Slide 1: Euronav Q1 2023 Earnings Call
EURONAV Q1 2023 EARNINGS CALL MAY 11, 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 – Q1 2023 Earnings Call
AGENDA – Q1 2023 EARNINGS CALL Q1 2023 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: Q1 2023 Highlights
Q1 2023 HIGHLIGHTS Hugo De Stoop, CEO
Slide 5: Q1 2023 Highlights
Q1 2023 HIGHLIGHTS Key takeaways P&L Breakeven vs. Spot Rates in USD/day • Strong earnings reflected in Q1 results • Counter seasonal rally delivers strongest freight market in March VLCC SUEZMAX • Q1 Dividend USD 0.70 per share • Augments final dividend FY 2022 USD 1.10 per share to make USD 1.80 p
Slide 6: Financials
FINANCIALS Lieve Logghe, CFO
Slide 7: Platform delivers during strong counter seasonal Q1 2023
PLATFORM DELIVERS DURING STRONG COUNTER SEASONAL Q1 2023 Balance Sheet March 2023 Leverage* Liquidity* Q1 EBITDA Q1 Net Profit Balance Sheet (in $ million) Dec 2022 Mar 2023 Short term assets: Cash and cash equivalents 180.0 209.3 42.7% $918m $236.5m $175.0m Other current assets 427.1 432.8 Long ter
Slide 8: Tanker Market Dynamics
TANKER MARKET DYNAMICS Brian Gallagher, Head of IR and Communications
Slide 9: Orderbook at historically very low levels
% of fleet represented by orderbook 9 0 10 20 30 40 50 60 Jan-1996 Dec-1996 Nov-1997 Oct-1998 Sep-1999 Aug-2000 Jul-2001 Jun-2002 May-2003 Apr-2004 Mar-2005 Feb-2006 Source: Clarksons, Broker reports Jan-2007 Dec-2007 Nov-2008 Oct-2009 Sep-2010 Aug-2011 Jul-2012 Jun-2013 May-2014 Apr-2015 Suezmax VL
Slide 10: Context required with recent uptick in orders
CONTEXT REQUIRED WITH RECENT UPTICK IN ORDERS CONTRACTING BY PROPER OWNERS, IN SMALLER VESSELS & DELIVERIES > 2025 Unit price more attractive for Suezmax on relative basis Contracting being undertaken by responsible owners 140 135 Public 130 Indexed price from May 2021 125 120 115 National 110 105 1
Slide 11: China & USA Gulf Coast – engine room for tanker demand
CHINA & USA GULF COAST – ENGINE ROOM FOR TANKER DEMAND CHINA RETURNING TO GROWTH & USA INCREASINGLY VLCC CENTRIC China crude consumption data volatile but growing VLCC shipments from US Gulf – strong sustained growth 17.0 2022 2023 2024 15.2m bpd 15.9m bpd 16.3m bpd US SPR releases Million barrels p
Slide 12: Conclusion
CONCLUSION Hugo De Stoop, CEO
Slide 13: Tanker market fundamentals – strongest in years
TANKER MARKET FUNDAMENTALS – STRONGEST IN 20 YEARS • Fleet-to-Orderbook ratio below Fleet orderbook 60 4% for VLCC & Suezmax 50 • Newbuild costs (VLCC $130m) & 40 uncertainty over regulations 30 making owners reluctant to order 20 10 • Phase out potential of VLCC & 0 Suezmax is high with 25-30% of 9
Slide 14: Conclusion – outlook positive for medium term but short term headwinds from OPEC cuts
CONCLUSION – OUTLOOK POSITIVE FOR MEDIUM TERM BUT SHORT TERM HEADWINDS FROM OPEC CUTS 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
Slide 15: Questions & Answers
fs euronext >= BEL Mid | Company of the year QUESTIONS & ANSWERS