UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2021
Commission File Number: 001-36810
EURONAV NV
De Gerlachekaai 20
2000 Antwerpen
Belgium
011-32-3-247-4411
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ].
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ].
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached hereto as Exhibit 99.1 is a copy of the press release of Euronav NV (the "Company"), dated May 6, 2021, announcing the Company's financial results for the first quarter ended March 31, 2021.
The information contained in Exhibit 99.1 of this Report on Form 6-K, excluding the commentary of Hugo De Stoop and the section entitled “Conference Call”, is hereby incorporated by reference into the Company's registration statement on Form F-3 (File No. 333-238472) that was filed with the U.S. Securities and Exchange Commission effective May 18, 2020.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EURONAV NV | |||
(Registrant) | |||
Dated: May 6, 2021 | |||
By: | /s/ Lieve Logghe | ||
Lieve Logghe | |||
Chief Financial Officer |
EXHIBIT 99.1
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
EURONAV ANNOUNCES FIRST QUARTER 2021 RESULTS
HIGHLIGHTS
• | Challenging quarter due to stunted demand recovery and restricted crude supply |
• | Euronav continuing to diversify financing with new sustainability-linked funding sources |
• | Investing for the future with VLCC and Suezmax fleet renewal added during quarter |
ANTWERP, Belgium, 6 May 2021 – Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) today reported its non-audited financial results for the first quarter of 2021, ended 31 March 2021.
Hugo De Stoop, CEO of Euronav said: ”Low freight rate market conditions prevailed during Q1 and into the current quarter. Mobility restrictions linked to the COVID-19 pandemic continue to affect global crude consumption. Whilst the tapering of OPEC + production cuts later this month is an encouraging sign, available large crude tonnage remains abundant. We remain confident that the market will recover in the medium-term and that is why we took advantage of available low asset prices to make counter-cyclical investments in both the VLCC and Suezmax segments during Q1. Alongside the excellent relationships that Euronav maintains with shipyards, our new eco-ships will form a key part of our energy transition strategy to lower our fleet emissions.”
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
Key figures
The most important key figures (unaudited) are: | |||||||
(in thousands of USD) | First Quarter 2021 | First Quarter 2020 | |||||
Revenue | 113,423 | 416,668 | |||||
Other operating income | 2,371 | 3,278 | |||||
Voyage expenses and commissions | (21,187) | (32,679) | |||||
Vessel operating expenses | (56,145) | (53,930) | |||||
Charter hire expenses | (2,748) | (720) | |||||
General and administrative expenses | (14,298) | (16,401) | |||||
Net gain (loss) on disposal of tangible assets | 1,163 | 8,298 | |||||
Depreciation | (83,857) | (82,315) | |||||
Net finance expenses | (16,380) | (21,192) | |||||
Share of profit (loss) of equity accounted investees | 5,934 | 5,220 | |||||
Result before taxation | (71,724) | 226,227 | |||||
Tax benefit (expense) | 711 | (614) | |||||
Profit (loss) for the period | (71,013) | 225,613 | |||||
Attributable to: Owners of the Company | (71,013) | 225,613 | |||||
The contribution to the result is as follows: | |||||||
(in thousands of USD) | First Quarter 2021 | First Quarter 2020 | |||||
Tankers | (77,320) | 221,364 | |||||
FSO | 6,307 | 4,249 | |||||
Result after taxation | (71,013) | 225,613 | |||||
Information per share: | ||||||
(in USD per share) | First Quarter 2021 | First Quarter 2020 | ||||
Weighted average number of shares (basic) * | 201,677,981 | 215,078,497 | ||||
Result after taxation | (0.35) | 1.05 | ||||
∗ | The number of shares issued on 31 March 2021 is 220,024,713. However, the number of shares excluding the owned shares held by Euronav on 31 March 2021 is 201,677,981. |
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
EBITDA reconciliation (unaudited): | |||||||
(in thousands of USD) | First Quarter 2021 | First Quarter 2020 | |||||
Profit (loss) for the period | (71,013) | 225,613 | |||||
+ Net interest expenses | 16,446 | 19,390 | |||||
+ Depreciation of tangible and intangible assets | 83,857 | 82,315 | |||||
+ Income tax expense (benefit) | (711) | 614 | |||||
EBITDA (unaudited) | 28,579 | 327,932 | |||||
+ Net interest expenses JV | 836 | 1,306 | |||||
+ Depreciation of tangible and intangible assets JV | 3,041 | 5,558 | |||||
+ Income tax expense (benefit) JV | 658 | 428 | |||||
Proportionate EBITDA | 33,114 | 335,224 | |||||
Proportionate EBITDA per share: | |||||||
(in USD per share) | First Quarter 2021 | First Quarter 2020 | |||||
Weighted average number of shares (basic) | 201,677,981 | 215,078,497 | |||||
Proportionate EBITDA | 0.15 | 1.56 | |||||
All figures, except for Proportionate EBITDA, have been prepared under IFRS as adopted by the EU (International Financial Reporting Standards) and have not been audited nor reviewed by the statutory auditor.
