EURN Euronav

Brian Gallagher Head of Investor Relations, Research and Communications
Hugo De Stoop Chief Executive Officer
Lieve Logghe Chief Financial Officer
Christian Wetherbee Citigroup
Jonathan Chappell Evercore
Amit Mehrotra Deutsche Bank
Omar Nokta Clarksons Platou Securities
Gregory Lewis BTIG
Randy Giveans Jefferies LLC
Frank Galanti Stifel Financial Corp.
Chris Tsung Webber Research & Advisory
Call transcript
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Good day and welcome to the Euronav Q4 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Brian Gallagher. ahead. go Please

Brian Gallagher

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

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

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

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

Hugo De Stoop

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

run in comments the our CFO, who the to capital of the questions. take continued on the conclude and and will QX financial balance during will on agenda, return I at highlights review tanker our the themes to of our through statement sheet. ready terms and Communication, market allocation Head our income your full Lieve, a look provide I to passing commitment active Relations, the Investor the Research before will before to current cycle Brian, first net In remarks and some of be

oil our slide low results, our challenging do crude market market. XX our the next was flow our the two generating and likelihood much million voluntary are tanker strong market structure this despite cuts, in commitment now? that to and for in dislocation QX of freight reasons. business, OPEC_ largely confidence reflected management's to for for the repurchase XXXX. this Whilst P&L depressed another and we the XX there demand below deploy is we market page. production own in however, large of a have of in of continues market. to challenging as Well, undoubtedly capital on was Why announced nature previously extension current the from shares consumption and cyclical with turning have strengthened is model we cash four crude more remained The by further key volatile. slide agreed the admit markets of our tanker XXXX throughout our requirements news one that for freight of contract The quarter The augmented resulted rates QX, the breakeven produced crude last disappointing, the is X. which On note, supply headwinds in QX, visible These years. flat the a The the loss quarter, and So, major with business positive FSO highlights and tonnage artificially reductions. dissipated saw the which during we

strong our compared balance of to mid and will limit a sheet remains is we as leverage can, XX% in target we because our you very XX%. Firstly, show the

to generate means active be to most in for shareholder continue we value. Secondly, looking attractive the

buybacks most it the indicates on at brings and priced term an permanent me positive is million. which will will in assets we stronger market. attractively the what early which newbuild have bit much equivalent correctly becoming share impact mean in Share we a X as and doesn't believe it our repetitive, management. equity. long VLCC a behind to the are at the will we focus $XX price may Euronav available XXXX, sheet of own One it are But and itself. in the Balance at and strength an This share. remains a means Eco-Suezmax, sees lowest in capital the its unless be Euronav, our deployed and believe Today, two Indeed, message for but also allocation counter-cyclically. critical. best investment entirety. to the board hope opportunities. market be active is is us Yesterday, that S&P delivered not slide slide that of of important part be little allocation per key acquisition they we be providing This announced earnings capital cycle the

we was we about noticed believe can in good this investing. appropriate. value pay see number to We toward have to strength challenging price cash XX% returned translate with buy comes it engage to We is to we to per shareholders over cash simple. not. long-term our provide million $X.XX to share when dividends during that or This via a Brian XXXX. leverage strength enables nominal VLCC it of Taking return shares sheet more into million our $XXX pivoted if our to equivalent. even the would have And our expand. continue to yearly, in market of things. $XXX back will though us The us to And balance this capability It a we is directly that more a When The potential. share continue The a of share in cover value And and represents dividend opportunities. of XXXX is detail. share do enables take during later buyback, will there decide you we in buybacks. reason

Finally, opportunities, is shipping we our that look very renewal swiftly more or important. can fleet sheet in and at fleet which expansion, means on importantly, act balance those

can two look million in leveraged I past the over opportunistic be Euronav Lieve, million yet, sheet pass recycled our And low. remain that, and capacity. on Over deployed the Logghe, CFO, over all years, Lieve the growing, our VLCC kept in shall details vessel sales now earnings to will retained in the we you. financials. around With but to balance for we new to $XXX very have have more disciplined. $XXX

Lieve Logghe

Thank you, Hugo.

