EARNINGS CALL Q4 2017 1 FORWARD LOOKING STATEMENTS Matters - PowerPoint PPT Presentation

EARNINGS CALL Q4 2017 1

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 and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the delivery of vessels, the outlook for tanker shipping rates, general industry conditions future operating results of the Company’s vessels, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their obligations to us, the strength of the world economies and currencies, general market conditions, including changes in tanker vessel charter hire rates and vessel values, changes in demand for tankers, changes in our vessel operating expenses, including dry-docking, crewing and insurance costs, or actions taken by regulatory authorities, ability of customers of our pools to perform their obligations under charter contracts on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. We undertake no obligation to publicly update or revise any forward looking statement contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law. In light of the risks, uncertainties and assumptions, the forward looking events discussed in this presentation might not occur, and our actual results could differ materially from those anticipated in these forward-looking statements. 2

CONTENT 1. Q4 2017 HIGHLIGHTS 2. FINANCIAL REVIEW 3. CURRENT THEMES 4. OUTLOOK 5. Q&A 3

HIGHLIGHTS Q4 2017 VLCC 35000 Q4 30000 16 P&L 25000 Q4 • CHALLENGING FREIGHT MARKET DRIVES UNDERLYING NET INCOME LOSS B/E 17 20000 USD/day • FLEET REJUVENATION VIA THREE DISPOSALS DURING QUARTER 15000 • PROPOSED MERGER WITH GENER8 MARITIME 10000 • OUTLOOK – Q1 SO FAR VLCC 36% FIXED AT AROUND $22,252 PER DAY 5000 Q4 SO FAR SUEZMAX 45% FIXED AT AROUND $14,347 PER DAY 0 Suezmax 30000 Fourth quarter Fourth quarter In USD per day 2017 2016 25000 VLCC P&L B/E 20000 Q4 25,889 33,161 Average spot rate (TI Pool) 16 USD/day 15000 35,399 43,833 Q4 Average time charter rate* 17 SUEZMAX 10000 15,891 21,243 Average spot rate** 5000 21,417 24,662 Average time charter rate* 0 4

FINANCIAL HIGHLIGHTS – INCOME T he mo st impo rtant key figures (unaudited) are: (in thousands of USD) F o urth F o urth F ull Year F ull Year Quarter 2017 Quarter 2016 2017 2016 • Capital gains of Revenue 1 1 7,978 1 46,280 51 3,368 684,265 Other operating income 1 ,020 1 ,463 4,902 6,996 $36.5m during Q4 Voyage expenses and commissions (1 4,257) (1 6,480) (62,035) (59,560) Vessel operating expenses (33,952) (37,361 ) (1 50,427) (1 60,1 99) 2017 Charter hire expenses (7,844) (2,920) (31 ,1 73) (1 7,71 3) General and administrative expenses (1 3,736) (1 1 ,41 8) (46,868) (44,051 ) Net gain (loss) on disposal of tangible assets 36,51 8 36,576 1 5,51 1 50,395 Net gain (loss) on disposal of investments in equity accounted investees - - - (24,1 50) • Updated dividend Depreciation (56,428) (59,1 80) (229,872) (227,763) policy applicable Net finance expenses (1 1 ,974) (1 6,086) (43,378) (44,840) Share of profit (loss) of equity accounted investees 1 ,904 8,938 29,932 40,495 for 2h 2017 R esult befo re taxatio n 19,229 49,812 (40) 203,875 Tax benefit (expense) (1 3) 475 1 ,284 1 74 P ro fit (lo ss) fo r the perio d 19,216 50,287 1,244 204,049 Attributable to: Owners of the company 1 9,21 6 50,287 1 ,244 204,049 Info rmatio n per share: F o urth F o urth F ull Year F ull Year Quarter 2017 Quarter 2016 2017 2016 (in USD per share) Weighted average number of shares (basic) * 1 58,1 66,534 1 58,1 66,534 1 58,1 66,534 1 58,262,268 Result after taxation 0.1 2 0.32 0.01 1 .29 * The number of shares issued on 31 December 201 7 is 1 59,208,949. 5

FINANCIAL HIGHLIGHTS – BALANCE SHEET HIGHLIGHTS 2017 2016 (in $ million) Dec-17 Dec-31 1 Leverage Cash 143.5 206.6 Restricted cash 0.1 0.1 Other current assets 137.0 166.7 41% marked to market Long term assets: (34% book value) Newbuildings 63.7 86.1 Vessels 2,271.5 2,383.2 Other long term assets 194.9 204.2 Total assets 2,810.7 3,046.9 2 Remaining CAPEX and Debt Capacity Current liabilities 158.7 189.1 Long term debt 801.3 966.4 (31 December 2017) Other long term liabilities 4.5 3.4 Equity 1,846.2 1,887.9 • Newbuilding Capex Total liabilities and stockholders' equity 2,810.7 3,046.9 (4 Suezmax) = 185.9 USD million Cash & Cash equivalent (incl. share of JV): 147 USD m • Total estimated lending capacity Undrawn secured revolving facility 547 USD m for those 4 vessels Undrawn unsecured credit line 60 USD m = USD 174million Total Liquidity : 754 USD m 6

SCRAPPING – AN ENCOURAGING START 42260 VLCC Demolition Number 42262 Suezmax Tanker Demolition Number 540775 VLCC Fleet - Average Age Years 540776 Suezmax Fleet - Average Age Years 10 10.50 9 10.00 No of VLCC / Suexmax removed from fleet 8 Average age of VLCC/Suezmax fleet 9.50 7 6 9.00 5 8.50 4 3 8.00 2 7.50 1 0 7.00 7

SCRAP PRICE – PROVIDING OPTIONALITY TO SHIP-OWNERS VLCC Scrap Value 15 Year Old VLCC Price bloomberg Steel price index 45 4500 40 4000 35 30 3500 $m value of VLCC 25 3000 20 15 2500 10 2000 5 0 1500 8

BUT…..WORK TO DO AS TANKER BATHTUB REMAINS UNBALANCED CONTRACTING Concentrated new building delivery schedule Q1 2018 2018 2019 ORDER BOOK VLCC 7 49 36 Suezmax 13 36 14 OPERATIONAL FLEET Source: Clarksons SCRAPPING/ OTHER USE 9

OUTLOOK • Concentrated delivery schedule into late 2018 remains a challenging headwind • Recent scrapping trends & prices encouraging Vessel Supply Demand for Financing Ton Miles Supply of Oil Oil S/TERM BARRIER TO US EXPORTS OPEC CUTS HEADWINDS ENTRY GROW EXPORTS L/TERM ROBUST EXTENDED MANAGEABLE No change No change No change No Change No Change 10

Q&A 11