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Euronav (EURN)

Participants
Brian Gallagher Head of Investor Relations, Research and Communications
Hugo De Stoop Chief Executive Officer
Lieve Logghe Chief Financial Officer
Randy Giveans Jefferies LLC
Omar Nokta Clarksons Platou Securities
Jonathan Chappell Evercore ISI
Gregory Lewis BTIG
Kevin Uherek Deutsche Bank
Michael Webber Webber Research
Frank Galanti Stifel Financial Corp.
Christian Wetherbee Citigroup
Magnus Fyhr H.C. Wainwright & Co.
Call transcript
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Operator

Good morning and welcome to the Euronav First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] I would now like to turn the conference over to Brian Gallagher, Head of Investor Relations. 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, May, 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 www.euronav.com. 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 www.sec.gov 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

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

Hugo De Stoop

today. call our to Welcome Brian. you, Thank

outlook the the financial our of before again we I look Head return our Relations, during Lieve, themes cycle our to at Investor discuss traffic QX take statements. who questions. of highlights provide our active a before through passing usual, and lights As capital some and the the then in to run current comments market firstly CFO, review will on I before will on the allocation will Brian,

market had highlights one Slide recent as COVID restrictions have of to materialize Market rises we were out to were years. QX So turning repeatedly kept traction toughest was the yet X as admittedly market, and demand in failed related or gain to barrels either is page. applied freight of again. the the recovery

our say we we press recovery tonnage [indiscernible] signs in is There remain are, There not barrels. OPEC available this cargoes. slow. many our simply hope encouraging abundant. ships into As translate too with today, on release will more of but production, This visibility the enough which encouraging plus however, tapering are and is

are invested it having is vessels, highlights. over taken latest financial walk in with role and closely shipyards potential pass cooperating our their Our to the they now And sector have the to VLCC point emissions Suezmax Hence, to cyclical. is counter-cyclically, to the invest terms you. of through we transition the over I and will what we believe the about maximize reductions. Lieve, Lieve, the need ensure to operator an is And be and CFO, low to can a when opportunity energy future. value. in bad to think times you in

Lieve Logghe

Thank at looking you, QX. our when financials Hugo. X, cover wanted number of a Slide On to I for points

strongest to been. self in details funding remains our below that has sector freight Our and Hugo rate earlier. remains on Whilst the risen challenging $X the available over slide was This leverage of limit just of clearly gives challenging sustained XX%. facilities our XX%, how for the cash. with under P&L with pressure billion that has Liquidity spoke our imposed it well

the will in and and will This docking will cycle even ensure to utilizing during be dry accelerate be during placed. freight active returns, very challenging been undertake rate our have Euronav optimally we a quarter XXXX profitability when program. Finally, the this market

Looking X. Slide generation. Euronav in focused remains at the on more cash on now generation cash underlying detail

working tune the improvements million sale cash, QX, fixed of the thus allowing cash VLCC for cash dividend further driven and of We leaseback manage. further capability our has from illustrates. which have the underlying of in commitments was payment Newton fleet This million generation sheet This capital has in renewal the X program during to further $XX of releasing to QX. improved Slide our $X assisted balance [indiscernible] as our

looks on business We forward. our include Our sources. how remain our to unsecured of quarter extension number key to signed our during financing. We and funding sources activity an sustainability X continue other upsized an we at And our to funding a driving Slide increased diversify the facility banks.

links, including shows, slide helpful as sustainability market Euronav. An costs milestone Investor XX couple over reduced features Brian are denominated. priced no sources to for rates, a our interest funding us, beaten. a Euros, the has third facility is hand our themes. the targets now dollars, will emission to it of feature is an are Gallagher, Head euro of A current I of additional of Relations if are number to through which in important specific now our if As run million of

Brian Gallagher

and emissions this VLCCs fleet Thank of you, remain our part we values goals either in meet during whilst announced profile complements market more power delivery load terms Capital and This we Poseidon have two structures. have a improve steel We the and commitments QX. as maintaining efficient on has in our and In by tonnage, to significantly selling COX additional coordinated balance into quarter freight four allocation operationally took leaseback two directly targets. older past sale months we XX the sheet emissions. of an so, remain to with cyclical approach VLCC just emissions vessels our course to a this recycling with range forward trajectory or counter during of allow contracts will will our earnings a to investments, active our continuing simultaneously rising during strong the our Lieve. renewal. improve of Principles, remained executed cyclical Recycling Euronav as into capital Suezmax on and we with of that fleet a the sold this or

XXXX. now ratio allocation annual strategic X, that also COX but target. meet of shows view, realistic way, Slide ensuring the the of the fleet to the those shows is our record set is efficiency capital Euronav as AER very meets or a Slide obligation goals. In by Turning simplistic the to our trajectory and emissions and a on target X XX% part global that Euronav achievable in its IMO the this reduction VLCC targets

vessels and so, or accelerate. the that and vessels part past XX seven older is are new compliance, in to key capital capital our Our which recycling of looking months we of recycling selling into nine a

timetable for to fast agreed terms week around Iranian key Iran. expect of barrels at the the which markets to should two up bring Now yards. start back very and sanction into we need as time, believe the rest many fleet, as over commercial last remains situation the recycle to themes This in suggested On for have remain that tankers to the The place see of we tankers, soon. reduce to same believe happen, the this a months. in some earlier for turning have older of will the moving. markets, we tonnage XX, firstly, Slide that trades then move taken older largely so-called positive commentators our to year. could needed illicit trade some XX Commentary will agree, returned this be the XX If to we that be the oil overall, were it much

of to theme rest feature marketplace OPEC return Finally, Slide barrels in last on a a key or in this for We me, continue will XX been so. we this missing for which believe be the several calendar have the year. to of years the the

bringing impact to and in later difficult actually shows, production will As cuts very million markets continue into barrels crew India, export markets. key COVID difficult scheduled back Clearly day tapering how tapering month, X.X of into are make this with the predict slide July, much well crude plus like to the per start OPEC circumstances transit. potentially it this

