Slide 1: Earnings Call Q1 2020
EARNINGS CALL Q1 2020 1
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 2020 HIGHLIGHTS 2. FINANCIAL REVIEW 3. CURRENT THEMES 4. Q&A 3
Slide 4: Highlights Q1 2020
HIGHLIGHTS Q1 2020 80000 VLCC 70000 • Strong underlying tanker dynamics drive record quarter 60000 Q1 • Robust freight market improved by record contango price structure & 20 storage 50000 • Very strong start to Q2 USD/day 40000 • Q1 2020 and Final 2019 dividends to be paid in June Dividends to tota
Slide 5: Financial Highlights – Income
FINANCIAL HIGHLIGHTS – INCOME (in $ million) Revenue First quarter 2020 416.7 First quarter 2019 232.6 1 KEY KPIs Other operating income 3.3 2.0 • Revenues : 417 M$ • EBITDA : 316 M$ Voyage expenses and commissions (32.7) (37.6) • Net income : 225 M$ Vessel operating expenses (53.9) (54.4) Charter h
Slide 6: Financial Highlights – Balance Sheet
FINANCIAL HIGHLIGHTS – BALANCE SHEET BALANCE SHEET HIGHLIGHTS (in $ million) Mar-20 Dec-19 1 Leverage Cash 312.2 297.0 39.5% leverage to book value Restricted cash 0.0 0.0 Other current assets 499.8 505.3 Long term 42% leverage to book value assets: after dividend payment Newbuildings 100.5 0.0 Vess
Slide 7: Capital Allocation at Euronav
CAPITAL ALLOCATION AT EURONAV Debt Repayment Dividends Buy Backs Fleet Equity & Bonds Growth/Renewal Mandatory FY 2019 0.29c Bonds $100m paid debt repayment Q1 2020 0.81c $1m Euronav toward 4x VLCC Q1 2020 Total: $1.10c 7.5% bond resale purchases = $28m* Payable June 20 repurchased at 85 Reduction o
Slide 8: Fleet Deployment
FLEET DEPLOYMENT ACTIVE FLEET MANAGEMENT Sale of 2x Suezmaxes & 1x VLCC Purchase of 4x VLCC resales above market price below market price TI Hellas 108 MOA $38.3m Finesse 45 106 22 $21.8m 40 Value of 17 & 19 year old Suezmaxes $m 104 20 Value of VLCC resale $m 35 102 18 30 100 16 Cap 98 Diamant 25 4
Slide 9: Fleet Deployment - 2020
FLEET DEPLOYMENT - 2020 Management have “locked” in Split between some longer time charters Spot & Fixed whilst retaining large spot exposure 20 18 19% % of Euronav fleet fixed in time charter 16 14 12 10 8 6 4 81% 2 0 Q4 19 Q1 20 Q2-Q4 20 Fixed days Q1 2020 to end 2020 9
Slide 10: IMO 2020 & Fuel Strategy
IMO 2020 & FUEL STRATEGY Fuel benefit $17.5m 600 • Marked-to-market of 500 inventory onboard OCEANIA is -$56m Compliant 0.5% bunker fuel per ton (end of quarter) 400 • No write-down necessary as we have 300 not used the fuel. Situation will be assessed quarter 200 after quarter • Fuel Oil project be
Slide 11: Market Highlights
MARKET HIGHLIGHTS Storage has further capacity for substantial impact 1800 105 1600 100 IEA oil demand & production m bbls 1400 Cumulative inventory build m bbls 95 1200 EIA estimate onshore storage capacity 1000 90 800 85 600 80 400 75 200 0 70 Cumulative inventory build IEA Oil Production IEA Oil
Slide 12: Not All Storage Is Created Equal
NOT ALL STORAGE IS CREATED EQUAL Storage has ONLY just begun with: • 125 VLCCs are currently being used as Storage of which : • 65 VLCCs taken for market storage in April • 38 Iranian • 22 infrastructure VLCC in storage before crisis 200 16% 180 …and now up to 61 14% Suezmax now in 160 market storag
Slide 13: Future Market Developments
FUTURE MARKET DEVELOPMENTS Short term Mid term Long term Storage phase Storage Draw Global Fleet Re-sizing Storage demand is 2 Scenarios Freight rate pressure compensating more than decrease of trading demand – 1. Quick draw rates to remain underpinned Contango persist and demand Fleet oversupplied
Slide 14: Large Tanker Fleet Ripe for Re-sizing
LARGE TANKER FLEET RIPE FOR RE-SIZING NEWBUILDING CONTRACTS RISING BARRIERS ORDER BOOK CURRENTLY23 YR LOW 60 FINANCING 50 BANKS & CAPITAL MARKETS Orderbook as % of fleet 40 REGULATION IMO 2030, BASEL IV 30 20 TECHNOLOGY IN FUEL PROPULSION 10 LONG TERM 0 CRUDE DEMAND VLCC Orderbook % Fleet Suezmax Or
Slide 15: Large Tanker Fleet Ripe for Re-sizing
LARGE TANKER FLEET RIPE FOR RE-SIZING FLEET AGE RISING – 26% VLCC FLEET >15 YEARS (@ 1 JANUARY 21) EACH QUARTER TO END 2021 - 27 VLCC EQUIV MUST UNDERTAKE A SPECIAL SURVEY 40 0.5 3 35 4.5 5 4.5 30 9.5 3.5 No of VLCC equivalents 0.5 11 8 25 8 6.5 3.5 3 20 3 2.5 16 11 3.5 9 10.5 15 8.5 14 9 10 6.5 5 1
Slide 16: Q&A
Q&A 16