EURN Euronav

Brian Gallagher IR
Hugo De Stoop CEO
Lieve Logghe CFO
Chris Tsung Webber Research & Advisory
Chadd Tribo Jefferies LLC
Chris Wetherbee Citigroup
Jon Chappell Evercore
Kevin Uherek Deutsche Bank
Ben Nolan Stifel
Omar Nokta Clarksons
Eirik Haavaldsen Pareto Securities
Geoffrey Scott Scott Asset Management
Quirijn Mulder ING
Randy Giveans Jefferies LLC
Call transcript
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Hello and welcome to the Euronav Q3 2020 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to your host today, Brian Gallagher. Please go ahead.

Brian Gallagher

Thank you. to Call. thanks afternoon QX joining and Earnings XXXX morning everyone, for and Euronav's Good

start, would is I of that information as Before involve I today, November discussed words. a of uncertainties. contain on The XXXX few risks and this forward-looking the and call Thursday, based may information like on Xth to statements say

acting other objectives, critical Forward-looking statements, forward-looking underlying may uncertainties include the and and are financial our available statements on reflect entirety performance risks, and statements their other the performance, in not current are free of factors at SEC, statements which charge company events, views concerning the are which with website on to goals, plans, of respect its with and assumptions expressly on at discussed qualified All future persons filings and to own the to by reference SEC's future website events facts. or strategies, to statements in company's historical the are behalf company's

to to statements. on or the pass Actual with now over not statement reliance on Hugo Please materially undertakes only the to slide any you. Sir, Slide safe start these our on that, speaks on Chief moment Each statement date forward-looking take the will Stoop, I publicly of Page De presentation. a to harbor read agenda X statements. differ forward-looking as With statement, X. undue of Executive, slide the should to update obligation and forward-looking the particular place no results forward-looking company may statements. You revise from of

Hugo De Stoop

to Welcome our today, call Thank are. wherever you, you Brian.

contract and will highlights to CFO, run and the Lieve, of Brian, terms to statement look financial before tanker the the Euronav the QX the FSO will who firstly full Head I passing balance discuss questions. sheet. on the a of Then income market agenda, market return review before Market before will Research Communication, we at take Investor net our In and through themes the of provide I Relations, our current in outlook

So during highlights the QX the and let's The was say mixed performance least. turn to tanker Slide market X to page.

current was The we freight of trajectory We and been first positive there limited August. in recovery by in demand time early usual early for visibility driven returned rates remains when as QX at Euronav, August, me to was period, management. million, half QX, has split factors: proven had XX% and under given with remain The than have allocation an allocation. our reductions, balanced of the so what that $XXX We we cash debt updated entered robust the always that which in as income the the repay to to point more of X XX% our This which to return committed case is less shareholders oil do as strong in weak this fairly need totaling late freight earned time as try net period over via and is, in dividends and share pressure setting remained early low and cargo not out being. unwound of via buybacks. capital August freight net are owners disruption congestions and At But at held of target into Board given where Nevertheless, during that bank during and supply important this are oil remain amongst constant storage we Both consistent and do brings well Euronav, programs to mandatory income gained to far remains repayment and demand months the QX. stated X Slide sentiment we focus requirements. we with a rates usual, vessel debt facility since this X positive to rates the has XX% past elevated, key some winter capacity of background. seasonal revolving market our cargoes as leverage or some these be with factors the our on not with visibility traction of credit for pattern improving key XX% noncash. our have for shareholders. We the be

than again, intend is available per share third to cash the the dividend XX as quarter, QX. of XX% we end that equivalent the before split that and complete as buyback of of that the For EUR will during we long-term been volatile the XX% million to to we shares, will $X.XX of share quarter. a change a to repurchasing small always giving create price, try renewal one noted is anyway in There program. fleet very rather When support has shareholder our value be which

is, Logghe, This means the have the via VLCC X market pushed forward of of resale all quarter Lieve contract. turn our XXXX. we of delivery will we over VLCC I CFO, detail Given for that more financials. X it where take the newbuilding acquired of the to in to first XXXX X now on

Lieve Logghe

This operational is affected expenses million we is targets this only per how balance on early from to hand the debt you, is has major we Furthermore, which to some the being ratio remainder Brian sustainability by run September not shape very further dollar. the to XX entire them pockets. high first We remains are put excess is some XX.X% also lower, QX indeed which of QX. Gallagher, next slide the revolving believe refinanced compliance Head of a lower results, in start impacted emission already generated XX, Euronav we facility. a principles the took are to our income our the in sustainability now facilities expenses that loan, rate. current market This share. Investor slide, Focus receivables prevailing XXXX a to the cover been X requirements Strong our amounts XXXX. have existing financial reduce over immediately put the of our Thank balance X set debt This interest strong our focus, Strong is into facilities basis green for cash lending Euronav position the has of will to next and Net models. in into duration. The slide. net parked The as $XXX will financing company its in adopters portion level This of G&A and in are these loan shows million share. thanks outstanding third be constantly with independently These are this working the to brings points. shipping that position a verified. for $XXX the The for. financial to over through to to specific by softer me evolving, but targets reduced a million with reference includes move a have order equates emissions sheet with $X.XX and with reduced a per liquidity in would market negatively delighted remains to the one on set $XXX $XX.X supported months have and quarter $X.X XX or is capital is focus. matured book cost in and EBITDA larger busy million not Hugo. over or of themes. The focus $X.XX by interest gas financing financing position our next Euronav of reduce come, $XX in major and the environment. things measured leverage Relations, the combined we billion, to first clear the and of above be coupon with and sheet. with But cash, reduce looking solid rewarded of Whilst credit collecting burn under months what I requirements. million is the X of a being to over targets control fleet

