Slide 1: Earnings Call Q2 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. Q2 2020 HIGHLIGHTS 2. FINANCIAL REVIEW 3. CURRENT THEMES 4. Q&A 3
Slide 4: Highlights Q2 2020
HIGHLIGHTS Q2 2020 90000 VLCC 80000 70000 Q2 • Elevated cargo supply and contango oil price structure drives 60000 20 record quarter 50000 • Sector now in transition phase driven by oil inventory levels USD/day • Return 80% of quarterly net income to shareholders: USD 100 40000 million via share buy
Slide 5: Capital Allocation at Euronav
CAPITAL ALLOCATION AT EURONAV Debt Dividends Buy Backs Fleet Repayment Equity & Bonds Growth/Renewal Mandatory debt Trailing 1-year Equity Outstanding repayment/ Div. Yield 16%* $75m or 36c per capex Reduction of RCF share buyback during June/July $270m of which FY 2020 Past 12involuntary months or
Slide 6: Financial Highlights – Income
FINANCIAL HIGHLIGHTS – INCOME The most important key figures (unaudited) are: KEY KPI’s Q2 2020 First Second First First (in thousands of USD) Quarter 2020 quarter 2020 semester 2020 semester 2019 • Revenues : 435M$ Revenue 416,668 434,691 851,359 401,936 • EBITDA : 355M$ Other operating income 3,27
Slide 7: Financial Highlights – Balance Sheet
FINANCIAL HIGHLIGHTS – BALANCE SHEET HIGHLIGHTS (in $ million) Jun-20 Dec-19 Cash Restricted cash 280.3 0.0 297.0 0.0 1 Leverage 38.3% leverage to book Other current assets 568.5 505.3 value Long term assets: Newbuildings 119.9 0.0 Vessels 2,992.3 3,177.3 Other long term assets Total assets 171.0 4,
Slide 8: Current Themes
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Slide 9: Little Contracting and Order Book at Year Low
LITTLE CONTRACTING AND ORDER BOOK AT 20 YEAR LOW 140,000 60 # of VLCC ordered & Orderbook as % of fleet 120,000 50 100,000 40 VLCC rates 80,000 30 60,000 20 40,000 10 20,000 0 0 Orderbook as % of fleet No of VLCC ordered VLCC earnings Source: Clarksons 9
Slide 10: Fleet Ageing
FLEET AGEING 20% OF VLCC FLEET >15 YEARS FACING SURVEY IN NEXT 7 QUARTERS Large tanker average age 147 VLCC aged over 15 yrs require special @ 10 years of age – last seen in 2002 survey by end Q1 2022 10.5 40 25% 35 10.0 20% 30 Average Age of Global Fleet 9.5 % of VLCC fleet 25 15% # of VLCC 9.0 20
Slide 11: VLCC – Disruption (=Positive) Heavy
VLCC – DISRUPTION (=POSITIVE) HEAVY Temporary disruption Semi permanent disruption Permanent feature 11
Slide 12: Large Tanker Market – No Storage Bonanza
LARGE TANKER MARKET – NO STORAGE BONANZA INVENTORY & DEMAND UNCERTAINTY 105 3700 100 255 3500 206 228 M bpd Oil demand & supply (EIA) 229 95 3300 Oil inventory m barrels 90 3100 54 85 2900 80 2700 75 2500 Inventory Floating storage Demand Supply 5 year inventory average Source: EIA, Vortex, Clarkson
Slide 13: Outlook: Tanker Market in Transition Phase
OUTLOOK TANKER MARKET IN TRANSITION PHASE Demand for Supply Vessel Euronav Oil Ton miles Supply Balance of Oil sheet Q4 19 Rating from Q4 19 DOWNGRADE Change DOWNGRADE DOWNGRADE UPGRADE No Change 13
Slide 14: Q&A
Q&A 14