PRESS RELEASE
Regulated information
Tuesday 29 October 2019 - 8 a.m. CET
EURONAV ANNOUNCES
THIRD QUARTER 2019 RESULTS
HIGHLIGHTS
- Robust crude tanker fundamentals reflected in improving freight market
- Euronav to pay quarterly dividends starting in the course of 2020
- Very strong start to Q4 - VLCC rates booked at USD 60,900 per day so far
- Euronav has 90% of trading fleet exposed to spot market for Q419/Q120
ANTWERP, Belgium, 29 October 2019 - Euronav NV (NYSE: EURN &Euronext: EURN) ("Euronav" or the "Company") today reported its non-audited financial results for the third quarter of 2019 ended 30 September 2019.
Hugo De Stoop, CEO of Euronav said: "Recent freight rates levels are demonstrating that our markets are thinly balanced and that any disruption can have a dramatic impact. Catalysts such as sanctions and geopolitical events may be temporary factors; the market fundamentals and IMO 2020 implications, however, have gradually rebalanced the supply and demand and those factors form a good base for a sustainable cyclical upturn.
Moreover, Euronav should benefit from it fully as we only have one dry dock for 2019 and 90% of our trading fleet is currently exposed to the spot market. In terms of shareholder benefits, Euronav will be able to align and repatriate cashflows to shareholders more quickly than in the past via quarterly dividends starting in the course of 2020."
PRESS RELEASE
Regulated information
Tuesday 29 October 2019 - 8 a.m. CET
The most important key figures (unaudited) are:
(in thousands of USD)
Revenue
Other operating income
Voyage expenses and commissions Vessel operating expenses Charter hire expenses
General and administrative expenses
Net gain (loss) on disposal of tangible assets Depreciation
Net finance expenses Bargain purchase
Share of profit (loss) of equity accounted investees
First
Semester
2019
401,936
3,160
(74,501)
(107,375)
−
(36,376)
381
(168,541)
(47,376)
−
7,660
Third | |
quarter | Year-to- |
2019 | Date 2019 |
175,287 | 577,223 |
1,406 | 4,579 |
(35,300) (109,801)
(50,949) (158,324)
−−
(14,972)(51,348)
14,41914,787
(84,603) (253,144)
(30,948) | (78,324) | |||||||
− | − | |||||||
4,160 | 11,820 | |||||||
Year-to- |
Date 2018 |
363,917 |
3,538 |
(96,924)
(131,980)
(23,270)
(50,255)
19,102
(192,210)
(50,561)
36,261
12,293
Result before taxation
Tax benefit (expense)
Profit (loss) for the period
Attributable to: Owners of the company
(21,032)
2,002
(19,030)
(19,030)
(21,500) | (42,532) | (110,089) | ||||||||||
(1,403) | ||||||||||||
599 | (260) | |||||||||||
(22,903) | (41,933) | (110,349) | ||||||||||
(22,903) | (41,933) | (110,349) | ||||||||||
The contribution to the result is as follows:
(in thousands of USD)
Tankers
FSO
Result after taxation
First | Third | ||
Semester | quarter | Year-to- | Year-to- |
2019 | 2019 | Date 2019 | Date 2018 |
(26,690) | (27,064) | (53,754) | (122,646) |
7,660 | 4,161 | 11,821 | 12,297 |
(19,030) | (22,903) | (41,933) | (110,349) |
Information per share: | |||
(in USD per share) | First | Third | |
Semester | quarter | Year-to- | |
2019 | 2019 | Date 2019 | |
Weighted average number of shares (basic) * | 216,994,426 | 215,080,810 | 216,349,544 |
Result after taxation | (0.09) | (0.11) | (0.19) |
Year-to- |
Date 2018 |
182,893,823
(0.60)
* The number of shares issued on 30 September 2019 is 220,024,713.
PRESS RELEASE
Regulated information
Tuesday 29 October 2019 - 8 a.m. CET
EBITDA reconciliation (unaudited): | ||
(in thousands of USD) | First | |
Semester | ||
2019 | ||
Profit (loss) for the period | (19,030) | |
+ Net interest expenses | 41,412 | |
+ Depreciation of tangible and intangible assets | 168,541 | |
+ Income tax expense (benefit) | (2,002) | |
EBITDA (unaudited) | 188,921 | |
+ Net interest expenses JV | 2,337 | |
+ Depreciation of tangible and intangible assets JV | 8,961 | |
+ Income tax expense (benefit) JV | 804 | |
Proportionate EBITDA | 201,023 | |
Third | ||
quarter | Year-to- | Year-to- |
2019 | Date 2019 | Date 2018 |
(22,903) | (41,933) | (110,349) |
27,674 | 69,086 | 49,747 |
84,603 | 253,144 | 192,210 |
1,403 | (599) | 260 |
90,777 | 279,698 | 131,868 |
1,066 | 3,403 | 2,313 |
4,555 | 13,516 | 13,516 |
415 | 1,219 | 1,244 |
96,813 | 297,836 | 148,941 |
Proportionate EBITDA per share: | ||||
(in USD per share) | First | Third | ||
Semester | quarter | Year-to- | Year-to- | |
2019 | 2019 | Date 2019 | Date 2018 | |
Weighted average number of shares (basic) | 216,994,426 | 215,080,810 | 216,349,544 | 182,893,823 |
Proportionate EBITDA | 0.93 | 0.45 | 1.38 | 0.81 |
All figures, except for Proportionate EBITDA, have been prepared under IFRS as adopted by the EU (International Financial ReportingStandards) and have not been audited nor reviewed by the statutory auditor.