As basis, leave on X XX around per requires need of thumb, we turning about into with a exports a tangible annualized VLCCs production every barrels million day rule an but a of of encouraging end of the to with. now I'll up on back sum to at And are Hugo, and Hugo and to sitting you. where finish signs our QX. pass currently signal to traffic lights

Hugo De Stoop

you, Thank Brian.

upgrading last recovery likely to, additional receive our much just XX these first scheduled tonnage this year, I to questions. So term amount for traffic back markets. very the some time, confident rising not in since just us mile by in output, surplus our Provided tapering as push differ could our the positive it reduce then fleet. the is start for This sufficient to of traffic delay to cuts lights lights. does OPEC restrictions QX Brian a or of large crew through change do With the we've process to production COVID you prolonged our for also in but the past alluded not to but plus tanker that, medium reflect move to renewal is XX in remain continue This market. Thank reflected the operator in fleet the engaged but attention. in start QX, tanker during of months. that prospects is your to our is And the we will take over it OPEC pass

Operator

from come Giveans with [Operator Please Instructions] question Our will ahead. Jefferies. Randy today first go

Randy Giveans

How's How team going? Euronav? are you it

Hugo De Stoop

very Yes, well. you And Randy?

Randy Giveans

strong. hanging All Well, strong. Hanging right.

question first acquisitions, around guess right. the I So

then further of why Suezmaxes more instead bought VLCCs the second out ready, fueled route maybe guess, I a builds you with or fleet term couple put kind it here, And VLCCs, participating attractive? had ammonia in building, majors comes from oil some new is the some ready. go some hands of to when modern of it of LNG that So LNG expanding longer the that of new the of there.

Hugo De Stoop

question. you Thank Yes. for your

First of The you can second consider Suezmax accurate. very so as them all, were resale, be hand. let's

Randy Giveans

Okay.

Hugo De Stoop

that to bring change and very -- can advantages to probably the specification, The which can fact that we the then we unique hope before slightly grabbed because they that them further are us. build we is grabbed better, we even Euronav fact

As as sort year. VLCC VLCC, earlier right. But cancelled It's the those this you're were slots the building. new far were abandoned the when a XX of

XXXX. go if different, you today, the be may the already may think to in [indiscernible] well be very be timing it I So

build more time. resale, had buyer. also bit take to an even LNG fuel to [indiscernible] that was The that of idea will as little sort sort more LNG, And been ordered vessel but no of by dual the advantage. the take a see what an the some they had building had obviously we a wanted -- and we dual preconceived fuel what though yard So option of a VLCC previous

know with sectors. you dual what’s ready of And And flexibility. as because not previous we're with LNG that that, you with that we we a we've in happy get fuel. call, s to the said so are were LNG the contract that’s very other many what us against we available transition because not they gives provided probably it, vessel because busy have maximum it know a said is as build Having

on for that part, And and of so your make contract better the vessel LNG return have fully during amortized. duration the is the a you part that

part to would participated tender respectively are return ones, our why exercise the I because [ph] were were different. by not put that the won have say, of Shell. out of And tender and the Total We that reason IDs there or we the

better it thought And off we today. so our we meet was were doing -- what and we're didn't doing we expectation,

when we transition, decide have what be best ships if be them you scrutinize to the place it's will to you you best As order of the opportunity for those charter secondhand investments. the continue what the book. in concerned, and the your But is in in it's also is infrastructure and fuel spot are it, will that call in and far to flexibility choice whatever be on when as play to the transition, a Euronav to and out. market, want have decide think will you And I not return available at add may we're much that very the when later, later the order true future to propulsion

Randy Giveans

more Yes, question all one sense. fleet guess for on the makes Thanks color management, right. And that there. just then I

with you year, maybe those terms this turns? [indiscernible] able the numerous June, In and strength, to the before likely how then charters right, are that forward have better dockings right the of the of do year, sooner this to you kind look current pull market today, market And levels? time at you dry at willing later

Hugo De Stoop

the of of Well, X/X almost XX dock, that's our fleet. program dry

the already We've around early timeframe lot in So those we very you quite of speaking that XX half. did a done can didn't We've of is and have dry number because months a a pulled many a in we which year already dock, expectation of management do 'XX. vessels. high roughly

indicated What because the nothing. you I not will take time obviously, voyage how play your [indiscernible] forget you than if dry go have near remains even And the a dock on by cargos leaving a to in side, do. And in at optimization no on it's find full done. I will dock big ship a slot. any is, you you're a that to say, a have also role just have a take We with, the need better mean is dry because lot to if let's be to it's economics market that that need money where contribution vessels that to guess to the of low many let's that you the you what the

that including is of with we all a you can that prospect the [indiscernible], permanently. an And slot accommodate another and that we circumstances the we we a take vetting, analysis have that consideration lock always flexibility. is we is potentially So to around leaving are and will the not rest dock dock, need is assured when this there degree a the the which do that a that dry into does positioning that dry dry When in account. have ship dock

Randy Giveans

then quickly And it. time appetite. charter Got on

Hugo De Stoop

at advertise But have much. we it interesting are charter moment. are ships of Time too don't charter, that a time number maybe we the and on they

Some are X X, charter of X, time them long-term years.

