INVESTOR PRESENTATION PRESENTATION ITMMA Marine Money Week 27 - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION PRESENTATION ITMMA Marine Money Week 27 - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION PRESENTATION ITMMA Marine Money Week 27 MARCH 2012 New York, JUNE 2012 1 Investment Highlights Leading crude tanker company Young diverse fleet of 44 ships under control Balanced strategy between contracts

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PRESENTATION ITMMA 27 MARCH 2012 INVESTOR PRESENTATION Marine Money Week New York, JUNE 2012

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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
  • 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

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  • 2. Strategy

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  • 2. Strategy
  • 1. STRATEGY
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A Focused Fleet

Vessel Type Euronav owned TC-IN (Weighted)

FSO 2 x 50% V-PLUS 1 VLCC 12 (2 CSR)

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

6 incl. JV

(weighted 3,65)

SUEZMAX 22 (16 ice class)

(4x 1/2 in J/V)

New Building Suezmax 1 (CSR)

Total = 44 Ships + 1 Newbuilding Mix of spot and Fixed contracts

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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

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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 150M
  • Coupon: 6.5% - Strike price: €16.2838

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Commercial Balanced Strategy

  • Fixed term contracts
  • Pooling arrangements
  • Proprietary spot desk
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A Balanced Strategy

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2011/ YTD 2012 onhire days

Break-even

Of which OPEX

VLCC $ 31,750 $ 8,800 Suezmax $ 26,600 $ 7,800

1,689 14% 4,639 37% 6,148 49% fix fix/ps spot 2011

543 13% 1,421 34% 2,247 53%

fixed fixed-ps spot 2012

Fixed Contract Backlog 2012: $200m

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Clients of Euronav

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TI POOL

GC Tankers

Athenian Sea Carriers Overseas Shipholding Group

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

2,735,679 dwt 638,187 dwt 3,679,703 dwt 610,439 dwt 1,269,764 dwt 605,438 dwt 912,891 dwt

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SUEZMAX SPOT

  • utperforming 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 12,408 24,900

* Excluding Newbuilding voyage delivery ** Since charpter 11 no releases have been issued

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  • 2. The Market…

…are the fundamentals changing?

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Demand OIL DEMAND AND PRODUCTION

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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.
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Oil demand growing

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Oil demand falling

Source: IEA

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Suezmax Trading Pattern…

Source: Euronav Database

…is dramatically changing and adding Ton-Miles

5 10 15 20 25 30 35

AG Suezmax Liftings 2009-2011

2009 2010 2011 2012 20 40 60 80

WAF Suezmax Liftings 2009-2011

2009 2010 2011 2012 5 10 15 20 25 30

Black Sea Suezmax Liftings 2009-2011

2009 2010 2011 2012

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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 its borrowing from $4bn to $8bn, experts said on Thursday. This trade has made up around 18% of tonne-mile demand for VLCCs so far in 2012. 18

Data source: Clarksons / LLI / GTIS. Tonnes discharged represents total volume on all vessel sizes. Shipments, trade and vessel demand are for crude oil transportation only (excluding fuel oil trade).

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Large Tanker Supply

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  • 3. Tanker supply
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Tanker fleet Vs Oil demand

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VLCC fleet developement

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VLCC Fleet Development - Base Case

Basis TUKA VLCC Database Fleet at year start DH SH NBs DH Exit SH Exit Total Exit SH to DH Growth Growth % 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 44 3 16 3.1% 2011 530 511 19 65 6 14 20 1 45 8.5% 2012 575 571 4 52 22 2 24 28 4.9% 2013 603 601 2 59 16 16 43 7.1% 2014 646 644 2 23 16 16 7 1.1% 2015 653 651 2 17 12 1 13 4 0.6% 2016 657 656 1 16 12 12 4 0.6% 2017 661 660 1 20 12 12 8 1.2% 2012YTD 579 575 4 11 7 7 4 0.7% Rest of Year 41 15 2 17 24 4.1% Reference Date: 1 Mar 12

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Suezmax fleet developement

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Suezmax Fleet Development

Souce: Clarksons Fleet at year start DH SH NBs Total Exit Growth Growth % 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 64 14.4% 2013 509 500 9 48 48 9.4% 2014 557 548 9 11 11 2.0% 2015 568 559 9 0.0% 2016 568 559 9 0.0% Reference Date: 1 Mar 12

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Orderbook

11 21 2 1 1 4 16 6 13 20 9 2 30 40 26 37 36 29 31 20 29 37 54 55 61 26 39 7 2

  • 8 -13
  • 12 -5
  • 20
  • 10

10 20 30 40 50 60 70 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

A balance VLCC Fleet by year built

1 23 7 8 8 8 11 21 14 22 16 24 24 27 25 26 25 14 45 41 42 43 53 4 1

  • 5
  • 13
  • 8
  • 12
  • 10

10 20 30 40 50 60 70

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Suez Fleet by year built

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Supply of ships in perspective

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Large Tanker Supply

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Issues influencing tanker market

  • 4. Factors influencing the

tanker market

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reliable reputable sustainable dynamic modern innovating

Q U A L I T Y

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The power of slow steaming

Full Speed Eco Speed Super Slow Laden/Ballast (knts) 14/15 14/13 14/10 Bunkers $ 2,679,600 2,505,300 2,162,160 Days 38.28 41.12 47.52 TCE $ 10,300 13,830 19,188

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Power of slow steaming

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Scrapping prices

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VLCC Storage… artificially…

…increased by IRAN ban

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Piracy

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Suezmax and VLCC Average Earnings

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Source: Clarkson Research Services Limited 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 02/09/2011 02/10/2011 02/11/2011 02/12/2011 02/01/2012 02/02/2012 02/03/2012 02/04/2012 02/05/2012 02/06/2012

Average Earnings VLCC and Suezmax July 2010 - YTD

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  • 5. OFFSHORE SERVICES

MARKET

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Offshore Market

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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

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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

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Source: IMA

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Finding the right investment

EURONAV

PRE QUALIFICATION

+

EXPERIENCE

+

FINANCIAL CAPABILITY

+

PROJECT & RISK MANAGEMENT + PROCUREMENT

PROJECT

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CONVERSION OPERATION FINANCING

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More than 210 Floater Projects in the planning pipeline….

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  • 257 floating prodcution systems in service
  • 57 production floaters on order
  • 210 floater projects in the planning pipeline
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Offshore Strategy

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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.

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In Operation

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  • 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 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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  • 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

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THANK YOU FOR LISTENING

www.euronav.com