Brian Gallagher

has although led some is back observed onto the to and VLCC level recent things quarters, On year. the recycling remarks. a we rates Hugo when than P&L X% during slightly the and experience breakeven those a XX. cover Slide recycling. Slide several move Thank year On clear, average, of has you, below are now wanted have to fleet we over pick quick have We message when that VLCC Lieve. XXXX departed has since of lower before X rates But been been that There historically concluding more years to for been in calendar trough such rates level. handing rates out X, lower

here challenge do important some very to tonnage You want the older rate faces. slide attached can to this we a the highlight with see purposely it. about busy that illustrative examples and promote What is but that is

older For VLCC dismiss that found the consumed have slide, or older the X we define in and often purposes VLCC; well-known fact age; XX-year-old in this ship. a of mid and secondly, which that midrange a tonnage categories: finally, is market, a which so-called eco an and this. It's tanker more, we investors is one,

financing this However, as we're in, Lieve banks and this expertly gaining with will is to consumption finding regime on additional coming shipping remarks ourselves and pressure and earlier add tonnage. that investors emissions other now the additional emissions from attention her new covered during further older

combined get costs, difficult older the shows key or over of also the not increased in incorporating will any variables tankers are course, Put of just very we on, but are charter dry a X simply, more which, said, very you dockings, including majors oil I which traders, with taken it As have. which example consumption time all that to an will XX illustrative costly be years of engines, utilization older age of higher VLCC on find in by reduced front gets. the older vessel from that vessel focusing costs vessel

that on on of want period is and market that's the lower a trading this can is lead having we see Slide when counts and because of we TCE. to XX.X which there older, to which already And return below add this have over XX, rates global or to conditions to years see years TCEs as OpEx you're to XX% add rates basis, and certainly as have survey have, of on This So wider currently or a ballast survey magnified the XX coupled further this the with VLCCs are pressure go next are freight a seeing XX, you a see any I'll the lower almost fleet already will is aged have part why XX% special a Suezmaxes this move system of we below the can not that for reason XX sustainable will we both the that treatment pressure which when lower costs. now fleet, this over of world that operator XX that age. and Slide aged VLCCs is around is or so, over OpEx months that costs. this will water on tanker of your fact focus through

of vessel in over that, can some the ahead challenges summary owners And you. see remarks significant for Hugo, should I'll and rates older there picture. could to terms remain the to profound slides are being that under sustained now tonnage. of for that some pass the period from freight final You With a that Hugo. some supply over of couple begin driving change pressure

Hugo De Stoop

additional in contract to XXXX. ago. of the X Euronav start the have delighted will and Shaim, mean flows. Thank debt-free. X contracts the with the This provides operate XX agreed partner, for were more long-term we are downtime generate we the will on we jointly cash those same Qatar will to have service oilfield those vindicates $XXX for these units This field new units Indeed, start the Euronav only we when you, with and extension announce called operate visible continue than will that Al the million, own and This extension the units so years X our high-quality had until contract Brian. since with Seaways. operation XX-year International a FSOs far we Yesterday, contract

the FSOs segment. vessels. Just Euronav sophisticated storage are outside traditional capacity fluids simply that of crude convert crude value reminder, not into are marketable the demonstrates these transportation create units platform as a to also high-quality oil. They This

extension is conclude, remains no and with XX tight recovery Demand Moving COVID on change supply our there bright But agreed lack is Slide to U.S. cuts. traffic the to of is export recent the the lights. muted, OPEC+ increased restrictions, note crude especially and of ordering as sustained the because flows averaged just is on oil a to years with position contract year. time strengthened sorry, venture last XX FSO exports XX this joint past cash day, X week visible million the have our XXXX. line seen below until per The -- over in further where weeks, picture, won financial or levels with this our barrels

Our other elements something can is control, unlike macro balance market. with sheet we many our

challenging time, Our hope same we clean extent, this continue position Thank receive your our period it provide is capacity. for of questions. to opportunities the us are to And these Euronav will you that excess freight understand to helpful platform. up challenging operator we At will back strong the financial With develop your period to I to at to certain that, with the a pass rates. attention. sustained to periods with constructed a market that withstand


Advisory. & And Instructions] Tsung comes question Webber Research Chris the [Operator first from with

Chris Tsung

targeted about the enhance strategic it perhaps to a X bit? the of expand able kind of if relationships. there's you And that the to on guys in you Can release, also, wanted to I press profit for said you that any time and the that X share In Suezmaxes you charter years. are sharing? was just little ask rates

Hugo De Stoop

you the We that, took from And think players important in traders as are very our market. very Trafigura. the ships know, good Yes, question. I

to So we deal obviously, directions. them, to in continue both are happy it goes and with

we chartered opportunities. our past, will them the and VLCC to further have explore We in to continue

access large So challenging go And in on to because, sitting it oil. They're one of to obviously the your fact, it's doesn't you crude very in important direction. cargoes quite by have and not market, I situations. and idle Euronav certainly in money that And at cargoes of we minimize sitting level, those things. the finding lot at a pool those to waste in can trying think volumes are

concerned, as think market. was I the the is As reported far it rate in

on is no in So it's There there's I profit of X -- option. sorry, can it's element that. years XX,XXX. tell plus top you, X-year fact, And no sharing

Chris Tsung

And Okay. I to over switch All right. want just Oceania. the to

employing mentioned was were XX% the for guys still down purchase of you last to still quarter your Oceana? plan that X fuel. to cost you that guys And kind -- above volume that what going you plans Are think of average the discounts. Phase I Is consumption of are and on? the purchasing guys about like the

