Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Investor Presentation (March 2013)
46 slides from Cmb.tech Nv's investor presentation, Mar 26, 2013
Slide 1: ITMMA Presentation
ITMMA PRESENTATION PRESENTATION ITMMA 26 MARCH 2013 27 MARCH 2012 1
Slide 2: Company Highlights
Company Highlights • Leading crude tanker company Young diverse fleet of 37 ships under control Balanced strategy between contracts and spot market Well positioned to take advantage of offshore market • Strong financial position No need to raise substantial financing until 2014 Diversified
Slide 3: 1. Strategy
1. STRATEGY 3
Slide 4: A Focused Fleet
A Focused Fleet Vessel Type Euronav owned TC-IN (Weighted) FSO 3 1+(2 x 50%) V-PLUS 1 0 VLCC 10 (2 CSR) 1 9+ (2 x 1/2 in J/V) SUEZMAX 22 (16 ice class) 0 (4x 1/2 in J/V) Mix of spot and Total = 36 Ships Fixed contracts
Slide 5: Commercial Balanced Strategy
Commercial Balanced Strategy Fixed term contracts Pooling arrangements Proprietary spot desk 5
Slide 6: A Balanced Strategy
A Balanced Strategy 2013/ YTD 2012 onhire days Forecast 2013 Onhire Days 2012 Onhire Days 343 days 797 days 3% 6% 3,640 days 30% 4,172 days 7,149 33% 56% 7,513 days 62% 646 days 5% 671days 5% fixed fixed-ps FSO spot fixed fixed-ps FSO spot Break-even Of which OPEX Fixed Contract Backlog 2012: $200m
Slide 7: Clients of Euronav
Clients of Euronav D> EXON Sinaty. ConocoPhillips V WW passe VALERO Shell ¢ bp ar ae Lj] PETROBRAS <a
Slide 8: TI Pool
TI POOL Euronav 2,735,679 dwt GC Tankers Reederei “Nord” 912,891 dwt 638,187 dwt Athenian Sea Carriers Oak Maritime (HK) 1,269,764 dwt 610,439 dwt Overseas Shipholding Group DHT Holdings, Inc 605,438 dwt 3,679,703 dwt
Slide 9: 2. The Market… are the fundamentals changing?
2. The Market… …are the fundamentals changing? 9
Slide 10: Oil Demand and Production
OIL DEMAND AND PRODUCTION 10
Slide 11: World Oil Demand
World Oil Demand World Oil Demand Growth World Oil Demand Growth per Key 50 92 area +3.3% +3% 0.9% 45 +1% +4.3% 90 +0.7% 40 +3% 35 +7.8% 88 +1.6% -0.1% 30 +3.7% Mbpd -5.1% -0.8% 86 +1.5% -1.2% 25 Mbpd +1.8% 20 84 +0.6% -0.6% -3.5% 15 -2.2% +4% 10 +1.3% +4.3%+4.2% 82 +16.4% 5 80 0 2003 2004 2005 2006
Slide 12: Crude Oil Price 2011 - YTD
USD 70 80 90 100 120 130 140 110 Jan-2011 Feb-2011 Mar-2011 Apr-2011 May-2011 Jun-2011 Jul-2011 Aug-2011 Sep-2011 Oct-2011 Nov-2011 Dec-2011 Jan-2012 Feb-2012 Mar-2012 Apr-2012 May-2012 Jun-2012 Jul-2012 Aug-2012 Crude Oil Price 2011-YTD Sep-2012 Oct-2012 Nov-2012 Dec-2012 Jan-2013 Feb-2013 Crude oi
Slide 13: Total shale oil production & Change in Chinese crude demand
Total shale oil production & Change in Chinese crude demand 13
Slide 14: Estimated changes in demand for VLCCs
Estimated changes in demand for VLCCs Source: Clarksons 14
Slide 15: Estimated changes in demand for Suezmaxes
Estimated changes in demand for Suezmaxes Source: Clarksons 15
Slide 16: Suezmax Trading Pattern
Suezmax Trading Pattern… …is dramatically changing and adding Ton-Miles 45 VLCC WAF Lifting AG Suezmax Liftings 40 40 35 35 2009 30 30 2009 25 2010 25 2010 20 2011 20 2011 15 2012 15 10 2012 10 2013 5 5 2013 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Slide 17: 3. Tanker Supply
3. TANKER SUPPLY 17
Slide 18: Tanker Fleet Vs Oil Demand
Tanker fleet Vs Oil demand Tanker Fleet Vs Oil Demand 650 95 600 550 90 Oil Demand Mbpd 500 Tanker Fleet 450 85 400 350 80 300 250 75 200 150 70 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 VLCC Suezmax Oil demand 18
Slide 19: VLCC fleet development
VLCC fleet development Fleet at Year start DH Trading SH NBs Total Exit Growth Growth% 2005 447 273 174 31 11 20 4.47% 2006 467 304 163 18 2 16 3.43% 2007 483 322 61 29 22 7 1.45% 2008 490 354 136 42 38 4 0.82% 2009 494 396 98 53 33 20 4.05% 2010 514 450 64 60 44 16 3.11% 2011 530 511 19 65 17 48 9.