Net a reported million. is fourth quarter the Notwithstanding able million negative this reflects This to for the be minus further $XX XXXX Moving QX weak thanks quarter. capital result, for to or efforts to result breakeven, results the $XX.X to for was working reductions. cash EBITDA the significant per operating was and share. achieve $X.XX markets. Euronav loss

in XXXX dockings Additionally, Euronav take quarter XX of around place during to the sees fourth during of dry to which season. the XXXX, a majority and opportunity shuffle this winter

leverage, the consistent policy Brian also especially a will line to to now to sector. with through some an flow capital amongst company strong to ratio remains very level these book in further in Moving a a of allowing Euronav lowest way In position, over cash our generated Euronav balance to of uncertain in to strong was Head Gallagher, leverage allocation exceptional The sheet, considering with the XXXX, I current by Investor our priority shareholders. run achieved market is the sheet. solid and hand returning balance have This times, continues thanks economic balance our cash in low Relations, themes. the execute sheet XX.X%. to

Brian Gallagher

implied is it do. price, say to Thank us shows The how you, price blue will our Euronav. illustrate newbuild spoke price newbuild at into the eight earlier what we with Lieve. line on Hugo central the Slide allocation best evidence to share Euronav of capital converting green strategy the equivalent. this line we VLCC with and tries doing an

we I'm is are were is if should VLCC the rates currently earlier the exit fleet have we reflected favorable equal. the tanker and cycle effect, through years or Conditions point special and during of during VLCC at had, more, over and this, at peak recent conditions previous QX that part become are XXXX, tanker also, to But go availability fleet It and they assets we prices following normal return a XXXX, older future one, decision periods continues that in course, We both our for or be How from a might strong. shares, for view for of this not now we've part return in such. longer-term in recently size more on constantly also important normal. busy with especially XX.X less of as XXXX, affirmative as most tonnage. QX also the early of got consumption all slide over covered shows the lockdowns to not in resizing, is consumption as But incoming very So, million EIA return emission at. have look to updates low XX in trajectory. outlook, only a this as we the also this lives in from form surveys period cycle. XX difficult the size those front a and with But very the now compliance aggressive. deferred. no as indicating in Whilst some the in XXXX IEA of will And like reshape a is slide always there the outward of the we the moving, in particular the movement but slide on slide better; asset traded equivalent And seeing What looks to to to normalized This recycling been demand sugarcoat fleet. owners way asset owners prices or forecasts of which freight when XXXX. recycling the this assumes, we the catalyst experienced interesting need in X. VLCCs On that will saw return XXXX has to on challenging is forward, aged more do of action last recycling Slide in particular, in $XX January's signs and An a to looking that this us the direction is slide, predict. given the XXXX. funding is and of are consumption slide XX, to And looks to There XX elements saw also earliest. puzzle for XX And crew investment be terms Buybacks lines of have news cycle. standards on tanker repurchase to in older this levels dots of more the disappoint recent has summer. tonnage. eight. back is in sure reduction. two, that the global is opportunity activity levels two values will about of

multiple always strong potential balance we very position However, own driven Suezmax low to the the why be is as is and Euronav sheets in if at prolonged us assets attractive capability even were to the cycle This done earlier, be in for look But Hugo we a fleet provides we're on opportunity a the invest of structured navigate with priced demonstrated renewal, more by act such period have that discount. opportunistic with at importantly, expansion rates a stock center. as with acquisitions, in a to when our as have and this quarters. it longer-term, our to

Our Chief us our De With to Hugo balance it do you. now back pass with I'll Executive. allows some this. to remarks Hugo, to back Stoop, concluding that, sheet

Hugo De Stoop

Brian. Thank you,

such to our from At our line a half least. the light glass feature a our little we used Euronav, factors are, ton amber, small of we traffic into supply our market term. to is sight, optimism our our a however, challenging summary green sheet So, to to look traffic downgrade two that There team XXXX overriding support The will But conclude, in freight and may will likely our restriction full during there The strength balance amber manage prefer whilst most change the at light. challenging reflecting mean a medium oil first full. take are difficult to navigating continue to and us is at which driving for periods. market negative. half mile second have

at difficult all in on on freight global knowledge rates a and brings and will oldest reshaping is XX-year also is catalyst fleet size. age. a fleet is market stay. Lower and it the Regulatory been And resizing yet, the tanker Globally, financing since the is Firstly, fleet pressure increasing laser low. the a the book has to market freight XXXX. focus order be here key age

markets act Secondly, to the challenging opportunity provide in freight periods conservatively [ph].

sheet provides back promises to forward is only disciplined a in to to to us questions. act, further health attention. test, Our in balance such bring will for your but a Thank much the robust that, receive navigating optionality your way. it challenges. with With you looking to pass and Euronav but very operator I XXXX


[Operator Instructions].