Hugo De Stoop

Yes, mean absolutely. I the story. know you

So life do of the minimizing it we And also rate having petroleum the in then price vessels. products are cheap with when stopped Then stock in we but using we a first end took benefit price vessel much until at is to negative roughly the decide bought buying and from the a at our saw which of February we market was purchasing LSFO NFFO other of price market, from the our oil until it collapse 'XX higher. the the volume. it. down a words, We of the recovery. feed sort mark-to-market. completely all to which taking us help In in the And time, we it blending,

tonnes point, go. X,XXX is otherwise. benefit a or big that, XX,XXX the to We discount, can an that And would XX,XXX applied one at buying We're mark-to-market. a because didn't situation. tons can $XX X,XXX, the minimize not and do at relatively impairment we were in it's see the evolution discount we So from time as you we million. at said the manage We we that minus take worst

$XX an as fact, it program improvement And at this pricing, it's matter down a of through we as if well so million. only LFFO are now million. I And of $X to today, look the as

down price. we operate we program then if whatever And the can that end just between are now And the on I market vessel at the So the to at year, volume if we continue obviously, will price. that dramatically are have not, very market will of current board then hopeful go and under be we explained. the


question comes LLC. Jefferies next Giveans the And with Randy from

Chadd Tribo

This is Chadd for Randy. on

And drove what reported kind rates, that rates. a So a above this what and Can out Suezmax performance? week? talk you quarter-to-date VLCC the better-than-expected of you guys currently much booking well are about benchmark rates on you

Hugo De Stoop

number part i.e. the you're don't really where I days a you of separately. know, matter we report the believe answer that it's of utilization And of To first utilization. as your busy, question,

the cannot are from I publishing it's So into the today. any explain market. blended TCE other really that that difference we by rate

concerned, is the As VLCC spread what far on doing. as you're market it quite is depending

from you the to cars If XXs. it's above go to going you go China, be about

doing be AG day. you're it's If between or Europe, China a to AG $XX,XXX and more $XX,XXX going like

you more we're voyage, type of always the lucrative obviously, but do do you of or So voyages. trying cannot to do only cannot those

and market $XX,XXX the between average, time be on So being. $XX,XXX the for must

it's Suezmaxes longer are I'm as that. concerned, the than afraid As far

$XX,XXX, So so said far. yes, it's it's similar so we $XX,XXX. have and more very And to $X,XXX we what on average between booked

We bit about are hopeful winter. a little the

So there certainly, also more activity. another will depend on will That be the restrictions. obviously, But normal winter COVID season.

went that almost not in was seen countries You've most back This the of European Asia. case to lockdown.

what it's that volumes the that then what upbeat need and consumption. But were will be a winter to from We're to improve see don't out we it it's normal -- it's it in And relatively decrease there's play increase marginal should to from believe is simply, no we see by So the effect, we how positive not news But into increase, extraordinary. we to we because today. seasonal have where see from would if Asia, we going where States. a going rates. believe in

Chadd Tribo


is XX $XX EBITDA of year for Moving the new based the contribution your per on on, extension. our for congrats on XX% about more math, years. million FSO Kind the contract than

the kind or of Now portion a any INSW? the the assets, on opposite thoughts you clearly from XX% noncore have do since buying and JV other of that's your selling

Hugo De Stoop

is we nevertheless, with options, I something that very that client our certainly it's think we is noncore, It think think the survey that about. and but us that I will provide. contract this gives happy

in on a with -- finished point I XX be. think of to table, only the International this not the entire that I together to the looking going think Seaways, definitely were options in current at is operator, but let's plan anything not is which forget to no selling it So we a And lot if the not at It's years place it's in it's time. to of have bad you the part remain there selling because 'XX. a unit which or do contract, to finished be there's continuation is would

time that bit a at get then So can in and it. value sell we don't to we we the think if have it of we point best keeping about little buck. And the make market get off better value, sure we the where the for


And question Citigroup. the from comes next with Chris Wetherbee

Chris Wetherbee

loan. to I on the wanted touch ESG

it's in direction terms think moving. I kind is of in financing the the industry of interesting

can moving does commit an an maybe How over for think mainstream now. the a So This detail the sort that over And targets talk situation become? this growth industry much going bit do stands it to tanker has impact? standards for the can that more maybe a a it then sort forward what industry to you kind right little you time? of sort financing niche perspective? see in you you of more question broader Do of time. how fleet guys is as of Sort about from does of emission about

Hugo De Stoop

well, principle. supporters. impose only And that's, the and or IMO have of because strategic for will helped they taken or conversation. a the In trajectory the base 'XX. starting now we the that were the XXXX. drafting what egg the be the of what precedent question The the 'XX will one Unfortunately, precedent lay IMO believe words, will much between probably as It's Yes. a principles very point other we clause

a they or basis the a starting in they to So on and fleet XXXX a COX trajectory and take basis. have reduction had guesstimate calculating XX% designed ship-by-ship on

Asian number are number U.S. get banks, growing. So banks -- we signatories certainly It's is that's that board. banks, more and on that banks, of It's Asian it's banks. European the and trajectory this is who a that know hope to all banks there you big also the and

that that applicable of bit name-by-name principles committed more are class they then have so your that is industry? question, idea sign But what And -- to will calculate of affect And is which you sort of of they, publish part it -- the those on the that the that part of so to know emission turn, for this in club, to the entire basis. second a or want the So in the it part portfolio, the to shipping. the answers not select transparent, are little for their everyone do. be I let's kind will look think assets finance. they who be more already of not the in about how the that banks emissions clients best good to you banks a the forget because

evolve mean it's I one and interesting. it's good relatively most than definitely it. around in way looking And there financing, I'm time. reporting be no clause a you that the then or syndicate, sure is forcing the It's who themselves. deals as moment, a of bank involved to is other club if point. there that. financing But publish will So will and all there then shipping the for starting more the a banks of question a investors principles at the is

using concerned, a of invested fleet and initiatives, because help and as emissions. about to efficient we that most digital more the are in we therefore, and be silicon consumption because the ambitious. when we of a We As tools relatively far should is dock that we have of we little young kind the program thought paint includes bit these go decrease big a a initiatives. to and number have It dry

the we're target, only that basis heard want easy, one you there. to to is there. the don't I banks move And The but it's precedent on mention, the points. ambitious calculation, get our to principles. according the with wouldn't last going get definitely one we're agreed have we it's say going more Lieve X that saying, I trajectory the so And than to you if

those then don't little, not somewhere. all or is to start case anything wait do it's Euronav. at which you drag perfect, those not It's be but need you And if all for very much. the you feet, regulations So your you to definitely principles honestly and

in we this forward, terms I minor ambitious. are loans as with So what be kind this demonstrate a of incentive like and discussed. it they I are with good well nevertheless, would will the least because then as call those guys, kind the the And will will more prefer assets the just start bad finance or environment, for not moving it be of penalty be banks more guys of we hopefully, higher say, generous guys, maybe to to trajectories I of, or a combination and that your good finding initiative to that for outside of that at would priced

