Slide 1: Euronav Q3 2022 Earnings Call
EURONAV Q3 2022 EARNINGS CALL NOVEMBER 3, 2022
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: Agenda – Q3 2022 Earnings
AGENDA – Q3 2022 EARNINGS Q3 2022 Highlights Conclusion Hugo De Stoop, CEO Hugo De Stoop, CEO Tanker market Brian Gallagher, Head of IR Q&A and Communications 3
Slide 4: Q3 2022 Highlights
Q3 2022 HIGHLIGHTS Hugo De Stoop, CEO
Slide 5: Q3 2022 Highlights
Q3 2022 HIGHLIGHTS Key takeaways P&L Cash-Breakeven vs. Spot Rates in USD/day • Large tanker freight rate recovery accelerates during Q3 2022 • VLCC rates gain significant & sustained traction from August VLCC SUEZMAX • Further fleet renewal in Q4 – 2x sales older ships; 2 new contracts 34.000 25.00
Slide 6: Financials
FINANCIALS Lieve Logghe, CFO
Slide 7: Solid Financial Performance & Active Fleet Renewal Year to Date
SOLID FINANCIAL PERFORMANCE & ACTIVE FLEET RENEWAL YEAR TO DATE Balance Sheet September 2022 Leverage Liquidity Q3 Revenues Q3 Net Profit 51.9% $355m* $223.5m $16.4m Equal distribution of Strong liquidity core Improved freight rates Operational our financing needs focus of Euronav in Q3 continued to
Slide 8: Tanker Market Dynamics
TANKER MARKET DYNAMICS Brian Gallagher, Head of IR and Communications
Slide 9: Russian Dislocation – Last Phase to Come
RUSSIAN DISLOCATION – LAST PHASE TO COME Simple dislocation – Oil travelling from Orange to Purple line Overall Oil moved to remain the same but moving x3-4 distance 4,0 3,5 3,0 M bpd Russian crude seaborne exports 2,5 2,0 1,5 1,0 0,5 0,0 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-2
Slide 10: Fuel Switching
FUEL SWITCHING Gas to Oil switching expected to hit 700k bpd 2023 winter as Oil equivalent price becomes increasingly attractive on relative basis Oil Natural Gas LNG Jap/Kor Gasoline Coal (Rott) Low Sulphur gasoil 10 Source: Bloomberg, JP Morgan
Slide 11: Oil in Transit
OIL IN TRANSIT APPROACHING EXCEPTIONAL LEVELS DRIVEN BY PANDEMIC 1250000 65.000 1 year VLCC time charter rate 60.000 1200000 55.000 Ton miles 1150000 50.000 1100000 45.000 1050000 40.000 35.000 1000000 30.000 950000 25.000 900000 20.000 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20
Slide 12: Conclusion
CONCLUSION Hugo De Stoop, CEO
Slide 13: History Doesn't Repeat But Often Rhymes – Current Set Up Similar to Previous Upcycles
HISTORY DOESN’T REPEAT BUT OFTEN RHYMES – CURRENT SET UP SIMILAR TO PREVIOUS UPCYCLES…. Synchronicity Tanker Sector rating; Average age of fleet; Orderbook – all in better shape this cycle than at start of previous upcycles P/NAV Tanker Sector VLCC Average Age (Yr) Orderbook % of fleet 1,6 12 30% 1,
Slide 14: Conclusion – Outlook Positive, Strong Fundamentals & Another Upgrade
CONCLUSION – OUTLOOK POSITIVE, STRONG FUNDAMENTALS & ANOTHER UPGRADE Supply Ton miles Vessel Supply Euronav Balance Demand for Oil of Oil sheet Returning to 2019 Non OPEC supply Second and last Limited new orders; LTV xx% levels of demand continues to grow; phase of Russian Prices high; Shipyards Li