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EURN Euronav

Participants
Brian Gallagher Head of Investor Relations
Hugo De Stoop Chief Executive Officer
Lieve Logghe Chief Financial Officer
Jon Chappell Evercore
Chris Wetherbee Citigroup
Magnus Fyhr H.C. Wainwright
Randall Giveans Jefferies
Omar Nokta Clarksons
Chris Tsung Webber Research & Advisory
Call transcript
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Operator

Good morning, and welcome to the Euronav Second Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note that this event is being recorded. 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, August discussed words. a of uncertainties. contain on The XXXX few risks and this forward-looking the and call Thursday, based may information like on XXth to statements say

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

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

Hugo De Stoop

to you, today. Welcome Brian. Thank our call

is some earnings allocation comments the forefront run our through firstly capital QX at of our also tanker to themes run our enable decarbonization will be on in Head This in to sector. look at snapshot potential, financing, of investing through latest but simultaneously current sector. the current our for will and of to the the then technology rejuvenate outlook Euronav I and of before highlights the fleet return discuss strategy. usual, strategy will to market As Lieve, a I our Relation, more and Investor our tanker again then investment details the CFO, tanker before Brian, in the

We and to first toughest turning had not Slide in proven highlight X if admit markets May QX years. page. to the has the we equally, in freight quarter that early said recent that was I'm free more challenging. factually, So have

during to have too recovery. cargoes. anticipated, tonnage As in not meet QX, production freight much available recovery materialize. simply, increased growing was crude few crude a rates OPEC+ of members chasing too did demand Put there The

and has $X.XX drawn these barrels inventory However, this are spot headwinds, levels. has in there not been to not year. traction seen in in end enough The of pre-COVID some VLCC, also the day result Suezmax a dividend the Euronav last OPEC+ positive to the will been per nevertheless, in have back now seen in rises terms onshore of to decade. reward share freight per Both the of tonnage offshore distribute reducing current levels patient and signaled million market. shareholders. levels has but to QX between delivering X signals. output gain of rates oversupply Despite the the

Lieve but in X Logghe, Suezmax you. where VLCCs Finally, translate where the walk price segment, demolished Suezmax X our in the CFO, some especially financial world Lieve, the segment, were the that, With will fleet. pass VLCC that into also over in high scrap over to recycling through exited recycled, X steel highlights. the to the last to I months, and

Lieve Logghe

which our Euronav's focus X. as illustrate quarter is to has Thank capital strength, It you, Slide your Hugo. been we highlighted. maintain challenging on a comments

liquidity our stronger our below Slide over leverage cycle XX% previous stated back X, our remained with in has XXXX. freight during the objective building markets on Looking of

Our self-imposed complete market Brian, now leverage increased program now within run the year. Liquidity Investor and investment pass I liquidity, reduced way half just later, our on is which will but at our technology, Relations, through the of well dry-docking has with Head to cover limits. XX% our point in will over new Hugo slides. of $XXX million to some

Brian Gallagher

look tanker Thank as you, the that Iran. are to through view. call time have the not which This the you commercial spent remember, wider Slide Lieve. a impact are some in can on from recovery last global identified, to continued We on see the of particular, Exports, the These we to rise fleet. our cargoes, drag throughout available trade going in continues from market QX. the illicit X, in to be

detailed period. to months fleet XX rather Slide seen had that more high forecasts give surprising, key - old analysts exited this number to were freight to some Slide to be. this look background is encouraging 'XX. in the this July, look where only We the try than market points the insight X X. And very report behind being on very Slide we've in of in begun throughout the recycling. the remains pleasing is the over What Suezmax same This to is markets earnest, and challenging? X. VLCC also tonnage, has resold over the more We older clear XXXX the on actually selects sector. is is our into we've then, X some at prices why secondhand data pricing XX so recycled. has X exiting being VLCC to which in of but What start Suezmax recycling VLCCs end the and Moving given expecting have steel market With

production on sector; the Slide in rises X good, Middle February. and the seen pretty these the since East; the Firstly, nations production lastly, left-hand in see the we the see secondly, side core X, shale you at we've has U.S. OPEC If of Russia. slide, look we on can based and sustained looked individually,

