Euronav NV: First Quarter Results 2015
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E-mailANTWERP, Belgium, April 30, 2015 /PRNewswire/ --
HIGHLIGHTS
- EBITDA +182% to USD 131.3 million - best quarterly performance since Q3 2008
- Balance sheet strengthened and simplified post NYSE listing
- New dividend policy commitment - at least 80% of net income over financial year
- Euronav shares now fully tradable since 28 April on both NYSE and Euronext Brussels
Euronav NV (NYSE: EURN & Euronext: EURN) ("Euronav" or the "Company") today reported its preliminary financial results for the three months ended 31 March 2015.
(Logo: http://photos.prnewswire.com/prnh/20150206/728388 )
Paddy Rodgers, CEO of Euronav said: "With the oil price down and demand up, tankers are benefiting. Ships on the water NOW can pay dividends NOW to reward shareholders for the support and confidence."
Results ytd March 2015
The most important key figures are:
in thousands First quarter First quarter
of USD 2015 2014
Revenue 204,521 106,051
Other
operating
Income 2,488 1,879
Voyage
expenses and
commissions (21,916) (23,800)
Vessel
operating
expenses (36,809) (24,931)
Charter hire
expenses (9,052) (4,125)
General and
administrative
expenses (10,020) (8,540)
Net Gain (loss) on disposal of
tangible assets 2,120 -
EBITDA 131,332 46,534
Depreciation (49,116) (33,444)
EBIT (result
from operating
activities) 82,216 13,090
Net finance
expenses (16,534) (19,264)
Share of profit (loss) of
equity accounted investees 13,624 7,529
Result before
taxation 79,306 1,355
Tax Benefit
(Expense) 1,549 14
Profit (loss)
for the period 80,855 1,369
Attributable Owners of the
to: company 80,855 1,369
Non-controlling intrests - -
The contribution to the result is as follows
in thousands First quarter First quarter
of USD 2015 2014
Tankers 72,772 (5,889)
FSO 8,083 7,258
result after
taxation 80,855 1,369
Information per share:
in USD per First quarter First quarter
share 2015 2014
Weighted
average number
of shares
(basic) * 148,065,537 89,747,361
EBITDA 0.89 0.52
EBIT
(operating
result) 0.56 0.15
result after
taxation 0.55 0.02
All figures have been prepared under IFRS as adopted by the EU (International Financial Reporting Standards) and have not been audited nor reviewed by the statutory auditor.
* The number of shares outstanding on 31 March 2015 is 159,208,949 (including 1,750,000 treasury shares).
For the first quarter 2015, the Company had a net result of USD 80.9 million or USD 0.55 per share (first quarter 2014: USD 1.4 million and USD 0.02 per share). EBITDA for the same period was USD 131.3 million (first quarter 2014: USD 46.6 million).
Euronav has applied the accounting standards IFRS 10 and IFRS 11 as of 1 January 2014. If the Company would have continued to apply the proportionate consolidation method for its joint ventures for the first quarter of 2015, the EBITDA would have been USD 153.8 million (first quarter 2014: USD 63.3 million) and the result after taxation would have remained the same.
EURONAV FLEET
The average daily time charter equivalent rates (TCE) can be summarized as follows:
In USD per day First quarter First quarter
2015 2014
VLCC
Average spot rate (in TI Pool) 50,845 34,777
Average time-charter rate* 44,547 42,444
Suezmax
Average spot rate** 41,944 26,800
Average time-charter rate* 41,593 27,350
* Including profit share where applicable
** Excluding technical offhire days
On 15 January 2015 the VLCC Antarctica (2009 - 315,981 dwt) was delivered to its new owners for conversion into an FPSO. Delivery was earlier than expected, resulting in an increased purchase price and a corresponding gain on disposal of assets of USD 2.1 million which was recorded in the first quarter of 2015.
On 26 February 2015 Euronav took delivery of the VLCC Hirado (2011 - 302,550 dwt) which was part of the acquisition of 4 modern Japanese-built VLCC vessels announced on 8 July 2014.
