Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Shareholder Meeting (May 2016)
18 slides from Cmb.tech Nv's shareholder meeting presentation, May 2016
Slide 1: AGM Presentation
AGM Presentation Paddy Rodgers, CEO May 2016 1
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: Euronav at a Glance
Section 1 Euronav at a Glance 2 3
Slide 4: 2015 – Strong year for Euronav and our shareholders
2015 – Strong year for Euronav and our shareholders In USD Q1 Q2 Q3 Q4 Full Year EBITDA 131.3 142.3 127.9 160.6 562.2 Net Income 80.9 92.4 72.2 104.7 350.1 EPS 0.508 0.580 0.454 0.658 2.199 BEST YEAR SINCE 2008 - DELIVERED ACTIVE PORTFOLIO MANAGEMENT Consistently strong rate environment during 2015
Slide 5: Q1 2016 Highlights
Q1 2016 Highlights In USD per day First quarter 2016 First quarter 2015 VLCC Average spot rate (in TI pool)* 60,638 50,845 Average time charter rate** 40,847 44,547 SUEZMAX Average spot rate* 38,386 41,944 Average time-charter rate** 32,251 41,593 * Including profit share where applicable ** Excludi
Slide 6: Euronav – Largest Tanker Company in the World
Euronav – Largest Tanker Company in the World CURRENT FLEET – TOTAL 55 VESSELS – 13.1 MM DWT WHO WE ARE 1 V – PLUS 2 FSO 22 SUEZMAX 30 VLCC Over 441,000 DWT 380k barrels Leading pure-play tanker company 150,000 – 165,000 DWT with best-in-class operating platform Up to 330,000 DWT Only 2 in world fle
Slide 7: Euronav – Exposed to Structural Growth in Demand for Oil
Euronav – Exposed to Structural Growth in Demand for Oil INCREMENTAL VLCC DEMAND FOR 1.2 MBPD ADDITIONAL EXPORTS = 36 – 49 VLCC PER YEAR 1.2 mbpd x 365 days = 440m barrels 440m barrels / 2m capacity per VLCC = 220 cargoes 220 cargoes / 4.5 annual journeys for VLCC (1) = 49 VLCCs Europe Russia Asia P
Slide 8: Euronav - Most Liquid Big Tanker Player
Euronav - Most Liquid Big Tanker Player LIQUIDITY GIVES SHAREHOLDERS OPTIONALITY More Trading Hours Euronext Brussels: 9 a.m. – 5. 30 p.m. (CET) Ticker Symbol: EURN NYSE: 9.30 a.m. – 4 p.m. (EST) TOTAL TRADED VALUE OF EURONAV US AND BB SHARES (SAME SHARE) - EURN US EQUITY & EURN BB EQUITY 100% 90% A
Slide 9: Current Industry Dynamics
Section 2 Current Industry Dynamics 5 9
Slide 10: Oil Tankers – Five Key Drivers
Oil Tankers – Five Key Drivers Demand for Oil Supply of Oil Ton Miles Supply of Vessels Financing ROBUST EXCESS BALANCED MANAGEABLE NEW BARRIER TO ENTRY • Trade lines established • Natural replacement • New regulations • Oil demand growing • Market share strategy from production in West cycle of 5%
Slide 11: Oil Price – Impact on Demand
Oil Price – Impact on Demand 1 Demand for Oil OIL PRICE OUTLOOK (ILLUSTRATION) 110 Lack of disruption/market share game Iran and other supply remain high Demand Destructive 100 Shale - as swing producer increases output 2009 - 2014 proved in this oil 90 price range that demand was destroyed 80 70 Ne
Slide 12: Oil Supply = High but Production Cuts Unlikely
Oil Supply = High but Production Cuts Unlikely 2 Supply of Oil WHO IS GOING TO MATERIALLY CUT? NEED CO-ORDINATION OIL SUPPLY – SHALE PROVING TO BE VERY RESILIENT BETWEEN THE TOP 10 PRODUCERS = 60% WORLD SUPPLY 1800 4000 FSU ex Kuwait 2.8 million barrels per day 3500 Russia 2.9 Thousands of barrels p
Slide 13: Order Book Dynamics – Structure - VLCC
Order Book Dynamics – Structure - VLCC 4 Supply of Vessels VLCC – ADDITIONS, SCRAPPING, REMOVALS IMPLIED BUFFER 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1=9 Q1=12 Q2=9 Q2=4 Q3=8 Q3=4 Q1=10 60 Q4=19 Q4=25 Q2=5 Q3=5 Q4=10 45 45 40 30 62 54 49 20 30 24 23 0 -1 -5 -8 -7 -13 -11 -25 -22 -8 -10 -16
Slide 14: Increasing Barriers to Entry
Financing Increasing Barriers to Entry 5 HUGE REDUCTION REGULATIONS PRIVATE SHIP OWNERS SHIPYARD IN SHIPPING FORCE EQUITY IN UNDER PRESSURE TO BANK LEVERAGE RETREAT PRESSURE RESTRUCTURE EXPOSURE DOWN & REDUCE Around USD 70bn CAPACITY • Other shipping withdrawn from shipping • Banks lending • PE exit
Slide 15: Our Strategy
EURO The ocean is our environment Section 3 oad . 7 “e Our Strategy
Slide 16: Maximizing Value Through Information
Maximizing Value Through Information BARRIER TO ENTRY – INFORMATION SIZE IS CRITICAL TO IMPROVE MARKET KNOWLEDGE Differentiate spot players vs industrial players 53 1 Ship Owner, 37 Vessels 2 Ship Owner, 52 NIOC, 37 China Merchants Grp, 35 Bahri, 34 3 Ship Owner, 27 37 16 COSCO Group, 32 Top 10 Owne
Slide 17: Capital allocation strategy
Capital allocation strategy CAPITAL ALLOCATION Strong balance sheet Leverage 1 • Maintain strong balance sheet • Target 30% to 50% leverage through cycle according to where we are in the cycle Capex Liquidity reserve 2 • Approximately USD 20 million • Retain min TWO years of maintenance capex (Drydo
Slide 18: Euronav Positioned for Powerful Cash Generation
Euronav Positioned for Powerful Cash Generation WELL POSITIONED FOR STRONG CASH FLOW PRO FORMA FLEET EARNINGS CAPABILITY GENERATION (EBITDA, $MM) (1) Next 12 Months Spot Days Exposure = 14,341 Days ($MM) 1,500 1,092 1 Breakeven (including debt service): 650 ~ USD 27,300 / day for VLCC – OpEx / day U