X, freight XX barrels far once more day. helps but side per is we year of encouraging only rates of exports and that However, the range to grounds that wrangling, robust we increases of the mixed. short-term and XXXX. increase optimism that in per of on Traction barrels the Slide gain seen. a to of X. expect as look picture continued thing, detail to Exports have of pattern exports Slide the in between initial I'm same steadily of OPEC+ production if look on right-hand percentage explain in the with there a slide, by fall, follow This really growth. million and the million some production we see On picture, export day we XX as and X trajectory end are beyond July, the production eventually from million between plans August further production the this in that follow to more After we've outlined early this can would overall

to data peaked should Indeed, ratio available. VLCC previous start barrel this do level translate X but into translate Bloomberg always in rises onshore to back fallen barrel available cargoes has according global at levels with into the of indicated, production to in averages, below not increases since. As cargoes June, for higher and exports, production then the early available year of slide inventory levels

million required barrels medium Looking term, get million areas day an further quarters. the from this the Overall, X end back barrels, out to additional and X beyond over translates to the production plenty to coming we output. this for market the scope day on the into of per of for medium-term for per improvement demand provides levels Remember, will barrels and XX pre-COVID tanker basis roughly annualized picture VLCCS. X of of support do key year be believe

Looking required again, emerging growth, and agencies demand itself slowing tanker has the batten consumption nations in materialize forecast being our a We Slide XXXX, as XXXX. as on the speed XX. this to XX market consumption then which ton costs take beyond of have strong to Should as XXX vessels look of to along recovery up but due discipline then at ton the of in pattern also further lack by most freight risen, Slide not growth shows. market this and very saw per transporting correlation last day Slide XX, rebound in bunker by be And cargoes to tanker barrels the partly that, that a return in by Tanker have XXXX. rates also since and we adjusted mile QX mile is Clarksons XX% reducing maintained the and speeds million to already growth at, equilibrium. market of cargoes. XXXX will The perhaps capacity

future now the Chief response to quarters. outlook Stoop, few a to So level for and fleet I be Executive, for Hugo, would our were of that, back to With increase the De see pass in highlight cargoes. to if for recent investments it the over outlook it speed capacity, -- back and we higher to the Hugo will up you. coming

Hugo De Stoop

to often moves are over was with have with the peer the markets. capital strength during our of been of the unfortunately same all to past times on maybe in markets, our our approach during basis. normally more been nearly kinds Euronav the year from returned has billed balance which amount has facets been importantly, and dividends fleet active far below active tune share volatile, been and buybacks. is balance to platform of leverage This reduced million period our looking in sheet less of optionality upper time, so good will, thresholds Cash many The balance group cyclicality investments X per but expectations But months, have $XXX and strong linked. that potential. we in sheet believe a has and Thanks, the is XXXX angles, with improve seasonal. and shareholders provides our quarters, modern, all comparable terms XX million the environment. Brian. as cyclical consuming a has Such a the via the sustainability also cycle. The we've capita returned sheet cycle the allocation Tanker the allocation therefore, in need though shipping and during poor part X/X difficult with illustrates. earning and back is with return met and dynamic retained both our We securing amongst of Yet XXXX Slide $XXX an and progressive markets target strength rate most X we past that liquidity strong of decent nearly our of funding designed of assets, its of different is ensure cope extraordinary our age future times. the more of capital to over the

to why now wonder when may ammonia But those provide future addition, LNG. you propulsion and a of and assets In flexibility it degree fuel why technologies. comes and/or

XX. So let's Slide to move

fueled at look the always We our Without tankers first will or now, ships are produced. what expensive. to into either technology already are, foremost, and a ammonia COX also to produced that's are service provider, it's those most already addition, ready clients But and lot they economical LNG soon ever be reduces a want. LNG we vessels. any emissions or available and converted is a still into but

reduce will So a and retrofits. technology, and be by will which should but this tank to to the one will is those eggs support ship tanker is societies ready, owner, we and ammonia yards, customer newbuildings therefore, in strategic believe our Euronav classification is the this there to into both XXX% flexible. to be flexible forward. not Being for technical a shows fuels fuel fuel. with emissions We a are of today's And we remain these basket. unusual compared Slide to winning wizard, from going investment. competitive, we between working be advantage, of XX one provide we're manufacturers, allows involved us the ready also not which one for all Ammonia And outright don't XX% that should of putting this future. technology propel ships justify will engine development XXXX technologies, hard but need but remain believe develop in