On 9 April 2015 Euronav took delivery of the VLCC Hakata (2010 - 302,550 dwt) which was the last vessel to be delivered to us as part of the acquisition of four modern Japanese-built VLCC vessels announced on 8 July 2014.
CORPORATE
On 20 January 2015 Euronav announced the commencement of its underwritten initial public offering in the United States of 13,550,000 ordinary shares.
On 23 January 2015 Euronav announced the upsizing (from the initially announced 13,550,000 shares to 16,260,000 shares) of its initial public offering in the United States as well as pricing of the offering at an issue price per share of USD 12.25. As of this date, Euronav's shares offered in the United States commenced trading on the New York Stock Exchange (the "NYSE") under the ticker symbol "EURN." On the same date Euronav launched its U.S. Exchange Offer which enabled shareholders to reposition their shares that are listed and tradeable on Euronext Brussels into shares listed and tradeable on the NYSE.
On 28 January 2015 Euronav announced the closing of its initial public offering of 18,699,000 shares at a public offering price of USD 12.25 per share for gross proceeds of USD 229,062,750. This included the exercise in full by the underwriters of their overallotment option of 2,439,000 shares.
On 31 January 2015 the 250 remaining outstanding fixed rate senior unsecured convertible bonds, due 2015 with a face value of USD 100,000, have been fully redeemed at par. Euronav held 18 of these bonds. As a result, since that date, no more convertible bonds remain outstanding.
On 6 February 2015 Euronav's share capital was increased following the contribution in kind of 30 perpetual convertible preferred equity instruments issued on 15 December 2013 which resulted in the issuance of 9,459,283 new ordinary shares. There are no more perpetual convertible preferred equity instruments outstanding.
On 19 February 2015 Euronav repaid the USD 235.5 million bond issued to partly finance the acquisition of 15 VLCCs. As the bond was issued below par and in accordance with IFRS, the Company amortized USD 20.4 million (non-cash) in the fourth quarter of 2014 bringing the amortization related to this bond for the full year 2014 to USD 31.9 million (non-cash) and a further USD 4.1 million (non-cash) in the first quarter of 2015.
On 30 March 2015 Euronav announced the results of its U.S. Exchange Offer. In total 42,919,647 shares that are listed and tradable on Euronext Brussels were repositioned into an equal number of shares listed and tradable on the NYSE.
As of 28 April 2015 Euronav shares trading on NYSE and/or on Euronext Brussels are fully fungible and are able to trade freely on both exchanges.
THE TANKER MARKET
The first quarter 2015 started strongly with a good winter market which was unaffected by the usual hiatus of the Chinese new year. The lower oil price opened up a contango in January which quickly closed as the lower price stimulated prompt demand which in turn lifted the price of physical oil for immediate delivery. Whilst this also increased the price of bunker fuel nevertheless owners benefitted from the increased demand for shipment.
The large crude tanker market displayed two important features during the first four months of 2015 - higher rates and greater confidence by owners. The sustainability of higher freight rates beyond Chinese New Year reflected improved fundamental demand and the confidence increasingly being felt by owners. Lower oil price boosting demand and lower bunker costs made this quarter the most positive since the third quarter of 2008.
OUTLOOK
The second quarter has continued the trend of the first quarter with a high degree of volatility but with good support for tanker rates through higher demand. In particular the number of ballast sea miles is going up which absorbs ship supply significantly.
So far, in the second quarter, the Euronav VLCC fleet operated by Tankers International pool earned on average USD 51,522 per day and 52.24% of the available days have been fixed. Euronav's Suezmax fleet trading on the spot market have earned on average USD 40,504 per day and 52.94% of the available spot days have been fixed.
There are a number of reasons to believe this trend can and should be sustained. Demand for crude is real and has crucially been growing. This has been demonstrated in the past 3-4 months. Indeed, several of the agencies have started to upgrade their oil demand forecasts. Secondly, the prospects of growing vessel supply over the next two years remain limited. Last, voyage distances are increasing, driving higher ton-miles. These factors underpin management confidence going forward.