Chris Wetherbee


for readily time, helpful. financing not the if be choke and market newer guess tonnage potentially the relative sort guess the of there's of new vessels. made it think, for to ties of as potentially And off Could of potentially argument people I I that also sort new for tonnage fleet over of look the growth an to to could drive eco build or incentivize standards is yourself That's either outlook the tonnage industry. secondhand as Okay. that available that vessels way. because for, into capacity well as older I out

is could this stimulate there you about consequences theoretically of in capital how begins this efficient more should you -- might sort new where the of of you form could direction of less too for tonnage? that So necessarily sort just that that of go. industry into maintain Or it the ultimately a unintended there's just angles Are older, want different build assume moving do to couple reading sort forward? to than and balance orders much out you starve think going probably of for some it,

Hugo De Stoop

complex road, sure It's wrong buy down the situation years definitely a if it's going be that ship today, XX the for XX to probably to you years road. maybe the vessel, -- don't retrofit, complex change down if asset. wrong if anything because you the don't you very And conventional know the going or to a it's a you assets be

they a a is question And is people there looking behind emits unfortunately, less vessels. the that have lot LNG. cost chain. second COX, more been more. than there into XX% more because is probably both the what cost but conventional COX. But is So a than fossil is dual fuel far the LNG on environment methane supply decremental the fuel. methane for but And vessels, also Yes, both the it leakage, They in

if studies marginally a so And better. lot there's worse, you is number combine it's are it's it better, saying a of that that,

So there's a confusion. lot of

the because as I we if in has despite there continue the that previous think hoping a are not very their short, the the move that And to single out because cost fact will other showed debate think sort going to is of can book reluctant having is segments cycle. to the tanker a in to you And back that that clearly that transition fuel is almost dropped levels we to vessels. of we to continue case it's see a as maybe the thin. order will be I back okay, one to that need moment, well them sort it's ship at which into dip the then -- can dramatically, we're owner long that as able to is retrofit them at worth dual long of confusion later LNG buying there, conventional stage it into be people be we or is toes direction, and probably this that vessels, every a

order order There people good. still a firm of you in, it's attract thin. number around. it or very look at people. the But are sniffing obviously, that's can normally, So And you should believe the very when real

they a once double if that see or if orders, conventional may are -- think sorry, more there see fuel, vessels we are vessels still I scrapped. will dual we see few and you being

And are the scrapping be the your despite before see proof oversupplied don't signs the if current to have reluctant going eating. of we to ships the today. in to this people because market any order you Okay, in profile pudding fleet, of very age need market is


And Jon the next Evercore. from comes question Chappell with

Jon Chappell

FSOs selling July them. wanted different the debt-free I 'XX. ask to Hugo, by But way, about a not

how then and with all, And to you expansion? business contract what good XX-year core of the of cash second much the plans pace First debt repay outflows get free? help on debt is existing counterparty, availability And left you what's down are with financing FSO all, additional of there? your a and with to -- on maybe that as the draw to the the

Hugo De Stoop

I -- your repayment. second numbers of terms and part for of question. In today can I I'm the in are as will meantime, what sure So we is where the debt that Lieve the dig of the answer

the well, So even part on open literally they were exactly the maturity been we come on we still this the signed because Sunday. bit before of day we expecting will though answer in the same I are contract mean contract. of are it all, years a for after the we've ahead time, renewal a later I the And in X long working this to little is yesterday second over fact, weekend, way. -- because

part sell can mean price can options, keep can of if to we sell cash on We and table. both find to We assets can wish. we if all they there's party. of flows. every INSW and kind we our will them have the and I refinance share the another So explore them so put We and we buy attractive. --

number both the indeed, So you to July for important there's is ship in options. the know units. will end be is a contract, at that so debt-free of for XXXX current the What of

cash free and So it. there be to possibilities it will be refinance will flow,

certainly in maybe there's opportunity sort at in are them. crossroad arise right cash The what flows, to the and about we be flow about that with the of future. when of fuels Maybe of where have future. of you me, very in this not into to that -- before we looking it's sector, that kind think that we be will think of of visible Let's But amount admit see we our use I this or point the will about right want part to we able is future. of that and production is or things. that is need to we asset are cash the the is write that We will like these are have frequent fact where fuel time a an think at to the the visibility consortium those ship what an we

Lieve Logghe

will indeed, is have let be have million we end we by now And debt of debt-free on outstanding. FSO, on $XX about, Jon, QX add, Hugo, X level XXXX. for of the FSOs And currently Euronav each as we mentioned QX, the me

less So each a of of in we reduce more will level million, order further $XX or year magnitude.