XX. Slide to Turning

levels when obviously, most Both now a of outlook stage the by and at XXXX, terms on invest very XXXX, consensus times Historically, why loss-making vessel our we XX% counter expand invested platform cyclical the on undertook was quarters. So upcoming cycle? were rates challenging to transactions freight in of basis, this for in Euronav at count.

due filled delivery new and we even year to order have contracts past eco-VLCCs Suezmax further of now so, the to the or sorry, and or X -- X due over over Over taken delivery, taken abandoned slots eco-VLCCs next years. X.X deliver X or

LNG right been of JDP, or with all a This we piece place. Hyundai the over the Leverage should constrained program. and call fuel ammonia given operators. of all the the XX% balance the as million tankers next large sale the into face in of vessels the dual older have of the LNG past latest now of capacity with forward remaining assist signed Yard capacity development supported screen below XX for or capital months, joint carriers. recycling itself, the XX it, capability XXXX, in add but and is be So slide target ships construct past show as also around the has actual puzzle years, $XXX beginning such and our the technical fall back surge the X within container partners on achieved threshold we ammonia technology our the VLCC orders now? in This of into latest Why to technology. development either Suezmax dry this the dual landscape Firstly, crowded XXXX, largely we and and technology is to signed as ammonia by X the bulk provided until attempts to fuel why months, should late sheet. our over

and to pressure will league they buy with scheme EU the bottom to XX% less far reward all with tonnage obsolete recent Also, the regulations regulation start making fleet. reduce the emission of operational intensity emitting are XXXX as trading the and further carbon Secondly, preferred from hit carbon emissions will add those lower tables. will EEXI

to and are I'm and mind stakeholders and holders. reduction being we shortly. banks, question have there Euronav to action grow strategy be reflected decarbonization believe, we better Q&A investors in other see vocal pressure, far, in commercial taken sure increasingly emission starting are affirmative in comfortable will the and by Lastly, already additional ship as taken position so is

final the we let's to which for the that traffic is move light number have Slide usual now had of This years. on a is XX, So system slide.

should increases a to fleet, decent of today, has either remains we see the for and winter reduction which amount the of depressed static cycle immediate X.X recovery been we crude QX a require would million oil improve of following quarter As the recycled. barrels The stay northern to demand said demand On the summer Nevertheless, a in the until likely and press be of between by our seasonally. part ships release average, or a Hemisphere. QX. the challenging demand oil sharper so

with next. said, rates the as reduced by raise seasonal of year world or could the move So demand, of speed coupled Brian already of the the up the of the end beginning

noticed other we On occurred the has recycling simply not you have we a vessel supply factors. would side, expected would supporting level have the as column have given on downgraded that supply

That session. pleased our remarks. The back attention, it now other unchanged. I'm concludes Thank for operator factors you to remain a pass to Q&A the your for and

Operator

[Operator Instructions] The of Jon first Evercore. question Chappell is from

Jon Chappell

you. for Hugo, first question

it this older kind years you've have growth? recycled, so disposed XX of evolution plans your ships a of of values. quoted, relates funds, between a of of it of your disconnect a is a amount and not activity next And ton market handful the but fund of over prices. know like the a to think is any to out I more you underlying rates evolution bit a are fleet, share strong timing asset there to underlying secondhand some sold, there there of of a that are more speak, as feels next The sense. Are just leases fleet stage fair use still makes laid old. the you and older of to I maybe that lot source recycling, S&P selling of into

Hugo De Stoop

say don't first Well, we need do me that. to let that

not But because an price, the is clearly you're or compared opportunity the take share right should we absolutely compared when one market the see market freight it's the evolution of that thin. opportunities exist obligation. So there those values disconnect. the And a very to our definitely if is to

i.e., Nevertheless, vessels vessels of a every that years XX the is opportunity XX, heart are on be very developed then gone. of the at owners. problem also some the the resale on is thin. in years, is that have. of by where the old of in mostly, Unfortunately, mentioned, have rather been could you spot in ship categories XX, which a where sweet very looking interest we illicit volume why XX XX of exchanged, side, been sort exchange. newbuilding or for are vessels we know the that being thin. those contract middle and do find And Suezmax that there exchange that volume we categories, the certainly market. which And So lot front, is age fair that is we years. in other there at have There's has And are old, dealings we of can amount But the hitting the being the the trade,