Some the that of are. much what shorter policies them best for or the time are at charter always vessels we employment look

the So a forward in and seen number [indiscernible] done date, of charter with concern those a being we've start our market.

levels most the vessel delivery specifically a in of type a to think are to levels, not either to the of compared at against these 'XX do starting ship, particularly then low having in in you not and when most we modern, that's those market, us. look interesting, vessels, I XXs. charter historical the that for the equal of hope not very we type levels Compared or attractive modern time that's can fixed what are

think I a short-term, different very the picture. on it's

will be I a consider year. As don't said, I great mean, we 'XX

you are the of all some four ships. at what We attractive for market, acquire we continue that So as in or to a building And are resale at spot last people. time to may the look they taken are the the seen we have we more deliveries, than on have short-term new instance, market. press year. taken particularly which paying and those in moment, Those have the some is available, that charter,

So we're doing year. your first

Randy Giveans

time. Perfect. Thanks so much the for

Hugo De Stoop

welcome. You’re

Operator

Nokta next go from Omar our ahead. Clarksons. will And question come with Please

Omar Nokta

Thank you. Hi, Hugo.

afterwards LNG us deliver those have notation. It a fuel ammonia sort cost the and on the like you entail Is will Can how of what to go maybe just give on would the what playing a out. of structural the and the process installation these Just for timeline the sounds estimate follow-up wanted there back for installation to for maybe sense then new any with is things VLs or depending such you buildings. give can conventional system? of are ready, on

Hugo De Stoop

here tankers, louder retrofit can with the VLCCs If one, they the are ships known need equipped tanks Those the certain there the will higher will mean we are we On be important deck. either a the one, that And sort most specifications if there and one hold by which because be. levels. What more they modification But ready, level and on exists to are level, already talking better The ships the readiness. the and put the about have structural can you LNG take the Max of probably that? do the be will LNG, the level those tanks we're is or it's today. until weight, three ammonia.

need a understand, ship can equipment, you of If to structure accommodate idea. then the and never order the as that's to opening are ship a touch those you good very in heavy you

then the course, going engine. to So is the to ship I the that about molecule already really to some piping sure And but thing structural the fuel that is that second will of And gas, prepare of a for will engine think point type the be of make from to here priority space. ready. of of the need you can view, you is the you're lead to what drive mean, type it liquid, what do

that but define way is more doesn't type to and are them far than need too piping that's you you prepare exist will as others. the And that because Last will least, corrosive engine as our concerned, will of for some early of And segment. yet ammonia do. the not that probably

fuel LNG because the quite have then ammonia know But the far you're as would use. lot probably amount you of today. it's you we off will today converting too not of sure retrofit full to the will make you're And go preclude will you better a three, what expensive. level if far to As modifications, were to the for early capital more that that into you wasted LNG And a But ship. doing modifications from then is those concerned, it be dual is.

the is to So can XXX if translate numbers, a of is that probably million. I in something in the region readiness

of of not especially advantages no and are at ship. XX tanks tell depend a that of will look the and probably XX to need If believe to into the society it's bit cannot of what size your the on classification foresee. then that that XX you toxic the the will be that be. and exactly but ammonia And may we enormous, so it. going it's the manipulating will so do to get I than ammonia, you as that need a that need that's life is which you LNG, the is next from. that more little quite want to safety you what years, you cargo some you up will other been LNG study and forget But it's not million in you the let's bit also believe around about excessive. choose a the to when LNG, the and you ready ammonia And for on has little both on more skeptical if normal same From a notification (), tell people region, million which full you because [indiscernible] I it fuel. get that the basically probably to what today for another On course, with bits you a course, than modify pieces come notification X spend level, transported years. ammonia, And will

And how we -- happen, million known. is will question event. expected safety prepared we're if after really it that XX When and of fully can measured But that concern other again, so XX that the a the fully for. more use lot modification therefore to be are million it's we sure market will and a so talking depends that make ready. And the of fuel, when

analyze in U.S., But part a infrastructure 'XX. they're that your in the you what be the still is is you demand need will have there place in long-term to Ammonia As more project. expect in LNG most of to you but is customers. it know, we the Americas. building it, from also the for Certainly

LNG some will like they will that's to a prefer ammonia, because what use produce. want emission customer some have customers zero fuel So to

fuel. ship interest -- plus see customer demand or when ever and fuel that fuel when conventional those say, think the going I market determine fuel, would a and vessels conventional ammonia conventional from will can dual and and burn so I into don't we plus LNG. convert the fuel our And tri the ammonia, LNG in you're if base to that

of even it mind that decide And very have of be future you terms important capital, relatively important. into So costs if asset. it else. amount a high in right to that's convert stranded something up make it's not to you that's because when time your very to it's going will very, pool, But the

Omar Nokta

Thanks, Hugo. That's quite clear there.

done to delivery XX which basically shipyard structural million, $XX So -- summarize to just of system, say understanding, million just post during now install And at $X.X million, then it $X going back my $XX like sounds effectively to what construction. to flexibility. it's a is a to million an have it's be kind it the to is LNG to

is at the And really, so only time post the delivered. yard difference

Hugo De Stoop

caveat, So it's probably fuel LNG absolutely your you is if south dual $XX is a a million. correct, VLCC that maybe understanding which build vessel with today, of

last shipyard minimize we owners, you fantastic see in $XX guys the sort given, So year, I as to surplus would region million were to $XX done your a trying probably Shell more tender you're the million conventional with together with with say then some those And when us the a won and was have who have costs. are of job number Shell including what working a million to vessel. the paying, $XX of

little cheaper, not a that bit much. So but

Omar Nokta

And Yes. ships one than significantly quick more to going on. and one Obviously, the eco Got just it. are mentioned that replace. ships that just friendly advantageous, and be going the you carbon to follow-up they're --

made think you ships that announcing the regarding comment order in the release they'll the I Just comparison wondering, that to replace. in

you a just ask out some of some vessels these in to making the you, are they're would as or scrapping comment ships? going that you a to they tonnage one-to-one you your older be deliver, force basis, wanted older general. will say, that general Just saying of I

Hugo De Stoop

I would certain way. a say both in

it's but have does on that means the leaseback time the total in that to tend end their takes years the the sale of they leaseback, look at obligation and vessels sell vessels we done the eight their at vessel no which we that you then contract, have before you and sale true so on and redelivery and Euronav, know, the reach leaseback when owner and very of look on end at because each and our will sale wants you there life that we of back depend and when it. As purchase vessel, of special whatever with part those you the are is over

us, no may new a at come it's value call that longer of sort residual residual of same protecting the arrive. it's value risk, as the vessels For time will the way and we liability they

So, I much more and part redelivered talking sort will vessels not scrapping was be management, feed lot of they [indiscernible] XX more. age they old, about of fleet a about echo are their years will to category they when that definitely also so to but the be will owner, those because of consumption used consume categories but

exactly So from same time. I ships you our perspective, From they global at perspective, it's assure that be at management. same definitely scrapped probably be a won't time, those the fleet will scrapped fleet cannot the

Omar Nokta

it will I turn Hugo. over. Thanks, Understood.