For the first quarter of 2021, the Company realized a net loss of USD 71 million or USD 0.35 per share (first quarter 2020: a net profit of 225.6 USD million or USD 1.05 per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 33.1 million (first quarter 2020: USD 335.2 million).
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
TCE
The average daily time charter equivalent rates (TCE, a non IFRS-measure) can be summarized as follows:
In USD per day | First quarter 2021 | First quarter 2020 |
VLCC | ||
Average spot rate (in TI Pool)* | 14,000 | 72,750 |
Average time charter rate** | 39,500 | 37,000 |
SUEZMAX | ||
Average spot rate*** | 11,500 | 59,250 |
Average time charter rate | 29,500 | 30,250 |
*Euronav owned ships in TI Pool (excluding technical offhire days)
**Including profit share where applicable
*** Including profit share where applicable (excluding technical offhire days)
EURONAV TANKER FLEET
Sales
During February Euronav entered into a sale and leaseback agreement for the VLCC Newton (2009 – 307,284 dwt) with Taiping & Sinopec Financial Leasing Co., Ltd.. The vessel was sold for USD 36 million. The transaction produced a capital gain of about USD 1.2 million. After repayment of the existing debt, the transaction generated USD 19 million free cash.
Acquisition - Suezmax
Also in February, Euronav announced it has entered into an agreement for the acquisition through resale of two eco-Suezmax newbuilding contracts. Currently completing construction at the Daehan Shipyard in South Korea, these modern vessels are being acquired for an en-bloc price of USD 113 million. Both vessels are due for delivery in January 2022. The vessels have the LNG Ready structural notation and Euronav is working closely with the shipyard and classification society to have the Ammonia Ready structural notation as well. This provides the option to switch to other fuels at a later stage in the future.
Acquisition – VLCC
In April, Euronav entered into an agreement with the Hyundai Samho yard for two VLCC newbuilding contracts. The vessels will be delivered during Q4 2022 and Q1 2023, costing USD 186 million en-bloc, including USD 4.2 million in additions and upgrades to the standard specifications. Euronav also has the option to contract a third VLCC with the same specifications for delivery in the second quarter of 2023. The vessels will have the LNG Ready structural notation and Euronav is also working with the shipyard and classification society to include an Ammonia Ready structural notation.
Maintenance
On our existing fleet, we will continue to take advantage of the current challenging freight rate background to accelerate a number of scheduled dry dockings. 27 dry dockings are scheduled to take place in 2021 (17 VLCCs and 10 Suezmaxes) of which 8 have been completed already (7 VLCCs and 1 Suezmax).
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
Cash dividend related to Q1 2021
Euronav remains committed to distribute quarterly dividends throughout the cycle independently of the net income results and will distribute a fixed dividend of USD 12 cents on an annual basis or USD 3 cents per quarter.
Q1-2021 dividend (coupon 25):
Ex dividend | 20 May 2021 |
Record date | 21 May 2021 |
Payment date | 3 June 2021 |
In view of the record date of Friday 21 May 2021, shareholders may not reposition shares between the Belgian Register and the U.S. Register during the period from Thursday 20 May 2021 at 9.00 a.m. (Belgian time) until Monday 24 May 2021 at 9.00 a.m. (Belgian time).
