Slide 1: Euronav Q4 2022 Earnings Call
EURONAV Q4 2022 EARNINGS CALL FEBRUARY 2, 2023
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 – Q4 2022 Earnings Call
AGENDA – Q4 2022 EARNINGS CALL Q4 2022 Highlights Financials Tanker market Conclusion Q&A Hugo De Stoop, CEO Lieve Logghe, CFO Brian Gallagher, Head Hugo De Stoop, CEO IR & Communications 3
Slide 4: Q4 2022 Highlights
Q4 2022 HIGHLIGHTS Hugo De Stoop, CEO
Slide 5: Q4 2022 Highlights
Q4 2022 HIGHLIGHTS Key takeaways P&L Breakeven vs. Spot Rates in USD/day • Large tanker recovery delivers highest earnings since Q2 2020 • Re-positioning of fleet earlier in 2021/2 brings strong operational leverage to VLCC SUEZMAX upcycle • Seasonal demand & Russian dislocation augment fundamentals
Slide 6: Financials
FINANCIALS Lieve Logghe, CFO
Slide 7: Re-positioning of fleet brings strong reward during Q4 2022
RE-POSITIONING OF FLEET BRINGS STRONG REWARD DURING Q4 2022 Balance Sheet December 2022 Leverage Liquidity Q4 EBITDA Q4 Net Profit Balance Sheet (in $ million) Dec-21 Dec-22 Short term assets: 45.2% $906.5m $317.7m $234.7m Cash and cash equivalents 152.5 179.9 Other current assets 306.9 426.6 Long t
Slide 8: Continuing to build sustainability platform
CONTINUING TO BUILD SUSTAINABILITY PLATFORM EURONAV ONLY TANKER COMPANY WITH NET ZERO TARGET Key takeaways Moving towards more sustainability-linked financing #Sustainability-linked • Euronav introduced the first $ million loans sustainability-linked loan in Q4 2020 5 2.400 2,267 2,301 2,271 5 2.200
Slide 9: Tanker market dynamics
TANKER MARKET DYNAMICS Brian Gallagher, Head of IR and Communications
Slide 10: Oil in transit
OIL IN TRANSIT STRUCTURAL CHANGE IN TON MILES DRIVING TIME CHARTER UPGRADES Ton miles Oil in Transit 1 year TCE rate VLCC 1 year VLCC time charter rate (in USD) 1.250.000 65.000 1.200.000 60.000 1.150.000 55.000 1.100.000 50.000 1.050.000 45.000 1.000.000 40.000 950.000 35.000 900.000 30.000 850.000
Slide 11: China crude demand growth to return
CHINA CRUDE DEMAND GROWTH TO RETURN LIFTING OF COVID RESTRICTIONS TO DRIVE REBOUND FROM Q2 ONWARDS Million barrels per day Source: FGE Consultancy, Pareto 11
Slide 12: Russian crude exports have been volatile
RUSSIAN CRUDE EXPORTS HAVE BEEN VOLATILE BACK TO PRE-EMBARGO RUN RATE EU embargo on Russian oil, effective 5 December 2022, created additional shipping demand as crude trading Russian crude exports in million patterns required longer voyages and therefore captured more shipping capacity barrels per
Slide 13: Conclusion
CONCLUSION Hugo De Stoop, CEO
Slide 14: Tanker market fundamentals – strongest in 20 years
TANKER MARKET FUNDAMENTALS – STRONGEST IN 20 YEARS 60 • Fleet-to-Orderbook ratio below 4% for Fleet orderbook 50 VLCC & Suezmax 40 • Shipyards constructing vessels are FULL until at least 2025 30 20 • Newbuild costs (VLCC $125m) & uncertainty over regulations making 10 owners reluctant to order 0 96
Slide 15: Conclusion – outlook positive, strong fundamentals & another upgrade
CONCLUSION – OUTLOOK POSITIVE, STRONG FUNDAMENTALS & ANOTHER UPGRADE Demand for Oil Supply of Oil Ton miles Vessel Supply Balance sheet IEA forecast global Non OPEC supply Russian disruption Limited new orders; Leverage: consumption to continues to grow; now peaked; Far Prices high; Shipyards 45.2%
Slide 16: Questions & Answers
fs euronext >= BEL Mid | Company of the year QUESTIONS & ANSWERS