Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Shareholder Meeting (May 2014)
17 slides from Cmb.tech Nv's shareholder meeting presentation, May 8, 2014
Slide 1: AGM Shareholders 8 May 2014
EURONAV AGM SHAREHOLDERS 8 MAY 2014
Slide 2: Euronav at a glance
Euronav at a glance Overview ● Fully-integrated, established top quality provider of international maritime shipping ● Market capitalization: ~$1.5bn share price up 149% in past 12 months SUEZMAX VLCC V PLUS FSO 125,000-180,000 DWT Up to 320,000 DWT Over 441,000 DWT Stripped water capacity 380k barr
Slide 3: Industry overview
Industry overview
Slide 4: Crude Oil tankers: High volatility market
Crude Oil tankers: High volatility market Daily average tankers freight rate over 10 years 100,000 SUPER CYCLE EVERY 5-7 YEARS 90,000 Average TCE 5 years 80,000 70,000 60,000 USD/DAY 50,000 40,000 30,000 PROFITABLE ZONE 20,000 10,000 Notional Break- Even 0 Jul-08 Jul-04 Jul-05 Jul-06 Jul-07 Jul-09 J
Slide 5: Factors affecting shipping demand: Demand for oil and Distance
Factors affecting shipping demand: Demand for oil and Distance Global oil demand is growing … … and increasingly moving to non-OECD countries (mb/day) (mb/day) (mb/day) 50 25.0 120.0 Non-OECD demand 48 OECD demand 100.0 46 20.0 44 80.0 42 15.0 60.0 40 Non-OECD demand overtaking OECD 10.0 38 demand 4
Slide 6: China's oil import driving positive tonne-miles demand growth
China’s oil import driving positive tonne-miles demand growth Miles moved per ton Crude Traffic generally moving East…and further transported to China(a) Europe US Gulf Mid East Arabian Gulf 5,500 TM Asia Mid East-Europe West Africa 9,650 TM South America 11,500 TM Refinery expansion in Middle East
Slide 7: Demand for oil and shipping
Demand for oil and shipping Development ● Next 2-3 years oil demand: China up 2mbd, other Asia up 1.6mbd ● European refineries closing: Export down 6-7 mbd ● US refineries: up 2.5 mbd since 2009 ● Brazil and Nigeria, production flat to up – possibly 2mbd. Domestic demand up, but refinery capacity la
Slide 8: Global VLCC and Suezmax fleet supply dynamics
Global VLCC and Suezmax fleet supply dynamics VLCC orderbook represents 11.4% of total fleet(a) Suezmax orderbook 11.0% of total fleet(b) 90.0 60.0% 30.0 60.0% 80.0 50.0% 25.0 50.0% 70.0 60.0 40.0% 20.0 40.0% 64% decline 78% decline in orderbook in orderbook % of total fleet % of total fleet DWT fro
Slide 9: Asset Values
Asset Values 220.00 200.00 VLCC SUEZMAX 180.00 ($mm) Newbuild Secondhand ($mm) Newbuild Secondhand 10 yr avg 115 96 10 yr avg 71 66 160.00 5 yr avg 100 72 5 yr avg 62 51 1 yr avg 92 60 1 yr avg 58 42 140.00 MUSD 120.00 Maersk Acquisition 100.00 80.00 60.00 40.00 2000-05 2005-01 2000-01 2000-09 2001-
Slide 10: Company Overview
Company Overview
Slide 11: Proven history operating in the crude tanker industry
Proven history operating in the crude tanker industry Maersk acquisition – 15 VLCCs 2014 TI Africa Conversion Delivery of FSO Asia and FSO Africa 2005 - 2014 April: Acquired 15 Added 5 Suez & 3 SUEZMAX from Tanklog 2009 VLCC new builds Tankers 2008 International 2005 TI Asia Started doing business P
Slide 12: Euronav's fleet is enhanced with the Maersk Tankers acquisition
Euronav’s fleet is enhanced with the Maersk Tankers acquisition Acquisition highlights Transaction rationale ● In January 2014 Euronav agreed to acquire 15 VLCCs ● Enables Euronav to capitalize on potential near-term from Maersk Tankers for $980mm improvements in tanker charter rates – Average age
Slide 13: Highlights
Highlights Fleet 35 vessels -> 53 vessels 15 Vessel acquired 5 Vessels sold 2 VLCC TC-in (1+1) Balance Sheet $125m Convertible Bond Exchange, converted and redeemed $150m Perpetual Convertible Preferred Equity $350m Capital Increase Maersk Transaction FSO facility extended $300m facility extended $5
Slide 14: Conclusion – well positioned for the cycle
Conclusion – well positioned for the cycle Attractive stage of the cycle A pure play tanker company with a sustainable 200 business model VLCC secondhand price VLCC newbuilding price 175 VLCC secondhand / newbuilding avg. price Best in class operating platform 150 Jan-14: Euronav agrees to acquire 1
Slide 15: Appendix
Appendix
Slide 16: Maersk Tankers acquisition fleet details
Maersk Tankers acquisition fleet details Overview of acquired vessels Vessel name Type DWT Year built Shipyard Ilma VLCC 314,000 2012 Hyundai Ingrid VLCC 314,000 2012 Hyundai Iris VLCC 314,000 2012 Hyundai Nautica VLCC 307,284 2008 Dalian Navarin VLCC 307,284 2007 Dalian Nectar VLCC 307,284 2008 Dal
Slide 17: Change in trading patterns increase the need for tonnage
Change in trading patterns increase the need for tonnage Europe US Gulf Mid East Asia Mid East-Europe VLCC Suezmax Both VLCC and Suezmax Likely Developments 2014-2017 Scenario 2014-2020 ● Middle East refinery expansion of 4 mbpd crude by ● Asian refineries not getting ME crude = 5mbd 2018 i.e. if pr