Slide 20: Suezmax fleet development
Suezmax fleet development Fleet at Year start DH SH NBs Total Exit Growth Growth% 2006 283 237 35 26 0 26 9.19% 2007 309 263 35 25 1 24 7.77% 2008 333 289 34 14 2 12 3.60% 2009 345 302 32 46 4 42 12.17% 2010 387 344 28 38 12 26 6.72% 2011 413 383 16 42 7 35 8.47% 2012 448 425 9 47 20 27 6.03% 2013 4
Slide 21: Orderbook
Orderbook ENTRIES ACTIVE FLEET ACTIVE NECESSARY EXITS DEMOLITIONS ENTRIES ACTIVE NECESSARY EXITS ACTIVE FLEET DEMOLITIONS
Slide 22: Supply of ships in perspective
Supply of ships in perspective 22
Slide 23: 4. Large Factors influencing tanker market
Issues 4. Large Factors influencing influencing Tanker Supplythe tanker market tanker market 23
Slide 24: The power of slow steaming
The power of slow steaming Full Eco Super Speed Speed Slow Laden/Ballast 14/15 14/13 14/10 (knts) Bunkers $ 2,679,600 2,505,300 2,162,160 Days 38.28 41.12 47.52 TCE $ 10,300 13,830 19,188
Slide 25: Bunker prices
Bunker prices Global bunker prices —— Rotterdam; 700 Pom m mmm nnn nm 639 ne , 680 o yearly average, ® 650 + ---------- Bec - gg --- or - 670 4 ihs a Ss $600 p= =m fn Ne nnn , 660 [= US; yearly 2 550 +------------S18 gh ------- > ---------4 | 650 §& average, Ihs 2500 - 640 8 5 By og 5480 830 $5 year
Slide 26: Effect of slow steaming on TCE
Effect of slow steaming on TCE Source: DNB Markets 26
Slide 27: VLCC Asset Prices
VLCC Asset Prices Source:Clarksons 27
Slide 28: Ship Demolition Rates
Ship Demolition Rates EURONAV The ocean is our environment TEENAGE VLCC VESSEL VALUES ARE BALTIC EXCHANGE SHIP DEMOLITION RATES CLOSING IN ON DEMOLITON LEVELS $ per ldt 800 700 600 500 400 300 200 | a ce leeeee | ‘66 ig) 6-10 11°15 16-20 21-25 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 years
Slide 29: Crude tanker demolition in 2012
Crude tanker demolition in 2012 Average age trading vessels 2012 fell to < 20 years youngest fleet ever in terms of age 44 16 28 tankers scrapped = inactive vessels + trading vessels 68% DOUBLE HULL 3 DH + 13 SH 27 DH + 1 SH average age average age average age 20.7 years 22.8 years 19.5 years Sour
Slide 30: World fleet VLCC Earnings
©) World fleet VLCC Earnings ‘ocean is our environment World Fleet VLCC Earnings (in thousands USD) MBDTIVLCCTCE MTIActual 160000 140000 120000
Slide 31: BITR and BDTI Rate evolution
BITR and BDTI Rate evolution 31
Slide 32: 5. Offshore Services Market
5. OFFSHORE SERVICES MARKET 32
Slide 33: Offshore Market
EURO Offshore Market 33
Slide 34: Market Overview
Market Overview • Annual growth 5-10% • Most FSO/FPSO contracts are extended into option periods • Alternatively redeployed on new contracts • The complexity and size of new FSO/FPSO are increasing • Leased vs Owned – 50/50 34
Slide 35: FSO/FPSO The preferred Solution
FSO/ FPSO The preferred Solution • Flexible, safe and proven solution • Generic or field specific • Deck space and deck load capacity • Storage Capacity • Self propelled marine unit Source: IMA 35
Slide 36: Finding the right investment
Finding the right investment EURONAV PROJECT PRE QUALIFICATION + EXPERIENCE + CONVERSION OPERATION FINANCIAL CAPABILITY + PROJECT & RISK FINANCING MANAGEMENT + PROCUREMENT 36
Slide 37: More than 235 Floater Projects in the planning pipeline
More than 235 Floater Projects in the planning pipeline…. 37
Slide 38: Global oil production over the years
Global oil production over the years Offshore production is growing steadily over the years 38
Slide 39: Offshore Strategy
Offshore Strategy 39
Slide 40: Offshore Strategy
Offshore Strategy • 2012: Set up of a dedicated offshore department. • Focus on FpSO units (Floating Storage Offloading) with small (p) production topsides for platform fluids treatment • Select vessels from our trading fleet when: – Becoming more difficult to trade due to age restrictions (older VL
Slide 41: In Operation
In Operation • FSO Asia and FSO Africa delivered to MOQ in 2010 • New contract agreement FSO Africa as of 1/10/2012 • FSO characteristics: - Storage Capacity: minimum 2,400,000 barrels of dry oil for export - Stripped Water Capacity: minimum 200,000 barrels - Custody transfer to off-take tanker: 90,
Slide 42: In Tender Phase
In Tender Phase • Dagny field project for Statoil in North Sea 1 FSO Suezmax size. Contract will be awarded in the course of this spring. 42
Slide 43: Thank you for listening
THANK YOU FOR LISTENING www.euronav.com 43
Slide 44: Financing sources
Financing sources Preference for Shipping banks … … but as straight banking finance is drying up It is important to be a public company that can tap alternative source of financing: - Bond markets - US High Yield - Norwegian Bond market - Convertible Bonds - Equity markets 44
Slide 45: Suezmax Spot outperforming the market
SUEZMAX SPOT outperforming the market 2011 2012 TCE/day Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Euronav 13,519 14,778 15,100 15,750 24,272* 22,000 15,750 9,120 Teekay 18,671 17,461 8,289 12,641 22,847 22,532 13,724 11,509 Frontline 16,000 14,500 7,800 12,400 19,500 16,200 10,500 14,000 GenMar 16,768 14,490 8,608 **
Slide 46: Suezmax and VLCC Average Earnings
Suezmax and VLCC Average Earnings Average Earnings VLCC and Suezmax 2011 - YTD 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2011-01 2011-02 2011-03 2011-04 2011-05 2011-06 2011-07 2011-08 2011-09 2011-10 2011-11 2011-12 2012-01 2012-02 2012-03 2012-04 2012-05 2012-06 2012-07 2012-08