EURONAV NV PRESS RELEASE
Regulated information
Thursday 6 May 2021 - 8 a.m. CET
EURONAV ANNOUNCES FIRST QUARTER
2021 RESULTS
HIGHLIGHTS
- Challenging quarter due to stunted demand recovery and restricted crude supply
- Euronav continuing to diversify financing with new sustainability-linked funding sources
- Investing for the future with VLCC and Suezmax fleet renewal added during quarter
ANTWERP, Belgium, 6 May 2021 - Euronav NV (NYSE: EURN &Euronext: EURN) ("Euronav" or the "Company") today reported its non-audited financial results for the first quarter of 2021, ended 31 March 2021.
Hugo De Stoop, CEO of Euronav said: "Low freight rate market conditions prevailed during Q1 and into the current quarter. Mobility restrictions linked to the COVID-19 pandemic continue to affect global crude consumption. Whilst the tapering of OPEC + production cuts later this month is an encouraging sign, available large crude tonnage remains abundant. We remain confident that the market will recover in the medium-term and that is why we took advantage of available low asset prices to make counter-cyclical investments in both the VLCC and Suezmax segments during Q1. Alongside the excellent relationships that Euronav maintains with shipyards, our new eco-ships will form a key part of our energy transition strategy to lower our fleet emissions."
PRESS RELEASE
Regulated information
Thursday 6 May 2021 - 8 a.m. CET
Key figures
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
Share of profit (loss) of equity accounted investees
Result before taxation
Tax benefit (expense)
Profit (loss) for the period
Attributable to: Owners of the Company
First Quarter | First Quarter |
2021 | 2020 |
113,423 | 416,668 |
2,371 | 3,278 |
(21,187) | (32,679) |
(56,145) | (53,930) |
(2,748) | (720) |
(14,298) | (16,401) |
1,163 | 8,298 |
(83,857) | (82,315) |
(16,380) | (21,192) |
5,934 | 5,220 |
(71,724) | 226,227 |
711 | (614) |
(71,013) | 225,613 |
(71,013) | 225,613 |
The contribution to the result is as follows: | ||||||||||
(in thousands of USD) | First Quarter | First Quarter | ||||||||
2021 | 2020 | |||||||||
Tankers | ||||||||||
(77,320) | 221,364 | |||||||||
FSO | 6,307 | 4,249 | ||||||||
Result after taxation | (71,013) | 225,613 | ||||||||
Information per share: | ||||||||||
(in USD per share) | First Quarter | First Quarter | ||||||||
2021 | 2020 | |||||||||
Weighted average number of shares (basic) * | ||||||||||
201,677,981 | 215,078,497 | |||||||||
Result after taxation | (0.35) | 1.05 | ||||||||
- The number of shares issued on 31 March 2021 is 220,024,713. However, the number of shares excluding the owned shares held by Euronav on 31 March 2021 is 201,677,981.
PRESS RELEASE
Regulated information
Thursday 6 May 2021 - 8 a.m. CET
EBITDA reconciliation (unaudited): | ||||||||||
(in thousands of USD) | First Quarter | First Quarter | ||||||||
2021 | 2020 | |||||||||
Profit (loss) for the period | ||||||||||
(71,013) | 225,613 | |||||||||
+ Net interest expenses | ||||||||||
16,446 | 19,390 | |||||||||
+ Depreciation of tangible and intangible assets | 83,857 | 82,315 | ||||||||
+ Income tax expense (benefit) | (711) | 614 | ||||||||
EBITDA (unaudited) | 28,579 | 327,932 | ||||||||
+ Net interest expenses JV | ||||||||||
836 | 1,306 | |||||||||
+ Depreciation of tangible and intangible assets JV | 3,041 | 5,558 | ||||||||
+ Income tax expense (benefit) JV | 658 | 428 | ||||||||
Proportionate EBITDA | 33,114 | 335,224 | ||||||||
Proportionate EBITDA per share: | ||||||||||
(in USD per share) | First Quarter | First Quarter | ||||||||
2021 | 2020 | |||||||||
Weighted average number of shares (basic) | ||||||||||
201,677,981 | 215,078,497 | |||||||||
Proportionate EBITDA | 0.15 | 1.56 | ||||||||
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 the statutory auditor.
For the first quarter of 2021, the Company realized a net loss of USD 71 million or USD
0.35 per share (first quarter 2020: a net profit of 225.6 USD million or USD 1.05 per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 33.1 million (first quarter 2020: USD 335.2 million).
