Skip to main content August 2020 Company Presentation – Euronav NV | Shale Experts
Loading...
Pm

August 2020 Company Presentation – Euronav NV

Euronav NV · Aug 25, 2020 · 60 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. August 2020 Company Presentation – Euronav NV – slide 1
    INVESTOR PRESENTATION AUGUST 2020 1
  2. August 2020 Company Presentation – Euronav NV – slide 2
    EURONAV EURONAV WHO WHO WE ARE WE ARE The worlds largest, independent quoted crude tanker platform 45 VLCC incl. 4 N/B 25 Suezmax* International company internationally connected Av Age Av Age Headquarters in Antwerp 7.4 Yrs…
  3. August 2020 Company Presentation – Euronav NV – slide 3
    CAPITAL ALLOCATION AT EURONAV Debt Dividends Buy Backs Fleet Repayment Equity & Bonds Growth/Renewal Mandatory debt Trailing 1-year Equity Outstanding repayment/ Div. Yield 16%* 75m or 36c per capex Reduction of RCF share…
  4. August 2020 Company Presentation – Euronav NV – slide 4
    WHO WE ARE - RETURNS IN ACTION Structure of Returns Q2 2020 returns mix Split Dividend/Share BB 20% Net Income 50m retained 15% = retained cash FY 2018 Cash Dividend 85% 96m or 47c per share 80% Net Income 29% Distributed to…
  5. August 2020 Company Presentation – Euronav NV – slide 5
    WHO WE ARE LIQUIDITY FOCUS Repayment schedule and RCF reductions Balance sheet liquidity June 2020 1086m 600 1200 806 Millions 1000 500 800 + 270 m outstanding 1086 capex m 400 600 400 280 300 200 0 200 Cash…
  6. August 2020 Company Presentation – Euronav NV – slide 6
    FSO 7 years +5 years WHO WE ARE OPERATIONAL LEVERAGE 1,188 Each 5,000 uplift in Long-term 20 years both VLCC and Suezmax rates improves net niche market revenue and EBITDA by 108mm 540 324 108 BASE +5,000 +15,000 +25,000…
  7. August 2020 Company Presentation – Euronav NV – slide 7
    WHO WE ARE WELL SUPPORTED 200M BOND LISTED IN OSLO 8
  8. August 2020 Company Presentation – Euronav NV – slide 8
    TANKER MARKET STRUCTURE Seasonal Few customers, lots of suppliers Source: Clarksons 48 Quarterly average Thousands 46 VLCC rate 1990-2019 Traders 44 42 40 38 36 34 32 Oil Refiners 30 Companies Q1 Q2 Q3 Q4 Cyclical…
  9. August 2020 Company Presentation – Euronav NV – slide 9
    TANKER MARKETS STILL SEASONAL 60,000 55,000 50,000 Average VLCC spot rate since 1990 45,000 40,000 35,000 30,000 25,000 20,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Clarksons 10
  10. August 2020 Company Presentation – Euronav NV – slide 10
    TANKER MARKET BASICS 11
  11. August 2020 Company Presentation – Euronav NV – slide 11
    DEMAND FOR OIL BEEN ROBUST AND STEADYUNTIL 2020 Y/Y Change in global demand for oil pedestrian until Covid-19 impact 6 5.3 4 2 IEA oil demand m bpd 0 -2 -4 Average 1.1 million barrels per day 1990-2019 -6 -8…
  12. August 2020 Company Presentation – Euronav NV – slide 12
    DEMAND FOR OIL - TRANSPORT HEAVY 45 40 35 Oil demand m bpd by sector 2018 30 25 20 15 10 5 0 Road transport Shipping Aviation Industry & Buildings & Power Other sectors Petrochemicals Source: Kepler…
  13. August 2020 Company Presentation – Euronav NV – slide 13
    CRUDE DEMAND WHAT HAPPENED IN 2008/9 FINANCIAL CRISIS Recovery took time globally Source: IEA 14
  14. August 2020 Company Presentation – Euronav NV – slide 14
    DEMAND FORECASTS BY AGENCIES PRICE IN RECOVERY BUT LIKELY LOWER FLEET SIZE REQUIRED Demand trajectory for crude Trading VLCC fleet already at 665 102 100 Oil demand forecast m bpd 98 96 94 92 90 88 Jul Aug Sep…
  15. August 2020 Company Presentation – Euronav NV – slide 15
    TANKERS THE ORIGINAL PLAYBOOK Demand growth Far East driven key for tankers is where supply is sourced from Atlantic Basin Far East route Middle East - Asia Pacific route 1 mbpd x 365 days = 365m barrels 1m bpd x 365 days = 365m…
