Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Q2 2022 Earnings Presentation
21 slides from Cmb.tech Nv's earnings presentation, Aug 4, 2022
Slide 1: Euronav Q2 Earnings Call August 2022
EURONAV Q2 EARNINGS CALL AUGUST 4 2022
Slide 2: Forward looking statements
Forward looking statements Matters discussed in this presentation may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 (the “Reform Act”) provides safe harbor protections for forward-looking statements within the meaning of the Reform Act. Forward-looking s
Slide 3: Content
CONTENT Q2 2022 Highlights Conclusion Hugo De Stoop, CEO Hugo De Stoop, CEO Financials Lieve Logghe, CFO Q&A Tanker market Brian Gallagher, Head of IR and Communications 3
Slide 4: Q2 2022 Highlights
Q2 2022 HIGHLIGHTS Hugo De Stoop, CEO
Slide 5: Q2 2022 Highlights: Key takeaways
Q2 2022 HIGHLIGHTS Key takeaways P&L Breakeven vs. Spot Rates in USD/day • Further sequential Quarter-on-Quarter improvement in freight rates • Stronger freight rate market gaining traction in Q3 to date VLCC SUEZMAX • Fleet rejuvenation: 7 vessels sold (4 VLCCs, 3 Suezmaxes) and 2 VLCCs bought • FS
Slide 6: Short term catalysts gaining traction
SHORT TERM CATALYSTS GAINING TRACTION Arbitrage Aframax & Suezmax dynamics now driving VLCC segment Ton Miles Rising Russian dislocation driving 4-5% increase OPEC Barrels & Exports rising Saudi exports up 870k bpd in July; US exports +15% since March Asset prices rising Second hand VLCC +16% Suezma
Slide 7: Positioning Euronav platform for coming upcycle
POSITIONING EURONAV PLATFORM FOR COMING UPCYCLE Fleet Rejuvenation New capacity for growth – New buildings due in next 18 months 10% reduction in 5% reduction in 8% growth of 13% growth of average VLCC fleet average Suezmax fleet core VLCC fleet core Suezmax fleet age age 12 11 3 3 fleet 10 Euronav
Slide 8: Financials
FINANCIALS Lieve Logghe, CFO
Slide 9: Solid financial performance: Balance Sheet June 2022
SOLID FINANCIAL PERFORMANCE Balance Sheet June 2022 Leverage Liquidity Q2 Revenues Q2 Net Profit (in $ million) Dec-21 Jun-22 Cash and cash equivalents 153 277 Other current assets 307 361 53% $460m $148.7m -$4.9m Long term assets: New Buildings 181 137 Vessels 2,968 3,219 Other long term assets 160
Slide 10: FSO units operating on long-term contract for QP & TotalEnergies to 2032
FSO UNITS OPERATING ON LONG-TERM CONTRACT FOR QP & TOTAL ENERGIES TO 2032 Background – 2x converted ULCC More than a storage unit Flexible and highly Storage capacity of redundant design – Separation of 2.8M bbls per FSO No downtime for platform fluids maintenance Custody Transfer Logistics in the R
Slide 11: Tanker market
Tanker market Brian Gallagher, Head of IR and Communications
Slide 12: Tanker markets are seasonal – counter seasonal recovery is unusual and strong
TANKER MARKETS ARE SEASONAL – CURRENT COUNTER SEASONAL RECOVERY IS UNUSUAL AND STRONG, AHEAD OF WINTER TRADING Baltic Dirty Tanker Index 1999-2021 – seasonality usual from September However seasonality has already kicked in since June following onwards reversal of market trends post Ukraine-Russia 1
Slide 13: Market conditions continue to improve and forecast to carry on
MARKET CONDITIONS CONTINUE TO IMPROVE AND FORECAST TO CARRY ON USA crude exports – rising during 2022 Ton miles in tanker markets growing 10400 4500 10200 4.3% 4000 3500 10000 3000 miles 9800 5.6% exports ton 2500 crude 9600 billion bpd 2000 k US Tanker 9400 1500 9200 1000 9000 500 0 8800 Jan Feb Ma
Slide 14: Sequential improvement in vessel supply & time charter market
SEQUENTIAL IMPROVEMENT IN VESSEL SUPPLY & TIME CHARTER MARKET Tanker overhang in Middle East is easing – TNNGSD INDEX …but time charter rates over 12 months continues to rise 40 133 35 132 East 131 30 VLCC Middle 130 in 25 129 months VLCC 12 128 > 20 TC excess of 127 15 126 Number Bloomberg 10 125 5
Slide 15: Conclusion
Conclusion Hugo De Stoop, CEO
Slide 16: Frontline merger – next steps
FRONTLINE MERGER – NEXT STEPS OFFER FRONTLINE to exchange in set ratio 1.45x FRO shares for every 1x EURN share OBJECTIVE Exchange more than 50% +1 share so FRO can gain control of EURN TIMELINE Exchange offer anticipated during Q4 50% + 1 share – 75% >75% • Governance changed and FRO and EURN will
Slide 17: Conclusion – outlook continues to sequentially improve
CONCLUSION – OUTLOOK CONTINUES TO SEQUENTIALLY IMPROVE – ANOTHER UPGRADE, THIS TIME FOR SUPPLY OF OIL Demand for Oil Supply of Oil Ton miles Vessel Supply Euronav Balance sheet China returning to oil US and Strategic Forecast to continue Encouraging LTV 53% markets Petroleum Reserve expansion as new
Slide 18: Thank you
Thank you @ eEuroONAv
Slide 19: Important information for investors: Frontline relocation
IMPORTANT INFORMATION FOR INVESTORS Frontline Relocation Frontline intends to file with the SEC a registration statement on Form F-4 with proxy materials containing information about the relocation. Frontline will mail a final prospectus and proxy materials and other relevant documents after the SEC
Slide 20: Important information for investors: Exchange offer
IMPORTANT INFORMATION FOR INVESTORS Exchange Offer The exchange offer described in this presentation has not yet commenced. This announcement is for informational purposes only and is neither a recommendation, nor an offer to purchase nor a solicitation of an offer to sell any ordinary shares of Fro
Slide 21: Important information for investors: No offer or solicitation
IMPORTANT INFORMATION FOR INVESTORS NO OFFER OR SOLICITATION This presentation shall not constitute an offer to sell or the solicitation of an offer to buy, sell, or solicit any securities or any proxy vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offe