EARNINGS CALL Q3 2019

1

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 and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the delivery of vessels, the outlook for tanker shipping rates, general industry conditions future operating results of the Company's vessels, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their obligations to us, the strength of the world economies and currencies, general market conditions, including changes in tanker vessel charter hire rates and vessel values, changes in demand for tankers, changes in our vessel operating expenses, including dry-docking, crewing and insurance costs, or actions taken by regulatory authorities, ability of customers of our pools to perform their obligations under charter contracts on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. We undertake no obligation to publicly update or revise any forward looking statement contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law. In light of the risks, uncertainties and assumptions, the forward looking events discussed in this presentation might not occur, and our actual results could differ materially from those anticipated in these forward-looking statements.

2

CONTENT

  1. Q3 2019 HIGHLIGHTS
  2. FINANCIAL REVIEW
  3. CURRENT THEMES
  4. OUTLOOK
  5. Q&A

3

HIGHLIGHTS Q3 2019

•Robust crude tanker fundamentals reflected in improving freight market

•Euronav to pay quarterlydividends starting in 2020

USD/day

•Very strong start to Q4 with VLCC rates booked at USD 60,900 per day so far

•Euronav has 90% of trading fleet exposed to spot market for 4Q19/Q120

•Outlook - Q4 so far VLCC 60% fixed at around 60.9k per day

Q4 so far Suezmax 48% fixed at around 27.3k per day

In USD per day

Third quarter 2019

Third quarter 2018

VLCC

Average spot rate (in TI pool)*

25,036

17,773

Average time charter rate**

32,790

31,374

USD/day

SUEZMAX

Average spot rate***

17,121

14,919

Average time charter rate**

29,884

29,624

*Euronav owned ships in TI Pool **Including profit share where applicable *** Excluding technical offhire days

30000

25000

20000

15000

10000

5000

0

30000

25000

20000

15000

10000

5000

0

VLCC

P&L

Q3

B/E

19

Suezmax

P&L

B/E

Q3

19

Q3

18

Q3

18

4

FINANCIAL HIGHLIGHTS - INCOME

The most important key figures (unaudited) are:

(in thousands of USD)

First

Third quarter

Semester

2019

2019

Revenue

401,936

175,287

Other operating income

3,160

1,419

Voyage expenses and commissions

(74,501)

(35,300)

Vessel operating expenses

(107,375)

(50,949)

Charter hire expenses

-

-

General and administrative expenses

(36,376)

(14,972)

Net gain (loss) on disposal of tangible assets

381

14,406

Depreciation

(168,541)

(84,603)

-

-

Net finance expenses

(47,376)

(30,948)

Bargain purchase

-

-

Share of profit (loss) of equity accounted

7,660

4,160

investees

Result before taxation

(21,032)

(21,500)

Tax benefit (expense)

2,002

(1,403)

Profit (loss) for the period

(19,030)

(22,903)

Attributable to: Owners of the company

(19,030)

(22,903)

Year-to-

Year-to-

Date 2019

Date 2018

577,223

363,917

4,579

3,538

(109,801)

(96,924)

(158,324)

(131,980)

-

(23,270)

(51,348)

(50,255)

14,787

19,102

(253,144)

(192,210)

-

-

(78,324)

(50,561)

-

36,261

11,820

12,293

(42,532)

(110,089)

599

(260)

(41,933)

(110,349)

(41,933)

(110,349)

  • Q3 drivers similar to Q2 with extended refinery maintenance & preparation ahead of IMO 2020

Information per share:

(in USD per share)

First

Third quarter

Year-to-

Year-to-

Semester

2019

2019

Date 2019

Date 2018

Weighted average number of shares (basic) *

216,994,426

215,080,810

216,349,544

182,893,823

Result after taxation

(0.09)

(0.11)

(0.19)

(0.60)

5

FINANCIAL HIGHLIGHTS - BALANCE SHEET

HIGHLIGHTS

2019

2018

(in $ million)

Sep-19

Dec-18

Cash

183.7

173.0

Restricted cash

0.0

0.1

Other current assets

467.7

348.0

Long term assets:

Newbuildings

0.0

0.0

Vessels

3,263.8

3,520.1

Other long term assets

149.8

86.2

Total assets

4,065.1

4,127.4

Current liabilities

346.6

287.1

Long term debt

1,549.6

1,569.6

Other long term liabilities

11.3

10.1

Equity

2,157.5

2,260.5

Total liabilities and stockholders' equity

4,065.1

4,127.4

1

2

Leverage

44% marked to market

(46% book value)