Annual General Meeting & Special General Meeting May 2021
Euronav has invited its shareholders to participate in the Ordinary General Meeting and the Special General Meeting to be held on Thursday 20 May 2021 at 10.30 a.m. CET and 11.00 a.m. CET, respectively, in 2000 Antwerp, Schaliënstraat 5.
In light of the COVID-19 pandemic, it is uncertain if the measures imposed by the Belgian Federal and Flemish governmental authorities, including prohibition and/or restrictions of physical gatherings, will still be in effect on 20 May 2021. Furthermore, additional measures may be imposed at the time of the shareholders’ meetings. These measures are in the interest of the health of the shareholders, as well as of the employees of the Company and others participating in the organization of the meetings. Accordingly, the Supervisory Board strongly encourages the shareholders not to physically attend the shareholders’ meetings and strongly invites the shareholders to exercise their rights by (i) upfront distant voting using the form for voting by letter, or (ii) upfront by written proxy to the meetings’ secretary. Furthermore, shareholders are encouraged to exercise their right to ask questions relating to the agenda items of the shareholders’ meetings in writing. No standing reception will be organized after the meetings.
The convening notice and the other documents related to the meetings are available on the Company’s website www.euronav.com/investors/corporate-governance/generalassemblies/. The practical formalities for participation in these meetings are described in the convening notice.
An investor presentation for the attention of all shareholders will be published on the Company’s website on 13 May 2021.
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
FINANCING AT EURONAV
Euronav continues to maintain a strong financial base and excellent relationships with its capital providers: commercial banks, equity, and debt investors. At the end of March 2021, the Company had liquidity of USD 1.1 billion comprising USD 149 million cash and USD 969 million undrawn committed credit facilities.
COVID-19 UPDATE
With COVID-19 infections surging in India and beyond, crew changes are becoming challenging again. Now, more than ever, seafarers need to be designated as key workers to ensure priority vaccination and access to safe transit and travel. Crews have worked tirelessly, at the heart of the world trade, to keep moving crude. Despite difficulties with port access, repatriation, crew changes and many more challenges, there can be no denying that seafarers have gone beyond the call of duty.
So far, fewer than 60 countries have heeded our call for seafarers to be designated as “key workers”. More countries need to do so if we are to resolve this crisis and ensure seafarers are treated humanely, so that their travel to and from their place of work is properly facilitated. There is still a long way to go before we are back to a normal crew change regime.
As vaccination is rolled out in many countries, many governments, including the Belgian government, have started to prioritize seafarers in their national COVID-19 vaccination programmes which is a very positive evolution. We recognize that many seafarers have endured intense hardship while working to keep trade flowing, and we are grateful to them for their service.
TANKER MARKET & OUTLOOK
The VLCC and Suezmax freight markets remained difficult throughout Q1. Two factors have contributed to continually defer freight rate recovery. Firstly, high compliance with production/export cuts from OPEC+ has continued to restrict cargoes available for commercial transit. This kept 7.2 million bpd out of the market during Q1. Secondly, COVID-19 driven restrictions continue to depress demand for crude oil. Consumption according to the EIA globally has averaged 94 million bpd between July 2020 through to March 2021 (compared to 100 million bpd in Q4 2019, the last full quarter before COVID-19).
The severe impact of those two negative factors was evidenced by the blockage of the Suez Canal, a key crude tanker transit lane, for six days in late March. In ordinary circumstances this would have led to substantial disruption in the large tanker market and a likely increase in freight rates. However, due to the short-term oversupply of tonnage this has had limited effect in operational terms or in benefiting freight rates.
Given this market background, the lack of ship recycling has confounded many observers, including ourselves. Historical precedents suggest periods of challenging freight rates in the tanker markets have induced owners of older tonnage to recycle their ships, reducing therefore the global trading fleet. Since 1990, on average 5% of the VLCC fleet has exited the global fleet following a 12-month period of low freight rates (below USD 25,000 per day). However, this pattern has not emerged in the current low market cycle.
