Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Non-Deal Roadshow (January 2015)
29 slides from Cmb.tech Nv's roadshow presentation, January 2015
Slide 1: Investor Presentation
Investor Presentation January 2015
Slide 2: Forward looking statements
Forward looking statements Matters discussed in this presentation may constitute forward-looking statements under U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company’s current views with respect to future events
Slide 3: Management
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 2014 Brian Gallagher ● Joined in 2014 to expand IR efforts Head
Slide 4: Company overview
Company overview
Slide 5: Euronav – Key investment highlights
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 growth for next two years, low relative Cyclical shift unde
Slide 6: Proven track record of management and acquisitions/disposals
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 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: Clarksons to end Oct 2014 Suezmax 5 Y
Slide 7: Potential for Powerful Cash Generation
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 quality income stream – $52mm of EBITDA provides a floor to ea
Slide 8: Chartering strategy provides upside leverage
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 maximize earnings through combining high quality assets and dire
Slide 9: Maximizing value through size
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 Bahri ● Founding member in 2000 Sinotrans (a) Pro forma for recent acquisitions N
Slide 10: Strong and strategic relationships with high-quality charterers
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
Slide 11: FSO – Offshore market – Opportunistic capability
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 service contract delivering $52mm EBITDA annually until 2017 ● Life ex
Slide 12: Industry overview
Industry overview
Slide 13: Supply: Global VLCC and Suezmax fleet – limited growth
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 22 10 20 18 2 0 7 7 (11) 0 (15) (15) (17) (24) (22) (7) (7) (29) (1) (8) (8) (9) (20
Slide 14: Demand: Shift to Non-OECD driving oil demand growth
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 demand (327) Middle East 45 262 307 Americas 71 70 71 70 127 Asia/Pacific
Slide 15: Structural expansion: Increased ton miles given trade shifts
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 China 33 days 9,650 miles Latam to China 44 days 11,500 miles USA no longer im
Slide 16: The result: Our thesis is significant need for larger ships
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 transportation routes DRIVING 80 demand in for VLCCs (mbpd) 60 2-3m
Slide 17: How do lower oil prices affect tankers?
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 estimated Strategic Petroleum Reserve crude Current Market stocks and outloo
Slide 18: Contango returns
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 the use of additional vessel for storage capacity (due to Contan
Slide 19: Freight rates – High volatility & price inelasticity
Freight rates – High volatility & price inelasticity Daily average tankers freight rate over 10 years 250,000 200,000 150,000 Average TCE 2004-2008 = $71,000 per day USD / day 100,000 50,000 Notional Break Even 0 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 (50
Slide 20: Financial Overview
Financial Overview
Slide 21: Track record of shareholder value creation and distributions
Track record of shareholder value creation and distributions Historical earnings and dividends ($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 30,000 200 176 128 138 118 121 105 20,000 104 101 101 100 57 65 10,000 7 20 7 0 0
Slide 22: Strong balance sheet position
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 secured credit facility $230 Convertible bonds $23 - New $340mm se
Slide 23: Conclusion
Conclusion
Slide 24: Largest crude tanker stock exposed to rising rates NOW
Largest crude tanker stock exposed to rising rates NOW A pure-play $1.8bn tanker company Best in class operating platform with assets bought near the bottom of cycle Experienced management team with a proven track record of growth Maximum number of days in the water exposed to booming market Opportu
Slide 25: Robust industry fundamentals driving freight rates
Robust industry fundamentals driving freight rates CONTANGO • Take capacity out of the market • Already started on 20 ships (2010: 60 ships) OIL PRICE FALL • Contracts between • TCE rates higher as 6 months and 1 fuel is cheaper year • Chinese SPR filling up DEMAND • Consumer demand growth as prices
Slide 26: Appendix
Appendix
Slide 27: Asset values still below long-term medians
Asset values still below long-term medians VLCC Suezmax 180 ($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 4 VLCCs Current 97 80 Current 65 60 acquired Source: Clarksons 120 (m
Slide 28: Potential disruptive factors
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 • Infrastructure build costly in time and money • Infrastructure has pol
Slide 29: Long Established Player
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 Euronav April: Acquired 14 2008-2010 ● Chairman of CMB, Delphis Suezm