Our first Chris come from today Wetherbee question Citi. will with

Christian Wetherbee

I maybe best I place discussion, allocation start. it's to the going guess the capital to probably think

made you here in moves last few some days. the So

of hopefully see How trough sort attractive, market capital are potentially And opportunities do rebound? so, market. on the much could at through is I you what curious the in about a your the think we How of this perspective you current guess, point? before assets deploy

Hugo De Stoop

leverage we I you potential think what to now. is depends the we that remain equate to about around need disciplined do. I target if we look much sort $XXX the indicated we But deploy million without think on that breaching And that we to knowing could of what XX%, But again, at target. maximum self-imposed we that do how have, extremely are it opportunities. prepared should

I to or that will either we the yesterday, And as into are see also that we've we a And share further should recently extent, to that price demonstrated the market. demonstrated certain deploy at. in past. buyback in do that we value We share does not that can both. deploy that can assets priced, extent the opportunities in think capital we be can share we buybacks present the the believe and buy it attractively in

Christian Wetherbee

$XXX dynamic about think here. there terms demand an be good a you recovery XXXX. could in tanker dynamic? track thinking shift concurrent of respond number is to trying for the When about I economic curious all Do sort how can for it's the Or that? a to of you the in think you potential That type it's of maybe about. recovery? curious potential been helpful. sort relatively from of better guess, perspective? one million energy do of of then, a That's half back get macro recovery, a market of kind of kind a to think you – quickly optimistic about in from think at a one potential perspective How Just think kind has that utilization And

Hugo De Stoop

we COVID. year demand. X year of couple will of in hard tanker factors, barrels, that very by mark. many always market It's a it. few to much that million or – predict lost the geopolitical much future, as How And the a a sure million know is for that a million have million question barrels market. are due to we X next potentially recover especially is very or this influencing We such so There influenced events is

of part equation. first the the that's So,

of provide I the into think the we year will levels a produce before. market. lifted, those up fleet. fleet, that then that, was returned capital that the between the that's vessel people the think was available have lot and That And be cargoes five once And your when will will fleet owner in into ship opposed the number cargoes the you because million I simply will time, picked XX old then at And say were which will to average, we vessel are a they as of I yard. to expect available a by special and million, questionable. and additional inventory be there a to a receive the cuts again, and start recycling to or shrink year be $XX XX.X you can inject that looking if as for recycling I $XX old now that for utilization survey, of I need an to survey, the provided

the before arrive we see hope do But be. we where of should equation. point the a of shrinkage demand many you the are it pieces the there that fleet is that where back to can So, there to will

we in that XXXX release, said challenging. as going is to believe press be so, we And have

this in at will Of that look winter difficult like? course, October, November, is start world When it Will time, still point a year? And there how predict. to will It's winter. be the the December?

will So market. we that then number assume ships disappeared, of equilibrium have can our certain much only of would cargoes and to seeing back better have that prospect a number return to come before


who with will Chappell question Jon Evercore. next Our is come from

Jonathan Chappell

capital the then and it tying that you to into back yesterday. Hugo, made the allocation announcement

to of your fleet seems such need the If the advantage that to pretty are still modernizing at discount I trading like But equivalent and you keep VLCC, wide. a it is huge gap understand shares opportunities. take

So, are still transaction? six about more Was uncertainty? return asset why next buyback, purchases capital understanding special we buying towards And the these ships $XX during specific anything months you million that there expect should peak today? than in

Hugo De Stoop

a It's good It's act. I decisions. we here And make have think a very those question word that key that time balancing ask to every ourselves we question. the our is

I the long for term. think we an operator are

rejuvenation are year. And important. this very than cherry last that feed is more sold so, the vessels At on because economical the we rejuvenation fleet cake with the point, comes buying far we're vessels a

last at the sort could be with what we're other year whereas what sold price balance a disconnect. the is year purely looking seeing the buying last trying and the of of equation what buying so, side we side one And and what part currently. to we of we're And we're and of share bought that equation,

time over only at the fleet were last where assets think don't $XX equity much may higher a year, when to simply value. are they buy rejuvenating to Suezmax priced a And remember, better to for exchange represents price. because business the the So, will have can our I we million. shrink renew we feet That stop point

So, recently. discount here a which what at only buying we're is to seen $XX.X significant million, we've

So, hope are territory that rejuvenation we that needed. those completely then the And even both for platform, is to let's concentrate of act or then and a ultimate where we growing course. don't do ambition, which for on believe price to need recovers buying on our buying share the

Jonathan Chappell

the we LNG potentially being Suezmaxes For also up, about my as read capable. capable, ammonia follow yesterday but

you to the we shifting associated think that talk to of part, So, can charter propulsion And the have to you invest ammonia? about would that that potentially as charter may those alongside have participate to investment about a need with that latter in capital technology? need new

Hugo De Stoop

But It's a question. good very difficult it's answer. to a one

agree the them, be will because are all me with ammonia, can equipped for more looking make progress. of sort per looking to fast technologies are is have the evolving, ready at structural those the on arrangement so what becomes. vessels, the LNG. hold In to people can those tanks that simply You tanks And that cheaper we're it making kilowatt hold space vessels And nutshell, are with a a very the are the more taking is ammonia engine. additional to because at they those equivalent

that about is retrofit, focus, question changing type sure part engine much do an to we change. which combustion of arrive say of makes of very the of that's a will the point this sense it's the still internal fuel. I them, if can piping most the it's of is difficult and without for ship, would we adapting the question it the to engine. be So, it But talking what will we're structure make to be. new where retrofit rest to But a The a that

the changing itself. we're retrofitting looking So, the at engine. It's engine really not

point needs number sort it's done, you put But this on some probably wrong time. understand number to can of in a So, at the be once what you it.

