PRESS RELEASE

Regulated information

Thursday 5 November 2020 - 8.00 a.m. CET

EURONAV ANNOUNCES THIRD QUARTER

2020 RESULTS

HIGHLIGHTS

  • Q3 freight rates: VLCC rates USD 42,000 per day, USD 23,500 for Suezmax
  • 80% of Q3 net income to be returned to shareholders:
    o Dividend: USD 18.5 million or USD 9 cent per share in cash dividends
    o Share buyback: USD 18.5 million
  • Challenging winter market conditions due to OPEC+ production cuts, slower demand recovery due to COVID-19 and increasing vessel capacity (caused by a return from storage plays)
  • Q4 update: 50% of VLCC fleet spot fixed at USD 22,500 per day; 45% of Suezmax fleet fixed at USD 11,500 per day
  • FSO contract extended by 10 years to 2032

ANTWERP, Belgium, 5 November 2020 - Euronav NV (NYSE: EURN &Euronext: EURN) ("Euronav" or the "Company") today reported its non-audited financial results for the third quarter ended 30 September 2020.

Hugo De Stoop, CEO of Euronav said: "A growing divide between rising short-term fleet supply and limited cargo availability, restricted by OPEC+ production cuts and a slower demand recovery for crude, has impacted the sector negatively and is likely to continue throughout the seasonal winter period. With our sector low leverage, supported by over USD 1 billion liquidity, Euronav is well positioned to navigate these challenges and potentially seize value creative opportunities should they arise."

PRESS RELEASE

Regulated information

Thursday 5 November 2020 - 8.00 a.m. CET

The most important key figures (unaudited) are:

First

Third Quarter

Year-to-Date

Year-to-Date

(in thousands of USD)

Semester

2020

2020

2019

2020

Revenue

851,359

240,951

1,092,310

577,223

Other operating income

5,996

1,856

7,852

4,579

Voyage expenses and commissions

(62,971)

(35,521)

(98,492)

(109,801)

Vessel operating expenses

(105,062)

(52,868)

(157,930)

(158,324)

Charter hire expenses

(5,911)

(1,339)

(7,250)

-

General and administrative expenses

(31,883)

(15,201)

(47,084)

(51,348)

Net gain (loss) on disposal of tangible assets

22,728

-

22,728

14,787

Depreciation

(161,788)

(80,115)

(241,903)

(253,144)

Net finance expenses

(37,204)

(15,718)

(52,922)

(78,324)

Share of profit (loss) of equity accounted investees

11,298

4,360

15,658

11,820

Result before taxation

486,562

46,405

532,967

(42,532)

Tax benefit (expense)

(1,318)

(207)

(1,525)

599

Profit (loss) for the period

485,244

46,198

531,442

(41,933)

Attributable to: Owners of the Company

485,244

46,198

531,442

(41,933)

The contribution to the result is as follows:

First

Third Quarter

Year-to-Date

Year-to-Date

(in thousands of USD)

Semester

2020

2020

2019

2020

Tankers

476,655

41,711

518,366

(53,754)

FSO

8,589

4,487

13,076

11,821

Result after taxation

485,244

46,198

531,442

(41,933)

Information per share:

First

Third Quarter

Year-to-Date

Year-to-Date

(in USD per share)

Semester

2020

2020

2019

2020

Weighted average number of shares (basic) *

215,074,926

207,338,231

212,477,203

216,349,544

Result after taxation

2.26

0.22

2.50

(0.19)

  • The number of shares issued on 30 September 2020 is 220,024,713. However, the number of shares excluding the owned shares held by Euronav at 30 September 2020 is 203,954,840.

