Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Investor Presentation (March 2014)
45 slides from Cmb.tech Nv's investor presentation, Mar 27, 2014
Slide 1: ITMMA Presentation
ITMMA PRESENTATION PRESENTATION ITMMA 27 MARCH 2014 27 MARCH 2012 1
Slide 2: BITR and BDTI Rate evolution
BITR and BDTI Rate evolution BITR Rate Evolution (ws) BDTI Rate Evolution (WS) 350 450 300 400 350 250 300 BDTI Rate BDTI Rate 200 250 150 200 150 100 100 50 50 0 0 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 TD5- West
Slide 3: Company Highlights
Company Highlights • Leading crude tanker company Young diverse fleet of 50 ships under control Balanced strategy between contracts and spot market Well positioned to take advantage of offshore market • Strong financial position No need to raise substantial financing until 2017 Diversified
Slide 4: 1. Strategy
1. STRATEGY 4
Slide 5: A Focused Fleet
A Focused Fleet Vessel Type Euronav owned TC-IN / BB (Weighted) FSO 2 (2 x 50%) V-PLUS 1 0 VLCC 12 (2 CSR) 3 TC-IN 11+ (1 x 1/2 in J/V) 13 to be delivered (Maersk fleet) SUEZMAX 22 (14 ice class) 1 BB (ice class) (4x 1/2 in J/V) Mix of spot and Total = 50 Ships Fixed contracts
Slide 6: Commercial Balanced Strategy
Commercial Balanced Strategy Fixed term contracts Pooling arrangements Proprietary spot desk 6
Slide 7: A Balanced Strategy
A Balanced Strategy 2014/ YTD 2013 onhire days 2013 Onhire Days Forecast 2014 Onhire Days 343 days 3% 915 days 6% 3,640 days 2,336 days 30% 15% 646 days 365 days 5% 2% 7,513 days 11,809 days 62% 77% fixed fixed-ps FSO spot fixed fixed-ps FSO spot Break-even Of which OPEX Fixed Contract Backlog 2014:
Slide 8: Clients of Euronav
Clients of Euronav D EXON Sinaty. 3 TOTAL Saudi Aramco ConocoPhillips AW VALERO Say dij] PETROBRAS ¢ Vitol bp
Slide 9: TI Pool
TI POOL Euronav Reederei “Nord” Athenian Sea Carriers Oak Maritime (HK) Overseas Shipholding Group DHT Holdings, Inc
Slide 10: Diversification of Financing Sources
Diversification of Financing Sources Preference for Shipping banks … … but as straight banking finance is drying up It is important to be a public company that can tap alternative source of financing: - Bond markets • Mezzanine financing - Convertible Bonds - Equity markets 10
Slide 11: Maersk fleet
Maersk fleet • Acquisition of 15 VLCCs from Maersk Tankers Singapore Pte Ltd • For a total acquisition price of USD 980 million • Average age of 4 years • Vessels will be operated in the TI Pool • Two are already delivered: Nautilus and Nucleus • First step towards a wider consolidation of the tanke
Slide 12: 2. The Market… are the fundamentals changing?
2. The Market… …are the fundamentals changing? 12
Slide 13: BITR and BDTI Rate evolution
BITR and BDTI Rate evolution BITR Rate Evolution (ws) BDTI Rate Evolution (WS) 350 450 300 400 350 250 300 BDTI Rate BDTI Rate 200 250 150 200 150 100 100 50 50 0 0 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 TD5- West
Slide 14: Oil Demand and Production
OIL DEMAND AND PRODUCTION 14
Slide 15: World Oil Demand
World Oil Demand World Oil Demand Growth per Key area World Oil Demand Growth 50 +3.1% 94 +4.5% +1.4% 45 92 +1.4% +4.3% 40 +1.2% 90 +0.9% 35 +7.8% +3.1% 88 30 +1.6% -0.1% +3.7% Mbpd +1.5% -5.1% -1.7% 0.4% 86 -1.4% 25 Mbpd +1.8% 20 84 +0.6% -0.6% +4% -3.5% 15 -0.7% 82 +4.5% +3% 10 +1.3% 80 +16.4% 5 7
Slide 16: Crude oil price 2011 - YTD
USD 70 80 90 100 110 120 130 140 Jan-2011 Feb-2011 Mar-2011 Apr-2011 May-2011 Jun-2011 Jul-2011 Aug-2011 Sep-2011 Oct-2011 Nov-2011 Dec-2011 Jan-2012 Feb-2012 Mar-2012 Apr-2012 May-2012 Jun-2012 Brent Jul-2012 Aug-2012 Sep-2012 Oct-2012 WTI Nov-2012 Dec-2012 Jan-2013 Feb-2013 Mar-2013 Apr-2013 May-2
Slide 17: Total shale oil production & Change in Chinese crude demand
Total shale oil production & Change in Chinese crude demand 17 Source: EIA and OPEC
Slide 18: Suezmax Trading Pattern
Suezmax Trading Pattern… …is dramatically changing and adding Ton-Miles WAF Liftings 2010-2014 AG Suezmax Liftings 90 50 80 2010 70 40 2010 2011 60 2011 2012 30 50 2012 40 2013 20 2013 30 2014 2014 20 10 10 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct N
Slide 19: 3. Tanker Supply
3. TANKER SUPPLY 19
Slide 20: Tanker Fleet Vs Oil Demand
Tanker fleet Vs Oil demand Tanker Fleet Vs Oil Demand 650 95 600 550 90 500 Oil Demand Mbpd 450 85 Tanker Fleet 400 350 80 300 250 75 200 150 70 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 VLCC Suezmax Oil demand 20
Slide 21: VLCC fleet development
VLCC fleet development 21 Source: ICAP Shipping Feb 14
Slide 22: Suezmax fleet development
