27 MARCH 2014 27 MARCH 2012 1 BITR and BDTI Rate evolution BITR - - PowerPoint PPT Presentation

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27 MARCH 2014 27 MARCH 2012 1 BITR and BDTI Rate evolution BITR - - PowerPoint PPT Presentation

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ITMMA PRESENTATION PRESENTATION ITMMA 27 MARCH 2014 27 MARCH 2012 1 BITR and BDTI Rate evolution BITR Rate Evolution (ws) BDTI Rate Evolution (WS) 350 450 400 300 350 250 300 BDTI Rate BDTI Rate 200 250 200 150 150 100 100

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SLIDE 1

1

PRESENTATION ITMMA 27 MARCH 2012 ITMMA PRESENTATION 27 MARCH 2014

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SLIDE 2

BITR and BDTI Rate evolution

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50 100 150 200 250 300 350 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14

BDTI Rate

BITR Rate Evolution (ws)

TD1- Arabian Gulf/US Gulf TD3- Arabian Gulf/Japan TD4- West Africa /USG TD15 West Africa/China

50 100 150 200 250 300 350 400 450 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 BDTI Rate

BDTI Rate Evolution (WS)

TD5- West Africa/US Atlantic Coast TD6- Black Sea/ Med

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SLIDE 3

Company Highlights

  • Leading crude tanker company
  • Young diverse fleet of 50 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 2017
  • Diversified lender’s group
  • Public company able to diversify source of funding
  • Experienced Management Team
  • Two successful shipping families (Saverys – Livanos)
  • 70 years of combined management experience

3

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SLIDE 4

4

  • 1. STRATEGY
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SLIDE 5

A Focused Fleet

Vessel Type Euronav owned TC-IN / BB (Weighted)

FSO 2

(2 x 50%)

V-PLUS 1 VLCC 12 (2 CSR)

11+ (1 x 1/2 in J/V)

13 to be delivered

(Maersk fleet)

3 TC-IN SUEZMAX 22 (14 ice class)

(4x 1/2 in J/V)

1 BB (ice class)

Total = 50 Ships Mix of spot and Fixed contracts

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SLIDE 6

6

Commercial Balanced Strategy

  • Fixed term contracts
  • Pooling arrangements
  • Proprietary spot desk
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SLIDE 7

A Balanced Strategy

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2014/ YTD 2013 onhire days

Break-even

Of which OPEX

VLCC $ 30,098 $ 7,833 Suezmax $ 26,333 $ 7,210

Fixed Contract Backlog 2014: $322m

915 days 6% 2,336 days 15% 365 days 2% 11,809 days 77%

Forecast 2014 Onhire Days

fixed fixed-ps FSO spot 343 days 3% 3,640 days 30% 646 days 5% 7,513 days 62%

2013 Onhire Days

fixed fixed-ps FSO spot

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SLIDE 8

Clients of Euronav

8

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SLIDE 9

TI POOL

Athenian Sea Carriers Overseas Shipholding Group

Oak Maritime (HK) Reederei “Nord” Euronav DHT Holdings, Inc

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SLIDE 10

Diversification of 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
  • Mezzanine financing
  • Convertible Bonds
  • Equity markets

10

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SLIDE 11

Maersk fleet

  • Acquisition of 15 VLCCs from

Maersk Tankers Singapore Pte Ltd

  • For a total acquisition price of USD 980 million
  • Average age of 4 years
  • Vessels will be operated in the TI Pool
  • Two are already delivered: Nautilus and

Nucleus

  • First step towards a wider consolidation of the

tanker market

11

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SLIDE 12

12

  • 2. The Market…

…are the fundamentals changing?

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SLIDE 13

BITR and BDTI Rate evolution

13

50 100 150 200 250 300 350 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14

BDTI Rate

BITR Rate Evolution (ws)

TD1- Arabian Gulf/US Gulf TD3- Arabian Gulf/Japan TD4- West Africa /USG TD15 West Africa/China

50 100 150 200 250 300 350 400 450 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 BDTI Rate

BDTI Rate Evolution (WS)

TD5- West Africa/US Atlantic Coast TD6- Black Sea/ Med

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SLIDE 14

14

OIL DEMAND AND PRODUCTION

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SLIDE 15

World Oil Demand

  • IEA increased world oil demand 2013=> 1.4%
  • Oil demand expected to grow in 2014=>1.4%
  • Demand mainly supported by non OECD countries.

+4% +1.8% +1.5% +1.6%

  • 0.1%
  • 1.4%

+3.1% +0.9% +1.2% +1.4% +1.4% 76 78 80 82 84 86 88 90 92 94 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Mbpd

World Oil Demand Growth

+3.7%

  • 5.1%
  • 1.7%

0.4% +0.6%

  • 0.6%
  • 3.5%
  • 0.7%

+16.4% +1.3% +4.5% +3% +7.8% +4.3% +4.5% +3.1% 5 10 15 20 25 30 35 40 45 50 Mbpd

World Oil Demand Growth per Key area

Americas Europe China Non OECD incl. China

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SLIDE 16

Crude oil price 2011 - YTD

16

70 80 90 100 110 120 130 140 Jan-2011 Feb-2011 Mar-2011 Apr-2011 May-2011 Jun-2011 Jul-2011 Aug-2011 Sep-2011 Oct-2011 Nov-2011 Dec-2011 Jan-2012 Feb-2012 Mar-2012 Apr-2012 May-2012 Jun-2012 Jul-2012 Aug-2012 Sep-2012 Oct-2012 Nov-2012 Dec-2012 Jan-2013 Feb-2013 Mar-2013 Apr-2013 May-2013 Jun-2013 Jul-2013 Aug-2013 Sep-2013 Oct-2013 Nov-2013 Dec-13 Jan-14 Feb-14 Mar-14 USD Brent WTI

