the Belgian group has disputed its peer's right to end it, saying it failed to provide a satisfactory reason for its decision.

Euronav's proportionate earnings before interest, taxes, depreciation and amortization (EBITDA) soared more than 500% to $258.5 million in the first quarter, beating the mean estimate of $225 million by analysts polled by Refinitiv.

(Reporting by Izabela Niemiec in Gdansk; Editing by Milla Nissi and Kim Coghill)