Suezmax fleet development 22 Source: ICAP Shipping
Slide 23: Tanker Orderbook
EURONAV No. of vessels The ocean is our environment Tanker Fleet 1,250 Orderbook GLR2 1,000 LR1 750 500 250 vicc Suezmax A'max/LR2 P'max/LR1 Updated start of March 2014 Data Source: Clarksons Handy No. of vessels 300 250 200 150 100 Tanker Orderbook OLR2/LR1 70 VLCC Suezmax A'max/LR2 P'max/LR1 Handy
Slide 24: 4. Large Tanker Supply: Factors influencing the tanker market
Issues 4. Large Factors influencing influencing Tanker Supplythe tanker market tanker market 24
Slide 25: Bunker prices
USD /T 400 450 500 550 600 650 700 750 07/01/10 800 07/02/10 07/03/10 07/04/10 07/05/10 07/06/10 07/07/10 07/08/10 07/09/10 07/10/10 07/11/10 07/12/10 07/01/11 07/02/11 07/03/11 07/04/11 07/05/11 07/06/11 07/07/11 07/08/11 07/09/11 07/10/11 07/11/11 07/12/11 07/01/12 07/02/12 07/03/12 07/04/12 07/05
Slide 26: Effect of slow steaming on TCE
Effect of slow steaming on TCE Source: DNB Markets 26
Slide 27: VLCC Asset Prices
VLCC Asset Prices 27 Source: ICAP Shipping Feb 2014
Slide 28: Ship Demolition Rates
Ship Demolition Rates Average Scrap Age $/ldt Suezmax VLCC Scrap Price China Scrap Price India/SubCont 35 700 30 600 25 500 20 400 15 300 10 200 5 100 0 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 28 Source: ICAP Shipping
Slide 29: Crude tanker demolition past 12 months
Crude tanker demolition past 12 months 29 Source: Carksons
Slide 30: Suezmax and VLCC Average Earnings
USD per day 0 20.000 30.000 40.000 50.000 60.000 10.000 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 Average VLCC c. 2010-built Earnings May-11 Jul-11 2009-YTD Sep-11 Nov-11 Jan-12 Mar-12 Source: Clarkson Research Services Limited May-12 Jul-12 Se
Slide 31: 5. Offshore Services Market
5. OFFSHORE SERVICES MARKET 31
Slide 32: Offshore Market
EURO Offshore Market 32
Slide 33: Offshore Strategy
Offshore Strategy • 2012: Set up of a dedicated offshore department. • Focus on FpSO units (Floating Storage Offloading) with small (p) production topsides for platform fluids treatment • Select vessels from our trading fleet when: – Becoming more difficult to trade due to age restrictions (older VL
Slide 34: In Operation
In Operation • FSO Asia and FSO Africa delivered to MOQ in 2010 • New contract agreement FSO Africa as of 1/10/2012 • FSO characteristics: - Storage Capacity: minimum 2,400,000 barrels of dry oil for export - Stripped Water Capacity: minimum 200,000 barrels - Custody transfer to off-take tanker: 90,
Slide 35: In Tender Phase
In Tender Phase • Bentley field project for Xcite Energy in UK North Sea for 1 FSO Suezmax size. Contract award mid 2014 but project delayed by client. • Sea Lion field development project offshore Falkland Islands operated by Premier Oil for 1 FSO VLCC size. Contract award 2015Q3. 35
Slide 36: Market Overview 2013
Market Overview 2013 • 13 FPSOs & 4 FSOs awarded • Most FSO/FPSO contracts are extended into option periods • Alternatively re-deployed on new contracts • The complexity and size of new FSO/FPSO are increasing • Leased vs Owned – 50/50 36
Slide 37: FSO/FPSO The preferred Solution
FSO/ FPSO The preferred Solution • Flexible, safe and proven solution • Generic or field specific • Deck space and deck load capacity • Storage Capacity • Self propelled marine unit Source: IMA 37
Slide 38: Finding the right investment
Finding the right investment EURONAV PROJECT PRE QUALIFICATION + EXPERIENCE + CONVERSION OPERATION FINANCIAL CAPABILITY + PROJECT & RISK FINANCING MANAGEMENT + PROCUREMENT 38
Slide 39: 231 planned projects whereof 61 in bidding or final design stage
231 planned projects whereof 61 in bidding or final design stage Source: IMA 39
Slide 40: Global oil production over the years
Global oil production over the years Offshore production is growing steadily over the years Source: E&P magazine 40
Slide 41: Offshore Strategy
Offshore Strategy 41
Slide 42: Thank you for listening
THANK YOU FOR LISTENING www.euronav.com 42
Slide 43: Share price evolution
Share price evolution last 10 years 35 30 25 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 43
Slide 44: Share price evolution
Share price evolution last 5 months 12 10 8 6 4 2 0 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014 44
Slide 45: World Fleet VLCC Earnings
World Fleet VLCC Earnings $80.000 $70.000 BDTI VLCC TCE $60.000 (avg of TD1 and TD3) TI VLCC Database $50.000 TI Actual $40.000 TCE $30.000 $20.000 $10.000 $0 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 -$10.000 -$20.000 45