Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Shareholder Meeting (May 2022)
27 slides from Cmb.tech Nv's shareholder meeting presentation, May 19, 2022
Slide 1: Euronav AGM
EURONAV AGM THURSDAY MAY 19th, 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Matters discussed in this presentation may constitute forward-looking statements under U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company’s current views with respect to future events
Slide 3: Agenda and Speakers
AGENDA AND SPEAKERS Hugo De Stoop, CEO Lieve Logghe, CFO 2021 Review Strategic Positioning • Key achievements & accomplishments • Leverage & Liquidity • Financial & operational results • Balance Sheet & Income Statement • Navigating the current challenges in the • Outlook crude oil tanker market Bri
Slide 4: Review of 2021
Review of 2021 Hugo De Stoop, CEO
Slide 5: Euronav Today: Focused Crude Oil Tanker Company with Solid Liquidity Position
EURONAV TODAY FOCUSED CRUDE OIL TANKER COMPANY WITH SOLID LIQUIDITY POSITION • Euronav is an independent tanker company engaged in the ocean Robust financial structure to navigate the cycle transportation and storage of crude oil o Headquartered in Antwerp, Belgium 63% 66% 63% 62% o Offices througho
Slide 6: 2021 – Most Challenging Freight Market in Over 30 Years
2021 – MOST CHALLENGING FREIGHT MARKET IN OVER 30 YEARS Quarterly rates during 2021 compared with market averages 1990-2020 Demand for crude yet to return 50.000 to pre-Covid levels of consumption 45.000 40.000 35.000 Oversupply of vessels in key Tanker freight rates $ per day markets persisted thro
Slide 7: Key Accomplishments Over Past 18 Months
KEY ACCOMPLISHMENTS OVER PAST 18 MONTHS SUSTAINABILITY KEY MERGER TO DRIVE CHALLENGING PLATFORM SECTOR FLEET REJUVENATION FINANCING ENHANCED MARKETS NAVIGATED SIGNIFICANTLY CONSOLIDATION DEVELOPED • Diversification of • Frontline proposal • 15 Vessels • Lowest freight • CDP B Rating funding with USD
Slide 8: Tanker Market Outlook
Tanker Market Outlook Brian Gallagher, Head of IR and Communications
Slide 9: Russian Dislocation Positive for Tankers
RUSSIAN DISLOCATION POSITIVE FOR TANKERS Russian barrels pre-Ukraine were largely seaborne EU likely to swap out Russian oil for M-East & Atlantic barrels Russian crude exports to EU 0.5m bpd Russian crude exports to EU 2.5m bpd Exports to Asia 2.8m bpd Exports to Asia 1.7m bpd Aframax Aframax TOTAL
Slide 10: Short Term Signals – Picking Up
SHORT TERM SIGNALS – PICKING UP Recycling picking up…but not in VLCC yet VLCC monthly cargoes hit highest since April 2020 Source: Clarksons Source: Fearnley 12 230 10 220 VLCC global loadings VLCC 8 210 Suezmax 200 6 Aframax 190 4 180 2 170 0 160 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan
Slide 11: Medium Term Fundamentals – Very Supportive
MEDIUM TERM FUNDAMENTALS – VERY SUPPORTIVE Orderbook shrinking & Recycle candidates increasing New build prices high & rising deterring contracting Source: Clarksons 70.000 Source: Fearnley 20 6% Current price conventional Eco-VLCC NB price $115m 18 60.000 Requires $47k per day for 10% IRR 5% 16 Req
Slide 12: Fundamentals to Drive Improvement in Tanker Markets
FUNDAMENTALS TO DRIVE IMPROVEMENT IN TANKER MARKETS RETURNING CRUDE CONSOLIDATION CRUDE STILL KEY TO REGULATION INCREASE ENERGY TRANSITION CONSUMPTION Highly regulated Crude oil Achieve meaningful Oil will remain a core industry to ensure consumption scale to meet energy source as the that all vesse
Slide 13: Global Fleet Age at 20 Year Highs
13 Average Age tanker market fleets in Years 7,0 7,5 8,0 8,5 9,0 9,5 10,0 10,5 11,0 Q1-2002 Q2-2002 Q3-2002 Q4-2002 Q1-2003 Q2-2003 Q3-2003 Q4-2003 Q1-2004 Q2-2004 Q3-2004 Q4-2004 Q1-2005 Q2-2005 Q3-2005 Q4-2005 Q1-2006 Q2-2006 Q3-2006 Q4-2006 Q1-2007 Q2-2007 Q3-2007 Q4-2007 Q1-2008 Q2-2008 Q3-2008