Fleet Development

  • No outstanding capex for Euronav
  • Sale of VK Eddie in Q3

6

CONSOLIDATION - ALREADY HAPPENING

  • Over 70 VLCCs on one platform from 2020
  • Active commercial consolidation

7

Clarksons Source:

VLCC TCE year 1

Breakeven

8

VLCC 1 year TCE

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

SECTORTANKERFORFOUNDATIONS SOLIDRATESFREIGHTFORCATALYSTPROVIDES STORAGE INDUCED IMO

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

Jul-19

Sep-19

Nov-19

Jan-20

Mar-20

May-20

Jul-20

Sep-20

Nov-20

Jan-21

Mar-21

May-21

Jul-21

Sep-21

Nov-21

Jan-22

Mar-22

May-22

Clarksons Source:

VLCC TCE year 1

Breakeven

9

VLCC 1 year TCE

0

10,000

20,000

demand)oil2hVLCCs,

fundamentalstermshort onstorageboost,(IMO40,000

60,000

70,000

80,000

90,000

100,000

SECTORTANKERFORFOUNDATIONS SOLIDRATESFREIGHTFORCATALYSTPROVIDES STORAGE INDUCED IMO

30,000

50,000

Jan-15

Mar-15

May-15

Jul-15

Sep-15

Nov-15

Jan-16

Mar-16

May-16

Jul-16

Sep-16

Nov-16

Jan-17

Mar-17

May-17

Jul-17

Sep-17

Nov-17

Jan-18

Mar-18

May-18

Jul-18

Sep-18

Nov-18

Jan-19

Mar-19

May-19

Jul-19

Sep-19

Nov-19

Jan-20

Mar-20

May-20

Jul-20

Sep-20

Nov-20

Jan-21

Mar-21

May-21

Jul-21

Sep-21

Nov-21

Jan-22

Mar-22

May-22

SOLID FOUNDATIONS FOR TANKER SECTOR

IMO INDUCED STORAGE PROVIDES CATALYST FOR FREIGHT RATES

VLCC 1 year TCE

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

long term fundamentals

(Fleet age profile, Orderbook <10% fleet)

short term fundamentals

(IMO boost, storage on VLCCs, 2h oil demand)

Jan-15Mar-15May-15Jul-15Sep-15Nov-15Jan-16Mar-16May-16Jul-16Sep-16Nov-16Jan-17Mar-17May-17Jul-17Sep-17Nov-17Jan-18

Mar-18May-18Jul-18

Sep-18Nov-18Jan-19Mar-19May-19Jul-19Sep-19Nov-19Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21May-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22

1 year

TCE VLCC

Breakeven

Source:Clarksons

10

SOLID FOUNDATIONS FOR TANKER SECTOR

IMO INDUCED STORAGE PROVIDES CATALYST FOR FREIGHT RATES

VLCC 1 year TCE

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

temporary factors

(Retrofits, Sanctions, Oil supply outages)

long term fundamentals

(Fleet age profile, Orderbook <10% fleet)

short term fundamentals

(IMO boost, storage on VLCCs, 2h oil demand)

Jan-15Mar-15May-15Jul-15Sep-15Nov-15Jan-16Mar-16May-16Jul-16Sep-16Nov-16Jan-17Mar-17May-17Jul-17Sep-17Nov-17Jan-18

Mar-18May-18Jul-18

Sep-18Nov-18Jan-19Mar-19May-19Jul-19Sep-19Nov-19Jan-20Mar-20May-20Jul-20Sep-20Nov-20Jan-21Mar-21May-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22

1 year

TCE VLCC

Breakeven

Source:Clarksons

11

EURONAV - ACTIVE PREPARATION FOR IMO 2020

Preparation

Procurement team purchased LSFO

  • Security of Supply
  • Safety & Reliability
  • Quality Control
  • Lower Emissions

Procurement & Testing

Deployment

560

545

540

520

fuel cost

500

480

$ per ton

460

447

440

420

400

0.5% Fuel Oil

Current HSFO price

Singapore

12

OUTLOOK

STRONG START TO Q4 - VESSEL SUPPLY UPGRADED

Demand for

Supply

Ton miles &

Vessel

Euronav

Oil

of Oil

IMO 2020

Supply

Balance

sheet

Change from Q2

Robust

US v Saudi

Positive

IMO to help

Flexibility

No change

No change

No change

CHANGE

No Change

UPGRADE

13

Q&A

14

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Disclaimer

Euronav NV published this content on 29 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2019 09:16:06 UTC