Hugo De Stoop

very you Thank much.

Operator

with next Jon our will question go And ahead. Evercore. Please Chappell come from

Jonathan Chappell

right Thank graph. Slide of you. the accelerate to X, this bottom Brian, your afternoon. -- down on Good it move you you're was to trying said,

quicker these strategic just with that In closer new thinking that addition there to dot move about better other Euronav a ships in you're is ordering play any to manner? emissions, blue to

Brian Gallagher

question. there number try But a already. dropped the to also highlight [indiscernible]. with the in to progress we it's that sort a the want are It's the is that And generally, strategic Yes, of but things. shipping capability of slide good and direction stylize, made

of lot don't We'll which research For we investment to development COX regard an we just That a it's going had selection a multiple Hugo very this, save but of of thing, third talked $XXX,XXX. emissions. it simple which last And identify paint. process, is say our fleet a a and money of that between and with $XXX,XXX that undergoing spent to think a on We sounds instance, this year. about driver year.

are the of and as things can structure that self some also age. identified you the there we help. the But fleet in of about terms it of So is do course, largely

been it's regulation an you’ve to to that that the But now of kick XXXX shipping older And and discussing, the [ph] if deliver and that's on So course, what Omar does, be get understanding IMO next will teeth again, get awful can dovetailing lot they put will pressure try [indiscernible] just some tonnage. of vote that -- of objectives. sort to on because just with its emission month, real some through going 'XX. in everybody we with

this that is about But fleet the Jonathan, things So lower most is efficient of which emission. yes, we the to the a on do. all and simple answer age the that, largely there question, to obviously can going focus are fleet some be it are

Jonathan Chappell

I And … think don’t

Hugo De Stoop

of that I Brian when compliment if Jon, dry do we a on can doing ships for the just we obviously, I dry take beyond a we mean, that dock, what for. specific said. that are add lot things goes the survey dock

data. those equipped have X lot last softwares of have sending and the sensors, lot sensors the For we vessels of a of developed hardware, years, we a are our already two-third the with feet

crunch co-developed the to never and the everybody and therefore collaboration with same the onshore because can and our reduce operation the people today, the on better systems between people, been data focus, than has is those has that have We emissions. and which reduce consumption deck

save X% here, you etcetera, of the at there, will that is percentage quite day. end of But etcetera. the those the collection number a there's of things X% significant So

the So, yes, when that you're things there those when a go those things running spend about get business. them than investment get significant. running was field software you're well vessels, talking on quite Brian if you paint exact from money same is or supplier you a of you are of very we But even number of to just small to all part returns better have fleet, large can a going can paint, strategic, on obviously and the amount of you're the XX the discount call that

Jonathan Chappell

I the Understood. to I weeds follow-up, too don't don't want here. for -- get my in

as reflect for sale that do emissions your So you when -- and well. one bear does second, with me in leaseback how but a into

starved You not. to still own companies ship, leaseback liquidity, for are you and is only the and certainly but they're know be tend do it transactions the I technically, sale ship, operating that don't reason most but when you are one the is, Newton which I ask

sitting So a raises has a of kind over liquidity. giving as well. helping bit the you’re also odd wondering your And little the of when dual transaction with purpose breakeven billion a you end, an $X but [ph] of if emissions that of just with money on front I'm

Hugo De Stoop

it emissions. on help No, doesn't

your have redelivering of as report as so their leaseback said, feet. integral an a when emissions, those financing it's your upon you are But people to so way I ships and part still we your sale treat And of XX-year fleet, anniversary.

So dry you’re saving that dock. on

vessels it's measure -- leaving get this to the want of the fleet compared the to of out that or really something fleet that modern the redelivered. when and most they emissions your these your by consumption you vessels are see time one, sure make You those you

have 'XX. at the some some year then last will next year, redeliver of four, and that probably the we in the end So

much leaseback. So and sale that's very the why reason we do

good. what in future. know, never them holds The which values, the pretty we You were sold

the good a risk means I obligation, us that that more think account back, on value got counterparty knowing so side bit no the purchase rate there everything for we it's that is into mentioned. them I just there still taking that little is taking

Jonathan Chappell

you, Thank right. All Hugo. it. Thanks, Got Brian.

Operator

with ahead. will from our And Please BTIG. question Lewis next Greg come go

Gregory Lewis

-- markets there was pretty U.S in in exports good realizing any good morning, at terms in and dig volumes. Gulf impact and you around it late increase to crude like miles around in crude activity of bit in a a mean, volumes I everybody. that least couple. loose had was afternoon, seems I Wanted Mexico? of the pretty, U.S that Hugo, really little Thank Yes. It reported accelerated. April, the ton

Hugo De Stoop

stability, really acceleration -- we there's we those crude saw of exports. that yes, we see U.S exports. From that no So have

month month down. be one up, next be can So can

So there. a it's trend difficult see to

very may now. understand geopolitical there's country events quite export the large a country you of As versus one well driving another

Here to they I'm because alluding miles. which our friends the crude, to U.S if voyage, to better found from more or you barrels of Venezuelan course, buy that, decided the the going ton to precludes transporting But way to a do China. is Iranian of -- Chinese China, that longest a

longer of refineries right what exist. to those on, life have and months, does, that the of they really from now may life Biden our terms ton disappearing, the never is difference interesting, buying that, in we to hope in for few of think ton [indiscernible] the happening there some So And barrels. barrels think some I I barrels not be a that or that be optimal top are versus it's going forget see because quality shorter the to there getting what should reason back only are lighter administration happens no is on But barrels. next not And tonnage very that heavier in what sanctions. would