PRESS RELEASE
Regulated information
Thursday 6 May 2021 - 8 a.m. CET
TCE
The average daily time charter equivalent rates (TCE, a non IFRS-measure) can be summarized as follows:
In USD per day | First quarter 2021 | First quarter 2020 | ||||
VLCC | ||||||
Average spot rate (in TI Pool)* | 14,000 | 72,750 | ||||
Average time charter rate** | 39,500 | 37,000 | ||||
SUEZMAX | ||||||
Average spot rate*** | 11,500 | 59,250 | ||||
Average time charter rate | 29,500 | 30,250 |
*Euronav owned ships in TI Pool (excluding technical offhire days) **Including profit share where applicable
*** Including profit share where applicable (excluding technical offhire days)
EURONAV TANKER FLEET
Sales
During February Euronav entered into a sale and leaseback agreement for the VLCC Newton (2009 - 307,284 dwt) with Taiping & Sinopec Financial Leasing Co., Ltd.. The vessel was sold for USD 36 million. The transaction produced a capital gain of about USD
1.2 million. After repayment of the existing debt, the transaction generated USD 19 million free cash.
Acquisition - Suezmax
Also in February, Euronav announced it has entered into an agreement for the acquisition through resale of two eco-Suezmax newbuilding contracts. Currently completing construction at the Daehan Shipyard in South Korea, these modern vessels are being acquired for an en-bloc price of USD 113 million. Both vessels are due for delivery in January 2022. The vessels have the LNG Ready structural notation and Euronav is working closely with the shipyard and classification society to have the Ammonia Ready structural notation as well. This provides the option to switch to other fuels at a later stage in the future.
Acquisition - VLCC
In April, Euronav entered into an agreement with the Hyundai Samho yard for two VLCC newbuilding contracts. The vessels will be delivered during Q4 2022 and Q1 2023, costing USD 186 million en-bloc, including USD 4.2 million in additions and upgrades to the standard specifications. Euronav also has the option to contract a third VLCC with the same specifications for delivery in the second quarter of 2023. The vessels will have the LNG Ready structural notation and Euronav is also working with the shipyard and classification society to include an Ammonia Ready structural notation.
Maintenance
On our existing fleet, we will continue to take advantage of the current challenging freight rate background to accelerate a number of scheduled dry dockings. 27 dry dockings are
PRESS RELEASE
Regulated information
Thursday 6 May 2021 - 8 a.m. CET
scheduled to take place in 2021 (17 VLCCs and 10 Suezmaxes) of which 8 have been completed already (7 VLCCs and 1 Suezmax).
Cash dividend related to Q1 2021
Euronav remains committed to distribute quarterly dividends throughout the cycle independently of the net income results and will distribute a fixed dividend of USD 12 cents on an annual basis or USD 3 cents per quarter.
Q1-2021 dividend (coupon 25):
Ex dividend | 20 May 2021 |
Record date | 21 May 2021 |
Payment date | 3 June 2021 |
In view of the record date of Friday 21 May 2021, shareholders may not reposition shares between the Belgian Register and the U.S. Register during the period from Thursday 20 May 2021 at 9.00 a.m. (Belgian time) until Monday 24 May 2021 at 9.00 a.m. (Belgian time).
Annual General Meeting & Special General Meeting May 2021
Euronav has invited its shareholders to participate in the Ordinary General Meeting and the Special General Meeting to be held on Thursday 20 May 2021 at 10.30 a.m. CET and 11.00 a.m. CET, respectively, in 2000 Antwerp, Schaliënstraat 5.
In light of the COVID-19 pandemic, it is uncertain if the measures imposed by the Belgian Federal and Flemish governmental authorities, including prohibition and/or restrictions of physical gatherings, will still be in effect on 20 May 2021. Furthermore, additional measures may be imposed at the time of the shareholders' meetings. These measures are in the interest of the health of the shareholders, as well as of the employees of the Company and others participating in the organization of the meetings. Accordingly, the Supervisory Board strongly encourages the shareholders not to physically attend the shareholders' meetingsand strongly invites the shareholders to exercise their rights by (i) upfront distant voting using the form for voting by letter, or (ii) upfront by written proxy to the meetings' secretary. Furthermore, shareholders are encouraged to exercise their right to ask questions relating to the agenda items of the shareholders' meetings in writing. No standing reception will be organized after the meetings.
The convening notice and the other documents related to the meetings are available on
the Company's websitewww.euronav.com/investors/corporate- governance/generalassemblies/. The practical formalities for participation in these meetings are described in the convening notice.
An investor presentation for the attention of all shareholders will be published on the Company's website on 13 May 2021.
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Euronav NV published this content on 06 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 06:02:01 UTC.