Jon Chappell

you've Great. especially or Okay. seasonal there's potential And assuming export months? the lot tanker as even this to the of few going Eastern I really after direct output a Russia production with up into be is lagging demand bit using where countries. my little Do to summer you not inventories feel summer exit outlet as there's not X and The of their Saudi, valve like relief western probably you. Middle last where automatically and catch the wondering, Middle guess, of the interesting. going continues something this I'm to to those U.S. Page are East other to related are transparent exports, as be a follow-up rise, component either this the turns some just cooling highlighted Brian, some up. their a here. X generation And regions for months. countries, that of is U.S. increased I'm going during maybe for And

Brian Gallagher

that’s think And I point, certainly very a echo those would commentary. Yes, Jonathan. I good

little I if the would with they’ve from East drivers. has uses. for we been or think as that across a yes, investors there’s engagement some East, anticipate we’ve to had. has it’s And the there we some moved to I that picked within But but we’ve today you July system middle we their not disconnect Middle there increased in what definitely I at that’s core further think I because say, sort demand Middle increased definitely deliberately seen get numbers, IEA, all the is been some cargoes. definitely And suggesting through backwards of We’ve a wanted you’re that absolutely of data the translated domestic think that production snapback the X terms Obviously, seen pent-up be But will out. be of the and going theme production with bit that’s the exporters snap been there own, is think those as into sort point. coming right a at from point. – using

course, we will to at to production to this just change we yes, the to background, Of will you’ve some illustrate in encouraging be think I think have at that increases like and it QX. maybe committing with think what explained second now least than charts would of OPEC+ when year the numbers it But point. happen, year-end. can between I that it’ll of regular is into better half have those And into course,

Operator

of is Chris question Wetherbee from next Citigroup. The

Chris Wetherbee

stand in you relative new as talk of And think talk of what fuels like wanted and they preferences, bit look could do Where return these propulsion little to one? vessels. profile the in about I you to sort fuel the here. guess, emissions a you if might vessels terms think yards if of have I about systems traditional forward

Hugo De Stoop

right conventional of be can I That's of their we too have before that early tell. booked vessels. good decide they a converted ammonia. should LNG be It's could question. that deliveries. the deemed specific the that now and capability mean, burn as we being vessels have They that be and will Until very converted, probably into vessels sort to

the of it that anyway talking did those deck, talking return and First part relatively anyway. What weight flexibility of will $X.X we compared the should money and to would have spent be hold where fairly that have million, reinforcement tanks so specs, you we're We're mean, about And we exactly order the I been to the located. $X in about to conservative. foremost, The same. call there? either will is ammonia be invest what which million, amount Euronav the LNG or tankers have specific potential of it's for the do do different that

looking there can, it whenever engine the on approximately we're development on be have be so that, so themselves. system of as tanks engines The the time. ship be remarks would specifically, well room. And that my decide yards, those to looking the leading the piping on And manufacturers, then, are would it deck, second don't of should as we you there that or put lot the system we ready in at at to technologies engine but the at course, a already in fact, may to engine piping part is the development open is noticed the like introductory MAN parallel, same new the retrofits. quite a that have both And be more Wartsila, of

and amount do possible in at features will converted, those sort conversion stage. The minimum be So still to will unknown. conversion later if to engine the have need to of the you a is an that order has you be it today, of spend capital

similarities. what there we of to that course, a costs vessel, it Of are do and lot LNG know on an

$XX a at that reduce point, to be why certainly, because a that should beginning. our an XXXX that but as we there the advantage race some reason early $XX between we of it emissions had the adopter have provide if a be for So and will million competitive is would feeling we will clients. we believe think do being contract. at a the I million that And only And

customer-driven. So the we are as in I call, mentioned earlier

vessels exactly that's whatever generation. happen or So wants, should the the customer anticipate produce. we what will to those next we on able And be

Chris Wetherbee

Okay.