Gregory Lewis

vessels the just way almost the are that? that Okay. of kind any of those you moving are vessels Is or of a the the touched Oil look -- of -- vessels of And in definitely or that vessels you more Company we basis Iran. imagine detail whether give expect about to think it, it I can and are like doing just on of trades? are of Venezuelan percentage least And National they're types color the the vessels leave some there vessel -- a any you around of doing discrimination, to of owned market. at kind hearing that [indiscernible]. kind kind curious, types moving everyone's about that Iranian lot these but that kind Is sounds at that by the the volumes that on companies

Hugo De Stoop

of to think I profile on those will specific we vessels. numbers I have one Brian, kick do age because the that

Brian Gallagher

to we on Greg, they've the there in Suezmax from monitored XX Slide fleet. mean, the that as touched it VLCCs telling I from last trade and up the over Yes, the [indiscernible] XX Iranian months that numbers XX us XX,

VLCCs the including X% X% about of the trade Venezuela and at, Suezmax. of looking You're

list as Some traded have and all of of that at to [Indiscernible] sold the which of all ships monitoring private and sort analysis that over a behavior and well, age that excellent been off very or they are in engaged common owners. to they've XX recently element those be ships, they turning is the signals least. XX of of monitoring tend And years

all and ratings relatively -- [indiscernible] the very don't be because are society ships around going the back view [indiscernible]. of not coverage trade it's the natural legitimize Most have or if it's fold, numbers. have So insurance any And immaterial then class to these into of bring them large advantage. you're Iran our them would little

them giving disappear technically trade the would a it's not commentators think working, [indiscernible] will I moment. and [indiscernible] a if And as assumption, like-for-like if but that back a against well clearly disappear, you lucrative in tomorrow receive So we they're which basis like think, I as natural [indiscernible] engage fold. today, on the at into expect most would them,

controlled, long well So really us have face. or for surprising would that would have been as of the something policed But be been have effectively a is that place in it as we expected. lack sanctions that to time not

[indiscernible] is developed. is disappointing So that it this

Gregory Lewis

be just vessels, And -- to these clarify, are not these Iranian … are NITC to owned just

Hugo De Stoop

No, no.

Gregory Lewis

… okay.

speakers] Okay [multiple

Brian Gallagher

speakers] there's start ships to to to largely a was the of yard since expecting over and owners trades, after are It -- of some and go who've I reputable going the popped private them themselves, [multiple XXXX in this. they've to are these up huge which them the couple mean, owners maybe hands amount of sold scrap those.

So I on work a can is basis. But it this independent accredited ship-by-ship take offline.

So backing. intellectual it's solid, we pretty feel

Gregory Lewis

Super helpful. very much, everybody. you Thank

Brian Gallagher

you. Thank

Hugo De Stoop

Thank you, Greg.

Operator

come Mehrotra Bank. will from next our And question Please ahead. go with Deutsche Amit

Kevin Uherek

Amit. I Hey, had this is Kevin on two just from questions.

there's supply do level? think when when was, that first And and into balance? be Hugo, to XXk you occurring in like get recovery question a you think market demand in The of improved, will also come to market XXk balanced rates the will do kind fairly really the back but obviously

Hugo De Stoop

were same give to going I question. to the you me you was was answer. the going hoping ask I

reputation all that Euronav foolish. I -- think think the that I have for we being not built at

market I is extremely to difficult that call. think this

to you restrictions be of then demands, you go more our enough enough, you before if be on cuts a some the X.X unlikely you lifted the pieces barrels to certainly to in place of COVID But have have to going to positive parts OPEC, it's releasing need of many the that have into market. being You from world. the fall the It's We not improvement impact positive a coming million number that market. winter in will an territories with hopeful see XX,XXX have plus.

their needs travel cannot lift doing international exactly predict All have when impact. is an when that I I to restrictions, at predict Europe resume. U.S will of the the like will cannot completely moment.

So when absent we happen, for it's if you be it's very give is But sure. that's patient, accurate I going me I a more we probably of to to happen, that you and that, going need to to those exactly give you. But can dates, know tell difficult picture. think

Kevin Uherek

Okay, more accelerate have renewal able my to seeing are what you to the position market great. efforts. And Are the second question in fleet environment? given seeing Euronav's in the capital this market fortunate the more in deploy. of was, you terms in sellers difficult being operating

Hugo De Stoop

are ever distress I sure. few for that one not years banker not months a shipping that's We're best seeing gone after mean, or the of situation, let's forget we shipping just through. has

picked some we of value cannot go for We can situation low a assets cycle. distress have in know part you months, high it we the So situation. call few go. to think was which what Over up the that the how from still I

sorts it etcetera. be that much continue interested with resale other people up deals, pick the contracts, was in have second hand, together pretty be of we of to all to there everything And picked in up We market.

transparent. or So relatively you've being market seen those transaction

ahead they the simply at don't and and take this to leave what their the values interested in unknown turn earnings. going [indiscernible] The operating territory, better market. of time are. to there when the better are And bought that the when or they just to they profit going return is selling to vessels were and guess prefer Some want problem factor is way distressed not because up the of what are prospects them people them, they look they've their

And the spread assets. those on so a of bit to it's many meet difficult of

Kevin Uherek

Right. Thanks color. for Great. the

Operator

And Research. Webber our Please go come next from ahead. will Mike question with Webber

Michael Webber

morning, good How Hey, guys. are you?

Hugo De Stoop

Hey, very well.

You?

Brian Gallagher

Thanks. Good.

