A Specialised Tanker Company… Investor

A Specialised Tanker Company… Investor

A Specialised Tanker Company…
Investor Presentation
1
A Ship owner and operator
Vessel
Type
Cargo
intake
per
vessel
Euronav
owned
TC-In
World Fleet
V-PLUS
3 mbls
2
0
4
VLCC
2 mbls
13 + 3 in J/V
11 (J/V)
462
Suezmax
1 mbls
9
0
331
0
650
NewBuildin 1 mbls
g Suezmax
Aframax
3/4 mbls
6 + 1 J/V
2 on BB charter
Total = Interests in 29 VLCC, 9 Suezmax, 2 Aframax, 6 N/B
DWT Euronav
DWT World
134,948,722
3,935,215
2
Euronav’s Fleet is CRUDE
Euronav’s Fleet is YOUNG
Euronav’s Fleet is DOUBLE HULL
Euronav’s Fleet is NATIONAL FLAG
Euronav’s Fleet is MANAGED IN HOUSE
3
A short history
MAIN EVENTS 2004
•
JANUARY
Purchase Savoie
T/C in Shinyo Landes, C Dream, Sea
Fortune
•
FEBRUARY
T/C in Kensington, Hampstead
•
MARCH
T/C in Hawtah, Watban
•
MAIN EVENTS 2005
–
FEBRUARY
Acquisition of N/B Suezmax in JV –
Delivery 2007
Shinyo Mariner TC in for 7 years
–
MARCH
Acquisition of 4 VLCC from Metrostar
Merger with Tanklog signed: 9 Suezmax
(7IC), 5 N/B delivery ’06/’07, 2 Aframax on
BB
Acquisition of the Bourgogne from KG
–
MAY
Charles Eddie TC in for 3 years
V.K Eddie delivered from the yard (JV
50%)
–
JUNE
Split of JV with OSG, full ownership of TI
Europe and Asia
First tranche of the Tanklog transaction
executed
–
SEPTEMBER
Saverys family places 4.4M Share in
Private placement
APRIL
Purchase 4 V-Plus (ULCC from
Hellespont) in joint venture with OSG
•
JUNE
Flandre delivered from Daewoo
•
NOVEMBER
Euronav demerge from CMB
4
Pro Forma Consolidated
Balance Sheet
In thousands of USD
30.06.2005
30.06.2004
In thousands of USD
30.06.2005
30.06.2004
LIABILITIES
ASSETS
NON-CURRENT
ASSETS
2.052.340
599.710
EQUITY
815.387
358.016
Tangible Assets
2.026.517
593.203
Capital and reserves
815.387
358.016
Intangible Assets
20.614
20
-
-
Financial Assets
4.583
484
1.324.916
321.124
235.019
160.378
CURRENT LIABILITIES
147.052
80.948
2.287.359
760.088
TOTAL LIABILITIES
2.287.359
760.088
CURRENT ASSETS
TOTAL ASSETS
Minority interests
NON-CURRENT
LIABILITIES
5
The most important key figures are:
1H05
in thousands of USD
Turnover
EBITDA
depreciation
EBIT (operating result)
financial result
result before taxation
current tax
deferred tax
Result after taxation
283,302
179,683
-46,795
132,888
-14,578
118,310
-652
574
118,232
3Q
YTD
2004
110,075
56,878
-34,955
21,923
-15,672
6,251
-459
p.m
5,792
393,377
236,561
-81,750
154,811
-30,250
124,561
-1,111
p.m.
124,024
430,615
303,162
-45,737
257,425
-11,524
245,901
-330
p.m.
236,502
6
Euronav N.V. - Public Company
EURONAV
Stock Exchange:
EURONEXT
Ticker: EURN
Bloomberg: EURN BB
Reuters: EURN.BR
Saverys – Livanos Families
57.5%
Free Float
42.5%
Major shareholders
7
Executive Chairman
MARC SAVERYS
Board of Directors
EXCO
Paddy Rodgers
CEO
Belgium
EURONAV N.V. HEADQUARTER
USA
UK
Legal, Corporate
& consolidation
France
Corporate
Headquarter
Ship Management
Headquarter
Virginie Saverys
Full management of fleet
including Commercial &
Operation
LEGAL COUNSEL
Greece
Luxembourg
Outsourced
Marine
Insurance
Alex Staring:
Finance,
Administration,
Accounting &
Investor Relations
Ludwig Criel:
CFO
COO
Belgibo
23 persons
Directly
employed
7 persons
Sea Group
Euronav UK
ESM SA
ESM Hellas
Euronav Lux. S.A.