prefer by that, $XX shifted. talk for the is a or and the take the $XX can million market number, you to ammonia. I And whether would same decision retrofit, that think about time that, may have retrofit But those in million be are You to maybe costs be contract. it to do it it. will for not it LNG may chances the I attached to where the then I numbers would strongly mentioned, it a to to have a a necessary you stays attach it Otherwise, would have point not contract shrunk If your recover to costs.


from Our next come will Bank. with Amit question Mehrotra Deutsche

Amit Mehrotra

the my industry, unique position. first an I in very just Euronav question guess, a is is observation in

You're largest the crude tanker.

enormous have You scale.

balance sheet. You've got a great

to of in low that one breakeven in costs. got more like bulk And to liquidity prescribing prescribing of XX% equity the different company because what several their course, They and Star the to vertical, cash the result is they've recently, that for equity There's sense And contribution the at company. ship as XX%, valued a market explicitly they equity the Bulk space. them. kind is value receive the deals characteristics. public share seller a very that, financial premium have a company of participation other is done in that makes in market You've dry a similar that

ship So, marking that I'm explicitly market Are – if you for doing that pursue more equity the mark and bit your the correctly, is share just debt actually really is Star you public path. quite doing if your I deals higher a value incremental capacity, grow debt can it. understanding if understand it's Bulk what implicitly your sheet, there is or balance what than for basically like capacity $XXX million, opportunities or it

Hugo De Stoop

I good own doing. too company. It's admit companies And the their much time other right analysis. don't that doing are I'm I to thing But for very spend on what shipping a have they're sure

we XX want as somehow continue last or we to The us of Euronav level our I and price that has been the company, this years accelerate in slight started we certainly prevented months premium say, sort accelerate think doubt. XX ships at able performing NAV the growth share or far we be not would ago. shared would probably if has for concerned, well to would what a we not price where we like of fact from, without NAV could did very the the share at be the potentially acquire consolidation, the the we past, As in is I shares would to a price

have You fleet at from much ago, occasions, three were today, vessels. may certainly And XX. remember, XX years And a we buy used time, – fleet. to eight to the bigger of equity we time we stand on

that we don't can many need to create I for to a be So, could things, acquisition, deploy, between buyback, be the we vehicle be million that could think and platform that grow capacity the other equity. confusion using that $XXX for the that for a the could

make As acquire far much to do guess deal. has concerned, we and that as the ships of are very we a distinction using with between to size using debt And I the equity.

hopefully NAV NAV ships, you you a be say people we look So, would your a at represent. small at with that the the priced substantial is the the come and equity very exchange Euronav at that and if colleagues or one modern a Bank ships size to you at seller conversation first and and plus to like would tomorrow, engage against premium, trial that Deutsche his in good quality, with of fleet and

Amit Mehrotra

that's to of hear. happening. are great But have far Well, between. examples four And this know three, those we and deals few I

a able to time, actually do form credit deal to for a markets. the of For public equity platform verticals and the at first platform real within NAV relative in that a granting being certain

maybe open that's has the that. the that do encouraging stars seller it. align to where to But need obviously you're have it's something to to and So, feel

spread off pretty The and bottom. has could. low I sulfur the if high the me nicely for question between last fuel one bounced Just

was last an to time us, this VLSFO disruption continues that adding a not that that when it of bottom. to you should dynamics early impact understand, reached want as which kind TCE spread in is September, late [indiscernible] you're company? against made for October Euronav? one, But think I big just be just How in are dynamics the some the protection may now. know I consider vessels supply think Obviously, I TCE expand, for talk we with just I its right systems. the buy to that what But Obviously, year. issue does

Hugo De Stoop

It's a minutes And maybe will very I two it. good to question. take answer

justify years. is to look curve of the which the you a you three anywhere I First our than which expensive is expensive all, that when look you that building, for to when can return at from retrofit. to a retrofit, XXX current is a potential extract XX on a spread new the too think mind, less spread, to next between forward be, and far at compared there And it continues maybe the two, scrubber

that's first the the So, of part equation.

