Euronav : announces third quarter 2019 results

PRESS RELEASE

Regulated information

Tuesday 29 October 2019 - 8 a.m. CET

EURONAV ANNOUNCES

THIRD QUARTER 2019 RESULTS

HIGHLIGHTS

• Robust crude tanker fundamentals reflected in improving freight market
• Euronav to pay quarterly dividends starting in the course of 2020
• Very strong start to Q4 - VLCC rates booked at USD 60,900 per day so far
• Euronav has 90% of trading fleet exposed to spot market for Q419/Q120

ANTWERP, Belgium, 29 October 2019 - Euronav NV (NYSE: EURN &Euronext: EURN) ("Euronav" or the "Company") today reported its non-audited financial results for the third quarter of 2019 ended 30 September 2019.

Hugo De Stoop, CEO of Euronav said: "Recent freight rates levels are demonstrating that our markets are thinly balanced and that any disruption can have a dramatic impact. Catalysts such as sanctions and geopolitical events may be temporary factors; the market fundamentals and IMO 2020 implications, however, have gradually rebalanced the supply and demand and those factors form a good base for a sustainable cyclical upturn.

Moreover, Euronav should benefit from it fully as we only have one dry dock for 2019 and 90% of our trading fleet is currently exposed to the spot market. In terms of shareholder benefits, Euronav will be able to align and repatriate cashflows to shareholders more quickly than in the past via quarterly dividends starting in the course of 2020."

PRESS RELEASE

Regulated information

Tuesday 29 October 2019 - 8 a.m. CET

The most important key figures (unaudited) are:

(in thousands of USD)

Revenue

Other operating income

Voyage expenses and commissions Vessel operating expenses Charter hire expenses

General and administrative expenses

Net gain (loss) on disposal of tangible assets Depreciation

Net finance expenses Bargain purchase

Share of profit (loss) of equity accounted investees

First

Semester

2019

401,936

3,160

(74,501)

(107,375)

−

(36,376)

381

(168,541)

(47,376)

−

7,660

Third
quarter	Year-to-
2019	Date 2019
175,287	577,223
1,406	4,579

(35,300) (109,801)

(50,949) (158,324)

−−

(14,972)(51,348)

14,41914,787

(84,603) (253,144)

(30,948)							(78,324)
−			−
4,160							11,820

Year-to-

Date 2018

363,917

3,538

(96,924)

(131,980)

(23,270)

(50,255)

19,102

(192,210)

(50,561)

36,261

12,293

Result before taxation

Tax benefit (expense)

Profit (loss) for the period

Attributable to: Owners of the company

(21,032)

2,002

(19,030)

(19,030)

			(21,500)					(42,532)			(110,089)
			(1,403)
							599			(260)
			(22,903)					(41,933)			(110,349)
			(22,903)					(41,933)			(110,349)

The contribution to the result is as follows:

(in thousands of USD)

Tankers

FSO

Result after taxation

First	Third
Semester	quarter	Year-to-	Year-to-
2019	2019	Date 2019	Date 2018
(26,690)	(27,064)	(53,754)	(122,646)
7,660	4,161	11,821	12,297
(19,030)	(22,903)	(41,933)	(110,349)

Information per share:
(in USD per share)	First	Third
Semester	quarter	Year-to-
	2019	2019	Date 2019
Weighted average number of shares (basic) *	216,994,426	215,080,810	216,349,544
Result after taxation	(0.09)	(0.11)	(0.19)

Year-to-

Date 2018

182,893,823

(0.60)

* The number of shares issued on 30 September 2019 is 220,024,713.

PRESS RELEASE

Regulated information

Tuesday 29 October 2019 - 8 a.m. CET

EBITDA reconciliation (unaudited):
(in thousands of USD)		First
	Semester
	2019
Profit (loss) for the period	(19,030)
+ Net interest expenses	41,412
+ Depreciation of tangible and intangible assets	168,541
+ Income tax expense (benefit)	(2,002)
EBITDA (unaudited)	188,921
+ Net interest expenses JV	2,337
+ Depreciation of tangible and intangible assets JV	8,961
+ Income tax expense (benefit) JV	804
Proportionate EBITDA	201,023

Third
quarter	Year-to-	Year-to-
2019	Date 2019	Date 2018
(22,903)	(41,933)	(110,349)
27,674	69,086	49,747
84,603	253,144	192,210
1,403	(599)	260
90,777	279,698	131,868
1,066	3,403	2,313
4,555	13,516	13,516
415	1,219	1,244
96,813	297,836	148,941

Proportionate EBITDA per share:
(in USD per share)	First	Third
Semester	quarter	Year-to-	Year-to-
	2019	2019	Date 2019	Date 2018
Weighted average number of shares (basic)	216,994,426	215,080,810	216,349,544	182,893,823
Proportionate EBITDA	0.93	0.45	1.38	0.81

All figures, except for Proportionate EBITDA, have been prepared under IFRS as adopted by the EU (International Financial ReportingStandards) and have not been audited nor reviewed by the statutory auditor.