I you just come to light helpful. back that's appreciate the light, moment. then to green light, that I have that red here. on slide, a know sort follow-up, color. slide I a scrapping very for the And as of that's wanted downgrade Okay. That's yellow

guess think I'm to scrapping? change of what's that what expectations the the do we potentially or need back embedded in and the -- see graphic to it? in And see either those an I do acceleration the hit get of then where terms So year for numbers curious people can your half maybe you do you off bench in

Hugo De Stoop

I ball I Well, I wish someone or had crystal listen would wish a to my prayers.

rules believe capacity I what XX is think following: it they in second last surprised way that more been think that pretty those identified which limit. at do The all that The illicit quite trading. way do said we is of them been are there still and circumvent should anything have at it have we half in probably I are trade. is we the certain is, that are and going Euronav, much the look the repeat than scrapped, call, don’t the a trades, not that we but astonishing, the have ships in that the we it. last we I’m basically, about call all can can And to explained is we these what so

they ships Iranian are going that because same trade Venezuelan see and we into necessary age the – to not So transport don’t crude another be oil. of they XX those won’t profile

scrap dry-dock, not of to ship. owner they the It’s ship likely capacity. of decide because that the and is end that So facing that at decides do queue almost the earning simply to a is at that therefore, go we well, what are ship And the yard. think any any back should are – the their to with we

mix natural of but a that profile have So talking the should ship. same predicted be scrap of the already, happened not have second and we half a will sort we’re about

because We arriving of a the wouldn’t for profile. that Iranian there be the floodgate today sanctions recycled. surprised about recycling course, would there, we constrained. are be to there should the is into not imposed by is a to new see age And same the ships rushing And U.S., capacity number we if change in yards are if open ships the of ships talking trading, then, those that the

be that the scrap believe have at current owners we so are highest would which that to the we price, XX snap years. And more the than seen very very, opportunity quick in

Operator

Wainwright. next Magnus H.C. is question The from Fyhr of

Magnus Fyhr

Just the fleet feel compliant. had the fleet how about and seeing as going as far fuel question a forward on you

support vessels. mentioned you fuel You that need compliant develop to

taken before an these have if invest are and we balance cycle some do How too being generators, to I be early we likely of cycle years? in that to new You holding have steps the likely now big cash another X vessels to in to vessels. here think And XXXX. X, older up down you the generation on get next probably

of also balance So how cash just curious, up ships? and these goals do the capability you older that generation the the investment not in giving new ships to meet

Hugo De Stoop

XX of reach no position that clients. always at you and different be to they when they When age. segment we're when market. ships are form And the years trading look not at a the redelivered as you talking itself been some sale the emissions, purchase look we mean, quality owners to age I in way of than about a this have Euronav more the with And vessels. their sold, what forward different operator, will the sale regardless Yes. of XX surprise in on have with a obligation think was I leaseback of years

ourselves. are so positioning we that's not And where

forward X which XX we do is time, are And said at good between because looking believe the vessels. to surveys, time vessels to selling sale opportunity there speaking, we generally and as So at I XX.X, between the a is we from that. beginning,

concerned, As opportunistic was acquisition. far of it bag as the a newbuildings are mixed

that the then of containers, And we fact new and You that it were their saw abandoned was bit of are see them. slots bulkers, as more obligations. likely And then available more taken beginning few 'XX, opportunistic. technology so contracts a the couldn't were we 'XX, The meant on very layer landscape, for fulfill same we contemplating some -- we until owners who have that convert slots. end busy that there know some that continuous that's from by add this we that LNG, are to flexibility the we of little and could a dry very,

Euronav the what approach. at what we purely regardless to the surprise have busy realistic and to an reputation emissions, the for outperforming yard, maybe should from is which exception that are the perspective. did I a is not therefore, have with consumption the And being also flexible not a to tonnage, people, at So done newer in at be and but only you we guess, anyway when or not is emission many against build recycling -- be that tonnage of emissions, look need we all look then you

potential capability or earning on secured influenced the a emissions normal with is a the emission front. that on So is even of by market on market doing more

XXXX, when balance We to the get that. retain. do speak had And yes, we when we what will the And another market continue we before about values rid dip very you always have do versus guess are that to cyclical. what is high I

forward. should And will the so I don't going change, it think same that this and philosophy be

Magnus Fyhr

would new that X in new the the the quite X, in like vessels. to from years with my oil need support regulations? to you over charters And build Do feel do you is, right. bit follow-up so you vessels continue next Or comply companies or opportunistic purchases? new you've last here All the a X invested years, more the