a The then this to tons that second when you would I'm very into can you is, currently then of I the maybe for or or XX in $XX, the for excess it a and the quarter little translate in last year, per by XXXX that $XXX, and quarter it despite means at the that maybe account in part what than is very bit was VLCC that spread take you superficially TCE, quarter TCE. XX will And around well all maybe consuming around of translate you that, that bounced first third to lower the day. you And you on multiply and $XX $XXX. in to spread, point like was and difference take back the last XXXX say, fact call or okay, this at out to second quarter opportunity superficially. today,

on So, about have that vessels. not year. similar, in a you that is operate is is have your your there thing. you tells place. the the – on put Euronav scrubber We not equally its very vessels. spread of the Despite superior, at any scrubber did for TCE time, And one that if one put the vessel to thing had it had It way average equipment and you competition the that same important represents on to

decrease less not a the the linked instructions have So, forget that good let's to vessels, good consumption people they if care are we and world ashore very who your you directly maybe quantity outperform sending have emissions. may on people but to entering you find And because people into consume. about ways kits, the board, installed to very the you that where consumption is

we whatever be so, should consume, And LSFO. we more to or attention HSFO all pay it

more Sorry taken little question. answer time simple bit have a to to a


Nokta question next come with from Our Clarksons. will Omar

Omar Nokta

were you still retrofitting back response circle with constructed question, on – sure Or future understand. the of fuel potentially a LNG In capabilities to response effectively to the make Suezmaxes. just his newbuilding say, if two is go it LNG dual ship, it wanted to that were it the wanted after Just And to when in I want if ammonia path does talking understand delivery, to that as the a to Jon, with were way? make on you different? down

Hugo De Stoop

that's That's correct. be correct. could choice. No, a But it

You into would would a retrofit more fuel. and because to the flexible, say. cost be therefore, withhold then into The reconvert could retrofit also our dual preference, single very flexibility can I a which and into fuel, dual certainly you a similar, I be will prefer But would be you fuel.

Omar Nokta

aren't for a say, the LNG going is Do compartment do sort And with of this think ship, standard the ship but to component. and LNG become component ordering or in the as there, technology orders or owners the long ammonia? – an think contracts place you that across you standard the they term industry potential of there for, all that be potential industry kind to look isn't will future maybe

Hugo De Stoop

surprised be they wouldn't do it. I that

produced have being We ready some years. of ships being number so-called LNG a seen for already

ships as voluntary I a I I see those doing don't think mentioned, people is And that a contract, expensive. relatively absent the basis. of price retrofit on to still

fuel are fuel, another ordered dual in technologies so you've that fuel, fuel two vessels, two today, seen year, LNG choose an rumor that that XX people VLCCs last plus the already And order some and can new VLCC oil as there concerned far was technology, the be the may placed for that there conventional build conventional will option. and is you As LNG. with dual market

as possible concerned, that be the As far potentially don't we ammonia XXXX. is believe will XXXX, before

So, don't that see expect the water time. to before hitting that

fuel retrofit in people with dual the gained in with decision than their it is ship fuel scratch I and seen a the dual continue ammonia have yard expensive the ammonia but immediately a wait meantime, it to today doing XXXX. traction order and to do And hydrogen fuel and capability kit? clearly so, certainly between, at some okay, the to to more you've And that the Do a be have I ordering for make conventional later, vessel? will dual head possibility

still camp and selected certainly we from as as there sector – book the by lot well. And such long tanker that, a in restrained point has that questions technology of as there. we feel out as that order And clearly of been to sector. continue be So, not is feel we're will the a unanswered view,

Omar Nokta

months to perspective sense and how months follow asset give on to, you eyes active ago? over the the Just – several wanted but in Brian relative us three one you see touched or just past buying this owner, as from ago came bit and who's the six can tanker say, purchase selling a a up. value. quick. owner, a it Hopefully to history, right via had throughout sale discussion ships and how been, now, maybe months see your maybe it when from your or just been on And quick tanker leading market say,

Hugo De Stoop

was bid to tender, really active but had those a we participated. for Much when more we not two It vessels.

have I had months a think or if look may ago, three. to two contenders. we Which event three at six we seven similar seen you

XXXX. a case. believing the time it market into think that that in there people I are for should turn fundamentals all seems it of market to And So, that are the really the positive demonstrate be some the into

to difficult that vessels more from because that for is for very paid we when now. that are us it's it, of that attractive of point historical quality. a end So, the active you more doesn't be it much the a That going still for view see price mean market it's in

Omar Nokta

just one more to that. ask on Sorry

six three for this one participants to recall ago, year a context, a looked? three how months in tender mentioned versus you You When on two you VLCCs, just deal can did four the that ago. similar a

Hugo De Stoop

We did and one. three then

contenders one three were or the had and On another VLCCs, they we two shipowners not reason. for

then, purpose vehicle investors. set private on one, it element was special they that by made us shipowners. was between the or And two fourth up So, that And deal. critical the funds were win the a a transaction a

literally involved. So, there was one no

in a this balance and in what strong in we we're express so, of trying period the that in them a short presentation sheet is We're not have reputation, certainly an scene placed deal fast advantage to very grab good fact and you uniquely And on to a a also either. it's that a crowded But market. execute not good this very there. certainly absolutely could and very reputation time a


Our with Lewis next Greg from question come will BTIG.

