Slide 1: Earnings Call Q1 2021
EARNINGS CALL Q1 2021 | @euranay.
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. Q1 2021 HIGHLIGHTS 2. FINANCIAL REVIEW 3. CURRENT THEMES 4. Q&A 3
Slide 4: Highlights Q1 2021
VLCC 80.000 72.750 HIGHLIGHTS Q1 2021 70.000 60.000 50.000 40.000 • Challenging quarter - stalling demand recovery & restricted crude supply • Euronav continues to diversify financing - new sustainability funding 30.000 • Investing for future with VLCC and Suezmax new capacity added during Q1 20.000
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS CHALLENGING QUARTER FOR P&L HIGHLIGHTS 1. Operational cash flow positive Tough freight market but positive quarterly cash flow 2. Leverage 41.8% leverage to book value 3. Access to Liquidity > USD 1 billion 4. Dry Dockings • 8 completed in Q1 • 8 completed in Q2 • 11 to complete
Slide 6: Financial Highlights: Underlying Cashflow Pre-Fleet Investment Positive
FINANCIAL HIGHLIGHTS UNDERLYING CASHFLOW PRE-FLEET INVESTMENT POSITIVE * 78 *before Capex /fleet rejuvenation 6
Slide 7: Sustainable Financing – More Action
SUSTAINABLE FINANCING – MORE ACTION Traditional financing (Ship) Financing – the future All banks Emission targets > IMO to agree $60 million €80 million Euro Multiple unsecured Partners unsecured currency facility sustainability-linked facility Independent Beat target = lower cost measurement 7
Slide 8: Capital Allocation
CAPITAL ALLOCATION MEETING FINANCIAL, EMISSION & STRATEGIC GOALS RECYCLE OLDER TONNAGE INTO NEW BUILDS Sell Buy 6x VLCC 6x VLCC + 1 option 3x Suezmax 2x Suezmax Av Age 13.7 yrs Newbuilds Increase Reduce Retain Balance Earnings Power Emissions Sheet strength Source: Euronav 8
Slide 9: Capital Allocation: AER Trajectory on Schedule
CAPITAL ALLOCATION MEETING FINANCIAL, EMISSION & STRATEGIC GOALS AER TRAJECTORY ON SCHEDULE AER – Annual Efficiency Ratio which 120,000 AER divides the annual carbon dioxide 2000 VLCC fleet emissions of a ship distance sailed 110,000 100,000 5.43 2008 VLCC fleet C02 tonnes per year 90,000 80,000 4.3
Slide 10: "Illicit" Trade & OPEC Barrels Returning
“ILLICIT” TRADE & OPEC BARRELS RETURNING 2H THEMES “ILLICIT” TRADE LIKELY PREVENTING RECYCLING 70 8% of fleet 60 50 No of illicit vessels 40 54 5 % of fleet 30 20 20 10 12 9 0 VLCC Suezmax Venezuela Iran Source: Gibsons 10
Slide 11: OPEC+ Production to Rise but Will Exports?
“ILLICIT” TRADE & OPEC BARRELS RETURNING 2H THEMES OPEC+ PRODUCTION TO RISE BUT WILL EXPORTS? 28,0 27,5 27,0 26,5 OPEC production core 26,0 25,5 25,0 24,5 24,0 23,5 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 OPEC production Saudi repeal of cuts Source: Bloomberg 11
Slide 12: Outlook: Tanker Market Awaiting Recovery
OUTLOOK TANKER MARKET AWAITING RECOVERY Demand for Supply Euronav Oil Ton miles Vessel Supply of Oil Balance sheet 2nd wave restrictions OPEC+ scheduled Far East ton miles Fleet Age & Leverage remains lowering demand tapering of growing up Orderbook to fleet below target but vaccine to get productio
Slide 13: Q&A
Q&A | @euRONAy. » @