Euronav : announces fourth quarter 2022 results

PRESS RELEASE

Regulated information

2 February 2022 - 08.00 am CET

EURONAV ANNOUNCES FOURTH QUARTER

2022 RESULTS

HIGHLIGHTS

• Large crude tanker recovery delivers highest earnings for Euronav since Q2 2020
• Fleet rejuvenation brings operational leverage to upcycle
• Seasonal demand patterns and Russian dislocation augment robust fundamentals
• Summary Arbitration Proceedings regarding termination of combination agreement with Frontline expected to conclude on 7 February
• Q1 2023 to date spot rate: 50% fixed at 55k USD per day for VLCC and 50% fixed at 54k USD per day for Suezmax

ANTWERP, Belgium, 2 February 2023 - Euronav NV (NYSE: EURN &Euronext: EURN) ("Euronav" or the "Company") reported its non-audited financial results today for the fourth quarter ended 31 December 2022.

Hugo De Stoop, CEO of Euronav said: "Constrained vessel supply conditions within all segments of the large crude tanker market were supplemented further by two key factors during Q4 2022. Firstly, seasonal demand for crude gained traction as consumption rose into the 22/23 winter. Secondly, the EU embargo on Russian oil, effective 5 December 2022, created additional shipping demand as crude trading patterns required longer voyages and therefore captured more shipping capacity. These supportive catalysts helped drive freight rates to a 30-month high and we believe that the solid base of sector fundamentals (orderbook, fleet age, incoming regulations) will continue to underpin positive conditions within the tanker market for multiple quarters ahead.

Recent events have also been dynamic but have never affected the operational performance of the Company as we remain focused and committed to maintain our position of market leadership and have managed to rejuvenate the fleet at a critical time in the market cycle both in buying and ordering modern vessels at good prices as well as be patient and dispose of older assets when the value became interesting.

Whilst we regret the current situation, we will continue to act professionally and to work to a solution which is in the interests of all of our shareholders and stakeholders."

PRESS RELEASE

Regulated information

2 February 2022 - 08.00 am 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 gains (losses) on disposal of vessels/other tangible

assets

Depreciation of tangible and intangible assets

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

Fourth Fourth Quarter 2022 Quarter 2021

	368,068		117,423
	4,626		3,143
	(45,140)		(35,223)
	(58,858)		(51,568)
	(617)		(1,552)
	(13,601)		(7,933)
	62,569		4,500
	(57,822)		(85,982)
	(23,778)		(20,085)
	2		5,892
	235,449		(71,385)
	(729)		(797)
	234,719		(72,180)
	234,719		(72,180)

YTD 2022

854,669

15,141

(175,187)

(216,418)

(5,445)

(51,702)

95,813

(222,865)

(105,869)

17,558

205,695

(2,804)

202,891

202,891

YTD 2021

419,770

10,255

(118,808)

(220,706)

(9,750)

(32,408)

15,068

(344,994)

(80,607)

22,976

(339,204)

427

(338,777)

(338,777)

The contribution to the result is as follows:

(in thousands of USD)

Tankers

FSO

Result after taxation

	Fourth			Fourth
	Quarter 2022			Quarter 2021
	231,981			(78,249)
	2,738			6,069
	234,719			(72,180)

YTD 2022

170,763

32,128

202,891

YTD 2021

(364,045)

25,268

(338,777)

Information per share:

(in USD per share)

Weighted average number of shares (basic) * Result after taxation

	Fourth		Fourth
	Quarter 2022		Quarter 2021
	201,783,532		201,677,981
	1.16		(0.36)

YTD 2022

201,747,963

1.01

YTD 2021

201,677,981

(1.68)

• The number of shares issued on 31 December 2022 is 220,024,713. However, the number of shares excluding the owned shares held by Euronav at 31 December 2022 is 201,783,532.

PRESS RELEASE

Regulated information

2 February 2022 - 08.00 am CET

EBITDA reconciliation (unaudited):

(in thousands of USD)

Profit (loss) for the period

• Net interest expenses
• Depreciation of tangible and intangible assets
• Income tax expense (benefit)

EBITDA (unaudited)

• Net interest expenses JV
• Depreciation of tangible and intangible assets JV
• Income tax expense (benefit) JV
  Proportionate EBITDA

	Fourth			Fourth
	Quarter 2022			Quarter 2021
	234,719			(72,180)
	24,436			19,881
	57,822			85,982
	729			797
	317,706			34,480
	-		616
	-		3,108
	-		631
	317,706			38,835

YTD 2022

202,891

105,777

222,865

2,804

534,337

(745)

3,149

(1,599)

535,142

YTD 2021

(338,777)

80,006

344,994

(427)

85,796

2,937

12,333

2,636

103,702

Proportionate EBITDA per share:
(in USD per share)	Fourth		Fourth	YTD 2022		YTD 2021
Quarter 2022		Quarter 2021
Weighted average number of shares (basic)
201,783,532		201,677,981	201,747,963		201,677,981
Proportionate EBITDA	1.57		0.19	2.65		0.51

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 fourth quarter of 2022, the Company realized a net profit of USD 234.7 million or USD 1.16 per share (fourth quarter 2021: a net loss of 72.2 USD million or USD (0.36) per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 317.7 million (fourth quarter 2021: USD 38.8 million).