Hugo De Stoop

everything strategic need opportunistic. to be the or do I we think that

XX amount we makes I sense, strategic XX% have the that in from will sense old that by but that participate years also money of big guys high-pressure counts. by XX, having modern calls, what or a return it's There perspective, not its not think as a for we a previous a from just contract. and mentioned just a of It's have the mean, falls all not And had we cover our value that we to and XX% this have for of, to be that has the organized that the that have said, that than various to we enough I also, Shell We lot maybe render might reason done, that LNG bit less against support mean, would consume Shell, in are the we Total. technical I would little We it's rejuvenation technology a was it's but pay to I premium a fleet say, to to vessels We different believe ordered a at the compared details ordered low-pressure service. that LNG. you lot be If vessel. just given invest by ones risky technology. us and a of felt standards customers, from aware are versus do there vessel always a you for we more without technology. especially the explained. are I the were it Total

now The So but stabilized. up, market price going going premium technology the the of the of is has down. price on is newbuilding the

price, scratching press on the from I of But how busy let's or their emission specialized read to lower what what our meet are lot majors, oil lot in of it customers that head the So seems a requirements. the see a in customers even the need. those

always or and we independent. being to can be analyze they us or for it's will continue pass we come to there specific always So worth building market, a what ships they whether and whether to the come to prefer want

Operator

from is question Giveans Jefferies. of Randall next The

Randall Giveans

right, the of guess, amount, on relative looking medium to at long-term charters, have and fleet a relatively So size chartering strategy, handful of your I small but you fleet. vessels to your pretty

the are any charter appetite or what in low, thoughts for rates plans tonnage? So still too tonnage today? if to are And out your chartering

Hugo De Stoop

a Yes. say, question ask me beginning. the -- but with we let would base, with start a daily the I ourselves on that It's must

high rate you versus are choice $XX,XXX a when day So like a the $XXX,XXX XXXX, out in environment, a in day. enjoying, at say, of chartering we have were you

going or protect? decision you maximum and do So many guess to at you be point the of, Or X it's I I months in going to you know the know year earnings have low remain in to today must you it's I can forward. forgo you remember the that looked do that point. X And at indeed be the we spot and And quite opportunities. only market? that make super that on cyclical, painful high And order protect going will rich

handful of have charter. taken We a

redelivered. months X them of correct. They X between were absolutely have been contract. You're Most and

And so with or today, back X years X TC for TCRd. only TCRd VLCC X then we and are left too [ph] rates now, the Right are just low.

make for options. the And the time, ask just to they X will X years guarantee or most you of loss. charters So a

level not top a you the that, still you difficult. away a that's is profitable. optionality. And lot are not that not But that better are it's is -- of spot of at So giving rate, than on

And have ago. feel time right Suezmax. to was, as it is front. charter So taking concerned, time as far I on what, X, we more we don't X it months do believe is the TC now in X the

that true out when big want. to We what can there are are that's some conditions seems a are insist And We looking TC what different we out relationship they user. owner optionality. It maybe is very than are because traders. it to And an that vessels that like people multiple there negotiating. different it's can portfolio he market, client or a maybe than is owner, for his into behind a in reason, that because we or TC charts the the he ask real are end the when to the but another not real on accept

watch TCOd to many is there or frankly, other the the very we not [ph], quite moment, one the market or on ITC at carefully. So but opportunities side continue

Randall Giveans

in repurchases fair possibly will for the sure negative share Got it. eventually? And $X.XX with dividend to me. a be remain the the capital at it Is then guess earnings All last around primary and share with or right. XQ return XQ for even of assume I question Fair.

Hugo De Stoop

Well, we have done dedicated obviously, a that. have we slide on And dividends.

buyback. done have We share

done capital that allocation. We and capital investments further -- well, have

I those every I management have of the has that that part we explained the that also strategy, it's of cycle, will do. every in -- on but what entrance part the and it remark think preliminary it's future an on the

as buy instance, shares, shares with the last capital. have [ph] shares, I back right there's we done Euronext $XXX people have I see York years worth been We record back can and to, what far for we've my as so just now. of of million concerned, year that have is in far prefer New think Why? as years then the than concerned, is XX X dividends the XXXX, themselves doing listing shares. a for what track as for remaining Because more once you bought

the we in good. it which did that think I So order was

and then have ask you should you me, share less if because buyback even you little allocation for think the bit current guess done a to entrust shareholders. been is, that I I maybe last and If can what best a ask do bit the capital. the to management we better is capital dividends that But it us, it would with year have have more little they

