Slide 1: Earnings Call Q4 2017
© cEuRO fo] | = = | —l —l <r ie] (CT a) cS) = = c= <r Lad
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. Q4 2017 HIGHLIGHTS 2. FINANCIAL REVIEW 3. CURRENT THEMES 4. OUTLOOK 5. Q&A 3
Slide 4: Highlights Q4 2017
HIGHLIGHTS Q4 2017 35000 VLCC Q4 30000 16 25000 P&L Q4 • CHALLENGING FREIGHT MARKET DRIVES UNDERLYING NET INCOME LOSS B/E 17 20000 USD/day • FLEET REJUVENATION VIA THREE DISPOSALS DURING QUARTER 15000 • PROPOSED MERGER WITH GENER8 MARITIME 10000 • OUTLOOK – Q1 SO FAR VLCC 36% FIXED AT AROUND $22,252
Slide 5: Financial Highlights – Income
FINANCIAL HIGHLIGHTS – INCOME T he m o s t im po rt a nt k e y f igure s ( una udit e d) a re : (in tho usands o f USD) F o urt h F o urt h F ull Y e a r F ull Y e a r Q ua rt e r 2 0 17 Q ua rt e r 2 0 16 2 0 17 2 0 16 • Capital gains of Revenue Other o perating inco me 117,978 1,020 146,280 1,463
Slide 6: Financial Highlights – Balance Sheet
FINANCIAL HIGHLIGHTS – BALANCE SHEET 2017 2016 HIGHLIGHTS (in $ million) Dec-17 Dec-31 Cash Restricted cash 143.5 0.1 206.6 0.1 1 Leverage Other current assets 137.0 166.7 41% marked to market Long term assets: (34% book value) Newbuildings 63.7 86.1 Vessels 2,271.5 2,383.2 Other long term assets 19
Slide 7: Scrapping – An Encouraging Start
SCRAPPING – AN ENCOURAGING START 42260 VLCC Demolition Number 42262 Suezmax Tanker Demolition Number 540775 VLCC Fleet - Average Age Years 540776 Suezmax Fleet - Average Age Years 10 10.50 9 10.00 No of VLCC / Suexmax removed from fleet 8 Average age of VLCC/Suezmax fleet 7 9.50 6 9.00 5 8.50 4 3 8.
Slide 8: Scrap Price – Providing Optionality to Ship-Owners
SCRAP PRICE – PROVIDING OPTIONALITY TO SHIP-OWNERS VLCC Scrap Value 15 Year Old VLCC Price bloomberg Steel price index 45 4500 40 4000 35 30 3500 $m value of VLCC 25 3000 20 15 2500 10 2000 5 0 1500 8
Slide 9: But…..Work to Do as Tanker Bathtub Remains Unbalanced
BUT…..WORK TO DO AS TANKER BATHTUB REMAINS UNBALANCED CONTRACTING Concentrated new building delivery schedule Q1 2018 2018 2019 ORDER BOOK VLCC 7 49 36 Suezmax 13 36 14 OPERATIONAL FLEET Source: Clarksons SCRAPPING/ OTHER USE 9
Slide 10: Outlook
OUTLOOK • Concentrated delivery schedule into late 2018 remains a challenging headwind • Recent scrapping trends & prices encouraging Demand for Ton Miles Vessel Supply Financing Supply of Oil Oil S/TERM BARRIER TO OPEC CUTS US EXPORTS HEADWINDS EXPORTS GROW ENTRY ROBUST EXTENDED L/TERM MANAGEABLE N
Slide 11: Q&A
Q&A 11