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
Many analysts believe that older tonnage has instead been used for “illicit trade” that has developed around Iranian and Venezuelan sanctioned cargoes. The vessels undertaking this trade have been almost exclusively older tonnage (DNB estimate average age of 20 years for such VLCCs). Rather than head for the recycling yards (and enjoy a high current recycle price of USD 20 million for a VLCC) such vessels have instead been sold, usually to private operators (83 elderly VLCCs sold for instance since 2019) (Source: Gibson Shipbrokers).
Such trade appears to have been policed less effectively in the past few quarters than previously. The impact has been substantial with potentially 66 VLCCs (54 Iran, 12 Venezuela) and 29 Suezmaxes (20 Iran, 9 Venezuela) involved (source: Gibson Shipbrokers). The effect has been to reduce recycling to 11 VLCCs (1.3% of fleet) and 5 Suezmaxes (1%).
Contracting of new tankers, primarily VLCCs, has been a recent source of attention. A key driver has been dual fuel contracting in the VLCC sector with a quarter of the order book now dual fuel denominated. The vast majority of these vessels (80%) will not enter the spot market but will instead start with multi-year time charter. The Suezmax sector has not seen the same level of contracting, with less than five new builds ordered per quarter over the past year.
These dual-fuel vessels reflect the growing structural focus on emissions reduction from financiers. This will in turn increase pressure on older, higher emission tonnage. A quarter of both the VLCC and Suezmax fleet is over 15 years old and consume, on average, 22 % more than younger tonnage aged at 6 years or less (source: Tankers International). Shipping banks, investors, and regulators (IMO, via EEXI regulations due 2023) are increasing their focus on emissions and compliance. Euronav believes this will inevitably lead to a further reduction in older tonnage utlilisation at some point and ultimately drive their exit from the global tanker fleet.
A short-term inflection point in the tanker cycle has therefore remained elusive. However, asset prices, driven by higher steel prices, are higher across all age VLCC and Suezmax categories. A tapering of production cuts from OPEC+, now scheduled to deliver 2.1 million bpd of additional crude between May and July, should help improve the market. Every 1 million bpd of crude transit should translate into a requirement for 30 VLCCs. Finally, the return to the world economic order of legitimizing the “illicit” crude tanker trade with Iran could be the catalyst for older tonnage engaged in this trade to be recycled out of the global fleet.
So far in the second quarter of 2021, the Euronav VLCC fleet that operated in the Tankers International Pool has earned about USD 10,000 per day and 48% of the available days have been fixed. Euronav’s Suezmax fleet trading on the spot market has earned about USD 10,500 per day on average with 41% of the available days fixed.
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
SUSTAINABILITY ACTIVITY
Additional unsecured sustainability-linked facility
After the end of Q1, Euronav announced that it had signed an EUR 80 million unsecured revolving credit facility. This new facility, which was significantly oversubscribed, was concluded with a range of commercial banks and with the support of Gigarant. Sustainability and emission reductions are key components of the margin pricing in the facility. The conclusion of this funding brings facilities with an integrated sustainability component to just under a third of Euronav’s total financing.
The facility will have a minimum duration of 3 years, with two 1-year extension options. A range of measurable sustainability features, such as year-on-year reduction in carbon emissions starting from 2021, will be supported by compliance with the Poseidon Principles. The following banks form the lending consortium, KBC, ABN Amro, Belfius, ING, Societé Generale, BNP Paribas and SEB, supported by Gigarant.
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
CONFERENCE CALL
The call will be a webcast with an accompanying slideshow. You can find details of this conference call below and on the “Investor Relations” page of the Euronav website at http://investors.euronav.com.
Webcast Information | |
Event Type: | Audio webcast with user-controlled slide presentation |
Event Date: | 6 May 2021 |
Event Time: | 8 a.m. EST / 2 p.m. CET |
Event Title: | “Q1 2021 Earnings Conference Call” |
Event Site/URL: | https://services.choruscall.com/links/euronav210506ot4apnh0.html |
Telephone participants may avoid any delays by pre-registering for the call using the following link to receive a special dial-in number and PIN conference call registration link: https://dpregister.com/sreg/10154465/e66b611c53. Pre-registration fields of information to be gathered: name, company, email.
