Shareholders meeting 8 May 2013 1 Agenda 1. Strategy 2. Tanker - - PowerPoint PPT Presentation

▶
shareholders meeting 8 may 2013
SMART_READER_LITE
LIVE PREVIEW

Shareholders meeting 8 May 2013 1 Agenda 1. Strategy 2. Tanker - - PowerPoint PPT Presentation

Oct 03, 2023 471 likes •856 views

Shareholders meeting 8 May 2013 1 Agenda 1. Strategy 2. Tanker market Demand Supply 1. Offshore market 2. Q&A 2 2. Strategy Strategy 3 A Focused Fleet 2011 2012 2013 Vessel Type Euronav owned TC-IN Euronav

slide-1
SLIDE 1

Shareholders’ meeting 8 May 2013

1

slide-2
SLIDE 2

Agenda

1. Strategy 2. Tanker market

Demand

Supply 1. Offshore market 2. Q&A

2

slide-3
SLIDE 3

3

  • 2. Strategy

Strategy

slide-4
SLIDE 4

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 (9+2x1/2 in J/V) 10 incl JV 10 (9+2 x 1/2 in J/V) 7 incl JV 10 (9+2x1/2 in J/V)

1

SUEZMAX 19 (14 ice class & 2x1/2 in J/V)

  • 20 (14 ice class & 4x

1/2 in J/V)

  • 20 (14 ice class, & 4x

1/2 in J/V)

1

TOTAL 41 vessels + 4 NB (mix of spot and fixed contracts) 39 vessels + 1 NB (mix of spot and fixed contracts) 34 vessels (mix of spot and fixed contracts)

4

Decreased exposure

slide-5
SLIDE 5

A Balanced Strategy

5

2013/ YTD 2012 onhire days

Break-even

Of which OPEX

VLCC $ 28,843 $ 8,175 Suezmax $ 23,627 $ 7,667

Fixed Contract Backlog 2012: $486m

6% 33% 5% 56%

2012: 12,489 onhire days

fixed 497 days fixed-ps 4,172 days FSO 671 days spot 7,149 days 3% 30% 5% 62%

Forecast 2013: 12,162 onhire days

fixed 343 days fixed-ps 3,616 days FSO 647 days spot 7,556 days

slide-6
SLIDE 6

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 84% of convertible

with 3 years to 2018

  • Extension FSO Africa contract to 2017 with possible further extension
  • ptions up to 2019
  • Sale Algarve to offshore contractor at premium to market value
  • Option fee in cash received in respect of purchase option for Antarctica

and Olympia

  • Fixture Luxembourg at TC rate above market
  • TI Guardian redelivery
  • Successful conclusion of sale and leaseback of Cap Isabella brings

Euronav’s capex commitments to an end without affecting the cash position.

6

slide-7
SLIDE 7

Tanker Market

7

slide-8
SLIDE 8

8

Tanker demand

slide-9
SLIDE 9

Oil Demand Growth

9

Apr-2013 Source IEA

+ 670KBPD +960KBPD Actual Forecast

slide-10
SLIDE 10

Oil Supply Growth

10

Apr-2013 Source IEA Shaded area are non OPEC only

+1930 KBPD +710KBPD Actual Forecast

slide-11
SLIDE 11

Gas vs Oil Prices

11

slide-12
SLIDE 12

USG Crude Oil Imports by Type of Crude

12

  • 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 unaffected – this is due to refinery requirements in the US Gulf. Billions of USD were spent on gearing refineries towards the processing of heavier grades

  • Some USG refineries are able

to process the lighter domestic crude oil…

Growth in domestic crude oil production

slide-13
SLIDE 13

Major Changes in Dirty Spot Market Trades 2012 Vs 2011

13

Data source: Clarksons /bases on Spot fixtures

slide-14
SLIDE 14

Estimated VLCC Requirements for carrying Crude Condensate and Fuel Oil Import

14

Data source: Clarksons /LLI

slide-15
SLIDE 15

Net 62 VLCCs Required for carrying crude, condensate and Fuel oil import over next 4yrs

15

Data source: Clarksons /LLI

slide-16
SLIDE 16

Net 40 suezmax required for carrying crude, condensate and fuel oil imports over next 4yrs

16

Data source: Clarksons / LLI. Tonnes discharged represents total volume on all vessel sizes

slide-17
SLIDE 17

The Demand requirement for the next 4 years should increase by:

  • 62 VLCCs
  • 40 Suexmaxes

17

slide-18
SLIDE 18

Large Tanker Supply

18

slide-19
SLIDE 19

Tanker existing fleet and orderbook

19

Data source: Clarksons

slide-20
SLIDE 20

Tanker orderbook vs aging fleet

20

Data source: Clarksons

101 196 83

slide-21
SLIDE 21

VLCC annual average

21

Source: Gibson

slide-22
SLIDE 22

Tankers orders placed each years

22

Source: Gibson

slide-23
SLIDE 23

Tanker fleet age profiles

23

Data source: Clarksons

slide-24
SLIDE 24

Tanker removal analysis 2012

24

Note: Based on Tanker Age Profile at the beginning of 2012 Data source: Clarksons

slide-25
SLIDE 25

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
SLIDE 26

VLCC Asset Prices

26

Source: Clarksons

slide-27
SLIDE 27

Ship recycling

Table below demonstrates the relative importance ship recycling industry has to the economy of each country

27

2011 Steel scrap produced (LDT) Steel used (LDT) Ratio Bangladesh 1,495/ 2,046 73% Pakistan 688/ 2,531 27% India 2,715/ 73,671 4% Turkey 522/ 28,700 2% China 1,800/ 649,850 0.3%

In crude steel equivalent thousand tonnes

BOF EAF WORLD 70% 30% CHINA 90% 10% INDIA 40% 60% TURKEY 25% 75%

slide-28
SLIDE 28

Crude tanker demolition

28

Average age trading vessels 2012 fell to < 20 years  youngest fleet ever 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 years 19.5 years

44 16 28

slide-29
SLIDE 29

Eco Ships

  • The concept of an Eco ship in Bulk trading as
  • pposed 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 existing ships at a fraction of the cost

  • f a newbuilding

29

slide-30
SLIDE 30

Offshore Project Overview

30

slide-31
SLIDE 31

In Operation

31

  • 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 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

slide-32
SLIDE 32

In Tender Phase

32

  • 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.

slide-33
SLIDE 33

Euronav Offshore

33

slide-34
SLIDE 34

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.

34

slide-35
SLIDE 35

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
SLIDE 36

36

THANK YOU FOR LISTENING

www.euronav.com