Dedicated
commercial broker
for North American
business
Commercial relations
6 persons
4 persons
Tankers International
20 persons
French flag
operation, French
crewing Finance
Administration &
Accounting
Suezmax Technical
& crewing
Management
Finance
Administration &
Accounting
Administration,
accounting and
Finance for
ownership of
vessels operated
under French flag
35 persons
2 persons8
9 persons
THE VLCC MARKET
SUPPLY
9
WORLD VLCC FLEET
Compared with major operators
# VLCC 462
(of which 161 SH)
Others 113
Oil Co.’s / Traders
control
(62 SH)
55.2%
(6 SH)
of the fleet
WorldWide 12
ACOL 12
East Oil Co. 141
(58 SH)
West Oil Co. 55
(2 SH)
(4 SH)
Frontline 23
(4 SH)
ME Supplier 55
(21
Traders 4
SH)
(1 SH)
TI 47
(3 SH)
10
2007
2004
2001
1998
1995
1992
1989
1986
1983
1980
1977
1974
1971
World VLCC Fleet Size
700
110
600
100
500
90
400
300
80
200
70
100
60
0
50
Oil Consumption (mbpd) .
800
1968
1965
World VLCC Fleet
Market History
120
11
WORLD FLEET DEVELOPMENT
Year:
Fleet at Year
Start
DH
SH
N/B
Scrap/
FPSO:
Growth %
2002
427
171
256
35
40
-5
-1.2%
2003
420
206
214
38
33
+5
1.2%
2004
425
244
181
29
12
+17
4.0 %
2005
442
273
169
30
8
+20
5.0%
NOW/YTD
462
301
161
28
5 (+3)
+20
4.3 %
2006
464
303
161
17
0
+17
3.7 %
2007
481
320
161
36
1
+35
7.3 %
2008
516
356
160
26
1
+25
4.8 %
2009
541
382
159
9
1
+8
1.5 %
12
Sensitivity
• 1 Million bpd growth in demand from…. is equivalent to…..:
¾ USA ……..7 % increase in VLCC demand
¾ China ..…..6 % increase in VLCC demand
¾ India ……..4 % increase in VLCC demand
¾ With the same pattern of trade, world oil demand would
have to grow by 2.2% to increase tanker demand by 4.3%
¾ DOE forecasts oil demand to grow by 2.6%
13
93
89.4
88.2
86.1
84.3
82.6
79.6
78
World Oil
Production (IEA)
Required Oil
Production
2008
2007
2006
2005
2004
76.9
2002
83
VLCC Fleet
73
2003
77.2
2001
88
world oil production /mbpd
530
510
490
470
450
430
410
390
370
350
330
2000
Size of VLCC fleet
Minimum required oil to meet future ship Supply
14
THE VLCC MARKET
DEMAND: Ton Miles
TI CREATION
15
VLCC TRADES 2004
16
2.0
Jul-05
Jan-05
Jul-04
Jan-04
Jul-03
Jan-03
Jul-02
6.0
Jan-02
6.5
Jul-01
7.5
Jul-05
Jan-05
Jul-04
Jan-04
Jul-03
Jan-03
Jul-02
Jan-02
Jul-01
Jan-01
8.0
Jan-01
mbpd
US Crude Production
mbpd
Jul-05
Jan-05
Jul-04
Jan-04
Jul-03
Jan-03
Jul-02
Jan-02
Jul-01
8.5
Jan-01
mbpd
FALLING PRODUCTION
UK Crude Production
2.9
2.7
2.5
2.3
2.1
1.9
1.7
1.5
7.0
Norway Crude Production
3.5
3.0
2.5
17
'01 Production
'04 Production
Iraq Production (RHS)
'02 Production
'05 Production
Source: MEES, updated: November 2005
Jul-05
Iraq mbpd
23.5
23.5
23.5
24.5
24.5
24.5
24.5
24.5
24.5
24.5
24.5
24.5
25.5
26.0
26.0
26.0
25.4
25.4
25.4
25.4
25.4
27.0
27.0
27.0
27.0
27.0
27.5
27.5
27.5
28.0
28.0
28.0
28.0
27
'03 Production
Quota
Jan-05
Jul-04
17
Jan-04
23.0
23
0.15
0.30
0.46
0.70
1.05
1.40
1.55
2.00
1.80
2.00
1.88
2.50
2.31
2.05
1.45
1.95
1.80
2.30
2.40
1.75
1.50
1.80
1.86
1.95
1.92
1.85
1.82
1.95
1.88
21.7
21.7
21.7
21.7
21.7
21.7
21.7
21.7
21.7
21.7
21.7
21.7
25
Jul-03
Jan-03
Jul-02
19
1.30
1.76
1.52
1.83
1.50
1.82
2.42
2.37
2.27
2.55
2.43
1.03
2.31
2.54
2.53
21
Jan-02
mbpd
OPEC PRODUCTION