Michael Webber

Good. I a and loop Hugo, some to last the good Actually, to of that dual was fuel economic the economics ships wanted around segue. case. question general the Good. back

would answer of inflation ahead when even in mentioned, by turned commodity what and market cash in we've You corner general. has inflation comes it obviously paradigm different a into deck, your that think, asset previous to supported some certainly a seen just the flow, be I in like seems and we your

pricing today, just stepping or it decisions, that does How or economic ships. that with So asset help for higher I you've tonnage. step as there's either varying of associated to going guess, stands as steady order of there. because in the kind does vol the pretty the think Obviously, itself into degrees that fuel. you -- hurt inflation underlying degree the economic a be expensive at secondhand case curious, into more ramp about fuel dual yard, got But the is of it

it curious as just what those is a case ships from So it or economic for stands perspective, dynamic today? the I guess, hurting fuel helping dual

Hugo De Stoop

out. as you there many elements point Well, are

no we expensive on also to see coming When today ago, think when he's that ago, was values. the that's industry. I saying speak [indiscernible] seeing mean, them, than the selling going there you scrap yard, because telling it or price increased are I And to is X ago, they're steel But to limit coming we're from point X So is months why the is your floor months months definitely the stop on X that steel more back. it month. the the that at steel is is capacity to month leave on you sources some the increase,

Lieve Logghe

as Yes, indeed, this steel, high for demands, is environment pricing see this affected fulfilling description no XXXX. capacity, market and mainly [indiscernible] of [indiscernible] hence for steel the by the we now not enough [indiscernible] increasing, indeed high but and

should Normally, high. the come very point … turning very, So

Hugo De Stoop

to going online. Because more capacity is come

Lieve Logghe

Absolutely.

Hugo De Stoop

the But take and several the close and it's to capacity open bring I that slower tap online, oil not the you instance. problem a that for than months. order like is you even it's in mean,

Michael Webber

Sure.

Hugo De Stoop

fuel switch what years same other those obviously that maybe few very advantage. so in what look with ago, case. expensive. refrigerated the the knows oriented a little not that mean, any cheaper not it's and going really elements, an get at a later you the LNG to have other think they're to fuel pay, more it mean, to gas that that's few moment. And LNG, But -- be LNG we and who barge the fuel of months economic delivered I bit something said carried which I people you it For a than the when a into if it's ago, it The -- liquid, the at some account see needs the the I as is bunker away fact is more advantage Because much taking the that's don't are price price to we you be are the But onboard and what on. far today, LNG when is elements was -- vessel. people have

[indiscernible] or it. come we other will is it what already about probably The be is going is element it be affected question. definitely place. carbon are will in still tax, know many by to be to going it are We Europe thinking for system or levy limited carbon to a in What ETS 'XX. Europe Europe

I administration think place. Chinese the in have a Biden about is a scheme scheme, thinking the

case, their emissions, to better the And then the [indiscernible] suffer COX as or COX the on that know, next kilo COX, And basis is methane. or ton more it to the as but of levy? it So including in going the per be fuel the Or environment all per that all is emissions. carbon affect methane relates is greenhouse COX is. a emission, equivalent, and be per far methane damaging far LNG from going then will is, it price COX the of question what is it's they all to to on and we gram than gas

means to can't are have ask really I you question, of that into account. all the which but those So uncertainty, take elements the there's lot a that

fuel any we that a can bought for the advantage. the that is flexibility into of ships, from choose making so and that me prepared And big we future they be for sure type again, in can those

Michael Webber

Yes, I ship the is a to visceral the forward inflation and get slower the guess but little bit that and in the react. you immediate price, reaction curves premise

But there's near-term, point, on your those you've a to So economics. a opportunity. headwind bit the of got

a sense, At to required conversion do process, or have You curiosity, to a I it's for in mean better Do that timing the [indiscernible] you in it. more yourself build pick choose optionality and you kit for had you term got that. the a a commodity driven, oriented say, your that or ship? could from or price about didn't more a if you the more sensitive less underlying that ship oriented is two or in now, to year terms you commodity relative fluctuating, than service how think This itself? a of call make

Hugo De Stoop

at different. same scale you [indiscernible] ship, of some and a obviously, the let's using No, say, but will your LNG the world and be the probably certain I freight. on about And therefore ammonia be fuel think ship spot, on return are and And quite going so the ship, a you play because very get be market the frankly, the then road, conventional will to down you different. that eco and will question time are price of amount of, have mean, it there put going you that's time, ourselves you charter? to more Or the years market, we future, if will still then your a are still still probably XX conventional project

be Your TC will different.

know don't people So building there what also many dip why toes to it's buy. market very new that's And they the their not complex. into because to

Michael Webber

a definitely for it's can't now, tourist Yes, in sure. that be market

the appreciate that. Okay, that Thanks. time, does guys. I

Hugo De Stoop

Thank you.

Operator

with comes Please go And Nolan question our Ben from ahead. Stifel. next

Frank Galanti

ratio, slower of efficiency [indiscernible] emission vessel Hi, failing be emission on to to the for a speed the a Frank older XXXX? for guess is And IMO targets. these strategy follow-up vessel with to this can lower fleet affect go keep it on wanted importantly, more reaching Ben, absolute level like our to going big But targets. feels How tonnage, renewing I ever the much is lowering meet up emissions? Galanti I simply

Hugo De Stoop

we in prefer on fact, the mean, about you I industry, role put play. load engine. speed definitely to a speak that yes. But our the So, to in is

rather on to so if a far uphill, you're you minute car, speed. the to When little a push bit with it's to the speed. push accelerator And you need you the to So your do. the arrive certain don't course, much will speed need like your of on car the round accelerator your are maintain descent of you to per than in more

