Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Shareholder Meeting (May 2013)
36 slides from Cmb.tech Nv's shareholder meeting presentation, May 8, 2013
Slide 1: Shareholders' meeting 8 May 2013
Shareholders’ meeting 8 May 2013 1
Slide 2: Agenda
Agenda 1. Strategy 2. Tanker market Demand Supply 1. Offshore market 2. Q&A 2
Slide 3: Strategy
2. Strategy Strategy 3
Slide 4: A Focused Fleet
A Focused Fleet 2011 2012 2013 Vessel Type Euronav owned TC-IN Euronav owned TC-IN Euronav owned TC-IN FSO (2 x 50%) - (2 x 50%) - (2 x 50%) - V-PLUS 1 - 1 - 1 - VLCC 10 10 incl JV 10 7 incl 10 1 (9+2x1/2 in J/V) (9+2 x 1/2 in J/V) JV (9+2x1/2 in J/V) SUEZMAX 19 (14 ice class & - 20 (14 ice class &
Slide 5: A Balanced Strategy
A Balanced Strategy 2013/ YTD 2012 onhire days 2012: 12,489 onhire days Forecast 2013: 12,162 onhire days 3% 6% 30% 56% 33% 62% 5% 5% fixed 497 days fixed-ps 4,172 days fixed 343 days fixed-ps 3,616 days FSO 671 days spot 7,149 days FSO 647 days spot 7,556 days Break-even Of which OPEX Fixed Contrac
Slide 6: Significant Events
Significant Events • Successful restructuring of the ship management organisation => savings on opex/overhead • Successful set up dedicated offshore department • Drawdown under USD 750 M and the USD 65 M loan (delivery Alsace) in difficult markets • Successful restructuring CB extending repayment of
Slide 7: Tanker Market
Tanker Market 2 a —— EURONAV The ocean is our environment
Slide 8: Tanker demand
Tanker demand Tas z + 1 Fo SMOKING ° EURONAV The ocean is our environment
Slide 9: Oil Demand Growth
Oil Demand Growth Actual Forecast + 670KBPD +960KBPD Apr-2013 Source IEA 9
Slide 10: Oil Supply Growth
Oil Supply Growth Actual Forecast +710KBPD +1930 KBPD Apr-2013 Source IEA Shaded area are non OPEC only 10
Slide 11: Gas vs Oil Prices
Gas vs Oil Prices s=—Henry Hub <=Brent wW/\”r 25 20 QO AC aww/e vo-Etoz to-E€to~ OTt-ztoz £0-ZtO~ vo-c toc to-ztoz OT-TtOz 20-TTOZ~ vo-Ttoc to-ttoz ot-otoz £20-0T0Z vo-oTtoz to-o0Ttoz ot-60072 40-6002 to-6007Z ot-soo0z 20-8002 vo-so00z to-s800z ot-Zo00z £0-Z00Z vo-Z00z to-Z00Z The ocean is our envir
Slide 12: USG Crude Oil Imports by Type of Crude
USG Crude Oil Imports by Type of Crude Growth in domestic crude oil production -Significant decrease in the volume of light crude seaborne imports into the US Gulf. Imports of light crude oil are now in the region of 0.5m b/d – the average for 2010 was 1.4m b/d - Heavy/Medium grades remain largely u
Slide 13: Major Changes in Dirty Spot Market Trades 2012 Vs 2011
Major Changes in Dirty Spot Market Trades 2012 Vs 2011 Data source: Clarksons /bases on Spot fixtures 13
Slide 14: Estimated VLCC Requirements for Carrying Crude Condensate and Fuel Oil Import
Estimated VLCC Requirements for carrying Crude Condensate and Fuel Oil Import Data source: Clarksons /LLI 14
Slide 15: Net VLCCs Required for Carrying Imports over Next 4 Years
Net 62 VLCCs Required for carrying crude, condensate and Fuel oil import over next 4yrs Data source: Clarksons /LLI 15
Slide 16: Net Suezmax Required for Carrying Imports over Next 4 Years
Net 40 suezmax required for carrying crude, condensate and fuel oil imports over next 4yrs Data source: Clarksons / LLI. Tonnes discharged represents total volume on all vessel sizes 16
Slide 17: Demand Requirement for the Next 4 Years
The Demand requirement for the next 4 years should increase by: • 62 VLCCs • 40 Suexmaxes 17
Slide 18: Large Tanker Supply
Large Tanker Supply 18
Slide 19: Tanker existing fleet and orderbook
Tanker existing fleet and orderbook Data source: Clarksons 19
Slide 20: Tanker orderbook vs aging fleet
Tanker orderbook vs aging fleet 196 101 83 Data source: Clarksons 20
Slide 21: VLCC annual average
VLCC annual average Source: Gibson 21
Slide 22: Tankers orders placed each years
Tankers orders placed each years Source: Gibson 22
Slide 23: Tanker fleet age profiles
Tanker fleet age profiles Data source: Clarksons 23
Slide 24: Tanker removal analysis 2012
Tanker removal analysis 2012 Note: Based on Tanker Age Profile at the beginning of 2012 Data source: Clarksons 24
Slide 25: Will owners scrap?
Will owners scrap ? Depends on following factors: • debt profile • additional capex events • scrap price volatility Without any significant scrapping, Supply will balance Demand in 2016 25
Slide 26: VLCC Asset Prices
VLCC Asset Prices Source: Clarksons 26
Slide 27: Ship recycling
Ship recycling BOF EAF WORLD 70% 30% CHINA 90% 10% INDIA 40% 60% TURKEY 25% 75% Table below demonstrates the relative importance ship recycling industry has to the economy of each country 2011 Steel scrap Steel used Ratio produced (LDT) (LDT) Bangladesh 1,495/ 2,046 73% Pakistan 688/ 2,531 27% India
Slide 28: Crude tanker demolition
Crude tanker demolition Average age trading vessels 2012 fell to < 20 years youngest fleet ever 44 16 28 tankers scrapped = inactive vessels + trading vessels 68% DOUBLE HULL 3 DH + 13 SH 27 DH + 1 SH average age for scrapping average age for scrapping average age for scrapping 20.7 years 22.8 yea
Slide 29: Eco Ships
Eco Ships • The concept of an Eco ship in Bulk trading as opposed to containerships is a sales project for the Ship yard. • Any ship ordered will increase world fleet size and reduce market levels • Most eco gains can be replicated through retrofitting saving devices which can be done in drydock to
Slide 30: Offshore Project Overview
Offshore Project Overview 30
Slide 31: In Operation
In Operation • FSO Asia and FSO Africa delivered to MOQ in 2010 • FSO characteristics: - Storage Capacity: minimum 2,400,000 barrels of dry oil for export: largest FSO in the world - Stripped Water Capacity: minimum 200,000 barrels - Custody transfer to off-take tanker: 90,000 BPH - Discharge to exp
Slide 32: In Tender Phase
In Tender Phase • Gina Krog (former Dagny) field project for Statoil in North Sea 1 FSO Suezmax size. Contract should be awarded in the course of this spring. 32
Slide 33: Euronav Offshore
Euronav Offshore 33
Slide 34: 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 35: Market Overview
Market Overview • Annual growth 5-10% • Most FSO/FPSO contracts are extended into option periods • Alternatively redeployed on new contracts • The complexity and size of new FSO/FPSO are increasing • Leased vs Owned – 50/50 35
Slide 36: Thank you for listening
THANK YOU FOR LISTENING www.euronav.com 36