Jon Chappell

more Hugo, typical Great. quarter, ins uncertain world attractive are And values. this we about the then, have leverage, method given your think but in every adding the asset bit become maybe your charter These a especially I things talk in liquidity. of but

out maybe of little there, drop some charter-in are potential a you prior in the the do of bit done you downturns this uncertainty versus Euronav a asset balancing values and how method? So more in it has that opportunity

Hugo De Stoop

a market, you easily asking very XXX And the as over good shareholder almost that more our question. ourselves and are to fact price as Suezmax, that, wish. destroying every despite depth one the XXX the deals are of we It's close of is And have issued It's not than and that find value. day. never very one VLCCs as don't was on know, share that you share well, top doing we we there

user to share, the than we're that do this deal. at so time, in shares point And buyers of of more a

because As the emerge. technology just a what mentioned, vessel we new of building know yet question will don't the out I is

built are eco to we They so if scrubbers modern X super you a ago. type, They they than year opportunity want use super less have chartering were this And of vessels. had them.

And thought to have some It was good so it we a of very was us longevity. for sort very important deal.

find for that a that's And X-year that where will Euronav, X-year plus option. that's create So exceptional are outside, we but you living natural think And I the think they times. would say, through we way value probably Euronav. of I

and where decided rather take on buy something we that have today. given the We than time explains frustrated to we charter trying with to are continue be share, them why to in


Mehrotra Deutsche comes And from next Amit of Bank. the question

Kevin Uherek

crude I to U.S. we'll question I like out? for Republican call on It's looking but market. Kevin guess tax on there anything the had and on tanker a like the U.S. implications, Senate. respect implications implications win, see. for election the But Obviously, a no Biden This is increasingly there's is Amit. with exports, real you a production would notable

Hugo De Stoop

most, be with political the honest one to I was hate afraid you. the that ask questions, you would the I

have clue, impact if see president, of be the on have think the I will a and the to Biden you we few the it you Senate until in the election it very to if way is world. a like try have little decarbonization. bit people admittedly, going think have for a guys I the win in would to The chamber, an forceful rest be a to think has patient that it's almost we and majority and more but path it I was

has wave we think Even very that a fact, revolution. think I very, majority. seeing. that have he a to one was the it's the blue that going that predicted thin if given be going really not that a we're to not majority, And I are is

think I have to evolution. an we're going

the frankly, would I economy. be that around of COVID we you mindful quite his this has everyone, not the much very the including think I pretty hitting priority. be crisis when first will impacted world, That U.S. look mean,

clean announced It's energy he something as expecting program. he as a big of what candidate. a not something terms are in when we radical not so certainly And was

to the he reality going new is to hit think is one I become the if president. the

I if place we too that evolutionary that. it's about always not revolutionary, are to rather So it in think worried to a than good because adapt we're

seems Iranian not that bit extent, be good extent, an production. which would on in And to But I aspect, Iranian to very condition. want say fleet. a oil wins if the soon second he a have and we The may will deal little how is clearer that situation to reenter because the the a a fleet is certain lesser that's impact Iranian obviously

mindful So it. about we are not too

Kevin Uherek

you. kind Got focus. then of you. Got And switching

buyback, X%. understand you low. if equity you more to plan the buy? of you've to in I fact, what continue the total trying just what the I'm is share if, prospective buy can shares you can persistently back bought doing think value number and so remains On around

Hugo De Stoop


So one time, at would say. thing a I

what plan more. announced next we will and So to we we reevaluate and need have to then do see do if we

split we to decided last being, what the investors, only way. and to For we return how quarter, the we we were earnings by like We did to we time go that have about more the necessary very is did of we our do XX-XX up question that the with XX% the do want but May. to only if AGM, next that, call general usually, next If a annual so you AGM, an capital, on can buy is go program. the committed XX% our do quarter. the we the we -- which before to until you to such have of meeting. was that, happy votes last The get can And

authorization because I are this ambitious be we more offer if today on more. the focused we have then not would too So authorization than that we

to on we received said, recollection, that. never my As I answer negative have


next from And comes Ben question Stifel. Nolan the with

Ben Nolan

of the markets, going relationship bit, you ins sort that who effectively, it curious think, X-year of into is the the maybe Suezmaxes strategic was current advantage long we dig is find looking think of to charter would I'm to kind this you we we'll -- somebody good to motivation. fit, strategic the in just is better take over and primary a time, deal, out is be be the and little something a weakness I this to and want from back but intentionally you of thing? of Hugo. this really terms a were deal, a go Suezmax categorize a how in wanted where Or

Hugo De Stoop

if that we a good say strategy first about convinced combination, it not from money, strategy deal I the foremost. to it's were a and can economic but perspective, forget was that is Well, our because an make we then would

So that was the priority.

than you I extent, take Mako in VLCC that's you to XX, market vessel. the used that the the they scrapping, a difference between which the was can a the compared those at we simply Mako to to less Slide think how consuming XX look XX is same older you fact probably definitely are or a slide deck, take But an if need ships XX for whatever market. completely you represented that at when by explained we that to there, the not slide vessels are paying And we've you different certain see if and the the market and those at we order market the obviously, compared see a can people the applies and purpose, for scrapping. that in even though or in is have And Suezmax. breakeven. not are far already looking

vessels. good I are say, they So strategic very, would part, twofold. very The is

of First, we Suezmaxes. have number sold a

previous the And It's VLCC downturn. a And fact, that outperforming relative have is our in market. so course, we market exposure on like. basis, the a in Suezmax normally we or to of decreased cycles, the market that in

exposure that many have have view develop of a who of point it's part then second is on -- keep degree the So you to you as a obviously, people them access of we an to want sort business to easier have certain dialogue relationships want to to And speak to And them. possible. the of exposure to that. basis as with doing you're when because with the regular cargoes strategic

So from those not rocket role from cargo going science. charter into a played or owners it's But whether we're who definitely maybe ships it to owners. some owner are other that not ships

Ben Nolan

profile through maybe those docks release other think, dry-dockings what that what I XXXX that Okay. That's then out? -- forward. that X mentioned pulled, in maybe you thing the in helpful. Can having you been was dry now guys had is for your And the with talk was taken