PRESS RELEASE

Regulated information

2 February 2022 - 08.00 am CET

TCE

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

In USD per day		Q4 2022			Q4 2021			Full Year			Full Year
							2022			2021
VLCC
Average spot	rate		57,400		12,500		27,600		11,300
(in TI Pool)*
Average	time		34,400		46,900		42,900		46,500
charter rate**
SUEZMAX
Average	spot		57,800		11,300		31,200		11,100
rate***
Average	time		30,400		30,400		30,400		30,400
charter rate

*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

Fleet rejuvenation

Sale of older Suezmax vessels

On 19 October 2022, Euronav announced the sale of the Cap Phillippe (2006 - 158,920 dwt) generating a capital gain of USD 12.9 million.

On 10 November 2022 Euronav sold the Suezmax Cap Guillaume (2006 - 158,889 dwt), generating a capital gain of USD 14.6 million.

Sale ULCC Europe

On 17 October 2022, Euronav announced the sale of the ULCC (Ultra Large Crude Carrier) Europe (2002 - 441,561 dwt). The sale generated a capital gain of USD 34.7 million.

Two new Eco-Suezmax contracted at Korean yard

Euronav has entered into an agreement with Daehan Shipbuilding Co. Ltd.for two Suezmax newbuilding contracts. The vessels will be sister ships to our Cedar (2022 -157,310dwt) and Cypress (2022 - 157,310 dwt), built at the same yard. Both vessels are scheduled for delivery in the third quarter of 2024.

Capital gains on vessels sales during 2022

Euronav has deliberately accelerated fleet renewal during 2022 given prevailing elevated asset prices for older tonnage. Recycling such capital into newer, younger tonnage provides a more competitive platform for all stakeholders and a far lower environmental footprint.

PRESS RELEASE

Regulated information

2 February 2022 - 08.00 am CET

Below is a summary of our disposal activity during 2022.

	CAPITAL
	GAIN IN
VESSELS	MIO USD
3 N-class - VLCC	13.5
3 S-class - VLCC	1.8
Cap Leon - Suezmax	10.8
Cap Pierre - Suezmax	7.5
Cap Philippe - Suezmax	12.9
Cap Guillaume - Suezmax	14.6
Europe - ULCC	34.9
TOTAL	96.0

Update - Newbuilding delivery schedule

Outstanding capital expenditure for the 8 vessels (3 VLCCs and 5 Suezmax) currently under construction at the end of Q4 2022 was USD 404 million, split as follows: USD 267 millionin 2023 and USD 137 million in 2024.

On 10 January 2023, Euronav held a naming ceremony for two of our 3 VLCC newbuildings. The vessels are the Cassius and Camus. Euronav took delivery of the VLCC Cassius (2023

• 299,158 dwt) on 11 January 2023 and will take delivery of the Camus (2023- 299.158) early March 2023.

TANKER MARKET & OUTLOOK

The comments made during Q3 2022 remain valid. The large crude tanker market is well positioned to continue a multi-year upcycle based on strong fundamentals and well supported tanker market specific catalysts:

• Orderbooks at 25 years plus lows
• Contracting constrained by high vessel prices & incoming regulations
• Shipbuilding capacity constrained until 2025/26 by LNG carrier and container orderbook
• Global fleet age average of VLCC & Suezmax segments - highest in 20 years
• Structural ton mile enhancement from Russian dislocation

Asset Value

The pace of asset price growth for crude tankers eased during Q4 2022 but remains very strong especially for older vessels. Newbuilding prices for VLCCs remain stable at USD 120 million but 5,10- and 15-year-old segments for VLCCs rose 8%, 8% and 14% respectively during Q4 2022.

Crude oil demand

China remains key! Chinese crude imports for 2022 were 7% below 2020 levels (source Bloomberg). The energy consultancy FGE forecast a snapback in Chinese oil demand post the Lunar new year and reflective of Covid restrictions being lifted on January 8th, 2023. This recovery will be a key driver supported by recent IEA reports which forecasts global