For the third quarter of 2019, the Company had a net loss of USD 22.9 million or USD
0.11 per share (Q3 2018: a net loss of USD 58.7 million or USD 0.27 per share). Proportionate EBITDA (a non-IFRS measure) for the same period was USD 96.8 million (Q3 2018: USD 50.7 million).
This quarterly result is affected by two non-cash items representing a total of USD 6.7 million: USD 5.5 million of swaps amortization acceleration as we have refinanced the last Gener8 inherited facility and lost the qualification for hedge accounting, and USD 1.4 million of deferred tax assets related to the sale of the V.K. Eddie.
PRESS RELEASE
Regulated information
Tuesday 29 October 2019 - 8 a.m. CET
The average daily time charter equivalent rates (TCE, a non IFRS-measure) can be summarized as follows:
In USD per day | Third quarter | Third quarter | ||||||
2019 | 2018 | |||||||
VLCC | ||||||||
Average | spot rate (in | TI | 25,036 | 17,773 | ||||
pool)* | ||||||||
Average | time | charter | 32,790 | 31,374 | ||||
rate** | ||||||||
SUEZMAX | ||||||||
Average spot rate*** | 17,121 | 14,919 | ||||||
Average | time | charter | 29,884 | 29,624 | ||||
rate** | ||||||||
*Euronav owned ships in TI Pool (excluding technical offhire days) **Including profit share where applicable
*** Excluding technical offhire days
EURONAV TANKER FLEET
On 5 August 2019 Euronav delivered its oldest VLCC, the V.K. Eddie (2005 - 305,261 dwt) to her new owners. The vessel will be converted into an FPSO and therefore leave the worldwide trading fleet. A capital gain on the sale of approximately USD 14.4 million was recorded during the third quarter.
CAPITAL ALLOCATION
Euronav returned further capital to shareholders during Q3 buying back 420,000 own shares for a total consideration of USD 4 million. This is part of our capital allocation policy and is in addition to the fixed dividend policy of USD 0.12 per share paid each year.
Euronav may continue to buy back its own shares opportunistically, depending upon market conditions, regulatory requirements and other corporate considerations.
PRESS RELEASE
Regulated information
Tuesday 29 October 2019 - 8 a.m. CET
IMO 2020 PREPARATION
Euronav's detailed plans and preparations continue for this new environment starting January 2020. Euronav provided a thorough and detailed webinar presentation on 5 September 2019 with the transcript and presentation on our website at https://www.euronav.com/en/investors/euronav-imo-2020-webinar/
APPOINTMENT OF CHIEF FINANCIAL OFFICER
Euronav is pleased to announce that Mrs. Lieve Logghe will join the Company as Chief Financial Officer. She will succeed Hugo De Stoop who took the role as CEO. Lieve Logghe will be a member of the Executive Committee.
Lieve started her career in International Finance at PriceWaterhouseCoopers. After that, Lieve joined Sidmar (currently ArcelorMittal). She progressively moved through the finance organization in different European geographies up to a position of CFO for ArcelorMittal Europe. As from July 2018 she was promoted VP Head of Energy for ArcelorMittal Europe and Energy Procurement Coordinator for ArcelorMittal worldwide with the clear aim of reducing its carbon footprint.
Lieve's wide and varied skill sets in capital intensive industries and energy expertise will bring an immediate and positive contribution to Euronav.
IMPORTANT CHANGES COMING IN BELGIAN CORPORATE LAW IN 2020
A new Belgian Code of Companies and Associations ("BCCA") approved in 2019 will simplify and enhance the flexibility of Belgian company law. As a consequence Euronav will be able to move to quarterly dividends, which the Company intends to effectively introduce in the course of 2020. This means Euronav will be able to pay dividends every quarter, and therefore repatriate cashflows to shareholders more quickly (than in the past) and be more aligned to the tanker cycle.
TANKER MARKET
Freight rate development during Q3 was lower than anticipated as the refinery maintenance program was longer and more pronounced than forecast. However, some counter seasonal strength in the large tanker markets reflected that the
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Euronav NV published this content on 29 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2019 07:26:02 UTC