Slide 1: Euronav Q4 2023 Earnings Call
EURONAV Q4 2023 EARNINGS CALL 2 February, 2024
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 – Q4 2023 earnings call
Agenda – Q4 2023 earnings call Q4 2023 Highlights & Corporate Tanker Markets Conclusion Q&A Financials developments Ludovic Saverys CFO Alexander Saverys CEO Alexander Saverys CEO Alexander Saverys CEO 3
Slide 4: Q4 2023 Highlights & Financials
Q4 2023 Highlights & Financials Ludovic Saverys – CFO
Slide 5: Q4 2023 highlights
Q4 2023 highlights Key takeaways P&L Breakeven vs. Spot Rates in USD/day • Robust freight market delivering solid profits – slightly above weighted average long run VLCC and Suezmax spot freight rates for Q4 VLCC SUEZMAX • Fleet expansion announced with 4x new VLCC and 2x new Suezmax on long term ti
Slide 6: Euronav delivers during strong Q4 2023
Euronav delivers during strong Q4 2023 Balance Sheet December 2023 Leverage Liquidity Q4 EBITDA Q4 Net Profit 30.3% $1,243m $155.8m $410.9m Low leverage High liquidity Strong freight rates Operational continued leverage NEW DIRECTION FOR EURONAV RETURN TO SHAREHOLDERS FURTHER GROWTH • CMB breaks str
Slide 7: Corporate Developments
Corporate Developments Alexander Saverys – CEO
Slide 8: Recent tanker fleet developments
Recent tanker fleet developments 23 VLCC’s out of the 24 VLCC’s have been sold and delivered to Frontline. The VLCC Camus is expected to be delivered in March 2024 Frontline VLCC sale Total capital gain in Q4 2023 of USD 323.3 million & in Q1 2024 of USD 374.2 million Euronav has sold the ULCC Ocean
Slide 9: Euronav tankers to avoid Red Sea until further notice
Euronav tankers to avoid Red Sea until further notice The safety of our crew and our ships comes first 9
Slide 10: CMB.TECH transaction and MTO – expected timing
CMB.TECH transaction and MTO – expected timing SGM - Special SGM - Special Shareholder Meeting Shareholder Meeting Shareholders approve conditionality of (i) SGM scheduled on 7 February 2024 to Frontline’s acquisition of 24 VLCC for $ 2.35 approve CMB.TECH transaction billion and (ii) termination of
Slide 11: Tanker Markets
Tanker Markets Alexander Saverys - CEO
Slide 12: Orderbook remains well below long term averages
Orderbook remains well below long term averages Orderbook remains well below long term averages, with the VLCC & Suezmax global fleet ages at 23 year highs, and getting lowest activity in the last 10 years older by the year OB/F in % Age 55 14,0 VLCC Orderbook % Fleet VLCC Fleet - Average Age (years
Slide 13: Even with recent orders, tanker supply fundamentals remain very supportive
Even with recent orders, tanker supply fundamentals remain very supportive VLCC Fleet Age Profile and Orderbook Implications • Under today’s policy settings, # VLCCs 70 66 global demand for oil is set to peak 65 64 2030: 370 VLCCs or 40% is >20 year 60 by 2030, according to the latest IEA 60 53 proj
Slide 14: Asset prices underpin valuation and provide further optionality
Asset prices underpin valuation and provide further optionality to generate cash or recycle older tanker tonnage into future-proof tanker tonnage Suezmax asset prices above 28 year historic average – VLCC asset prices above 28 year historic average – only 2008 performed better only period 2005-2008
Slide 15: Utilisation is still creeping upwards…rates should further improve
Utilisation is still creeping upwards…rates should further improve going forward With peaking oil demand, further improvements in utilisation are Global crude oil demand is growing to peak oil within the decade becoming a tanker supply story +2% +1% mbd 110 Utilization % change Supply / Demand % cha
Slide 16: Conclusion
CONCLUSION Alexander Saverys - CEO
Slide 17: Questions & Answers
QUESTIONS & ANSWERS