Euronav : announces first quarter 2019 results

PRESS RELEASE

Regulated information

Tuesday 30 April 2019 - 8 a.m. CET

EURONAV ANNOUNCES

FIRST QUARTER 2019 RESULTS

HIGHLIGHTS

∙Freight rate resilience despite OPEC cuts and new tonnage entering global fleet

∙Number of positive signals from the current large crude tanker market

∙New CEO Hugo De Stoop appointed by board, to be formally recorded at the AGM of 9 May

∙USD 20m share buyback returning equivalent of USD 9c per share

∙Dividend of USD 6c proposed to be paid in May 2019 covering second half 2018

ANTWERP, Belgium, 30 April 2019 - Euronav NV (NYSE: EURN &Euronext: EURN) ("Euronav" or the "Company") today reported its non-audited financial results for the three months ended 31 March 2019.

Hugo De Stoop, CFO of Euronav said: "There are positive signals from the tanker market at present. Firstly, Euronav delivered VLCC rates of USD 35,000 per day (same as Q4) despite 1.2m bpd OPEC cuts and 28 new VLCC equivalents entering the global fleet during Q1. Secondly, US crude exports are running around 30% higher year on year. Thirdly, asset prices which historically have been a key valuation indicator for investors, continue to rise in both new build and secondhand values.

Refinery maintenance programs are more detailed and more prolonged this year than previous years and are likely to bring seasonal freight rate pressure forward to the second quarter. However, with increased cargo supply expected in the second half along with reduced tanker capacity from IMO induced retrofitting and potentially more Iranian vessels leaving the trading fleet, the outlook for the second half is encouraging."

PRESS RELEASE

Regulated information

Tuesday 30 April 2019 - 8 a.m. CET

		The most important key figures (unaudited) are:
	(in thousands of USD)				First quarter				First quarter
							2019				2018
	Revenue				232,589				98,136
	Other operating income				2,039				1,178
	Voyage expenses and commissions				(37,625)				(19,809)
	Vessel operating expenses				(54,401)				(36,895)
	Charter hire expenses				−				(7,673)
	General and administrative expenses				(19,675)				(13,750)
	Net gain (loss) on disposal of tangible assets				(74)				−
	Depreciation				(83,856)				(53,509)
	Net finance expenses				(23,836)				(11,328)
	Share of profit (loss) of equity accounted investees					3,914				4,574
	Result before taxation					19,075				(39,076)
	Tax benefit (expense)					451				(15)
	Profit (loss) for the period				19,526			(39,091)
	Attributable to: Owners of the company				19,526			(39,091)
	The contribution to the result is as follows:
	(in thousands of USD)
				First quarter				First quarter
							2019			2018
	Tankers				15,611			(43,671)
	FSO					3,915				4,580
	Result after taxation					19,526			(39,091)
	Information per share:
	(in USD per share)				First quarter				First quarter
							2019			2018
	Weighted average number of shares (basic) *				217,447,311			158,166,534
	Result after taxation				0.09			(0.25)

* The number of shares issued on 31 March 2019 is 220,024,713.

PRESS RELEASE

Regulated information

Tuesday 30 April 2019 - 8 a.m. CET

	EBITDA reconciliation (unaudited):
	(in thousands of USD)		First quarter					First quarter
					2019					2018
	Profit (loss) for the period		19,526					(39,091)
	+ Depreciation		83,856					53,509
	+ Net interest expenses		21,033					11,314
	+ Tax expense (benefit)				(451)					15
	EBITDA				123,964					25,747
	+ Depreciation equity accounted investees		4,456				4,456
	+ Net interest expenses equity accounted investees		1,191				(20)
	+ Tax expense (benefit) equity accounted investees				436				469
	Proportionate EBITDA				130,047					30,652
	Proportionate EBITDA per share:
	(in USD per share)		First quarter					First quarter
					2019				2018
	Weighted average number of shares (basic)
		217,447,311				158,166,534
	Proportionate EBITDA		0.60				0.19

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

For the first quarter of 2019, the Company had a net gain of USD 19.5 million or USD

0.09per share (first quarter 2018: a net loss of USD (39.1) million or USD (0.25) per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 132.9 million (first quarter 2018: USD 30.7 million).