Gregory Lewis

of two carbon it there's about just the at the from Mexico existing VLCC talk guess cargo you just we're Euronav a at to guess, – that talking is Realizing of last of et can to like, wondering ask, this involved cetera, the like moved that are level? about cargoes? company I'm industry that companies or neutral I something those is figure lot types oil those that I something discussions wanted there way happening? something up suppliers this really, – – what start major got figure is that was Occi trying was done to now was if oil deliver deliver out weeks, in – neutral ways just cargoes? Gulf where picking that last and I these guess the yourselves, the to delivering trying India. And I I'm to to really guess, that Hugo, from in week offsets, to whether was any kind carbon of I there's and get out is Or

Hugo De Stoop

the the popular very Yes, will at going forward. we of that it and believe conversation. be to are very of is seeing We moment. kind discreet extent unique more It certain we and this beginning hope

comment say. capturing specific have. an they're carbon But you capture to the that by that studying declaration, been I some interesting I good it mentioning, and may planet a than reinject and was more claiming the that are We to would past oil. Occidental neutral because the are because Occidental, that that. very, because in they transport had Occidental which going very they was on you're found doing in the to Tesla, seen to the to that extract I'm not maximize very oilfield more using sort way case of order proposed CEO cargo Occidental pressure in We into of the is carbon interesting. unique have recently relatively

debate and using good a and whatever going for carbon, So, debate. carbon that there is I I'm and even around into will to the then you it capture atmosphere, say me, fossil thing. is purpose to of not fuel. the produce it's more obviously re-inject a just the you capturing not going enter to

believe studied of hope And a And of the doing service will at are in which lot of have there we possibility think emissions, in them a out who we to forces there. always minimize I very if the question interested to customers be be will try technologies will I I because And be over economics, is are very so. time that of down end to of join some interested really that and day, them it suppose So, that that go the I definitely that be successful. being some successful. the will will

part be of going the will it forward. So, equation

Gregory Lewis

been for the to or track? cargo or two, have a way hasn't been able was a there to or And don't have bit the you we vessel any only little detail then, like whether understand sense the cargo? on have to of we realizing Do been around, more it's type efficient, maybe granular slower going you was that that week any fuel for be

Hugo De Stoop

that very have don't I numerous cargo. one we But around which Occidental, we TCE good have and them. have for the to ship with of voyages have spot enjoy on detail – relationship type granular both we don't done

good Equinor. relationship We also have very with

to will take time certainly bit more little analyze we a So, in the detail.

emissions, some invest with I is you of attention despite can paying you at the in much And the and comment current if TCE. said into the best have slowing some intelligence. the that, have the the that you you amount decrease earlier across if doing down terms sort to we in of is moment. which years. from comments, achieved very the handicap investing systems using what superior, may, last are off two, systems, we routing that didn't have that pay in some you're those a said As consumption that to I they my And compared what three fleet similar, not share earlier, and the fact example can we weather therefore, very scrubbers I really using we And scrubbers, And guys and previous systems of had artificial the amount into even to ship. operating goes sort systems, of of

not was had having ships way the or days happy and real too which going to long the not is the the having anchorage. correspond auxiliary about did vessel we very see The ship some too more terminal be the is the arriving into speed needed to that needed. And at So, a a at engines that our collaborating importantly, operate spend asked that. time is efforts can. next do or often, running, accelerated but cargo certainly early we was Still with race the with race. We're about step our the terminals and with best with a think finished to clients because, I to

it so between but a effort I would consumption the that effort, involved the think parties collaborative see many emissions I has like all to the So, and really opportunities a voyage. be has industry to decrease an that in the to


Jefferies. Randy Our next question with from will Giveans come

Randy Giveans

obviously, So, was last this VLs next time, VLCC focus that month. around those getting you're year, on four this month, the expansion,

focus Now, charter the has the the recent acquisitions. two and with Suezmaxes resale ends two on been time

So, the late? there is of reason on that solely you're Or Suezmaxes to fleet? better as a bullish more balance is

Hugo De Stoop

pay. on we bid that VLCCs. opportunities. were the we before, get else we No, value. had a bidding at to thought A those. price We creating someone was a to the did didn't that most We of clearly, question prepared They Suezmax. it's the two price week very not went We were

that question size, a demonstrates more sense what makes of question terms of a it's is it of it which not So, return. a in more

Randy Giveans

of that EBITDA contribution, INSW, on there portion the I like, guess the extension looking thoughts of either for necessarily or asset there, opposite, kind or that you, core any your it JV one selling again, question, buying FSO, at INSW? not return other a nor on so the thoughts updated for that, from the