  16. August 2020 Company Presentation – Euronav NV – slide 16
    TANKERS THE NEW PLAYBOOK Demand growth for tankers will still be driven by supply from East (Atlantic) to Far East Source Euronav, Morgan Stanley, Fearnley China Middle East West Africa US/LatAm / Caribs 20 40 VLCCs VLCCs…
  17. August 2020 Company Presentation – Euronav NV – slide 17
    TON MILES US CRUDE EXPORTS LIKELY TO FALL BUT LIMITED SHIPPING IMPACT Total shipped barrels key for tankers 8.0 22 22 US seaborne crude exports and imports m bpd 7.0 21 6.0 US crude consumption m bpd 21 5.0 20 4.0…
  18. August 2020 Company Presentation – Euronav NV – slide 18
    FINANCING OF SHIPPING TRADITIONAL SOURCES UNDER PRESSURE IMPLYING CAPITAL MARKETS WILL HAVE GREATER ROLE TO PLAY Bank lending to shipping down 33% Capital markets 50% below average 2019 25 bn raised in shipping IPO, follow ons &…
  19. August 2020 Company Presentation – Euronav NV – slide 19
    VESSEL SUPPLY BALANCE & OUTLOOK STRUCTURALLY IMPROVING Increasingly restricted financing CONTRACTING NEW + new technology to meet VESSELS environmental targets cap orders ORDER BOOK VLCC /Fleet = 8% Suezmax /Fleet = 10% ORDER…
  20. August 2020 Company Presentation – Euronav NV – slide 20
    LITTLE CONTRACTING AND ORDER BOOK AT 20 YEAR LOW 140,000 60 of VLCC ordered & Orderbook as % of fleet 120,000 50 100,000 40 VLCC rates 80,000 30 60,000 20 40,000 10 20,000 0 0 Orderbook as % of fleet No…
  21. August 2020 Company Presentation – Euronav NV – slide 21
    NEWBUILDING ORDERS CONSTRAINED NEWBUILDING CONTRACTS RISING BARRIERS ORDER BOOK CURRENTLY 23 YR LOW 60 FINANCING BANKS & CAPITAL 50 MARKETS 40 REGULATION IMO 2030, BASEL IV 30 20 TECHNOLOGY IN FUEL PROPULSION 10…
  22. August 2020 Company Presentation – Euronav NV – slide 22
    25-21 yrs 3% 20-16 yrs 18% VLCC FLEET STRUCTURE 15-11 yrs 10-6 yrs 21% 28% 5-0 yrs 30% Orderbook 8% Current fleet 80 18% survey pool Under construction 70 60 50 of VLCCs 40 65 68 30 59 19 51 49 47 50 20 39…
  23. August 2020 Company Presentation – Euronav NV – slide 23
    29-21 yrs 8% 20-16 yrs 19% SUEZMAX FLEET STRUCTURE 15-11 yrs 10-6 yrs 25% 23% 5-0 yrs 25% Orderbook 10% 60 Current fleet 18% survey pool Under construction 50 40 of VLCCs 30 50 44 43 44 20 37 28 26 14 23 25…
  24. August 2020 Company Presentation – Euronav NV – slide 24
    KEY SUPPLY ISSUE POTENTIAL CATALYSTS FROM 186 SURVEYS NEXT 2 YEARS Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Total % of fleet Over 20 years 7 5 8 17 9 11 4 18 79 10% Over 17.5 years 14 20 13 29 14 17 7 28 142 18%…
  25. August 2020 Company Presentation – Euronav NV – slide 25
    VLCC DELIVERY SCHEDULE Fearnley forecast 2020 12 Not yet under 2021 23 construction 2020 11 80 60 40 68 19 47 50 20 39 28 20 21 11 0 -2 -2 -4 -13 -22 -31 -34 -20 -62 -40 -60 -80 2015 2016 2017 2018 2019 2020…
  26. August 2020 Company Presentation – Euronav NV – slide 26
    SUEZMAX DELIVERY SCHEDULE Fearnley forecast 2020 6 Not yet under 2021 16 construction 80 2020 12 60 40 57 20 14 32 27 26 22 10 11 12 0 -1 -1 -14 -18 -23 -23 -20 -53 -40 -60 2015 2016 2017 2018 2019 2020 2021 2022…
  27. August 2020 Company Presentation – Euronav NV – slide 27
    LARGE TANKER SHIPPING REGULATED 6 5 1.5 100% utilisation m cost of special surveys 4 1.5 1.5 3 1.5 1.5 2 4 3.25 2.5 1 2 1.5 0 Year 5 - Spec Survey1 Year 10 - Spec Survey2 Year 15 - Spec Survey3 Year 17.5 -…
  28. August 2020 Company Presentation – Euronav NV – slide 28
    WHEN TO SCRAP 2/3 of scrapping has occurred when quarterly freight rates below 20k per day 25 100% 90% 20 80% 70% 15 60% 50% 10 40% 30% 5 20% 10% 0 0% Rates below 20k VLCC scrapping Suezmax scrapping Source:…
  29. August 2020 Company Presentation – Euronav NV – slide 29
