Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Shareholder Meeting (May 2020)
23 slides from Cmb.tech Nv's shareholder meeting presentation, May 2020
Slide 1: AGM 2020 Presentation
AGM 2020 PRESENTATION C E O H U G O D E S TO O P - M AY 2 0 2 0
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: COVID-19: Supporting our people in challenging times
COVID-19 SUPPORTING OUR PEOPLE IN CHALLENGING TIMES Approx. 3,600 EMPLOYEES Approx. 3,400 seafarers of many different nationalities • Wellbeing of Euronav’s community = priority #1 • • Approx. 200 shore employees • Precautionary measures on board and on shore • Most of shore staff working from home
Slide 4: Euronav – Who We Are
EURONAV EURONAV – WHO – WHO WE ARE WE ARE The world’s largest, independent quoted crude tanker platform 46 VLCC incl. 4 N/B 25 Suezmax* 2% International company – internationally connected 16% 24% 23% Av Age 45% Av Age 15% Headquarters in Antwerp 7.3 Yrs 11.1 Yrs 29% 46% Euronav offices 0-5 yrs 6-10
Slide 5: Euronav Strategy – Shareholder Focus
EURONAV STRATEGY – SHAREHOLDER FOCUS Shareholder returns since 2014 Repayment schedule and RCF reductions USD 3.77 DPS Leverage: 445 since 2015 600 • 39.5% book value Millions • 42% post dividend 347 $1.035bn dividend payments for 2h 345 paid since 2004 500 2019 & Q1 2020 $m net Income, Dividend & B
Slide 6: Euronav Strategy – Liquidity Focus
EURONAV STRATEGY – LIQUIDITY FOCUS +$270m 4x VLCC DELIVERY Q4 20 Q1 21 6
Slide 7: Operational Leverage with Contractual Income Support
EURONAV OPERATIONAL LEVERAGE WITH CONTRACTUAL INCOME SUPPORT Each $5,000 uplift in both VLCC and Suezmax rates improves net revenue and EBITDA by $108mm $1,188 $540 $324 $108 BASE +$5,000 +$15,000 +$25,000 +$55,000 per day per day per day per day VLCC TCE rates $25,000 $30,000 $40,000 $50,000 $80,00
Slide 8: Euronav 2019 – Highlights
EURONAV 2019 – HIGHLIGHTS In USD million Q1 Q2 Q3 Q4 2019 EBITDA 130.0 71.0 96.8 266.8 564.6 Net Income 19.5 -38.6 -22.9 160.8 118.9 EPS c per share 8.8 -17.5 -10.4 73.0 53.9 1 SHAREHOLDER RETURNS & MOVE TO QUARTERLY DIVIDENDS 35c per share dividend & $35m in buy back 2 BALANCE SHEET STRENGTHENED Bo
Slide 9: EURN Share Price
EURN SHARE PRICE 2019 YEAR OF PROGRESS 13 12 Share buy backs $35m in total 11 10 9 8 7 6 EURN US EURN BB Share buy backs 9
Slide 10: Liquidity of Share Trading
LIQUIDITY OF SHARE TRADING UP TO USD 40 MILLION PER DAY 45 USD value traded per day on NYSE and Euronext in Euronav 40 35 30 25 20 15 10 5 0 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q12020 NYSE USD value traded Euronext USD value traded Source: Bloomberg 10
Slide 11: Euronav Bond
EURONAV BOND AN IMPORTANT PART OF OUR FINANCING Bond size upsized by USD 50m to USD 200m 110 105 Euronav bond price USD 100 95 90 Bonds repurchased by Company 85 11
Slide 12: Euronav Mission Statement
EURONAV MISSION STATEMENT 1 FOR OUR SOCIETY To deliver an essential source of energy in ways that are economically, socially and environmentally viable now and in the future. 2 FOR OUR CLIENTS To operate in a manner that contributes to the success of their business objectives by providing flexible,
Slide 13: ESG at Euronav, It's in the DNA
ESG AT EURONAV, IT’S IN THE DNA 13
Slide 14: Environmental Social Governance
Environmental Social Governance Carbon emissions cut 10% Top quartile rank in 2019 with 2019 sector since 2016 leading disclosure in key surveys In GEI 3 years >40% Female running & only representation transport co on board 14
Slide 15: ESG – Euronav Credentials
ESG – EURONAV CREDENTIALS WELL ESTABLISHED WITH FURTHER TO GROW 35 30 Bloomberg ESG Disclosure Score 25 20 15 10 5 0 2014 2015 2016 2017 2018 Euronav Tanker Co A Tanker Co B Source: Bloomberg, Euronav 15
Slide 16: Outlook
OUTLOOK TANKER MARKET UNDERPINNED UNTIL INVENTORY CYCLE CHANGES Demand for Supply Vessel Oil Ton miles Supply IMO 2020 of Oil Low orderbook 2020 temp Storage & over Many ships Switch to AG Flexible impact supply >15 years from Q4 Change ST Coronavirus ST Positive Negative Positive No Change 16
Slide 17: Current Market Highlights
CURRENT 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
Slide 18: Onshore Storage
ONSHORE STORAGE LIMITED TO 1BN BARRELS AND OECD LOCATION FOCUSED Likely already approaching full onshore capacity given recent moves to tankers Source: HIS Markit, EIA, Livemnint, Reuters, various 18
Slide 19: Not All Floating Storage Is Created Equal
NOT ALL FLOATING STORAGE IS CREATED EQUAL Storage has ONLY just begun with: • 129 VLCCs are currently being used as storage of which : • 69 VLCCs taken for market storage in April • 38 Iranian • 22 infrastructure VLCC in storage before crisis 250 16% …and now up to 73 14% Suezmax now in 200 market s
Slide 20: 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 21: Large Tanker Fleet Ripe for Re-sizing
LARGE TANKER FLEET RIPE FOR RE-SIZING NEWBUILDING CONTRACTS RISING BARRIERS ORDER BOOK CURRENTLY 23 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 O
Slide 22: Recycling Reflects Pressure on Owners
RECYCLING REFLECTS PRESSURE ON OWNERS STEEL PRICE AND REGULATORY PRESSURE Older tonnage comes under increasing pressure Owners dilemma Increased opex from Older vessels = IMO2020 heavy consumers Volatile steel scrap price Lower cash earnings for older vessels Ballast water capex $1.5m from Sept 19 S
Slide 23: 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 EQUIVALENTS 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