Randall Giveans

And Understood. $X.XX how is just Or minimum? -- a quarterly it. you new -- Got that the think quarter-by-quarter? Is that? dividend, a that do about

Hugo De Stoop

sorry, had always. a always one not It's -- new we Yes. minimum, we had X so

able have to we are distribute full had X We years, For dividends. distribute $X.XX X year. to or and we able per dividends, now were

we of we small money, forward, as and that will as to for and can. very With believe going it's amount long maintain try we same policy the

Randall Giveans

Got for there, you hit $X.XX it. semiannual Yes. a and quarterly. then while

Operator

is of The from Nokta question next Clarksons. Omar

Omar Nokta

follow-up to on wanted Randy's. Just

bit advantage market a probably the taking actually bit more solidified discounted But and share you more know been here, NAV. near-term of have iffy to you is stock a with I follow-up bit real now last little a and as signs cloudy. there year, a just you've price off based a of And that's got question Just NAV, whatnot. were Obviously, about Randy's buybacks, on the mentioned, relative a aggressive recovery. the capital activity. of returns

over think wanted a bringing market you to taking buybacks? back more maybe yourself as you this months, Or So dry-docks liquidity, thoughts the and on forward say, here X the on about being either thinking aggressive active, there? just more updated X think, about Any step those focusing do future? next to the just see or

Hugo De Stoop

think doesn't seen good busy gap. And you when But that. the is close believe doing versus do discount simply on and even year last buyback the trading. when million, that discount price we future. lower in to even mean, just last that long continue where close want even -- bigger to term, obviously, are mentioned. the we usually in the say, frustrated have the I mean, it. that further we doing benefits we spending we look about gap. but don't $XXX year are I gap really yes, a have really discount NAV don't to the opportunistic, or I this I we everybody much it a I at we buyback comments year to also closes Because way the I though be is are to share program. to the discount. prefer a I we this it, And stopped NAV, We found It had minute year ourselves I because as were already getting don't same

So continue discount company. to And et the are earnings NAV, more fluctuating a dividends, per I values long-term which of the for term, to for the for to cetera. that think according there that long shareholders means you're of buying the the share shareholders an back your vessels, is not shares be the more that

I cannot been to busy. It's And forward, continue we you just I can Going what generating. do else. the that watch anything are have capital we tell mentioned, true what with we will very we

We distributing about mean, investing back, decent $X have quite now billion. busy in dividends, talking money. we're been very I in amount -- it's buying a of almost

nevertheless, of but will billion investment almost a lot $X years. next levered, for the be course, Of X.X that

the X a will that or we believe time are in the ways insignificant. lot of happy the capital spent the shareholder at as shareholders, not we it's And for we doing about they of So create value future. have

Omar Nokta

a for maybe you, for follow-up, Brian. emphasis either more a that. or That's just little clear. I wanted Hugo bit And just as get to just on maybe

sort sense relation of export As developed to have to wanted on of you how kind really here X whether a the just mentioned, get higher market the the some And Atlantic a VLCC can eased. settled to cargo like give U.S. having what you're color kind East? West the into seeing you Middle in a has mentioned spot from from market it's cargoes Middle you the bit malaise here has East counts the side, comparison since Africa. on of I that Any of in months past or that over recently.

Hugo De Stoop

Brian, do one? with go want that to ahead you

Brian Gallagher

absolutely. No, – Yes. Omar, a question. Yes. it good is I it’s mean,

of some the a imports, bit Chappell U.S. said is little U.S. regards as the earlier, in more of to which seeing with exports. We’re than seen volatility offset, we’ve seen of terms in increase Jonathan some we’ve

tended still East, marketplace that XX%, in I the to capacity. in other. ships for of is slightly Middle what the very a improved very fit And But has mention basis. of very, in excess sort of XX% it’s terms on which that each the net remarks level that did still of on against So off much the VLCCs excess actually