    SCRAPPING VLCC RATES GO BELOW P&L BREAK EVEN = 5% FLEET DEPARTS VLCC fleet 804 start of year = 40 VLCC or 53 VLCC equivalents 9% 30,000 8% 25,000 7% % of VLCC fleet scrapped 6% 20,000 VLCC rates 5% 15,000 4% 3%…
  30. August 2020 Company Presentation – Euronav NV – slide 30
    OIL SUPPLY OPEC+ CUTS BIGGEST WORLD HAS SEEN ALBEIT COMPLIANCE ISSUES 2020 2021 2022 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 0 -2 OPEC+ production cuts m bpd -4…
  31. August 2020 Company Presentation – Euronav NV – slide 31
    US PRODUCTION CLOSELY LINKED TO WTI PRICING 1000 80 US production for 2021 900 70 800 60 50 WTI +1.3m bpd to 700 12.3m bpd Baker Hughes Rig Count 50 600 WTI oil price 500 40 40 WTI +0.2m bpd to 400 30 11.2m bpd…
  32. August 2020 Company Presentation – Euronav NV – slide 32
    VLCC DISRUPTION (=POSITIVE) HEAVY Temporary disruption Semi permanent disruption Permanent feature 33
  33. August 2020 Company Presentation – Euronav NV – slide 33
    INVENTORY, CONTANGO & STORAGE 34
  34. August 2020 Company Presentation – Euronav NV – slide 34
    INVENTORY MATTERS BUILDS GOOD; DRAWS BAD 180,000 500 160,000 400 140,000 300 120,000 200 100,000 100 80,000 0 60,000 -100 40,000 20,000 -200 0 -300 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020…
  35. August 2020 Company Presentation – Euronav NV – slide 35
    CONTANGO RECENT SQUEEZE VERY HIGH Recent squeeze very high in fact highest ever Signs of life Source: Bloomberg Source: Bloomberg 36
  36. August 2020 Company Presentation – Euronav NV – slide 36
    CONTANGO PRICE STRUCTURES TEND TO PERSIST FOR A PERIOD HOWEVER 1997 2020 2015 2008 Source: Bloomberg 37
  37. August 2020 Company Presentation – Euronav NV – slide 37
    CONTANGO & FREIGHT RATE CORRELATION 250,000 15 200,000 10 6 month contango 150,000 5 VLCC rates 100,000 0 50,000 -5 0 -10 VLCC rates 6 month contango Contango/Backwardation Source: Clarksons 38
  38. August 2020 Company Presentation – Euronav NV – slide 38
    FLOATING STORAGE UNWIND ISSUE FOR SUEZMAX LESS SO VLCC 16% 14% 13.9% 12% % of fleet in market storage 10% 8.2 % 8% 6% 6.0% 4% 4.4% 2% 0% Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 VLCC Suezmax Aframax…
  39. August 2020 Company Presentation – Euronav NV – slide 39
    WHAT IS ON MARKET STORAGE ON VLCC FLEET A SNAPSHOT 100 VLCC in storage according to Clarksons database 20 July 2020 Dedicated Long Term storage 29 Waiting to discharge 18 Market Storage 16 Iranian VLCC 15 Not returning to fleet…
  40. August 2020 Company Presentation – Euronav NV – slide 40
    CURRENT THEMES 41
  41. August 2020 Company Presentation – Euronav NV – slide 41
    VENEZUELA & TANKER SANCTIONS POTENTIAL IMPACT VLCC loadings from 2019 in Vz (43 individual VLCC) 12 10 10 10 No of VLCC loadings per 10 9 9 9 9 8 8 7 7 7 7 month in Vz 6 6 5 4 4 3 3 2 2 0 Potential impact…
  42. August 2020 Company Presentation – Euronav NV – slide 42
    LSFO VS HSFO SPREADS FLAT DESPITE RISING OIL PRICE Source: Bloomberg 43
  43. August 2020 Company Presentation – Euronav NV – slide 43
    SHARE PRICE HAS FOLLOWED VOLATILE FREIGHT RATES DURING 2020 Source: Bloomberg 44
  44. August 2020 Company Presentation – Euronav NV – slide 44
    SINCE CONTANGO 2020 TANKER STOCK PRICES BEEN USED AS OIL PRICE HEDGE Euronav share price & inverted crude oil price Source: Bloomberg 45
  45. August 2020 Company Presentation – Euronav NV – slide 45
    Q2 UPDATE FLOATING OPPORTUNITY - DID NOT MATERIALISE Source: Clarksons 46
  46. August 2020 Company Presentation – Euronav NV – slide 46
    UPLIFT IN CHINESE CRUDE PROCUREMENT . 70 11.5 60 11.0 PRC put in place a 50 support mechanism China crude imports m bpd 10.5 for refinery sector 40 that guarantees a Oil price 10.0 margin on products as 30 if crude…