So depends it's we're many fact, the currency a same efforts in in wind forward pay front more other It weather, to and you the what the off have the digitalization couple where in to shipping And to the and but going going adapt space. will doing on of the expect bit according and little depends on factors. the next and the on according you elements the to is days. software, because also your speed those hardware more that's

current port. the at arrive. sign cargo, put And engine, let's to fuel. the not they also, the you go which you inefficient. save that as you will you're contract will that which will relatively the couple the on I be can So or still with to But because of with know is load is If supposed time question. mean, take have and you when you tells slower, know days precise be on you the in that as forget a to current less at [indiscernible] you upon to meet a your contract. a speed the that you Yes. need arrive that the well they you they And you date become

cargo, he in a call the very most to I -- what the a in and yourself close industry. client, shoes you're of industry just would or transport if little to in bit So a needs is put of a is time and

that afford out to slower that. and much will the normal to a cannot So that so to Because was that too later. ship juggle it a all like wants slower sheets work he arrive it's Otherwise, going shifts arrive speed go be go that time clear. cargo between will week take to within he speed. doesn't the I certain complex window, to the in it just the for that them go hope older

Frank Galanti

of half an JV, other There's second longer is seaways there interested term contract out news at that I the Are was business? interested potentially That's about avid be grow FSO on FSOS. vessels? opportunities that the other ask wanted to good in I the in perspective. two international I buying? then you're stake. the to Yes, In something the my best And a those thing yesterday, definitely. guess guess And question,

Hugo De Stoop

Yes.

that answer questions, because and guarantee you two first business. Before January. lot underestimate I be flow But I I conversation those on those I guarantee you, we've value I'm to value. And line market that you those value merger, you I estimate SW a episodes. zero, going the not that tell when the knows of there in God will with cash the think they there basis, are a of will true under around been

merger value, is completed. is, and I my So the obviously if well, get is, you realize a sure higher what it it's then then than And let's you that benefit. that windows can't believe what shoulders when value, reach if that you that stops do make

special value had mechanism the exactly been when we in if Generate, have excess had to we than same far we that of at party vessels we And dividend. realized, disputed we book so have time, the the did a sold would those any is [indiscernible]. with that would have would And authorized we merger again,

to So happen, opinion. I on bit opinion. merger. up too they And certainly the before not a that's much is, But is mind picking think complete little it's to what my likely maybe speculation INSW market my the

always out? I I us interested buying in we're happy good around do together. we both very they are And values, that, gain going stream out. And partner. them that not we much think us we have stable we a about flow. buying partner think something deals. very, very with to speaking, do, talking if cash your similar Now interested something's If we're so in it's give probably discount, of But do the But of there's from really ideas can a frankly

before value. So to we sell that, need see full really we a

that make those would to is with need whoever also units. happy our customer interested be sure buying in We

vessel. and a not to that decision than just market ask different I you a broker very you a overnight, take it's it's them. mean, So

Frank Galanti

lot Yes, of that the a time. much it. Appreciate Thanks makes very for sense.

Hugo De Stoop

Thank you.

Operator

Chris with Please will And our ahead. question from Wetherbee come Citigroup. next go

Christian Wetherbee

financing to for thanks question conceptual taking the guess want the Hey, ask capacity. around question. I a I

app quite the the running think For yourself yourself to rates point is your be net of need right to broadly, industry we along stands low specifically, as an rejuvenate for about high, wide you're may at sort more it that Euronav, where kind fleet EBITDA, and obviously quite are as debt now. elevated leverage the of even a side arguably and

curious beyond. year, I you So, here. the that know of occurring these, financing some of and market there support in will able how really is how think market this sort open next kind is course the to year that liquidity of to much have be of pretty the available help important and you needs I'm and financing over liquidity be

Brian Gallagher

will Yeah. this. a I answer questionnaire. may say not I

our Your net sector something the use in is volatile. to because not we EBITDA EBITDA debt is too that

debt EBITDA ridiculously it's if to quarter. net at high. the last look on you Then So base

last you low. it's your net debt EBITDA ridiculously base If then to year,

and but scrutinizing oil industry of the more because more change been and off. of you're really, time, every I are that's forever, quite is, that a for have you're we're cannot to going to cycle. we very going her continue what bought has the to that And so, to much going volatility the proceed Lisa least And questions, we are set Not as agreement, of to a is can finance be go IMO the meet of jargon a and comments, XXXX. a in to need believe because the requirements. as there to that providers the into now And long volatility, other your bit continue and if of KPIs. which the oil question the that of And a more clause company different which But to seeing little and service asking the more trajectory, Agreement obvious. said because we the to we really the it's banks obvious of demonstrate that's period company people of means me, requirements leverage And you the capital important are follow at becoming to the translate that forward? because The trying Paris so think that principle able time to in not industry of you complex, going many challenge. own sort to that many prior you're so

to not those To if curve. well-positioned. continue meet we targets, ahead of are relatively is Euronav that think well-positioned, very I the

very XXXX. conscious the are from that to of fleet a world having type. And the are probably We lead And modern and already do the that basis fleet. that before equal vessels we need were a not fleet or you've are ones fleet the to going are renew because that majority the we we we reach doing that. And leave seen very

something think also about as into commented bind beyond XXXX that years, can earlier type assets we does we We and of not that be transformed can anything. retrofit be

focused going a three DNA. it's key simply i.e. were role because like to on to ESG very relatively governance rest been ESG, our finance terminology that. part your the I social the why aware always in terminology is company. elements part, those with And of a the very important and before we've were created, trend, that play was the it's that But that's we ability together created. part, think because not even was your the And in

to we And grow the that to competitive we going are. certainly look feel the advantage this that market. out in we at comfortable consolidate future, are our represent where we and efforts the feel we relatively company, a play So when

Christian Wetherbee

this a out to taking you of book hasn't of order that course do that you that. add who potential sort that's from if not financing, Maybe and an finance perspective lack perspective. of as appreciate and thinking it good shortfall competitive to an becomes ultimately ESG the will really And ego Do guess about the fleet that are the That about position emissions material for for the of -- add the story just we sort advantage really available okay. years would talked the from changed the -- of a the And step for move I kind over Okay, we industry years, progressing a I over perspective, you terms of to do of as ability generally are availability margins, in think we time? just next think in thereof but and couple you of on in answer. there think it capital an think be years necessarily the That of when same players a play and you. vessels further you sort bigger that and or a become forward? sort insight.