Delta had they last IEA we I surge nice months reflective increase say, – we’ve has some in think then reversed obviously an the back what supply variant X the And in the and we’ve is today that restrictions from come through the with variant the very of seen there. seen as July the in cargoes. over market of available – a have June, of the demand, and amount therefore,

not least say, from been it and in a encouraging while. it’s of it’s the to to So in adjust like we’ve through but been has to again, growth, being And that. it’s growth, I the think we’re I seeing signs. Middle been I unfortunately, East we’re quarter. to think this West persist elsewhere. of pockets Like think, in you going it malaise. looks at imports But some offset U.S. to now for a that’s probably have Both shown for rest But going is Africa. this a And nutshell, get And a and holding sustained. of yes, followed pockets pattern sort of to continue

the, also you need, be do patterns. various be as we across earlier, we sustainable and So a], said uniform need the trading to to X:XX:XX.X more

Operator

Webber is Chris Tsung next Advisory. Research from of question The &

Chris Tsung

the about guys back in optional ask for? third much you How to exercised that wanted that just July. VLCC I is

Hugo De Stoop

as of price, matter same was the fact. It a Lieve?

Lieve Logghe

$XX.X million.

Hugo De Stoop

$XX.X million.

Chris Tsung

Okay.

with of So $XXX liquidity. or X the about that newbuilding $XXX of Pleased total. million Suezmaxes almost X program current coupled with the million

like sense Just sounded pay of or like sheet, wanted additional have your were the that taking like vessels, by delivery? it to the debt? when there flow, you to they around for earlier will a is to be also, cash on all guys balance financed consideration but get And timing going on any

Lieve Logghe

indeed. So

A good First shadow. a of due then your to terms in momentum on XX% financing, to be delivery. find first Chris, in delivery. market. to question, all, the be the paid indeed we are And payment amounts finance, due of of paid most at are XX% Indeed, on there is to the looking

first So in for QX on XXXX. be It XXXX. in and XXXX ones the water, the now will the currently coming delivered to next is in follow work XXXX then And progress.

Hugo De Stoop

about newbuilding, is so when usually, ratio And But the you're talking easier XX%, to XX%. it's get XX%, financing XX%. the

which We available for newbuildings not of for are purchase one market. more time necessarily ECA and in financing, looking also second-hand at type

maybe that's advantage. our So not

Chris Tsung

to to miles maybe level? like internal? go Just to presumably, it fleet the just ton covered to you my ton Or make speed get turning down Brian like at of stocks wanted sense I And just came follow-up, X its and regards the sense we with like in understand, that impact a XX its guess a Great. how mile. or I the to for can Great. I overall are thing near sort of this? guess of half back for trying on Slide there's to [indiscernible] or that what would

Brian Gallagher

are measured by fleets those that these they've since are only Clarksons, and monthly on I speeds been think, seen records we've have XXXX basis, Well, a Sure. mean, -- I since the the we begun. lowest Chris,

growth more throwing the So also with a some that the way of as expect, mile that just of vaccination Clarksons it's with we the most with back I longer-term to do But and that there's illustrate 'XX, a capacity another situation said seen as and an to being think miles a need moment. for fuzzy that are growth get and a a as passed belief of we investors those get And at expect we important leg we suggesting we recovery as on markets run of that multiple will do point will traction we any during we're That are see our in impacting 'XX consumption amongst is 'XX. rates again, which to it's have the hopefully when I to these then all anyone just we really being coming that up and fact of very then which the XXXX. And to be, else is batten -- to QX QX rates. high countries observers just some investors to can a very agencies 'XX our traction. response. fact early just is on our to lights And OECD factors see have freight emerging But before there out giving come ball marketplace. before, then draw the trying ton big start But levels crystal will be through. are try as variables, picture X for lot

fleet capacity in come the to reason correlation if of concerned fleet see we there, little better terms fleet speed the the to sense freight in because but X-stage So back freight bit XXXX, putting volatility will we speed some out rate recovery if makes about for strip the story, That perfect rate. it. speeding going there's between up, a of see that a response as as that we too to XXXX, mile of not about and a ton since the a that also said that is bit I do that's think before, we up and the XX% of be

trying always. calculation isn't factors need the certain picture we that simple involved that tanker to a be in just multiple just consumption There are get it's that paint market aware level. it to to to So a up as

Operator

would Hugo back session. like Stoop question-and-answer closing over to concludes This to turn our I the conference for De remarks.

Hugo De Stoop

to second time Thank forward with you to hopefully talk And much, Bye-bye. you. say, the very news. next quarter everybody, thank a call. to more look earnings bit little you to positive Well, just listen

Operator

for now attending concluded. you Thank The conference today's has presentation.

You may disconnect. now