  47. August 2020 Company Presentation – Euronav NV – slide 47
    CHINA CRUDE BUYING ALWAYS BEEN REACTIVE AROUND OIL PRICE TREND Increase buying on falling or low oil price 120 12 Reduce buying on rising or high oil price 100 10 China crude oil imports m bpd 80 8 Oil Price per barrel…
  48. August 2020 Company Presentation – Euronav NV – slide 48
    LARGE TANKER RE-SIZING WHAT DOES THAT MEAN State of play end 2019 Global IEA Seaborne Required Required IEA Crude VLCC Trading Seaborne Demand Trade VLCC Resizing Demand Fleet = Crude m bpd m bpd fleet vessels 99.9m bpd 742 40m…
  49. August 2020 Company Presentation – Euronav NV – slide 49
    SEABORNE CRUDE TRADE AND OIL DEMAND STRONG BUT NOT UNIFORM CORRELATION IEA & Seaborne crude y/y change IEA & Seaborne demand correlation 4.0 105 45 IEA oil demand and clarksons crude seaborne globally 100 3.0 40 95 2.0…
  50. August 2020 Company Presentation – Euronav NV – slide 50
    ESG & EURONAV 51
  51. August 2020 Company Presentation – Euronav NV – slide 51
    ESG ITS IN OUR DNA AT EURONAV Supervisory Board 6 members 3 Male 3 Female Oversee all strategic actions 5 independents - No executive Management Board ESG & Climate Change Ctte 7 members 5 members 5 Male 2 Female 4 Male 1…
  52. August 2020 Company Presentation – Euronav NV – slide 52
    ENVIRONMENTAL IN ACTION Euronav committed to reducing C02 under IMO 2030 and PP Trajectory of AER under Poseidon Principles 3.5 3 AER Annual Efficiency Ratio 2.5 2 Source: Poseidon Principles 1.5 1 0.5 0…
  53. August 2020 Company Presentation – Euronav NV – slide 53
    SHIPPING: IN STRONG RELATIVE POSITION AND HAS A ROADMAP TO ZERO EMISSIONS BUT REQUIRES TECHNOLOGICAL CHANGE Shipping Best in class lowest Road map for zero carbon emissions in shipping footprint transport goods Airplane Reduce…
  54. August 2020 Company Presentation – Euronav NV – slide 54
    Q2 2020 RESULTS 55
  55. August 2020 Company Presentation – Euronav NV – slide 55
    HIGHLIGHTS Q2 2020 90000 VLCC 80000 70000 Q2 Elevated cargo supply and contango oil price structure drives 60000 20 record quarter 50000 Sector now in transition phase driven by oil inventory levels USD/day Return 80% of…
  56. August 2020 Company Presentation – Euronav NV – slide 56
    FINANCIAL HIGHLIGHTS INCOME The most important key figures (unaudited) are: KEY KPIs Q2 2020 First Second First First (in thousands of USD) Quarter quarter semester semester 2020 2020 2020 2019 Revenues : 435M Revenue 416,668…
  57. August 2020 Company Presentation – Euronav NV – slide 57
    FINANCIAL HIGHLIGHTS BALANCE SHEET HIGHLIGHTS (in million) Jun-20 Dec-19 Cash Restricted cash 280.3 0.0 297.0 0.0 1 Leverage Other current assets 568.5 505.3 38.3% leverage to book Long term assets: value Newbuildings 119.9 0.0…
  58. August 2020 Company Presentation – Euronav NV – slide 58
    FLEET AGEING 20% OF VLCC FLEET 15 YEARS FACING SURVEY IN NEXT 7 QUARTERS Large tanker average age 147 VLCC aged over 15 yrs require special 10 years of age last seen in 2002 survey by end Q1 2022 10.5 40 25% 35 10.0 20% 30…
  59. August 2020 Company Presentation – Euronav NV – slide 59
    LARGE TANKER MARKET NO STORAGE BONANZA INVENTORY & DEMAND UNCERTAINTY 105 3700 255 229 206 228 100 3500 M bpd Oil demand & supply (EIA) 95 3300 Oil inventory m barrels 90 3100 54 85 2900 80 2700 75 2500…
  60. August 2020 Company Presentation – Euronav NV – slide 60
    OUTLOOK TANKER MARKET IN TRANSITION PHASE Demand for Supply Vessel Euronav Oil Ton miles Balance of Oil Supply sheet Q4 19 Rating Restrictions lower OPEC+ driving US export growth Orderbook to fleet Liquidity of 1bn Q2…

From the store

Browse maps, data & reports in the Shale Experts store