Slide 14: Tanker Orderbooks at 25 Year Lows
14 Orderbook as % of fleet 0 10 20 30 40 50 60 Q1-1996 Q3-1996 Q1-1997 Q3-1997 Q1-1998 Q3-1998 Q1-1999 Q3-1999 Q1-2000 Q3-2000 Q1-2001 Q3-2001 Q1-2002 Q3-2002 Q1-2003 Q3-2003 Q1-2004 Q3-2004 Q1-2005 Q3-2005 Q1-2006 Q3-2006 Q1-2007 Q3-2007 VLCC Orderbook as % fleet Q1-2008 Q3-2008 Q1-2009 TANKER ORDE
Slide 15: Strategic Positioning
Strategic positioning Lieve Logghe, CFO
Slide 16: Euronav Platform – Ready for the Upcycle
EURONAV PLATFORM – READY FOR THE UPCYCLE Competitive Operational Platform* Strong liquidity with low leverage Young fleet age & best in class decarbonisation platform Source: Euronav, BCG Source: Company accounts Source: Bloomberg, Clarksons 800 80% 9,881 Average fleet age reduced 9,227 700 70% 1,35
Slide 17: Strong Financial Balance Sheet
STRONG FINANCIAL BALANCE SHEET Balance sheet – December 2021 vs. 2020 Income Statement In million USD Dec-21 Dec-20 In million USD / USD per share 2021 2020 Cash and cash equivalents 152,5 161,5 REVENUES 419.8 1,210.3 Other current assets 306,9 290,4 Long term assets: New Buildings 181,3 207,1 Vesse
Slide 18: Euronav Platform – Ready for the Upcycle… Again
EURONAV PLATFORM – READY FOR THE UPCYCLE… AGAIN Tanker markets are cyclical – Euronav disciplined consolidation timing Disciplined approach to manage Source: Clarksons markets with 2-year liquidity 60.000 Maersk Gener8 Frontline 115 runway 2013/14 2017 2022 55.000 110 50.000 Strong Governance applie
Slide 19: Conclusion – Outlook Continues to Sequentially Improve – Ton Miles Upgrade
CONCLUSION – OUTLOOK CONTINUES TO SEQUENTIALLY IMPROVE – TON MILES UPGRADE Demand for Supply Ton miles Vessel Supply Euronav Oil of Oil Balance sheet China lockdown US exports rising Dislocation Encouraging Loan To Value 50% & Fall out from but OPEC+ from Russian No new orders Liquidity $614 Russia-
Slide 20: Decarbonisation
Decarbonisation Hugo De Stoop, CEO
Slide 21: Euronav's Pathway to Decarbonisation
EURONAV’S PATHWAY TO DECARBONISATION REDUCE & INVEST SWITCH & SCALE-UP Less Energy used Cleaner Energy used Carbon neutrality 2040 2022 at roundtrip via 2027 40% lower CO2 Net Zero intensity at fleet CO2 lower carbon level vs. 2008 emissions fuels • At least 80% less TI pool to offer First vessel CO
Slide 22: Euronav Is Set to Deliver Net Zero by 2050
EURONAV IS SET TO DELIVER NET ZERO BY 2050 BUT AIMS TO ACHIEVE TARGET EVEN EARLIER Oil still has a critical role to play in the energy transition 01 • Fossil fuels will decrease on a relative basis … • … but oil will remain a core energy source as the world still needs energy volume and security The
Slide 23: Frontline Merger
Frontline merger Hugo De Stoop, CEO
Slide 24: The Combination of Euronav and Frontline Creates a Global Leader in Crude Tankers
THE COMBINATION OF EURONAV AND FRONTLINE CREATES A GLOBAL LEADER IN CRUDE TANKERS Combination Considerations The combination will create a leading player in the crude tanker space with various potential synergy levers By joining forces, both companies stand to benefit from economies of scale and syn
Slide 25: The Combination of Euronav and Frontline Creates a Global Leader in Crude Tankers
THE COMBINATION OF EURONAV AND FRONTLINE CREATES A GLOBAL LEADER IN CRUDE TANKERS Fleet Composition and Key KPIs(1) Pro Forma Key Financials MergeCo MergeCo(2) 2021 3% 48% 52% 29% 33% 15% Net revenue $311m $337m $648m 38% 59% 47% 70 35% 65% 74 144 Adj. EBITDA(3) $85m $158m $244m 38% 38% Employees(4)
Slide 26: Q&A
Q&A © EuRONAV
Slide 27: Thank you!
Thank you! © EuRONAV