Telephone participants located in the U.S. who are unable to pre-register may dial in to +1-877-328-5501 on the day of the call. Others may use the international dial-in number +1-412-317-5471.
A replay of the call will be available until May 13, 2021, beginning at 9 a.m. EST / 3 p.m. CET on 6 May 2021. Telephone participants located in the U.S. can dial +1-877-344-7529. Others can dial +1-412-317-0088. Please reference the conference number 10154465.
*
* *
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements 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. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe", "anticipate", "intends", "estimate", "forecast", "project", "plan", "potential", "may", "should", "expect", "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other 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 contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the United States Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
PRESS RELEASE Regulated information Thursday 6 May 2021 – 8 a.m. CET _______________________________________ |
Contact:
Brian Gallagher – Head of IR, Research and Communications & Management Board member
Tel: +44 20 78 70 04 36
Email: IR@euronav.com
Annual General Meeting: Thursday 20 May 2021
About Euronav
Euronav is an independent tanker company engaged in the ocean transportation and storage of crude oil. The Company is headquartered in Antwerp, Belgium, and has offices throughout Europe and Asia. Euronav is listed on Euronext Brussels and on the NYSE under the symbol EURN. Euronav employs its fleet both on the spot and period market. VLCCs on the spot market are traded in the Tankers International pool of which Euronav is one of the major partners. Euronav’s owned and operated fleet consists of 2 V-Plus vessels, 47 VLCCs (two to be delivered), 28 Suezmaxes (Of which one is in a joint venture, two vessels that are time chartered in and two vessels to be delivered) and 2 FSO vessels (both owned in 50%-50% joint venture).
Regulated information within the meaning of the Royal Decree of 14 November 2007
Condensed consolidated statement of financial position (unaudited)
(in thousands of USD)
March 31, 2021 | December 31, 2020 | |||||
ASSETS | ||||||
Non-current assets | ||||||
Vessels | 3,160,234 | 2,865,308 | ||||
Assets under construction | 33,904 | 207,069 | ||||
Right-of-use assets | 63,926 | 52,955 | ||||
Other tangible assets | 1,627 | 1,759 | ||||
Intangible assets | 182 | 161 | ||||
Receivables | 58,496 | 55,054 | ||||
Investments in equity accounted investees | 56,557 | 51,703 | ||||
Deferred tax assets | 2,079 | 1,357 | ||||
Total non-current assets | 3,377,005 | 3,235,366 | ||||
Current assets | ||||||
Bunker inventory | 33,834 | 75,780 | ||||
Trade and other receivables | 233,235 | 214,479 | ||||
Current tax assets | 136 | 136 | ||||
Cash and cash equivalents | 149,697 | 161,478 | ||||
Total current assets | 416,902 | 451,873 | ||||
TOTAL ASSETS | 3,793,907 | 3,687,239 | ||||
EQUITY and LIABILITIES | ||||||
Equity | ||||||
Share capital | 239,148 | 239,148 | ||||
Share premium | 1,702,549 | 1,702,549 | ||||
Translation reserve | 673 | 935 | ||||
Hedging reserve | (2,241) | (7,456) | ||||
Treasury shares | (164,104) | (164,104) | ||||
Retained earnings | 463,946 | 540,714 | ||||
Equity attributable to owners of the Company | 2,239,971 | 2,311,786 | ||||
Non-current liabilities | ||||||
Bank loans | 939,962 | 836,318 | ||||
Other notes | 198,413 | 198,279 | ||||
Other borrowings | 96,786 | 100,056 | ||||
Lease liabilities | 32,272 | 21,172 | ||||
Other payables | 5,236 | 6,893 | ||||
Employee benefits | 8,289 | 7,987 | ||||