Lieve Logghe

relatively for first true can fleet. capital big by effort mean seen talking over so. I right, I on that the about I can of hope and the it's they doing available, the decrease been easier earlier, and who years we've to deep, margin, the all, will to quality. you it lot flight but it. multiple into companies as an that and emissions go said Well, programs companies in certainly the past cheap will really And demonstrate big that it's is think that a there to we've superficial, not it's absolutely to that are be think a you're will the I that it, it's measure decade, taken quality And that And be of flight

problems. investors. investors to where the capital that simply the going that and don't we what what I many on and is more will don't I I believe providers people compared capital so we've spread think seen And in their because to price find pay will the is what that the we that either believe between the and themselves So are see demanding increase materially their to pay of going And it it's not more past, is I have capital, that increase. But going think depends that of capital. funding. to they what

not be and spread that So capital drive have, the pricing such volatility the a then as if doubt scarcity will people of lot a hope, reflected that is the let's you industries no that and capital with forget that And have in increase very will have the on we important out will I market the therefore coupled intensive tanker it pricing. of end, of shipping. in because

Hugo De Stoop

appreciate I insight. that's -- That very Okay. you. helpful. Thank the

Hugo De Stoop

Thank you.

Operator

you. Wainwright. next Magnus will ahead. our from Please Fyhr question with Thank go come And H.C.

Magnus Fyhr

either Hugo afternoon. or Brian. good Question for Yes,

urgency mean, pretty guess, there, carbon to I goals but the built back I non-eco vessels. there to companies, XXXX. X, since award Going some the or get XXX I replacing some and needs talking these contracts, by dual set seen award some of When [indiscernible]. appetite these you're we've has Shell ship to order XXXX. to both But contracts out there's VLCCs Slide to some Total for older aggressive emission more industry about what's and securing of or in start mean, the old VLCC before start fuel

Hugo De Stoop

of I And started think that the is trend the year. on. middle year this last [indiscernible]

term X, contract we for what awarding used is because X contracts X, hadn't the call, type years. impressive, You've very of seen those long those time in we to companies for maybe into which a contract ages was moving quite i.e., seen that long-term

build longevity it's owners order So to the was the certainly required those to those motivate ships. what in on contracts, of

let's You quite producers those forget they into as the lot they are fuel not that. of capital into because the invest a LNG story majors will a all LNG, vested a are certainly see pushing more, interest of themselves transition have that and and

it will you much So really to may ammonia fact, be and can Then majority, obviously will are be once number the between [indiscernible], I not and level that difference charter able or pricing for hit give. the ammonia ships of really their emissions [indiscernible]. ships what next time. themselves, assess and awaiting natural. into LNG, depend fuel think is on the from are to a producer first and LNG That LNG, focused more dual of will on whether interest sort fuel neutral in idea, we who time perspective periods them those of on taking of are an the fuel have the ammonia, which there clients and potential pricing represent we And will and ammonia are the water, of

and I of equalize fuels. of I said, will more absent and that of types success. don't there's those tax, the So price a tax be carbon talks types carbon But as of ammonia think about different big different more different mechanisms to

Magnus Fyhr

longer you. I new couple of to the you conversation these mean, the guess have on mean, for I I wait going ships, build is industry. we longer builds a the on, is order. better the it Thank the

industry. as far the see capacity, you slots do As what new with other from container up as far times, now ordering from -- as ships, yard delivery with filling other

Hugo De Stoop

where the very low last busy. a months. On interested just to of handful to those container building particularly wave that X world is are ships, seen first all in that Daewoo, now has those the There's order the Hyundai, yard more same also vessels a book are And That's carrier. relatively very, means impressive. of recent prompt can gas been long-term those container the carrier. going are ordered segment yard LNG can extent profitability segments VLCCs our Samsung, fleet certain build And that XX% The extremely and in are that seen a we the VLCC, have yards that vessels. the and the build surge in We've of shipping been the than On they ships. order in, other they

Qataris you The the and second order going can book especially to wave XX it option, yard. the building understand of is that the idea does with XX option carriers, what are XX, XX repeat coming of ahead I the

need types ships. Let's retain that of never capability forget the yard to of different they building

order then leave. of some your in book nothing If losing in knowhow have you're your of will and terms the tankers, workers you

always types for they available And building so that building. ships of for -- keep different building they're tankers, slots different the some

that saying kind can the wrong. until XX therefore to year, say, the until for let's capacity per per year containers of XX, is So amount you you're for ships book order is of vessels it's XX XX, build vessel probably from, full that XX. a and But full everybody down

being the much to many impaired going to and So, the overbuilt very container orders the late so I'm from placed for saying not they see that 'XX more capacity are to likely book by receive orders the you're order and 'XX. that certainly saying very many the orders sector. I'm received fact not is and But have energy

Magnus Fyhr

takes that of what's to I for the with on cost. would the profit your mean, going guess now I basic at prices new up? question steel And million what's view there? I I $XX on margin mean, So pricing the inflation deals Right. see. build the think,

Brian Gallagher

I XX, is Well, honest. be think to a gone

are We those We're yards. always always asking in questions. the

that's of of For the that we receive, you of cannot you're what I I similar this announced. level we in well the very But the the Today, is that XX.X. fact at one is mean, mean, spec the profitability a represents yard. is of last the building have secret. right. steel I cost ships XX% week probably kept tell price the ship.

And So by going you that math a what? XX% that can more when gets can the offer they price make those guess up couple translated millions. Well, into is the It's XX%. you. that,

Magnus Fyhr

my thanks questions. Well, for answering Great.

Hugo De Stoop

you. Thank

Operator

conference like any This session. to does the question-and-answer our conclude back to team over for closing management the I'd remarks. turn

Hugo De Stoop

thank pleasure on those it's be and Closing earnings remark be for you will always very call. interest a your much to

Operator

now concluded. -- does And has conference this the for you Thank presentation. today's attending

at this may You now time. disconnect your lines