Slide 1: Earnings Call Q3 2020
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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: Content
CONTENT 1. Q3 2020 HIGHLIGHTS 2. FINANCIAL REVIEW 3. CURRENT THEMES 4. Q&A 3
Slide 4: Highlights Q3 2020
HIGHLIGHTS Q3 2020 45000 VLCC 40000 35000 Q3 • Challenging winter market conditions due to OPEC+ cuts, slower demand 20 30000 recovery due to COVID-19 and increasing vessel capacity P&L 25000 • Q3 Dividend: USD 18.5 million or USD 9c per share B/E USD/day Q3 Q3 Share buyback: USD 18.5 million 20000
Slide 5: Capital Allocation - Euronav Q3 2020
CAPITAL ALLOCATION - EURONAV Q3 2020 Debt Cash Buy Backs Fleet Repayment Dividends Equity & Bonds Growth/Renewal Mandatory debt YTD Dividend Equity Outstanding repayment FY20 $1.57 per share YTD $100m buy capex $236m of Term Loan back delivered which >$220m repayment YTD Dividend from bank =$62m Yie
Slide 6: Financial Highlights – Income
FINANCIAL HIGHLIGHTS – INCOME KEY KPI’s Q3 • Revenues : 241 M$ (in $ million) Third quarter 2020 Year-to-date 2020 Year-to-date 2019 • EBITDA : 145 M$ • Net income : 46.2 M$ Revenue 241.0 1,092.3 577.2 Other operating income 1.9 7.9 4.6 P&L Breakeven Voyage expenses and commissions (35.5) (98.6) (10
Slide 7: Financial Highlights – Balance Sheet
FINANCIAL HIGHLIGHTS – BALANCE SHEET HIGHLIGHTS (in $ million) Sep-20 Dec-19 1 Leverage Cash 161.6 297.0 Restricted cash 0.0 0.0 35.8% leverage to book value Other current assets 371.0 505.3 Long term assets: Newbuildings Vessels 130.6 2,919.8 0.0 3,177.3 2 Liquidity Other long term assets 163.4 185
Slide 8: Financing – ESG in Action
FINANCING – ESG IN ACTION Ship Financing – traditional model Green Ship Financing model Emission targets > IMO All banks to agree $469m revolver First sustainable linked $713m loan signed in sustainable September 2020 linked loan $244m term loan Independent measurement Beat target = lower cost Sourc
Slide 9: Recycling
RECYCLING WHEN VLCC RATES GO BELOW P&L BREAK EVEN = ON AVERAGE 5% FLEET DEPARTS 5% of current fleet = 41 VLCC 9% 30,000 8% 8% 8% 8% 7% 25,000 % of VLCC fleet recycled during year 7% VLCC freight rate for Year 6% 6% 20,000 5% 5% 5% 5% 5% 4% 15,000 4% 3% 3% 3% 10,000 2% 2% 5,000 1% 0% 0 1992 1993 1994
Slide 10: Not All Tankers Are Equal…
NOT ALL TANKERS ARE EQUAL… “Market” VLCC 15 Year Old VLCC “Eco” VLCC Fuel Fuel Fuel Fuel Freight Freight Freight TCE TCE x80% TCE Consumption 60 tonnes 70 tonnes 54 tonnes Utilisation 100% 80% 100% Opex + DD $10,095 $11,740 $9,800 TCE rate $15,000 $9,600 $16,800 Costs OPEX +DD LSFO $300 p/ton 10 yr
Slide 11: …And Many of These Face Special Survey Over the Next Quarters
…AND MANY OF THESE FACE SPECIAL SURVEY OVER THE NEXT 3 QUARTERS 25 No of VLCC required to go through SS4 (17.5 yrs) or older 20 20 19 18 18 15 10 5 0 Q4 20 Q1 21 Q2 20 Q3 20
Slide 12: FSO – 10 Year Extension to 2032
FSO – 10 YEAR EXTENSION TO 2032 • 10 year contract extension starting Q3 2022 • $645m additional Revenue for JV over 10 years • Debt free by Q3 2022 • 100% uptime since original contract 2010 • NO additional capex required FSO+ : More than storage…
Slide 13: Outlook
OUTLOOK TANKER MARKET REMAINS IN TRANSITION PHASE Demand for Supply Vessel Euronav Oil Ton miles Balance of Oil Supply sheet Covid 19 restrictions OPEC+ driving US export growth Orderbook to fleet Liquidity of $1bn lowering demand but supply cuts but oil to ameliorate but ratios at + share buyback r
Slide 14: Q&A
Q&A 14