Cmb.tech Nv · EURONEXT:CMBT
Cmb.tech Nv — Euronav — Marine Money Week New York 2012
43 slides from Cmb.tech Nv's conference presentation, Jun 22, 2012
Slide 1: Investor Presentation - Marine Money Week
INVESTOR PRESENTATION PRESENTATION ITMMA Marine Money Week 27 MARCH 2012 New York, JUNE 2012 1
Slide 2: Investment Highlights
Investment Highlights • Leading crude tanker company Young diverse fleet of 44 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 2014 Diversif
Slide 3: Strategy
2. Strategy 1. STRATEGY 2. Strategy 3
Slide 4: A Focused Fleet
A Focused Fleet Vessel Type Euronav owned TC-IN (Weighted) FSO 2 x 50% V-PLUS 1 0 VLCC 12 (2 CSR) 6 incl. JV 11+ (2 x 1/2 in J/V) (weighted 3,65) SUEZMAX 22 (16 ice class) 0 (4x 1/2 in J/V) New Building Suezmax 1 (CSR) Total = 44 Ships Mix of spot and + 1 Newbuilding Fixed contracts
Slide 5: Financing sources
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 - US High Yield - Norwegian Bond market - Convertible Bonds - Equity markets 5
Slide 6: Financing in the middle of a banking crisis
Financing in the middle of a banking crisis • Main Facility: USD 750M Maturity: 2018 Revolver of up to USD 250M • FSO Financing: USD 500M Maturity: 2017 • JV Vessels (4 Suezmax) Maturity: 2020 - 2021 • 2009 Facility: USD 300M Maturity: 2014 • Convertible bond in 2009 Maturity: 2015 USD
Slide 7: Commercial Balanced Strategy
Commercial Balanced Strategy Fixed term contracts Pooling arrangements Proprietary spot desk 7
Slide 8: A Balanced Strategy
A Balanced Strategy 2011/ YTD 2012 onhire days 2011 2012 543 1,689 13% 14% 2,247 6,148 53% 49% 1,421 4,639 34% 37% fix fix/ps spot fixed fixed-ps spot Break-even Of which OPEX Fixed Contract Backlog 2012: $200m VLCC $ 31,750 $ 8,800 Suezmax $ 26,600 $ 7,800 8
Slide 9: Clients of Euronav
SF, Clients of Euronav D> EXON Sinaty. TOTAL Saudi Aramco ConocoPhillips V WwW) VALERO Shell bp
Slide 10: TI Pool
TI POOL Euronav 2,735,679 dwt GC Tankers Reederei “Nord” 912,891 dwt 638,187 dwt Athenian Sea Carriers Oak Maritime (HK) 1,269,764 dwt 610,439 dwt Overseas Shipholding Group DHT Holdings, Inc 605,438 dwt 3,679,703 dwt
Slide 11: Suezmax Spot outperforming the market
SUEZMAX SPOT outperforming the market TCE/day 2011 2012 Q1 Q2 Q3 Q4 Q1 Euronav 13,519 14,778 15,100 15,750 24,272* Teekay 18,671 17,461 8,289 12,641 24,847 Frontline 16,000 14,500 7,800 12,400 19,500 GenMar 16,768 14,490 8,608 ** ** NATS 18,000 16,600 8,000 12,777 17,500 OSG 16,065 13,630 15,123 12,
Slide 12: The Market: are the fundamentals changing?
2. The Market… …are the fundamentals changing? 12
Slide 13: Oil Demand and Production
OIL DEMAND AND Demand PRODUCTION 13
Slide 14: World Oil Demand
World Oil Demand • Oil demand in 2011 fell 0.15 mbpd => 1.2 million bpd • IEA increased world oil demand 2012=> 0.9% • Demand mainly supported by non OECD countries.
