Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — ITMMA presentation, Antwerp (April 2008)
45 slides from Cmb.tech Nv's conference presentation, Apr 21, 2008
Slide 1: Creating and running an International Group
PRESENTATION FOR ITMMA Creating and running an International Group Antwerp, 21st April 2008 1
Slide 2: Euronav an International Group
EURONAV AN INTERNATIONAL GROUP 2
Slide 3: Belgian Public Company in bulk crude oil transportation
Belgian Public Company engaged in owning, operating and managing bulk transportation of crude oil EURONAV Stock Exchange: EURONEXT Ticker: EURN Bloomberg: EURN BB Reuters: EURN.BR GREEK BELGIAN Internationally held LIVANOS Families SAVERYS Families Free Float 20% 37.5% 42.5% 3
Slide 4: Euronav Fleet
EURONAV FLEET 4% 4% 7% 29% 7% 4% 4% 29% 35% 35% 4% 17% 4% 17% Vplus VLCC Owned Vplus VLCC Owned VLCC TC-in (weighted) N/B VLCC VLCC TC-in (weighted) N/B VLCC Suezmax N/B Suezmax Aframax Suezmax N/B Suezmax Aframax
Slide 5: Owner, Operator, Manager
Owner, Operator, Manager Vessel Type Cargo intake/Vessel Owned TC-In or BB World Fleet V-PLUS 3 mbls 2 0 4 VLCC 2 mbls 12 8 incl. J/V 474 (11+ (2 x 50% in J/V)) (weighted 5,85) New Building 2 mbls 2 (CSR) VLCC Suezmax 1 mbls 15 0 361 (13 ice class) New Building 1 mbls 5.5 (3 in JV) Suezmax (1 ice cl
Slide 6: World's Largest Tankers
© WORLD'S LARGEST TANKERS...
Slide 7: Can carry the equivalent of 5.6 million kegs of beer
Can carry eq. to 5.6 million kegs Longer than the of Beer! Eiffel Tower! From keel to deck it is taller than a 7 storey high building!! 7
Slide 8: Market VLCC Trades
“9 MARKET VLCC TRADES ¥ Z
Slide 9: An International Business: Yemeni Waters
An International Business YEMENI WATERS 9
Slide 10: An International Business: Saudi Cargo, Canadian Cargo
An International Business SAUDI CARGO CANADIAN CARGO MALAYSIAN RECEIVERS 10
Slide 11: An International Business: Dutch Salvors, French Flag Ship
An International Business DUTCH SALVORS – FRENCH FLAG SHIP – CREW FRENCH BULGARIAN AND PHILIPPINO 11
Slide 12: An International Business: North Atlantic, Norwegian Cargo
An International Business NORTH ATLANTIC NORWEGIAN CARGO CANADIAN RECEIVER 12
Slide 13: An International Business: Belgian Ship
An International Business BELGIAN SHIP 13
Slide 14: An International Business: International Weather
An International Business INTERNATIONAL WEATHER 14
Slide 15: Market Evolution and Euronav's Development
MARKET EVOLUTION AND EURONAV’S DEVELOPMENT 15
Slide 16: The tramp bulk markets
The tramp bulk markets Historically have involved: – high volatility; – focus on low cost operations as a hedge against volatility; – trading in ships as a major source of revenue i.e. buy cheap, sell expensive producing the value in the business – carriage of cargo, something to do whilst waiting t
Slide 17: World VLCC fleet and oil consumption
World VLCC Fleet 100 200 300 400 500 600 700 800 0 1965 1968 1971 1974 1977 1980 1983 World VLCC Fleet Size 1986 1989 1992 fleet 1995 1998 2001 2004 2007 50 60 70 80 90 100 110 120 Oil Consumption (mbpd) . One cause was an overbuilt 17
Slide 18: Historic Rates
HISTORIC RATES $100.000 $90.000 AG - East $80.000 $70.000 US$ / Day $60.000 1977 –1990 avg: $10,479 $50.000 $40.000 $30.000 $20.000 $10.000 $0 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Source: Poten / Clarksons 18
Slide 19: Bulk Markets capital vs people
Bulk Markets capital Vs People • In the old environment operations did not add real value. Lost revenue could be offset by reduced costs . Best exemple is lay up • Capital cost – timing in and out of the market was everything • Ship management was outsourced whole sale to third party managers to ach
Slide 20: Post 2000
Post 2000 • Customer consolidation in late 90s:Total Fina Elf – Total Chevron Texaco – Chevtex BP, Amocco, Arco – BP Exxon Mobil – Exxom The focus in these mergers was squeezing the lemon. • Boom in profitability from production of oil and refining. More people, consuming more energy more of which i
Slide 21: TCE Earnings for VLCCs
© TCE EARNINGS FOR VLCCs EURONAV VLCC Average Earnings Modern $/Day 239,460 214,460 \ 189,460 164,460 § 139,460 * 114,460 89,460 wi 64,460 39,460 4400, ys og 2 gs § = 8 & 2 8 & & 8 8 Source: Clarkson Research Services Limited
Slide 22: IMO Single Hull Ban
IMO SINGLE HULL BAN Erika • In 1999 the International Maritime Organisation (IMO) decided to ban single hull tankers from 2015. Prestige • Single hulls carrying heavy crude were banned in Europe in October 2003. • In December 2003 the IMO brought forward the date from 2015 to 2010. 22
Slide 23: Single hull collision: possible oil spill
Heb e i Sp irit Single Hull collision = possible Oil Spill
Slide 24: Double hull collision: no oil spill
Samco Europe Double Hull collision : No oil spill
Slide 25: Health and Safety Quality and the Environment
Health and Safety Quality and the Environment • From January 2003 onwards the world is clearly short of ships • As the fleet grows, it is clear that the world is short of qualified seafarers • Customers will now pay for ship and quality services, because they are enjoying record profitability and ca
Slide 26: The Current TI Pool
THE CURRENT TI POOL Wah Kwong OSG Euronav Petronas Oak Oldendorff Shinyo Sanko 26 Established in 2000
Slide 27: The TI Fleet
THE TI FLEET Rest of World Fleet Single hull: 0 156 Double hull: 42 320 Total fleet: 42 432 % double 100% 76% hulled: Average age of 7.6 years 8.8 years fleet: 27
Slide 28: Why Pool?
