Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Non-Deal Roadshow (March 2015)
29 slides from Cmb.tech Nv's roadshow presentation, March 2015
Slide 1: Investor Presentation - USA roadshow
Investor Presentation - USA roadshow March 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: Company overview
Company overview
Slide 4: 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 • Limited world fleet growth for next two years, low relative orderbook Cyclical shift
Slide 5: 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 6: 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 7: 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 8: Maximizing value through size
Maximizing value through size Global VLCC Fleet = 636 vessels Overview of the Tankers International Pool 40 60 20 Source: Clarksons @ 25/2/15 ● Founding member in 2000 Euronav Strategy ● Leading spot market oriented VLCC pool in which ship ● Focus on ships/fleets on water. NOT new buildings owners w
Slide 9: 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 8
Slide 10: 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 11: Industry overview
EURO The ocean is our environment Industry overview
Slide 12: Demand: Shift to Non-OECD driving oil demand growth
Demand: Shift to Non-OECD driving oil demand growth Global Oil Demand moving to non-OECD countries Growth will continue to be led by non-OECD (mb/day) 55 Non-OECD demand 50 OECD demand 45 40 Non-OECD demand overtaking OECD 35 demand 30 25 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016
Slide 13: Supply – Global VLCC and Suezmax fleet – limited growth
Supply – Global VLCC and Suezmax fleet – limited growth 12
Slide 14: 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 15: 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 DISLOCATION in crude transportation routes DRIVING demand in for VLCCs (mbpd) 2-3m bpd 1-2m bpd as additional ATLA
Slide 16: 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 17: 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 Conta
Slide 18: Freight rates – High volatility & price inelasticity
Freight rates – High volatility & price inelasticity Daily average tankers freight rate over 10 years 250000 200000 Average TCE 2004-2008 = $71,000 per day 150000 USD/DAY 100000 50000 Notional Break Even 0 okt/14 jan/15 okt/12 okt/13 jan/13 jan/14 jul/13 jul/14 okt/09 okt/10 okt/11 jan/11 jan/12 jul
Slide 19: Financial Overview & Q4 update
Financial Overview & Q4 update
Slide 20: Track record of shareholder value creation and distributions
Track record of shareholder value creation and distributions Historical earnings and dividends ($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 30.000 200 176 172 128 138 118 121 20.000 104 101 101 100 57 65 10.000 7 20 7 0 0
Slide 21: Full Year and Q4 Operating days & rates
Full Year and Q4 Operating days & rates Operating days Total fleet operating days 2014: 14,433 Total fleet operating days 4Q14: 4,211 Rates 2014 2013 Q4 FY Q4 FY VLCC operated in TI Pool 31,665 27,625 27,900 20,450 VLCC under TC contracts* 33,415 38,538 37,650 42,800 Suezmax operated in the spot by
Slide 22: Conclusion
EURO The ocean is our environment Conclusion
Slide 23: 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 24: Appendix
EURO The ocean is our environment Appendix
Slide 25: 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 26: 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 27: Long Established Player
Long Established Player Peter G. LIVANOS ● Chairman of Euronav January: Acquisition 52 vessels ● Chairman of Gaslog, Drylog and of 15 VLCC 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
Slide 28: Tankers International Pool App – providing transparency
Tankers International Pool App – providing transparency Trade – AG = Arabian Gulf USG = US Gulf WAF = West Africa RS = Red Sea FE = Far East UKCM = Europe WS = Worldscale – The New Worldwide Tanker Nominal Freight Scale is a catalogue of theoretical freight rates expressed as USD per ton for most of
Slide 29: Rate Environment – continues to improve
Rate Environment – continues to improve 28