Hugo De Stoop

had partner. It's to us signed giving It's years contract. certainly jointly studying the extension, XX before and we're obviously contract And two we're recently into new studying a our the visibility. into years very We something good it. go of we moving that with old

us attention, it's things need a the is whether or us whether it's a whether to what partner a analyze needs buyout out, sale. our those it's our whether buying it's analyze possible, partner, of a So, market, refinancing,

sure I because not guess And we All imminent that analyzed be is that that of arbitrage and cons, answer that's need side. there make analyzed And depth what the has its the into moment. and between every and to believe we doing. in want certainly we're instrument, in careful different to we the type for I at as will what have it the option an do market of pros to being be there's financing some well

make sure the in So, wrong the but we decision. we due we're certainly course, right will take We're a hurry report patient decision. take in to to not that

Randy Giveans

Well, for yeah, dockings. buybacks, that's dry pulling job it great me. for the on Obviously, the

the So, Thanks keep work. prudent again. up

Hugo De Stoop

one if was dry saving, last asked you No million question. today you Thank That's But a times probably pushed and and much a that's docks of $XX,XXX the back some for that are not that believe what vessels docks, $XX in the $XX,XXX, go very of realize dry you you. then has lot dry XX drydock. XX brought $XX,XXX, average pointing out TCE thank early we should that the are so unnoticed. times days difference we've that Yeah, if docking. we year, around that


Nolan will Ben next question Our come Stifel. with from

Frank Galanti

IMO of how life its in I a it's effectively for I over guess portion appreciate you is do risk future. investment? and that life of think make amortize premature to you Or newbuilds in on with asset having investment that of Frank obsolescence XX the Suezmax use and newbuildings on useful Ben. about splitting up of somewhat that, general. only an How years, the the the have on this of after XXXX. life vessel? follow about asking to do is Galanti another newbuild, But to way This wanted I before think that

Hugo De Stoop

we extent, by partially It's to it ship retrofit. hoping a we're preparing the answered fact to good have But a question. the for that were certain

you think and imagine when would well I've it become about can will very and the where or that how it today, obsolete, at so that cost it So, mentioned tomorrow, may possibility, less. you cost much time far

correct to that that not say point. purchased of vessel that obsolete we I completely is think become have it midlife at sort will

first of So, answer. part the that's the

is answer that there The a of second the part will be transition.

So, you're ships. when you not look XXXX, at individual at looking

You're at fleet. looking

average, to of XXXX. fleet a your decrease on so, And emissions XX% needs have, of compared to

for bought would you Now, XX VLCCs would day. Euronav, what consume because When a already XX%. and Eco easily economical XXXX today, started a some we day. if tonnes, most of our the And XX already a tonnes at to I a all to period XX compare big already consume are VLCC we in XX ships at probably XX% time, of were progress terms emissions, tonnes

it So, through vessels digital retrofits that the is compare we less. the see there paint of dry even rudder decrease at of believe and we're enable can looking of of progress. buying we and propeller, today to And Most we a we development ships consumption. On those there going consumption. on the Euronav consume at that, technology. when you is the looking can at dock, progress. the the And of that can the simply but that are top we some of retrofits, will things decrease – in looking will is not clearly investing those technologies to compare of put are is research and even the type I see I significant vessels participate When to that in which the engine not progress is that the prepared stop type that

how in a solutions. it we the a in dynamic where at may they're look then, it different We static people So, chances fact is, not on order human many capable many adopting are you of of there of will seen reinventing if course, see you cost people capable too it, in depend obsolescent. we've expensive. becoming world. the the happening let beings themselves, retrofit ships looking in live a where But being And world at it. price And are are But times enough world. will that not live if as today, used of the to be was shipping, them adopt

So, we that that's a at the little Euronav. have bit philosophy

the certainly new technologies. We participate in will

fuel or as try fuel we now have assets today shifted LSFO. and of couple proof that of technologies. then, can between it flexible are have the which ammonia. to a may oil be But market fuels. the vessels using will and other are two one will is and As I to LNG towards And as possible. and be always years, said, that future in be And there Tomorrow, as there sort

Frank Galanti

guess on that, ammonia, part that a any you go future options of made a more a I on up answer, related range. you into point hard Can looking LNG? of last And second, but technology? fuel to you try – proofing at that of add how following I decision more specifically looking last other made, as was you that decision? kind question made to the to understand and that outside is for this Were then

cost to a are Is more is Xx, if a much fuel cost What anticipating like from a fuel to the how it today, For of ammonia increase you ammonia? switch relative expensive Xx? that? you

Hugo De Stoop

ready ammonia. only for maximum. being they be as well have by XXXX building operate, manufacturers probably developed yards newbuild as the there about the LNG the that available technologies are will either all, engine Today, vessels of were only as are has as that think fuel, it? the do with dual much capable And is future. and we clearly, in I to First course. to Either usually being that And type of two as of LNG is future our as combined going the today. How there us most one many for is entirely is retrofits. declared proof. decision questions this question. for making developed, LNG of Ammonia is ready or two XXXX, of a that