OPEC 10 and Iraq Production
29
12
10
8
6
4
2
0
18
Jul-05
Jan-05
Jul-04
Jan-04
Jul-03
Jan-03
Jul-02
Jan-02
Jul-01
Jan-01
mbpd
IRAQ PRODUCTION
Iraq Crude Production
3.0
2.5
2.0
1.5
1.0
0.5
0.0
19
RISING SEABORNE IMPORT DEMAND
3.0
Chinese Crude imports since 2002
Source: IEA
2.8
2.6
2.2
2.0
1.0
9.5
mbpd
10.0
Jul-05
1.2
Jan-05
10.5
Jul-04
1.4
Jan-04
11.0
Jul-03
1.6
Jan-03
11.5
Jul-02
1.8
Jan-02
mbpd
2.4
US Crude imports since 2002
Source: EIA
9.0
8.5
8.0
Jul-05
Jan-05
Jul-04
Jan-04
Jul-03
Jan-02
Jul-05
Jan-05
Jul-04
Jan-04
Jul-03
Jan-03
Jul-02
Jan-03
7.0
Indian Crude imports since 2002
Source: IEA
Jul-02
2.8
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
Jan-02
mbpd
7.5
20
Jul-05
Jan-05
Jul-04
Jan-04
Jul-03
Jan-03
Jul-02
Jan-02
Jul-01
Jan-01
mbpd
RUSSIAN CRUDE PRODUCTION
10
9
8
7
6
21
THE VLCC MARKET
RATES
22
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
US$ / Day
Historic Rates
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
23
TCE EARNINGS FOR VLCCs
24
What creates a Spike?
mb/d
1.75
1.58
mmcf/d
10,000
Hurricane Shut-in Production
Katrina
Rita
9,000
Katrina, Rita, Wilma
Ivan (2004)
1.40
1.23
8,000
7,000
Wilma
6,000
1.05
Oil (left scale)
0.88
5,000
4,000
0.70
3,000
0.53
Gas (right scale)
0.35
2,000
1,000
0.18
0.00
0
20
40
60
Days after Hurricane
80
0
100
25
Euronav’s Formula
Mix of Spot and
LT charter
Fleet expansion
timed with cycle
Experienced team
Quality of Assets
In-House
Management
Sustainable
Growth through
all cycles
Co-opetition
Niche Business
Deep customer
relationships
Tankers International
Pool
26
Fixed Business
TOTAL
– 3 VLCC on TC out
Floor and a Profit share
VALERO
– 7 Suezmax on TC out for Ice Class trade
Floor and Profit Share
– 2 Aframax on TC out for Caribbean trade
SUN OIL COMPANY
– 1 Suezmax on TC out
E.N.I.
– 1 Suezmax on TC out
27
Spot Business
Tankers International POOL
• Only operate modern quality tonnage.
• Put safety and quality above all.
• To change the VLCC industry from a simple
transportation provider into an integrated
logistics carrier for our customers.
• Counter fragmentation.
• Improve market knowledge and opportunity.
28
TANKERS INTERNATIONAL POOL
Wah Kwong
OSG
Euronav
Petronas
Oak
Oldendorff
Sanko
Est. 16.12.1999 – Start-up 01.02.2000
Shinyo
Essar
29
THE TI FLEET vs Rest of World
Single hull:
3
Rest of World
Fleet
163
Double hull:
46
248
(1 on TC)
Total fleet:
49
462
(4 V-Plus)
% double
hulled:
93.9%
60.3%
Average age of
fleet:
5.93 years
8.67 years
30
TOP 10 CUSTOMERS 2005
RANK:
1
2
3
4
5
6
7
8
9
10
CUSTOMERS
UNIPEC (China)
CHEVRON
STASCO (Shell)
EXXON MOBIL
ENGEN (South Africa)
RILLFUNG (China)
VELA
TOTAL
PETRONAS
IRVING
31
Euronav Fleet
Employment
2005
28%
35%
13%
24%
VLCC owned - spot
VLCC owned TC out
VLCC TC in - Spot
SUEZ TC out
2007
2006
32%
34%
34%
43%
12%
11%
11%
23%
32
Conclusion
¾ Experienced management team focused on both growth and
dividends
¾ Low cash break even rate
¾ Full in-house technical management
¾ Only major tanker company with French, Belgium and Greek
Flag Fleets
¾ Balanced growth strategy
¾ Strong balance sheet with appropriate leverage to increase
Shareholder value
33
THANK YOU
34