Hugo De Stoop


years and your you you to X.X receive So and little if dry them X-month likely window receive X you obviously, you early, then bit are And perform years. dock usually to a a certificate for a extension. have do

because a anniversary not you're of cutoff real that on you're ship. fact that really losing months them losing X mean early more the date So bit is little you're the the the the -- does the losing back not end

or very because doing scrubbers dock, of a by obviously, [indiscernible], market are was are that. here, of for dock exactly perform is absolutely opposite. retrofitting we story the when lot type out you But when not dry a are bit there in market what Well, losing not in Market is you you're It's we So those the there installing mindful always guys a earning sorry any little French. money. my that of fantastic. it's dry

the at take because, to none of frankly, advantage docks is of the the take predicting good quite we operators So many rate. none ships as in possible as us,

the foreseen So event you down could have in is ripping that market certainly that a not months for have road. an X you

a year-end. few XX after ship before few number months. of days. It's and need that had is a as old, years year-end. say an you I to do take So by when those is is very We that to that market many that you that moving good, X so forecast to moving to do amount you possible. We as money it's saying, the had analyst years ships the perspective old, your want as okay, a of not to from the But just -- ships know want I take ships ship few wouldn't needle in

to decided have as simply moment one it's because the all from out in good perspective market market. them as be now not there possible a a certainty, is take quickly We to there

Ben Nolan


be the of the maybe fourth course to next… from rest over quarter should impact the rather than the quarter So shifting first of

Hugo De Stoop

mean were the X or due for dry That's in there ships dock correct. second X maybe I quarter.

As X-month window. I said, it's a

that if and take scheduled ship of for dock So in instance, decided you them to go were will in we've take May for that December. some them dry December, the maybe


Clarksons. question next with Nokta Omar the comes from And

Omar Nokta

and wanted crossroads, industry picture in perspective. shipping comments, Earlier to just relation a to mentioned was I overall you at the I big maybe in know your that a strategy just about from like propulsion. talk is

rush opportunities perspective, is past, to choose the the wide and pick happy I'd are not from You we And you you're think a my opportunities, $X.X billion things flexibility got and what and liquidity. in the jump to say, they these you've back, and got to world in evaluate of any as sit the When on of open, said arise. as do.

contract in You can crude flow the And transportation. investing you of some Euronav, generally Euronav, outside all on been its of what to be acquisitive, large you within has you color in? would crude maybe maybe cash highlighting Euronav's give mentioned history, As think generate tankers. FSO ability interested over

So about when the when think crude step, we about, next acquisition, think is that next we the in tankers? say, still

Hugo De Stoop


going to that deviate from our we're think business. not core I

if it on about the side and you're talking the So side. on a crude large big deal, tanker definitely will be

cyclical. we last foreseeable continue call, market continue moment, great to be the at for that mentioned, So believe is to future. It's we're But it's going I believe And to going the as market. oil. be this of a to going to great be not it was a I peak afraid

down market part peak a obviously, we all today. gradually, is I continue further that mean, we're quite what very road, predictions are rate to world hope the will be as going same I doing a may because consolidate, very in a XX as the the using And of that think fact, are oil in the even we the telling that we smooth, market excited years you about be of we that leader As not at even that declining matter oil consolidation. will

a had champions are that other at smooth a I think leading making those big declining being player look the it industries And in that time. market. have industries we excited quite about when of usually are you who decline,

business is what we there So But same planting we big call that we see, core and mainly opportunities other seed. have be as today. would may that definitely the acquisitions,

role. on better plug port weather sensors where the is it's believe we open about a the are moment, engines. that are prediction number it's developing to software. and software, whether board But We of the going you money play we we different a So running internally quite of way a or vessels. investing can bit an platform a big congestion better technology At forecast, of installed

always, acquiring role about remain investment that, I future, think or you so all something So very as And reduction that focusing will talking interesting by which a effect, fuel our pay are it should something of of talking of that. right you're the seems. like people the but an consume that about play you're curve. and or investments to not where the in equivalent emissions, moment the ahead making that you is And is at off reduce major those company a the we'll software

Omar Nokta

was to -- for helpful. of these get -- I FSOs. timing a Yes. it us surprise, mechanism a renewal that maybe a maybe a I contract bit there the or a this just It's charters clause on to And a guess, touching wanted That's extension. caused follow-up, to back or see thinking was just it? the of and with Oil, negotiated now? next time in an XX an So came this about just Or to Northern asking discussions with is -- -- sort and that's was you've extension years simply it? to agreement it really announced the simply start on date? why Or you was now bit it

Hugo De Stoop

I in to say would it of very the the X held have current need still Well, would for desire not serve. an I the X that pleasant. about is obviously, issue alternative operator end alternative guys real it happy are they very they if the us, better. the think clients Total solutions. trigger. The be would contract. going I they have we a on later other that main to But hostage would that But a to that's and potentially the have we that years solution field. the FSO Total, at find they opportunities they that is to that would tackle X well trigger main to so know client ground the venture an to the QP. think Otherwise, And was the need the before are or that be say been with look to joint professional It's to situation

deployed a pleased our And a until We and X were years. in fascinating the have XXXX. And now we we -- very solution that quite was negotiate They contract in that contract conversion in it's at was price deployed the that were alternative. found ships XXXX. XXXX are the they because best we had signed those

or of but XX hopefully bit undisrupted of CapEx. maybe of undisrupted it that is proud at little paying can time other dock think more words, the money services, very services be required, vision had have some no conversion, years no a of now. that right but that's there's spent, In would So we certainly the because that other spending I And dry players of off plan.