So, first that's the part.

were forget to market, to because, the today, we buy the not a So, also have for bought into going to important contract. chance to us let's is unnecessarily if ships Those existing tonnage built. be contract that very so more you an this not add

look it we and for LNG And at the to ready Ready for retrofit. said, the we're so, LNG. ready okay, means

we're so, integrated. And vertically

working I and That's We luxury having by many chance vertically what management. the have own ship company have because the integrated. mean in the engineers we of our

And of the so, those shipping. about improvements, people are constantly thinking but also future tanker

So, we time capability have been some quite studying the ammonia now. for

to to can reflex had for past, we're future? we've the we go a prepare that now And and ship was it potential so, what doing. what to do And in best a conversation in option the say, natural okay, yard that's

complicated. of So, at it think will it's very money lot not a point. this I cost don't

So, it's take. definitely want we to an option that

be to slightly the it's cheaper fuel. seems fuel bit in about As a price on The early decide put because, the fossil place. are obviously, as than a is far infrastructure fuel to of LSFO. LNG, talking of little is we the the concerned, it today, too being type But

can in it's And entire the emission. fuel. reducing net There system of a further. zero be it fossil we so, quite it doesn't And off. carbon future solving equation or solve capture frankly, the being might still But called

people we be I But continue people so, lot looking that's at not clear why to not. be think of it. winning in And criticizing of lot or it, that to technology a it's it's whether going a interested you And and have it. praising the

concerned, have about of brown game, you're talking then times the you're sum worse a is ammonia it's about price you if want as than even talking it's today. green today, LSFO far As or ammonia, ammonia, we today, because probably if what three zero

green when cheaper that's of electrolyzers. huge about is producing instance, especially to Again, talking a electrolyzers certain the And more, are extent, not as electrolyzers, all. very ammonia the for ammonia, And yet that that's it will because been today Now, of today, be. the produced. have fairly expensive, first price expensive, you're

fuel, electrolyzers down. if the that decides of will that of in type we which projects it electricity part go can the of expect to that number a be will the green, today So, is And produce infrastructure times. price another that's from to will place come green the then sources. ammonia, the be that the there of of and renewable means Then that's price three equation, if you right industry have suddenly put it's has

Now, there's a compensate for price. is of been excess around And lot levy carbon supposed a a talks carbon to levy. this

IMO, for better a us way, it's a held may And at I being form. would entire Tomorrow, European much time. industry the to European long doesn't pay something So, same or it's It's times don't of shape that three be the the also something cover the times carbon willing it has there continent. one discussion is for which world, clients that fuel. just expensive. talking exist. if today, discussed three is than simply God exactly knows in it that that. many place is a may the And as our the the put more It's around in which for levy. anticipate been But in And


Tsung question from next Our Webber Chris Advisory. will & Research with come

Chris Tsung

touched fleet in composition. already allocation, to I regarding most just questions throw the you And been of one earlier. I good wanted that on spread guess the asked, capital quick have a

Is With like target at are more? spread the the that in as you the that amount with in business you has stored just of spreads guys down the widening guys have looking order kind usual? bit, strategy a there Or changed? draw of to Oceana, fuel up

Hugo De Stoop

X,XXX by is is, refuel pricing, here that, lessons. the a there one to of and terms has think control. here, instead strategy mean XX,XXX in learned always ship as but of certainly, And that buying a onwards, or trying great we've a things. usual, Euronav a point bulk, improve in we've a quality touch of I learned also just of to that terms tonnes in lot going from advantage there, it's lots to I business ship of of that XX,XXX or this with be of lessons What

we has report ago, were to now proud QX, it. on $XX team us did expect more that. I'm reporting any can that said the we release, And were you more and And So, closed. minus of is a QX, not been when mark-to-market. overall million we in profitable. Because particularly year very That as project at press

I overall, Euronav to impairment the And much with the style. it because But project going report expect And profitable very whatsoever. so, think on has us it been you that's no forward, general. cannot the to to But benefit the market learned, to we've continue the fuel which much be could is do is we very into from hope what procurement pricing. in integrated of discount what

Frank Galanti

Just question. quick type modeling on one a follow-up

You QX there's for many QX, already you docks already guys have more said docked how many many dry vessels XX how and have that How – dry in QX? for QX.

Lieve Logghe

for We QX [indiscernible]. to started QX. and then completed in And be QX, had two have XXXX, we completed and then which are six eight, in of the which rest scheduled of


now This conference presentation. concludes question-and-answer our session. the And has concluded. Thank for today's you attending

disconnect. now may You

Hugo De Stoop

all. you Thank