Provisions | 1,080 | 1,154 | ||||
Total non-current liabilities | 1,282,038 | 1,171,859 | ||||
Current liabilities | ||||||
Trade and other payables | 100,609 | 85,150 | ||||
Current tax liabilities | 930 | 629 | ||||
Bank loans | 33,921 | 20,542 | ||||
Other borrowings | 90,321 | 51,297 | ||||
Lease liabilities | 45,881 | 45,749 | ||||
Provisions | 236 | 227 | ||||
Total current liabilities | 271,898 | 203,594 | ||||
TOTAL EQUITY and LIABILITIES | 3,793,907 | 3,687,239 | ||||
Condensed consolidated statement of profit and loss (unaudited)
(in thousands of USD except per share amounts)
2021 | 2020 | |||||
Jan. 1 - Mar. 31, 2021 | Jan. 1 - Mar. 31, 2020 | |||||
Shipping income | ||||||
Revenue | 113,423 | 416,668 | ||||
Gains on disposal of vessels/other tangible assets | 1,163 | 8,298 | ||||
Other operating income | 2,371 | 3,278 | ||||
Total shipping income | 116,957 | 428,244 | ||||
Operating expenses | ||||||
Voyage expenses and commissions | (21,187) | (32,679) | ||||
Vessel operating expenses | (56,145) | (53,930) | ||||
Charter hire expenses | (2,748) | (720) | ||||
Depreciation tangible assets | (83,836) | (82,291) | ||||
Depreciation intangible assets | (21) | (24) | ||||
General and administrative expenses | (14,298) | (16,401) | ||||
Total operating expenses | (178,235) | (186,045) | ||||
RESULT FROM OPERATING ACTIVITIES | (61,278) | 242,199 | ||||
Finance income | 6,934 | 6,907 | ||||
Finance expenses | (23,314) | (28,099) | ||||
Net finance expenses | (16,380) | (21,192) | ||||
Share of profit (loss) of equity accounted investees (net of income tax) | 5,934 | 5,220 | ||||
PROFIT (LOSS) BEFORE INCOME TAX | (71,724) | 226,227 | ||||
Income tax benefit (expense) | 711 | (614) | ||||
PROFIT (LOSS) FOR THE PERIOD | (71,013) | 225,613 | ||||
Attributable to: | ||||||
Owners of the company | (71,013) | 225,613 | ||||
Basic earnings per share | (0.35) | 1.05 | ||||
Diluted earnings per share | (0.35) | 1.05 | ||||
Weighted average number of shares (basic) | 201,677,981 | 215,078,497 | ||||
Weighted average number of shares (diluted) | 201,690,677 | 215,078,497 | ||||
Condensed consolidated statement of comprehensive income (unaudited)
(in thousands of USD)
2021 | 2020 | |||||
Jan. 1 - Mar. 31, 2021 | Jan. 1 - Mar. 31, 2020 | |||||
Profit/(loss) for the period | (71,013) | 225,613 | ||||
Other comprehensive income (expense), net of tax | ||||||
Items that will never be reclassified to profit or loss: | ||||||
Remeasurements of the defined benefit liability (asset) | — | — | ||||
Items that are or may be reclassified to profit or loss: | ||||||
Foreign currency translation differences | (262) | (167) | ||||
Cash flow hedges - effective portion of changes in fair value | 5,215 | (3,077) | ||||
Equity-accounted investees - share of other comprehensive income | 295 | (816) | ||||
Other comprehensive income (expense), net of tax | 5,248 | (4,060) | ||||
Total comprehensive income (expense) for the period | (65,765) | 221,553 | ||||
Attributable to: | ||||||
Owners of the company | (65,765) | 221,553 | ||||
Condensed consolidated statement of changes in equity (unaudited)
(in thousands of USD)
Share capital | Share premium | Translation reserve | Hedging reserve | Treasury shares | Retained earnings | Total equity | |
Balance at January 1, 2020 | 239,148 | 1,702,549 | 299 | (4,583) | (45,616) | 420,058 | 2,311,855 |
Profit (loss) for the period | — | — | — | — | — | 225,613 | 225,613 |
Total other comprehensive income (expense) | — | — | (167) | (3,077) | — | (816) | (4,060) |
Total comprehensive income (expense) | — | — | (167) | (3,077) | — | 224,797 | 221,553 |
Balance at March 31, 2020 | 239,148 | 1,702,549 | 132 | (7,660) | (45,616) | 644,855 | 2,533,408 |
