EARNINGS CALL Q4 2020

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. Q4 2020 HIGHLIGHTS
  2. FINANCIAL REVIEW
  3. CURRENT THEMES
  4. Q&A

3

HIGHLIGHTS Q4 2020

  • Sustained pressure freight rates during quarter
  • Mix of reduced demand, OPEC cuts & too many vessels
  • FSO extension to current contracts for further 10 years to 2032
  • Fixed cash dividend of USD 3 cents p/share in line with distribution policy
  • Additional USD 50 million share repurchase programme
  • Outlook
    • Q1 so far VLCC 46% fixed at around 16.4k USD per day
    • Q1 so far Suezmax 54% fixed at around 9.2k USD per day

In USD per day

Q4 2020

Q4 2019

VLCC

Average spot rate (in TI pool)*

20,500

61,700

Average time charter rate**

44,700

35,700

SUEZMAX

Average spot rate***

12,500

41,500

Average time charter rate**

29,500

29,300

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

70000

VLCC

60000

Q4

50000

19

USD/day

40000

30000

P&L

20000

10000

B/E

Q4

20

0

Suezmax

45000

40000

Q4

35000

19

30000

USD/day

25000

P&L

20000

15000

B/E

10000

Q4

5000

20

0

4

CAPITAL ALLOCATION

CONTINUES TO BE DYNAMIC ON ALL FRONTS

Going forward 2020 Delivery

Balance sheet

Cash

Buy Backs

Fleet

strength

Dividends

Equity & Bonds

Growth/Renewal

Low leverage &

Strong freight

Recycle capital via

repayment

market = cash

$119.5m

ship sales &

schedule leaves

dividends of

returned FY20

acquisition

leverage intact

$1.69 per share

maintaining

fleet age

of

part

logistical chain

Leverage

Min. 12c/year

$50m

in

Growth via 2x

crude oil supply

@50% target

cash dividend &

deployment into

eco-Suezmax +

permits $700m

commitment to

Euronav shares

capacity for

deployment

return 80% net

from balance

disciplined growth

potential

income remains

sheet

5

FINANCIAL HIGHLIGHTS - INCOME

KEY KPI's Q4

• Revenues : 138 M$

• EBITDA : 36 M$

• Net income : -58,7 M$

CASH BREAKEVEN

• VLCC : 18 k $/day

• Suezmax : 16 k $/day

DRY DOCKING FOCUS

27 dry dockings scheduled in during this winter season

6

FINANCIAL HIGHLIGHTS

CASHFLOW & BALANCE SHEET

HIGHLIGHTS

1. Cashflow robust

Tough freight market but positive quarterly cash flow

2. Leverage

37.3% leverage to book value

6

Euronav Clarksons, Source:

$m VLCC build New

VLCC build new as valuation EURN Implied

$m value of newbuild VLCC

65

70

75

80

85

90

95

TERMLONGERFORBACKBUYSHARE CREATIONVALUE

Jan-17

backsBuy

+backsbuyvia$146mreturnedhasEuronav2018Since

Feb-17

Mar-17

Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

Oct-17

Nov-17

Dec-17

Jan-18

Feb-18

Mar-18

Apr-18

May-18

Jun-18

Jul-18

Aug-18

Sep-18

Oct-18

Nov-18

Dec-18

Jan-19

Feb-19

Mar-19

Apr-19

May-19

Jun-19

Jul-19

Aug-19

Sep-19

Oct-19

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

$50m

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

CONDUCIVE CONDITIONS FOR RECYCLING

WHICH ARE ALSO INTENSIFYING

Older tonnage values & freight rate outlook supportive of recycling…

Recycle value

VLCC >$18m

1 year TC rate < $25,000

VLCC

1 year

VLCC* recycled

Recycle $m

TC rate

over next12 months

2010

18.6

19,800

20

2017

15.8

27,100

20

2018

18.2

22,900

42

…with catalyst of 62 VLCCs requiring

special surveys during 2021

20

18

16

6

14

6

12

8

10

4

8

8

8

6

5

4

5

2

3

4

3

2

0

Q1 2021

Q2 2021

Q3 2021

Q4 2021

22.5 year survey

20 year survey

17.5 year survey

Source: Clarksons

* VLCC equivalents including Suezmax

CRUDE DEMAND RECOVERY TRAJECTORY INCREASING DEFERRED - NOW 2022

IEA global oil demand forecast - recovery deferred and current trajectory

for Q3 2022 before recover to 2019 peak levels of consumption

IEA global oil demand forecast m bpd

105

100,9

100

95

90

85

80

Q2 19

Q3 19

Q4 19

Q1 20

Q2 20

Q3 20

Q4 20

Q1 21

Q2 21

Q3 21

Q4 21

Q1 22

Q2 22

Q3 22

Q4 22

Jul 20 forecast

Jan 21 forecast

Source: IEA, EIA

OUTLOOK

TANKER MARKET AWAITING RECOVERY

Change from Q3 20

Demand for

Supply

Ton miles

Vessel Supply

Euronav

Oil

of Oil

Balance sheet

2nd wave restrictions

OPEC+ & Saudi

China ton miles

Fleet Age &

Leverage 37%

lowering demand

driving

growing up but

Orderbook to fleet

+ ADDITIONAL

but vaccine to get

supply cuts but oil

OPEC production

ratios at

buyback

traction

>$40/50 adds bbls

cuts biting

20 year high/lows

No Change

No Change

Downgrade

No Change

No Change

11

Q&A

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Euronav NV published this content on 04 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 February 2021 08:07:06 UTC.