PRESS RELEASE

Regulated information

Thursday 5 November 2020 - 8.00 a.m. CET

EBITDA reconciliation (unaudited):

First

Third Quarter

Year-to-Date

Year-to-Date

(in thousands of USD)

Semester

2020

2020

2019

2020

Profit (loss) for the period

485,244

46,198

531,442

(41,933)

+ Net interest expenses

34,467

18,136

52,603

69,086

+ Depreciation of tangible and intangible assets

161,788

80,115

241,903

253,144

+ Income tax expense (benefit)

1,318

207

1,525

(599)

EBITDA (unaudited)

682,817

144,656

827,473

279,698

+ Net interest expenses JV

2,591

1,151

3,742

3,403

+ Depreciation of tangible and intangible assets JV

11,070

5,494

16,564

13,516

+ Income tax expense (benefit) JV

866

457

1,323

1,219

Proportionate EBITDA

697,344

151,758

849,102

297,836

Proportionate EBITDA per share:

First

Third Quarter

Year-to-Date

Year-to-Date

(in USD per share)

Semester

2020

2020

2019

2020

Weighted average number of shares (basic)

215,074,926

207,338,231

212,477,203

216,349,544

Proportionate EBITDA

3.24

0.73

4.00

1.38

  • 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 third quarter of 2020, the Company had a net gain of USD 46.2 million or USD

0.22 per share (third quarter of 2019: a net loss of USD 22.9 million or USD 0.11 per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 151.8 million (third quarter of 2019: USD 96.8 million).

TCE

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

In USD per day

Third quarter 2020

Third quarter 2019

VLCC

Average spot rate (in TI

42,000

25,250

pool)*

Average time charter rate**

48,750

33,000

SUEZMAX

Average spot rate***

23,500

17,250

Average time charter rate

29,500

30,000

*Euronav owned ships in TI Pool (excluding technical off-hire days) **Including profit share where applicable

*** Including profit share where applicable (excluding technical off-hire days)

PRESS RELEASE

Regulated information

Thursday 5 November 2020 - 8.00 a.m. CET

EURONAV TANKER FLEET

On 30 September 2020, the Suezmax Bastia (2005 - 159,155 dwt), owned in joint- venture, was delivered to her new owners. The vessel was sold for USD 20.5 million. A capital gain of approximately USD 0.7 million was recorded in the same quarter in the joint venture company. The vessel was acquired in November 2019 in a 50/50 joint venture with affiliates of Ridgebury Tankers and clients of Tufton Oceanic. Whilst the holding period was relatively short, the strong tanker market over the past 11 months helped drive an exceptional return, in excess of 50% on this investment.

During Q1 2020, Euronav announced it had entered into an agreement for the acquisition, through resale, of four VLCC newbuilding contracts from the DSME shipyard in South Korea. These modern Eco-type VLCC vessels are identical sister ships that will be fitted with Exhaust Gas Scrubber technology and Ballast Water Treatment systems. All four vessels are now scheduled for delivery during Q1 2021.

The payment profile for these vessels requires the largest portion of instalments to be made during Q1 2021. Euronav will meet the financing of these deliveries via existing borrowing facilities and debt capacity. On 11 September, the Company concluded a new loan facility for 713 million USD which will be partially used for the payment of these vessels.

After the quarter end, the Company time chartered-in two modern Eco-type Suezmax vessels for two years. This additional capacity allows Euronav to enhance existing strategic relationships. The economies of scale that Euronav can extract from this transaction provide conviction that this will be value accretive.

In order to counter the challenging freight rate market in the short term, Euronav has brought forward nine required dry dockings. This flexibility allows 15% of Euronav's fleet to execute its regulatory dry dock requirement during a depressed market whilst also providing the potential benefit of an improved freight rate market in the future.

FUEL PROCUREMENT STATUS (UPDATE)

During 2019, Euronav purchased 420,000 metric tonnes of compliant fuel and stored it on one of its vessels, the Oceania (2003 - 441,561 dwt) ahead of the new IMO 2020 fuel regulation applicable from 1 January 2020. In view of the significant drop in oil and fuel oil prices owing primarily to COVID-19,the Company has actively managed its fuel position by procuring its fuel requirement from both the open market and its stored compliant fuel.

The quantity onboard the Oceania on 30 September was approximately 200,000 metric tonnes of compliant fuel and the marked-to-market value was USD minus 14 million, another quarterly sequential improvement in our position from the last two quarters (Q2: - USD 32 million and Q1: - USD 56 million). The Company continues to conclude that no

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Euronav NV published this content on 05 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2020 07:01:04 UTC