Cmb.tech NV · EURONEXT:CMBT
Cmb.tech NV — Euronav — Q2 2016 Earnings Presentation
18 slides from Cmb.tech NV's earnings presentation, Jul 28, 2016
Slide 1: Euronav Q2 - 2016 Results (unaudited)
Euronav Q2 - 2016 Results (unaudited) 28th July 2016
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
Agenda Q2 - 2016 Highlights Financial Review Market update Outlook Euronav Market Q&A 2
Slide 4: Highlights
Highlights
Slide 5: Q2 - 2016 Highlights
Q2 - 2016 Highlights In USD per day Second Second First First quarter quarter Semester Semester 2016 2015 2016 2015 VLCC Average spot rate (in TI Pool) 47,864 55,570 54,156 53,370 Average time-charter rate* 44,382 38,148 42,461 41,705 Suezmax Average spot rate** 33,119 41,886 35,729 42,364 Average t
Slide 6: Financial Overview
Financial Overview
Slide 7: Financial Highlights – Income Statement
Financial Highlights – Income Statement Highlights Respectable first net income pre exceptional $164m v $167m (2015) Q2 impacted with non recurring charge Rate decline from June reflecting seasonal trading patterns impacted by additional factors 6
Slide 8: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet Highlights Access to capital markets becoming more restricted Euronav has excellent banking relationships and low leverage Leverage within company set range (30-50%) with no further capex commitments 7
Slide 9: Financial Leverage & Liquidity Position
Financial Leverage & Liquidity Position Liquidity Position Treasury management (30 June 2016) Treasury Policy – all excess cash used to pay revolving facilities Cash & Cash equiv (incl. share of JV): $117m Ability to redraw facilities for general Undrawn secured revolving facility corporate purp
Slide 10: Tanker Market Update
Tanker Market Update
Slide 11: Tanker supply – largely in balance
Tanker supply – largely in balance VLCC TRADING FLEET AGE PROFILE 70 Permanent idle/on storage Fleet <=2000 Fleet 2001-2016 On Order 60 50 17% No of Vessels 40 83% 30 17% 20 10 0 50 Permanent idle/on storage Fleet <=2000 Fleet 2001-2016 On Order 18% 45 40 35 83% No of Vessels 30 25 20 15 17% 10 Clar
Slide 12: Vessel age – matters
Vessel age – matters TANKER SHIPPING – A HIGHLY REGULATED INDUSTRY Costs of surveys increase during tanker life USD 4m leading to scrapping decision SS #5 Average cumulative survey cost 100% utilisation USD 3.25m (17.5 21 years) > USD 7.25 mm SS #4 USD 2.5m Median scrap age =20 years USD 2m Speci
Slide 13: Time charter rates
Time charter rates Source: Clarksons 12 12
Slide 14: Vessel Values
W oO =) ic > oO W) W) i) > Suezmax oO oO - > —=15yr old D/H Price —=Scrap Price —=5yr old Price NB Price ——/ van 80 ™s “~S ~“ /~> 120 20 9t-Aew gtuer Si-des st-Aew gt-uer vi-des vi-Aew viuer e1-des e1-Aew ep-uer Zi-des z-Aew zpuer Li-des bE-Aew beuer O1-des o1-Aew Oluer Data Source: Clarksons @= 13
Slide 15: Current Themes
Current Themes • Seasonality in Q2 - as per usual • Short term disruptions • Owners - 14 14
Slide 16: Outlook
Outlook
Slide 17: Euronav Outlook
Euronav Outlook Access to and cost of Finance – key Critical long term driver of sector Access to and cost of capital increasingly differentiated Sentiment – often overlooked but is critical All Owners have responsibility to act rationally Vessels are scarce assets with limited life As
Slide 18: Market outlook
Market outlook Demand for crude IEA Demand outlook upgraded again Oil price remains range bound – despite supply disruptions unable to sustain above $50 per barrel Structural drivers for long term in place Lower for longer means oil back in centre of energy mix SPR China, India and elsew