Slide 15: Oil demand growing
ing . China Oil Demand (IEA) | demand grow O 2009 2010 2011 2012 2013 2008 India Oil Demand (IEA) Middle East Oil Demand (IEA) pdqui 2009 2010 2011 2012 2013 2008 Africa Oil Demand (IEA) BB ponn-ennnennep 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2013
Slide 16: Oil demand falling
Oil demand falling Source: IEA
Slide 17: Suezmax Trading Pattern
Suezmax Trading Pattern… …is dramatically changing and adding Ton-Miles AG Suezmax Liftings WAF Suezmax Liftings 80 2009-2011 2009-2011 35 60 30 40 2009 25 2009 20 2010 15 2010 20 2011 10 2011 0 2012 5 2012 0 Black Sea Suezmax Liftings 30 2009-2011 25 20 2009 15 2010 10 2011 5 2012 0 Source: Euronav
Slide 18: Venezuela-China impact on VLCC demand
Venezuela-China impact on VLCC demand VENEZUELA has voted to double the amount of money repayable in oil that it borrows from China, in a move that will boost longhaul tanker shipments on the Americas to Asia trade route Very large crude carriers will gain most from Venezuela agreeing to increase it
Slide 19: Large Tanker Supply
Large Tanker 3. Tanker Supply supply 19
Slide 20: Tanker fleet vs Oil demand
Tanker Fleet Tanker fleet Vs Oil demand 650 600 550 500 450 400 350 300 250 200 150 Tanker Fleet Vs Oil Demand 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 VLCC lll Suezmax =e Oil demand Sources: Clarksons, IEA June 2012 95 90 Oil Demand Mbpd 20
Slide 21: VLCC fleet development
VLCC fleet developement VLCC Fleet Development - Base Case Basis TUKA VLCC Database Fleet at DH SH NBs DH Exit SH Exit Total Exit SH to DH Growth Growth % year start 2007 483 322 161 29 1 21 22 4 7 1.4% 2008 490 354 136 42 3 35 38 3 4 0.8% 2009 494 396 98 53 2 31 33 3 20 4.0% 2010 514 450 64 60 2 42
Slide 22: Suezmax fleet development
Suezmax fleet developement Suezmax Fleet Development Souce: Clarksons Fleet at DH SH NBs Total Exit Growth Growth % year start 2007 343 275 68 25 12 13 3.8% 2008 356 300 56 14 11 3 0.8% 2009 359 313 46 45 15 30 8.4% 2010 389 356 33 41 18 23 5.9% 2011 412 395 17 41 8 33 8.0% 2012 445 436 9 64 0 64 14
Slide 23: Orderbook
Orderbook A balance VLCC Fleet by year built 70 60 50 40 26 30 61 54 55 20 40 37 36 29 37 39 2 30 31 26 29 10 16 20 20 21 2 1 1 4 6 13 9 11 7 2 0 -8 -13-12 -5 -10 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -2
Slide 24: Supply of ships in perspective
Supply of ships in perspective 24
Slide 25: Factors influencing the tanker market
Issues 4. Large Factors influencing influencing Tanker Supplythe tanker market tanker market 25
Slide 26: Quality
QUALITY reliable reputable sustainable dynamic modern innovating
Slide 27: The power of slow steaming
The power of slow steaming Full Eco Super Speed Speed Slow Laden/Ballast 14/15 14/13 14/10 (knts) Bunkers $ 2,679,600 2,505,300 2,162,160 Days 38.28 41.12 47.52 TCE $ 10,300 13,830 19,188
Slide 28: Power of slow steaming
Power of slow steaming EURONAV VLCC fleet growth nominal and speed adjusted 180 175 178 170 165 . = 160 E 153 155 + 150 ——VLCC fleet VLCC fleet adjusted for speed Source: DNB Markets, Clarkson, Bloomberg
Slide 29: Scrapping prices
EG Scrapping prices EURONAV INDIA DEMOLITION RATES PAKISTAN DEMOLITION RATES $ price per ldt $ price per dt 550 550 510 510 470 470 430 430 390 390 re) L i L L 4. iL oO 4 i i. iL i L id Aug Oct Dec Feb Apr jun i Aug Oct Dec Feb Apr Jun es Oe COE Os to a & Hwee @ General cargo $395/Idt @ General carg
Slide 30: VLCC Storage increased by Iran ban
VLCC Storage… artificially… …increased by IRAN ban 30
Slide 31: Piracy
EURONAV i J ‘NG IRAN 1, PAKISTAN 3 PIRATES OF THE WORLD a He: Pree irene SL Number of actual and attempted attacks BeCLCUm attacked Feb 9 Ff ‘WoIA ATTACKS WORLD WIDE MB ATTACKS IN AFRICA » ee ") OMAN ns, oe | ( @ Arabian we e a we 445 207 ~+| 2008 «=| 2009 +'| 2010 BREAKDOWN OF AFRICA’S PIRATE ATTAC
Slide 32: Suezmax and VLCC Average Earnings
0 10 20 30 40 50 60 02/07/2010 02/08/2010 02/09/2010 02/10/2010 02/11/2010 02/12/2010 02/01/2011 02/02/2011 02/03/2011 02/04/2011 02/05/2011 02/06/2011 02/07/2011 02/08/2011 July 2010 - YTD 02/09/2011 02/10/2011 Source: Clarkson Research Services Limited 02/11/2011 02/12/2011 02/01/2012 Average Earn
Slide 33: Offshore Services Market
5. OFFSHORE SERVICES MARKET 33
Slide 34: Offshore Market
Offshore Market 34
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: 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 36
Slide 37: Finding the right investment
Finding the right investment EURONAV PROJECT PRE QUALIFICATION + EXPERIENCE + CONVERSION OPERATION FINANCIAL CAPABILITY + PROJECT & RISK FINANCING MANAGEMENT + PROCUREMENT 37
Slide 38: More than 210 Floater Projects in the planning pipeline
More than 210 Floater Projects in the planning pipeline…. 257 floating prodcution systems in service 57 production floaters on order 210 floater projects in the planning pipeline 38
Slide 39: Offshore Strategy
Offshore Strategy 39
Slide 40: 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 41: 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 - Stripped Water Capacity: minimum 200,000 barrels - Custody transfer to off-take tanker: 90,000 BPH - Discharge to export vessel every 2 to 3 da
Slide 42: In Tender Phase
In Tender Phase • Dagny and Heidrun project for Statoil in North Sea 2 FSO Suezmax size. • Replacement of FSO Ta’kuntah for Pemex in the GoM: FSO Africa or Vplus or VLCC size • Buque Tanque, for Pemex for Bay de Campeche Suezmax size 42
Slide 43: Thank you for listening
THANK YOU FOR LISTENING www.euronav.com 43