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

In USD per day		First quarter 2019			First quarter 2018
VLCC
Average spot rate (in TI pool)*		35,195		18,725
Average time charter rate**		27,630		34,000
SUEZMAX
Average spot rate***		27,380		14,000
Average time charter rate**		32,680		23,850

*Euronav owned ships in TI Pool **Including profit share where applicable

*** Excluding technical offhire days

PRESS RELEASE

Regulated information

Tuesday 30 April 2019 - 8 a.m. CET

EURONAV TANKER FLEET, CAPITAL EXPENDITURES & IFRS 16 IMPACT

On 9 January 2019 Euronav delivered the Suezmax vessel Felicity (2009 - 157,667 dwt) to a global supplier and operator of offshore floating platforms in accordance with a sale agreement dated 31 October 2018. A capital loss on the sale of approximately USD 3.0 million has been recorded in Q4 2018. The cash generated on this transaction after repayment of debt will be USD 34.7 million. The vessel will be converted into an FPSO and therefore leave the worldwide trading fleet.

On 11 February 2019 Euronav entered into a sale agreement regarding the LR1 Genmar Compatriot (2004 - 72,768 dwt) for USD 6.75 million. The Company will record a capital gain of approximately USD 0.4 million in the second quarter. The LR1 Genmar Compatriot joined the Euronav fleet as part of the Gener8 merger in June 2018 and was always a non-core asset to the Company. The vessel will be delivered to her new owners in the course of May 2019.

The depreciation charge altered during Q1 as a result of applying the new accounting standard of IFRS 16 (applicable as of Jan 1, 2019) with the key difference coming from the four VLCCs which were part of a sale and leaseback agreement in December 2016 at that time an off-balance sheet transaction which is now returning on Euronav's balance sheet and will give additional quarterly depreciations of USD 7.2M.

CAPITAL ALLOCATION

As part of its capital allocation strategy, Euronav has the option of buying its own shares back should the Board and Management believe that there is a substantial value disconnect between the share price and the real value of the Company. This return of capital is in addition to the fixed dividend of USD 0.12 per share paid each year. The Company started buying back shares on Euronext Brussels opportunistically on 19 December 2018. The table below provides an overview of the share purchases which the Company did in the first quarter of 2019.

Euronav may continue to buy back its own shares opportunistically. The extent to which it does and the timing of these purchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations.

PRESS RELEASE

Regulated information

Tuesday 30 April 2019 - 8 a.m. CET

Purchase	N° of shares	Aggregate cost	Total N° of	Percentage of
announcement	purchased		Treasury	total
date			Shares after	outstanding
				the transaction	shares
2 January 2019	545,486	EUR 3,471,506.67	1,237,901	0.56%
10	January 2019	430,000	EUR 2,842,804.00	1,667,901	0.76%
21	January 2019	444,143	EUR 2,990,493.32	2,112,044	0.96%
13	February 2019	532,829	EUR 3,648,561.70	2,644,873	1.20%
22	February 2019	139,299	EUR 973,631.50	2,784,172	1.27%
6 March 2019	360,000	EUR 2,500,614.20	3,144,172	1.43%
18	March 2019	226,372	EUR 1,569,993.62	3,370,544	1.53%

The Company retained around USD 785 million of liquidity as at the end of March 2019.

SECTOR NEUTRAL BLOOMBERG INTERNATIONAL GENDER EQUALITY INDEX

In January 2019 Euronav has been included, for the second consecutive time, in the Bloomberg International Gender-Equality Index ("GEI"). The reference index measures gender equality across internal company statistics, employee policies, external community support and engagement, and gender-conscious product offerings. The GEI is voluntary and has no associated costs. The index is not ranked.

DIVIDEND 2018

The Board and Management of Euronav are proposing to pay a final cash dividend of USD 6c per share subject to shareholder approval at the AGM on 9 May 2019. This payment covers the second half of the financial year to December 2018. This payment is part of Euronav's minimum fixed dividend policy of USD 12c per year.

Therefore, the Company will have returned for the second half of 2018 a total of USD

17.1million comprising a cash dividend of USD 13.2 million (6c per share) and USD 3.9 million (1.5c per share) in the form of share buyback that took place in December 2018. Euronav has subsequently returned an additional USD 16.4 million (equivalent to USD 7c per share) to shareholders so far during calendar 2019 in the form of share buyback. This