Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Q1 2019 Earnings Presentation
12 slides from Cmb.tech Nv's earnings presentation, 2019
Slide 1: Earnings Call Q1 2019
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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. Q1 2019 HIGHLIGHTS 2. FINANCIAL REVIEW 3. CURRENT THEMES 4. OUTLOOK 5. Q&A 3
Slide 4: Highlights Q1 2019
HIGHLIGHTS Q1 2019 40000 VLCC 35000 30000 Q1 19 • Freight rate resilience despite OPEC cuts and new tonnage entering fleet 25000 P&L • Number of positive signals from the current large crude tanker market B/E USD/day 20000 • New CEO Hugo De Stoop appointed by board • USD 20m share buyback program re
Slide 5: Financial Highlights – Income
FINANCIAL HIGHLIGHTS – INCOME The most important key figures (unaudited) are: First (in thousands of USD) quarter 2019 First quarter 2018 • IFRS 16 Revenue 232,589 98,136 increases Other operating income 2,039 1,178 depreciation Voyage expenses and commissions (37,625) (19,809) charge Vessel operati
Slide 6: Financial Highlights – Balance Sheet
FINANCIAL HIGHLIGHTS – BALANCE SHEET 2019 2018 (in $ million) Mar-19 Dec-18 HIGHLIGHTS Cash 178.5 173.0 Restricted cash 0.0 0.1 Other current assets 360.1 348.0 Long term assets: Newbuildings 0.0 0.0 1 Leverage Vessels 3,440.3 3,520.1 46.2% marked to market Other long term assets 169.6 86.2 Total as
Slide 7: Signal #1 US Crude Export Outlook
SIGNAL #1 US CRUDE EXPORT OUTLOOK POTENTIAL FOR GROWTH TO 2022 Pipeline additions Planned export capacity 9 8 7 Million bpd US crude exports 6 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1h 2h 1h 2h 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2022 2022 Source: Pareto
Slide 8: Signal #1 US Crude Exports
SIGNAL #1 US CRUDE EXPORTS LONGER TON MILES ABSORBS TANKER CAPACITY Global tanker fleet ballast legs increasing 12 empty VLCCs heading for US @ “Twelve Empty Supertankers Reveal Truths About 21 February 2019 Today’s Oil Market – Bloomberg 21 February 2019” Source: Bloomberg 8
Slide 9: Signal #2 Asset Prices
SIGNAL #2 ASSET PRICES ASSET VALUES APPEAR KEY FOR EQUITY VALUATION New Build VLCC EURN share price $ 170 60 Correlation EURN share price 160 & New Build VLCC = 84% 50 150 140 Euronav share price in Dollar Value of new build VLCC 40 130 120 30 110 20 100 90 10 80 70 0 2004 2005 2006 2007 2008 2009 2
Slide 10: Signal #3 Resilient Freight Rates
SIGNAL #3 RESILIENT FREIGHT RATES DEMAND 3% SUPPLY 3% - VLCC $35K Q4 & Q1 VLCC equivalents due to be delivered VLCC equivalents in DD for IMO 2020 Iranian VLCC post US waivers Recycling Oil supply change 30 1.5 25 1 Quarterly change in global oil supply (citi) 20 Number of VLCC equivalents 15 0.5 10
Slide 11: Outlook
OUTLOOK RESILIENT Q1 – HEADWINDS TO TAILWINDS FOR 2H Demand for Supply Ton miles & Vessel Euronav Oil IMO 2020 Supply Balance of Oil sheet Robust US v Saudi Positive IMO to help Flexibility from Q4 Change No change No change No change Upgrade No Change 11
Slide 12: Q&A
Q&A 12