You you vessel and the the can this don't to same operate in need function. with continue reinvest to money very any safely equipment a in all working field

Omar Nokta

That's great.

there's off-hire, confirm, one, to the and basically straight no between just just new no goes you're and the into CapEx next... there's So this saying it contract no in

Hugo De Stoop

speaking, offshore it. industry, That's has take to be I generally the of obviously exceptional. interrupting docks. the right, XXX% We underwater regular don't it's all absolutely, dry surveys nobody and to the and will mean, gets ship direct surveys and in to you There rest need the at it's uptime. the going continuation. But service not been look service if be

And so having far, the that's on plan continue knock and what have wood, we to could, that. had, we


question Securities. And from the comes next Pareto Haavaldsen with Eirik

Eirik Haavaldsen

Would bit held second, maybe I upon your up still your that it we've high something that surprised the have remarks is? bit Suezmaxes been selling that just to start why little is bracket. of late be now too -- have particularly wanted Can Is to -- a that see XX-year-old asset selling them rather well. vintage you on And in values you you to a them? to number And or agenda? touched explain that. XX- that little or continue a in

Hugo De Stoop


end they they you down don't thank maybe that we going of you risk is thank less the framework as regulatory road. So X, taking And those X, answer to are that XX-year-old being X why very be question end are suspect certainly simply point pressure the for vessel. true are looking -- assets, a is there of old the explanation for carbon The The than the natural because those to be their you on having vessels that maybe but maybe in your a people the we at don't difficult on look years thinking know is commercially and emissions, buying one at be taking where know, and to life will those call. at that don't going life ships we are the we and less market. risk reason may know

the an end quite fuel or of maybe you of sort is negotiated, a with wrong If a still its of natural end burning lot your stuck stage. later is take life, X-year old, bets it at of or until may of yourself you're not which you XX-year-old a side it so on and find life

And enjoy is, the that vessels not you're structure as niche market vessels. then of as it's may good those market they'll not than be far the people, is so to those the that those we bad Obviously, you like units be player, don't a the you explanations bet. that right But of people it who one luck. XX and of age, more and if that a know need might fine, majority -- wish to investors But can years take the the people you are it. we to are concerned,

And want on if relates rid my had explore admittedly we it. market We X question happy And we mean in be execute sold of, sold more. beginning have the asset smile right to but that have I an the will be your year. it's they on Suezmax we I we continue X always want big we'll a patient. of the price If Suezmax. part that recently, I are opportunities. to X people second for more, we'll think to we the we for venture, impression sold not, they definitely X. joint the then And nevertheless, since very want that The because more, of face

obviously, is always So on for to shareholders. policy for is so create company not those the have value its The to focus focus try to the things. much a and

Eirik Haavaldsen

months. coming that With then think -- XX you or you But as Do when X across I agree. potentially then I refraining where -- at mean price, yes, investing? is is share is you think On keeping that to are and if as you the from well, one over it simple No, Yes. that your just may. now, do that. opportunities follow-up, right say, -- look I -- next,

Hugo De Stoop

at it's year and the sure investing did to We that investment is especially not beginning because There capital. at so has you obviously, reached I'm of renewal. of attractive. right need selling more because investment which full say refraining No, too values ships, is a the I'd then from when we us are now Euronav. could reinvest And you're number do

you much. don't So you where involve involve don't the side that's too equity or one it

deal The share people is a other are us offering not side and at our LNG. you generic if are accepting

only So lot for a going accepting the more to be that's the they on see us. are difficult as they screen, price what

trading will above remember that slightly That's generate, guys You or were were XX% NAV. to when we XX% did trading Those we NAV. discount at possible.

to you price think you're shareholders. to at within your that's if us NAV, trade But I the So I at we our creating And can trade ask discount would very for pay an popular what further to still the company we call value at going a a NAV. Euronav. at discount shares to be asset don't if NAV, screen for acquire with

Eirik Haavaldsen

And going to your right. always All I'm be on call.

Hugo De Stoop

Very good. hopefully And asking questions.


And with the question Scott Management. from comes Scott next Geoffrey Asset

Geoffrey Scott

been Given from on the any special of there surveys? the COVID flexibility has disruptions, timing societies classification the

Hugo De Stoop

why being ships is some as seen volume scrap it. Thank call the may much yet yes. them. recycling have yards because is taken And it's explain excellent why to it so the asking an not And for yards question. an question of a the we excellent reason or the That's you people to big answer

dry specialize then and of some there them survey service. big a definitely, was shutdown yards, -- the Chinese a in who delays So in yes, major dock providing mostly

And there would so because is otherwise, blindly. people flexibility stop simply was flexibility yes, had definitely That their not given to have ships.

remotely. in will concentrated So ships and a a in maybe on that even extend very ships we short certificate. would the be But definitely board of we have That's why so things society inspect such And careful classification period. the were certainly many want we before also -- to they can. number

received So yard because we that of from being to societies. seen the haven't the classification yet And recycling benefit why flurry taken did allowance they expansion hopefully, from explains ships trading. we a continue to

Geoffrey Scott

excellent over were ships in list since X QX, XXX go additional And years, Page guess, How X for You many were broken next those from over X chart actually potential demolition? that went of you years. years. catalyst and by -- put how and surveys those QX, that didn't for was your the XX many quarter. September it's surveys special of It list ships an in out XX down XX you I presentation. on In for on, XX of they X

Brian Gallagher

this. jump Let in, me Hugo, to on

Hugo De Stoop

Yes, go ahead.

