Management CEO since 2000 Paddy Rodgers Director since 2003 Chief Executive Officer CFO from 1998 2000 Hugo De Stoop CFO since 2008 Chief Financial Officer Executive Committee since 2008 Investor Relations from 2004 until…
Company overview
Euronav Key investment highlights Pure-play tanker company with best-in-class operating platform Leading crude tanker platform Experienced management team with proven track record of growth through the cycle Negative net world fleet…
Proven track record of management and acquisitions/disposals 180 160 140 120 Purchased 15 VLCCs from Maersk for 980M 100 (mm USD) +4 +16 80 +1 +4 +3 +15 +4 +1 +1 60 +1 +1 40 20 0 2000 2001 2002 2003 2004…
Potential for Powerful Cash Generation Euronav is well positioned for strong cash flow generation Breakeven (including debt service): 29,500 for VLCC - opex 8,000 22,000 for Suezmax - opex 7,400 FSOs generate a consistent, high…
Chartering strategy provides upside leverage Chartering strategy seeks to maximize returns through optimal mix of spot and fixed charters Deliberately positioned itself toward more spot exposure at this stage of the cycle Look to…
Maximizing value through size Global VLCC Fleet = 632 vessels Overview of the Tankers International Pool NIOC Mitsui OSK Fredriksen NYK Reederei Nord Euronav Rest of market Angelicoussis Oak Maritime (HK) SK Shipping…
Strong and strategic relationships with high-quality charterers Selected customer relationships Many customers have been served by us for more than 20 years Source: Company filings and website 9
FSO Offshore market Opportunistic capability FSO Conversion Floating storage and offloading units (FSOs) market overview In 2008, Euronav undertook conversions of 2 ULCC into the largest 2 FSOs in the world Fixed income…
Industry overview
Supply: Global VLCC and Suezmax fleet limited growth VLCC Suezmax 80 World Fleet 1 Jan 2015 = 632 Vessels 50 World Fleet 1 Jan 2015 = 489 Vessels 40 60 30 No. of vessels 40 62 45 43 45 53 54 1 20 39 49 20 35 27 31…
Demand: Shift to Non-OECD driving oil demand growth as global oil demand increases Global Oil Demand moving to non-OECD countries (thousands of barrels per day) (mb/day) Europe FSU 28 100 55 82 (30) Non-OECD demand 39 50 OECD…
Structural expansion: Increased ton miles given trade shifts 1 5 4 6 2 New order being established in transportation routes 3 Arabian Gulf to China 21 days 5,500 miles West Africa to USA 19 days 5,000 miles West Africa to…
The result: Our thesis is significant need for larger ships Stage 1 Cyclical recovery underway Stage 2 - Structural shift continues to 2014-2016 support momentum 2017-2020 VLCC supply by region (2014E 2016E) DISLOCATION in crude…
How do lower oil prices affect tankers VLCC rates not correlated with oil price Potential to reverse 7 years of demand destruction China demand strategic as well as organic Lower bunker costs = Higher tanker earnings China…
Contango returns Recent move in oil prices has led to a sharp steepening of Brent forward curve into a Contango position Given this move in Contango, close to 20 vessels have already been booked for storage by oil traders Through…
Freight rates High volatility & price inelasticity Daily average tankers freight rate over 10 years 250,000 200,000 150,000 Average TCE 2004-2008 = 71,000 per day USD / day 100,000 50,000 Notional Break Even…
Financial Overview
Track record of shareholder value creation and distributions Historical earnings and dividends (mm) 700 657 100,000 90,000 600 80,000 500 70,000 432 402 60,000 400 372 344 303 50,000 300 260 40,000 237 209 218 187 195 30,000…
Strong balance sheet position Capitalization Liquidity (mm) Actual Actual (mm) Sep 30, 2014 September 30, 2014 Cash 106 Cash 106 Secured debt 907 Undrawn credit facilities Senior notes 211 - Undrawn credit facility 45 - 500mm…
Conclusion
Largest crude tanker stock exposed to rising rates NOW A pure-play 1.8bn tanker company Best in class operating platform with assets bought near the bottom of cycle Experienced management team with a proven track record of growth…
Robust industry fundamentals driving freight rates CONTANGO Take capacity out of the market Already started on 20 ships (2010: 60 ships) OIL PRICE FALL Contracts between TCE rates higher as 6 months and 1 fuel is cheaper…
Appendix
Asset values still below long-term medians VLCC Suezmax 180 (mm) Newbuild 5 Year Old (mm) Newbuild 5 Year Old 10 yr avg 115 94 10 yr avg 71 65 160 15 VLCCs 5 yr avg 98 71 5 yr avg 62 50 acquired 140 1 yr avg 98 72 1 yr avg 64 50…
Potential disruptive factors Slowdown is relative China - slowdown Strategic crude stockpile to grow to 2016 Refinery plans in China well advanced Geopolitical risk tends to be neutral to positive for shipping Pipelines…
Long Established Player Peter G. LIVANOS Chairman of Euronav January: Acquisition 52 vessels of 15 VLCC Chairman of Gaslog, Drylog and 13.0 mm dwt Tanklog Added 5 Suezmax & 3 VLCC newbuilds 2014 Marc SAVERYS Vice Chairman of…
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