Slide 1: Earnings Call Q3 2021
EARNINGS CALL Q3 2021
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: Content
CONTENT 1. Q3 2021 HIGHLIGHTS 2. CURRENT THEMES 3. SUMMARY 4. Q&A 3
Slide 4: Highlights Q3 2021
HIGHLIGHTS Q3 2021 45,000 VLCC Q3 20 40,000 • Several catalysts & seasonal trading patterns have triggered improved freight 35,000 market from early September P&L 30,000 B/E • Q3 remained very challenging but we believe represents the trough of cycle USD/day • New $200m corporate bond at lower coupo
Slide 5: Short Term Catalysts Gaining Traction
SHORT TERM CATALYSTS GAINING TRACTION Recycling 15x VLCCs recycled in 2021 - 4 in Sept High fuel prices to trigger 500k-1m bpd Fuel switching switch to crude this winter Output converting to exports Persian Gulf export 550k bpd Sept 2021 Post-COVID demand recovery IEA forecast 3.3m bpd growth in 202
Slide 6: Improving Demand & Supply Dynamics Supported by Short Term Catalysts
IMPROVING DEMAND & SUPPLY DYNAMICS SUPPORTED BY SHORT TERM CATALYSTS 102 45 100 40 OPEC+ production mbpd 98 IEA Demand m bpd 35 96 30 94 25 92 90 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 OPEC+ production mbpd IEA Demand mbpd 6 Source: Bloomberg, IEA, JP Morgan
Slide 7: Euronav Platform
EURONAV PLATFORM INTEGRATED, ROBUST WITH CLEAR FOCUS, LOW COSTS & HIGH OPERATIONAL LEVERAGE Best in class operational • Fully integrated tanker platform Structure • Low cash breakevens VLCC $11.1k for 2021 • Core VLCC fleet 6.7 years old World’s largest VLCC & Suezmax fleet • 45x VLCC & 22x Suez 100
Slide 8: Leverage Which Translates to Strong Returns in Upcycle
LEVERAGE WHICH TRANSLATES TO STRONG RETURNS IN UPCYCLE Free cashflow yields @ 1 November 2021 Euronav FCF p/share $1.69 $3.31 $5.74 60% 54.4% 50% 40% 31.4% 30% 20% 16.0% 10% 0% VLCC 34k/Suez 24k VLCC 50k/Suez 44k VLCC 75k/Suez 48k Euronav Tanker Co A Tanker Co B Tanker Co C Source: Clarksons Researc
Slide 9: Summary: Through the Market Trough
SUMMARY THROUGH THE MARKET TROUGH Demand for Supply Ton miles Vessel Supply Euronav Oil of Oil Balance sheet Improving Output growth Likely 2022 Limited new LTV 48% since turning into Impact as Far supply in Q4 Liquidity September exports East recovers $790m Change from Upgrade Upgrade No Change No
Slide 10: Q&A
Q&A 10