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SLIDE 17

Total shale oil production & Change in Chinese crude demand

17

Source: EIA and OPEC

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Suezmax Trading Pattern…

Source: Euronav Database March 2014

…is dramatically changing and adding Ton-Miles

10 20 30 40 50 60 70 80 90 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

WAF Liftings 2010-2014

2010 2011 2012 2013 2014 10 20 30 40 50 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

AG Suezmax Liftings

2010 2011 2012 2013 2014 5 10 15 20 25 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

BlSea Suezmax Liftings

2010 2011 2012 2013 2014

Increasing number of lifting in 2013 expected to continue in 2014. AG reached an all times high in Jan 2014.

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19

  • 3. TANKER SUPPLY
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Tanker fleet Vs Oil demand

20

70 75 80 85 90 95 150 200 250 300 350 400 450 500 550 600 650 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Oil Demand Mbpd Tanker Fleet

Tanker Fleet Vs Oil Demand

VLCC Suezmax Oil demand

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VLCC fleet development

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Source: ICAP Shipping Feb 14

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Suezmax fleet development

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Source: ICAP Shipping

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SLIDE 23

Orderbook

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SLIDE 24

Large Tanker Supply

24

Issues influencing tanker market

  • 4. Factors influencing the

tanker market

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Bunker prices

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400 450 500 550 600 650 700 750 800 07/01/10 07/02/10 07/03/10 07/04/10 07/05/10 07/06/10 07/07/10 07/08/10 07/09/10 07/10/10 07/11/10 07/12/10 07/01/11 07/02/11 07/03/11 07/04/11 07/05/11 07/06/11 07/07/11 07/08/11 07/09/11 07/10/11 07/11/11 07/12/11 07/01/12 07/02/12 07/03/12 07/04/12 07/05/12 07/06/12 07/07/12 07/08/12 07/09/12 07/10/12 07/11/12 07/12/12 07/01/13 07/02/13 07/03/13 07/04/13 07/05/13 07/06/13 07/07/13 07/08/13 07/09/13 07/10/13 07/11/13 07/12/13 07/01/14 07/02/14 07/03/14

USD /T

Bunker prices

Fujairah Rotterdam LS Singapore

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SLIDE 26

Effect of slow steaming on TCE

26

Source: DNB Markets

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SLIDE 27

VLCC Asset Prices

27

Source: ICAP Shipping Feb 2014

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Ship Demolition Rates

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5 10 15 20 25 30 35 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Average Scrap Age 100 200 300 400 500 600 700 $/ldt Suezmax VLCC Scrap Price China Scrap Price India/SubCont

Source: ICAP Shipping Feb 14

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SLIDE 29

Crude tanker demolition past 12 months

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Source: Carksons

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Suezmax and VLCC Average Earnings

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Source: Clarkson Research Services Limited 10.000 20.000 30.000 40.000 50.000 60.000 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 USD per day

2009-YTD

Average VLCC c. 2010-built Earnings Average Suezmax c. 2010-built Earnings

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SLIDE 31

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  • 5. OFFSHORE SERVICES

MARKET

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SLIDE 32

Offshore Market

32

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SLIDE 33

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 VLCC (1999) and older Suezmax (1998) – have unique characteristics: V+ or Cap Diamant

  • Use of experienced sub contractors for providing design,

engineering and mooring systems.

33

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SLIDE 34

In Operation

34

  • FSO Asia and FSO Africa delivered to MOQ in 2010
  • New contract agreement FSO Africa as of 1/10/2012
  • 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 days: in tandem mooring
  • r in STS operations
  • FSO Crew - 52 persons; FSO accommodation for platform shift

workers up to 84 personnel

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In Tender Phase

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  • Bentley field project for Xcite Energy in UK North Sea for

1 FSO Suezmax size. Contract award mid 2014 but project delayed by client.

  • Sea Lion field development project offshore Falkland

Islands operated by Premier Oil for 1 FSO VLCC size. Contract award 2015Q3.

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SLIDE 36

Market Overview 2013

  • 13 FPSOs & 4 FSOs awarded
  • Most FSO/FPSO contracts are

extended into option periods

  • Alternatively re-deployed on new

contracts

  • The complexity and size of new

FSO/FPSO are increasing

  • Leased vs Owned – 50/50

36

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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

37

Source: IMA

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SLIDE 38

Finding the right investment

EURONAV

PRE QUALIFICATION

+

EXPERIENCE

+

FINANCIAL CAPABILITY

+

PROJECT & RISK MANAGEMENT + PROCUREMENT

PROJECT

38

CONVERSION OPERATION FINANCING

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SLIDE 39

231 planned projects whereof 61 in bidding or final design stage

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Source: IMA

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SLIDE 40

Global oil production over the years

40

Offshore production is growing steadily over the years

Source: E&P magazine

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SLIDE 41

Offshore Strategy

41

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THANK YOU FOR LISTENING

www.euronav.com

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Share price evolution

last 10 years

43

5 10 15 20 25 30 35 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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Share price evolution

last 5 months

44

2 4 6 8 10 12 Nov 2013 Dec 2013 Jan 2014 Feb 2014 Mar 2014

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World Fleet VLCC Earnings

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  • $20.000
  • $10.000

$0 $10.000 $20.000 $30.000 $40.000 $50.000 $60.000 $70.000 $80.000 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14

TCE

BDTI VLCC TCE (avg of TD1 and TD3) TI VLCC Database TI Actual