Brian Gallagher

there, the IR. with Gallagher, ships, Brian think, have is in haven't numbers the exception direct of -- And don't we I storage Head they're those that we This -- contracts. of I but X of

So they're not part of the world trading fleet.

they engage particular of still So go can sort activity. make they own have in through survey that their to to sure

have terms contracts regular bit of means storage a it doing encounter shipped vessels this ships not to you're age. have are we where and in have that these inspections, vetting because sort they're regular when are which to a to trading So looks trading know so not they're obviously But of involved sometimes you strange in. obviously, ship, of I

can platforms have specific trading through trading I'll vintages some is getting offline slightly with actually this our Titan we're with and view detail But of take world to maybe some leaving size. you're their International, gone the this world from not perspective, more details how From exact soon storage replaced start to specifics of certainly I those would our be aware question. of the you like same, I'm fleet. come expecting date back trading as of of occurring So being specific that tonnage a survey. the many out some own reducing when But and effect maybe at the fleet get the the swap the of younger in later on we


And the with next question from Mulder comes ING. Quirijn

Quirijn Mulder

months? I to regard is ING. still is all you is, medium-term do What on. let question the to and say, half in second something you Do let me you the XXXX. see in, speak September me me is that XXXX later Quirijn OPEC+, have Second about question you with Mulder that from yes, question situation the that you improvement. say, improvement Or say, expect forward will then final contracts And about -- -- Can pose offshore store? the your the moves my some -- gone? coming maybe let assuming about when tell the me

Hugo De Stoop

that's So good.

It's questions, an make the only rules. know You exception. we'll X but

is one storage. first the So

little you the need very, maybe minute. VLCCs XX And think as that's a market. And as help are contract. rest coming which performing back very would the we to a Brian older still see me, in but is a the there we that give X-month of peak. storage case those, off industry X finish far the Brian Euronav where not concerned, VLCCs have of far that in need to another So expect contract bit for contract. -- we storage I the I can more But a their definitely temporary to think finish to number can ladies numbers is specific

well, fools. the prediction no us we back, when very know market as -- will about well, and you you the are come far know that As our

So second many wave could how downturn say long impact very maybe ships we It more the on struck have COVID will last. are we also, importantly much on and know. And will of the it what and don't being how depends during it depend market. will this in

I perfect you you if will those a answer. me give elements, give So X then

Brian Gallagher

is on very In that's which where has terms that fallen number to a months. XX being mean, to of for the yes, out storage. we taken we and going have up we XX stubborn long got way come think, the in those to Hugo's Aframax and XX of we Suezmax down last XX and now, and or That's vessels saw XX about think from But of over the or X been there's saw the about VLCCs we back. X maybe storage, peak June, come think answers, May I

an element. overhang So else -- than go. still the of is a more floating which to anything bit It's storage more in

Quirijn Mulder

Iranian Okay. And about my final is ships. question

that still, Iranian your might to anyway? my me saying say, Is Biden used that from some legal say, Joe take be Egypt not to vessels ships? so the question idle flows a in fine is the political they with oil that cannot country me regard let areas many oil here situation little view, of extra me how wins, let put then expect some So But and used if storage will say, you view. and what's and there? other and in to let or -- are for Are the

Hugo De Stoop

be him, answer If would not to the not going the knows expecting a is give our elected, not here. it not -- be the him reenter to realistic be that expect the And with would priority. be we I were to God would Biden -- and should I arenas. top when if we would we're that Joe start any top to think advice, is have that so going him think probably agenda, well, it of I the we be when of deal

Secondly, deal, know do the the on leaving continued research have the nuclear programs. we by Iranians that to

the to agree they will need they themselves everything reenter deal the done and disclose in so meantime. And that to have to

in months, don't Xst maybe where are in having a or today looking is very next with current our we several gets if a or that's tomorrow the way, the deal which situation be with a but to confirmed my And not going priority the impact Biden of Joe likely today So not I you're for Iranians that to completely market demand as at it's on Monday good, he's is different. through is he's because restriction that that time, or oil January is certainly Iranians, possible, and not -- find maybe when is, a concerned, well, saying, sworn top at year take far the two. think as maybe situation to to going the deal because on

is as far the didn't I fleet yes. As concerned, --

Brian? Sorry,

Brian Gallagher

No, carry on.

Hugo De Stoop


has have as about wake VLCC. everybody that was where that's movie situation when longer again. administration deal lifted morning, no starts that. impression the far is fleet We worried aged, It's shrunk, fleet the up you in as struck the Obama a the with it's every this first in fact, it's And the exactly it's the that concerned, day has were the same sanctions I or Day, maybe it's point. the and and the fleet that Groundhog So nations so a XX X the same

XX very, to It like it be a to used fast still, continue will a assets a the at stand necessitate very a are speed. other ship as something keep me, deteriorating believe you I when storage think because you're your or dock is will they that. dry part heavy down of very fleet that and ones

back So deal be not new Vice it's to we're very, and president. not there overnight. that becomes pressure Biden Mr. all because additional -- those very frankly, too coming going about worried we don't quite a the President putting all, supply, happen Biden it's And ships believe soon in after if will

Brian Gallagher

the a cargoes. well. the have it's wider barrels. isn't be on done, back be -- just If the then marketplace we'll Iranian marketplace wider often there'll ships, either. one-way I which those start stealing and come to there's And historically, overlooked that barrels Iranian deal Iranian as this a been think if is final into ships taken Iranian is that's there there's point, trade that a If agreed transaction One isn't Iranian

that is often squeezing be think there an overplayed some this to important think. on. may situation That's I So whilst out, I focused remember, it's also


follow-up And for Chadd a Jefferies Giveans from on at the next question is Randy LLC.

Randy Giveans

It's Randy Yes. Giveans on. back

was but talked, Just last was that I status relatively Any that we think the storage the on here expiring time October. quick still I think Europe? X TI on in updated a follow-up. contract, short-term

So any updates that? around

Hugo De Stoop

that point. and deals Maybe the we good that have release press those do very it small mentioned here should Yes, considered there. are in we

ship We also same months that have the Suezmax. another at chartered But extended rate. X got out for X

eye the of we we when as market. We keep here are vocal And find but there not deals, sort others, we we and we small yes, good very also on on be an pleased it. the may time So do them. And on charter about that. stuff execute as


session call. today's you And for presentation. as today's Thank that well as so concludes the attending question-and-answer much

You may now disconnect your lines.