WHY POOL ? •Improved Performance = Improved Earnings •Greater flexibility which means more earning days. Ballast Vs Laden •Improved expertise through dedicated roles improving reliability of service • A large uniform fleet provides •Economies of scale (agent, bunker, admin.) •Global operation •Vetti
Slide 29: Euronav's revenue strategy
Euronav’s revenue strategy • The current business strategy is to manage revenue volatility through time charter where earnings are fixed daily rate either with or without a profit share • Pooling spot vessels to insure improved exploitation through optimisation • Professionalism of people ashore and
Slide 30: Current Business Environment
Current Business Environment • With ship values up, finance costs are up and the proportion of daily cost related to quality services is down • The quality premium that charterers in sensitive geographical locations will pay is up • Where are the sensitive locations? Atlantic Basin, Med, Black Sea,
Slide 31: Managing an International Group
MANAGING AN INTERNATIONAL GROUP 31
Slide 32: Make up of Euronav Staff
Make up of Euronav Staff • 31/12/06 1,292 seafarers on Board our vessels, 635 officers, 80 cadets, 657 ratings • 6 nationalities make up the vast majority of our crew, Belgian, French, Greek and Bulgarian officers with Salvadorian and Philippino deck hands • Ashore Euronav has four offices: Antwerp,
Slide 33: The ocean is our environment
EURONAYV. The ocean is our environment
Slide 34: Composition of Office staff
Composition of Office staff Shore staff by function HR,Legal 3 Admin 4 Operations 5 Finance 20 IT 6 Mgmt 8 Technical 14 Purchasing 7 Marine 8 Crewing 12 34
Slide 35: Multiple Locations
Multiple Locations Shore staff by location London 8 Nantes Antwerp 9 38 Piraeus 32 35
Slide 36: How to ensure uniform professionalism and competence
How to ensure uniform professionalism and competence • Professionalism and competence existed due to a history of keeping faith with national flags. • It is sub optimal to run 4 offices but it also provides access to 4 labour markets • Uniformity is necessary, but if imposed top down the culture of
Slide 37: Slide 37
Slide 38: Develop a corporate culture which transcends nationality and language
Develop a corporate culture which transcends nationality and language • Improve communication (English language, terminal server, newsletter, social interraction) • Standardise working procedures; • Rebranding the company • Common business ethic (cooperate, be rational, benchmark); • Cross functiona
Slide 39: Slide 39
Slide 40: Mission
Mission For our society, to deliver worldwide the primary source of Energy needs in ways which are economically, socially, ethically and environmentally viable, now and in the future. For our clients, to run safe and effective operations that contribute to the success of their business objectives by
Slide 41: Vision
Vision To be recognized as a leader in Oil transportation, dedicated to safety, quality and environmental protection and to pursue excellence through innovation, know-how and continuous improvement. 41
Slide 42: Slide 42
Slide 43: Thank you for listening
Thank you for listening 43
Slide 44: History of Euronav
History of Euronav • The Euronav group of companies has its origins in Compagnie Maritime Belge N.V. (CMB) founded in 1895 and the Compagnie National de Navigation (CNN) founded in 1938. • In 1989 CNN chose to expand its tanker business and acquired ships and personnel oof BP France, Total, Shell an
Slide 45: Recent History
Recent History • In 1999 Euronav dispointed with its ability to perform in the market place due to lack of size and unable to grow through merger, formed the Tankers International VLCC Pool. • 2003, 2004 were boom years for tankers and due to operational leverage and acquisitions Euronav grew suffic