Share capital | Share premium | Translation reserve | Hedging reserve | Treasury shares | Retained earnings | Total equity | |
Balance at January 1, 2021 | 239,148 | 1,702,549 | 935 | (7,456) | (164,104) | 540,714 | 2,311,786 |
Profit (loss) for the period | — | — | — | — | — | (71,013) | (71,013) |
Total other comprehensive income (expense) | — | — | (262) | 5,215 | — | 295 | 5,248 |
Total comprehensive income (expense) | — | — | (262) | 5,215 | — | (70,718) | (65,765) |
Transactions with owners of the company | |||||||
Dividends to equity holders | — | — | — | — | — | (6,050) | (6,050) |
Total transactions with owners | — | — | — | — | — | (6,050) | (6,050) |
Balance at March 31, 2021 | 239,148 | 1,702,549 | 673 | (2,241) | (164,104) | 463,946 | 2,239,971 |
Condensed consolidated statement of cash flows (unaudited)
(in thousands of USD)
2021 | 2020 | |||||
Jan. 1 - Mar. 31, 2021 | Jan. 1 - Mar. 31, 2020 | |||||
Cash flows from operating activities | ||||||
Profit (loss) for the period | (71,013) | 225,613 | ||||
Adjustments for: | 92,364 | 90,484 | ||||
Depreciation of tangible assets | 83,836 | 82,291 | ||||
Depreciation of intangible assets | 21 | 24 | ||||
Provisions | (65) | (119) | ||||
Income tax (benefits)/expenses | (711) | 614 | ||||
Share of profit of equity-accounted investees, net of tax | (5,934) | (5,220) | ||||
Net finance expense | 16,380 | 21,192 | ||||
(Gain)/loss on disposal of assets | (1,163) | (8,298) | ||||
Changes in working capital requirements | 36,750 | (348) | ||||
Change in cash guarantees | (4) | 36 | ||||
Change in inventory | 41,946 | 39,285 | ||||
Change in receivables from contracts with customers | (5,832) | 9,783 | ||||
Change in accrued income | (1,782) | 7,157 | ||||
Change in deferred charges | (9,604) | (5,540) | ||||
Change in other receivables | (1,087) | (50,843) | ||||
Change in trade payables | 6,758 | 7,236 | ||||
Change in accrued payroll | 49 | (529) | ||||
Change in accrued expenses | 7,092 | (4,886) | ||||
Change in deferred income | (2,863) | (2,560) | ||||
Change in other payables | 1,763 | 2,024 | ||||
Change in provisions for employee benefits | 314 | (1,511) | ||||
Income taxes paid during the period | 290 | 232 | ||||
Interest paid | (10,882) | (17,260) | ||||
Interest received | 1,737 | 1,528 | ||||
Dividends received from equity-accounted investees | 1,375 | 1,500 | ||||
Net cash from (used in) operating activities | 50,621 | 301,749 | ||||
Acquisition of vessels and vessels under construction | (227,210) | (100,508) | ||||
Proceeds from the sale of vessels | 35,370 | 21,003 | ||||
Acquisition of other tangible assets | (57) | (139) | ||||
Acquisition of intangible assets | (42) | (189) | ||||
Loans from (to) related parties | (129) | 56 | ||||
Lease payments received from finance leases | 481 | 439 | ||||
Net cash from (used in) investing activities | (191,587) | (79,338) | ||||
Proceeds from new borrowings | 340,899 | 248,129 | ||||
Repayment of borrowings | (160,271) | (349,754) | ||||
Repayment of lease liabilities | (12,995) | (7,882) | ||||
Repayment of commercial paper | (24,623) | (89,640) | ||||
Repayment of sale and leaseback | (5,589) | (4,096) | ||||
Dividends paid | (6,056) | (3) | ||||
Net cash from (used in) financing activities | 131,365 | (203,246) | ||||
Net increase (decrease) in cash and cash equivalents | (9,601) | 19,165 | ||||
Net cash and cash equivalents at the beginning of the period | 161,478 | 296,954 | ||||
Effect of changes in exchange rates | (2,180) | (3,955) | ||||
Net cash and cash equivalents at the end of the period | 149,697 | 312,164 | ||||
of which restricted cash | — | — | ||||