For the third quarter of 2019, the Company had a net loss of USD 22.9 million or USD

0.11 per share (Q3 2018: a net loss of USD 58.7 million or USD 0.27 per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 96.8 million (Q3 2018: USD 50.7 million).

This quarterly result is affected by two non-cash items representing a total of USD 6.7 million: USD 5.5 million of swaps amortization acceleration as we have refinanced the last Gener8 inherited facility and lost the qualification for hedge accounting, and USD 1.4 million of deferred tax assets related to the sale of the V.K. Eddie.

PRESS RELEASE

Regulated information

Tuesday 29 October 2019 - 8 a.m. CET

The average daily time charter equivalent rates (TCE, a non IFRS-measure) can be summarized as follows:

In USD per day				Third quarter		Third quarter
					2019		2018
VLCC
Average	spot rate (in	TI		25,036		17,773
pool)*
Average	time	charter		32,790		31,374
rate**
SUEZMAX
Average spot rate***			17,121		14,919
Average	time	charter		29,884		29,624
rate**

*Euronav owned ships in TI Pool (excluding technical offhire days) **Including profit share where applicable

*** Excluding technical offhire days

EURONAV TANKER FLEET

On 5 August 2019 Euronav delivered its oldest VLCC, the V.K. Eddie (2005 - 305,261 dwt) to her new owners. The vessel will be converted into an FPSO and therefore leave the worldwide trading fleet. A capital gain on the sale of approximately USD 14.4 million was recorded during the third quarter.

CAPITAL ALLOCATION

Euronav returned further capital to shareholders during Q3 buying back 420,000 own shares for a total consideration of USD 4 million. This is part of our capital allocation policy and is in addition to the fixed dividend policy of USD 0.12 per share paid each year.

Euronav may continue to buy back its own shares opportunistically, depending upon market conditions, regulatory requirements and other corporate considerations.

PRESS RELEASE

Regulated information

Tuesday 29 October 2019 - 8 a.m. CET

IMO 2020 PREPARATION

Euronav's detailed plans and preparations continue for this new environment starting January 2020. Euronav provided a thorough and detailed webinar presentation on 5 September 2019 with the transcript and presentation on our website at https://www.euronav.com/en/investors/euronav-imo-2020-webinar/

APPOINTMENT OF CHIEF FINANCIAL OFFICER

Euronav is pleased to announce that Mrs. Lieve Logghe will join the Company as Chief Financial Officer. She will succeed Hugo De Stoop who took the role as CEO. Lieve Logghe will be a member of the Executive Committee.

Lieve started her career in International Finance at PriceWaterhouseCoopers. After that, Lieve joined Sidmar (currently ArcelorMittal). She progressively moved through the finance organization in different European geographies up to a position of CFO for ArcelorMittal Europe. As from July 2018 she was promoted VP Head of Energy for ArcelorMittal Europe and Energy Procurement Coordinator for ArcelorMittal worldwide with the clear aim of reducing its carbon footprint.

Lieve's wide and varied skill sets in capital intensive industries and energy expertise will bring an immediate and positive contribution to Euronav.

IMPORTANT CHANGES COMING IN BELGIAN CORPORATE LAW IN 2020

A new Belgian Code of Companies and Associations ("BCCA") approved in 2019 will simplify and enhance the flexibility of Belgian company law. As a consequence Euronav will be able to move to quarterly dividends, which the Company intends to effectively introduce in the course of 2020. This means Euronav will be able to pay dividends every quarter, and therefore repatriate cashflows to shareholders more quickly (than in the past) and be more aligned to the tanker cycle.

TANKER MARKET

Freight rate development during Q3 was lower than anticipated as the refinery maintenance program was longer and more pronounced than forecast. However, some counter seasonal strength in the large tanker markets reflected that the