Euronav's 2014 annual report can be downloaded on its website (http://www.euronav.com).
CONFERENCE CALL
Euronav will host a conference call at 9:30 a.m. EST / 3:30 p.m. CET on Thursday 30 April 2015 to discuss the results for the quarter.
The call will be a webcast with an accompanying slideshow. You can find details of this conference call below and on the "Investor Relations" page of Euronav's website at http://investors.euronav.com/.
Webcast Information
Event Type: Audio webcast with user-controlled slide presentation.
Event Date: 30 April 2015
Event Time: 9:30 a.m. EST / 3:30 p.m. CET
Event Title: "Euronav Q1 2015 Earnings Call"
Event Site/URL: http://services.choruscall.com/links/euronav150430.html
Telephone participants may avoid any delays by pre-registering for the call using the following link to receive a special dial-in number and PIN conference call registration link: http://dpregister.com/10063437. Pre-registration fields of information to be gathered are name, company and email.
Telephone participants who are unable to pre-register may dial in to 1-866-807-9684 on the day of the call. The international dial-in number is 1-412-317-5415.
A replay of the call will be available until 8 May 2015, beginning at 11:30 a.m. EST / 5:30 p.m. CET on 30 April 2015 by dialing 1-877-344-7529 or 1-412-317-0088 and referencing the conference number 10063437.
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe", "anticipate", "intends", "estimate", "forecast", "project", "plan", "potential", "may", "should", "expect", "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the United States Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Extraordinary and Annual General Meetings of Shareholders 2015: Wednesday 13 May 2015
About Euronav
Euronav is an independent tanker company engaged in the ocean transportation and storage of crude oil. The company is headquartered in Antwerp, Belgium, and has offices throughout Europe and Asia. Euronav is listed on Euronext Brussels and on the NYSE under the symbol EURN. Euronav employs its fleet both on the spot and period market. VLCCs on the spot market are traded in the Tankers International pool of which Euronav is one of the major partners. Euronav's owned and operated fleet consists of 53 double hulled vessels being 1 V-Plus, 2 FSO vessels (both owned in 50%-50% joint venture), 27 VLCCs (of which 1 in 50%-50% joint venture) and 23 Suezmaxes (of which 4 in 50%-50% joint venture). The company's vessels mainly fly Belgian, Greek, French and Marshall Island flags.
Regulated information within the meaning of the Royal Decree of 14 November 2007.
Consolidated statement of financial position
(in thousands of USD except per share amounts)
March 31, December 31,
2015 2014
ASSETS
Current assets
Trade and other receivables 195,602 194,733
Current tax assets 32 36
Cash and cash equivalents 162,213 254,086
Non-current assets held for
sale - 89,000
Total current assets 357,847 537,855
Non-current assets
Vessels 2,290,455 2,258,334
Other tangible assets 1,132 1,226
Prepayments 8,001 16,601
Intangible assets 25 29
Receivables 264,736 258,447
Investments in
equity-accounted investees 18,384 17,332
Deferred tax assets 8,006 6,536
Total non-current assets 2,590,739 2,558,505
TOTAL ASSETS 2,948,586 3,096,360
EQUITY and LIABILITIES
Equity
Share capital 173,046 142,441
Share premium 1,215,228 941,770
Translation reserve (125) 379
Hedging reserve - -
Treasury shares (46,062) (46,062)
Other equity interest - 75,000
Retained earnings 421,647 359,180
Equity attributable to owners
of the Company 1,763,734 1,472,708
Current Liabilities
Trade and other payables 85,088 125,555
Tax liabilities 66 1
Bank loans 162,398 146,303
Convertible and other Notes - 23,124
Provisions 508 412
Total current liabilities 248,060 295,395
Non-current liabilities
Bank loans 927,688 1,088,026
Convertible and other Notes - 231,373
Other payables 464 489
Deferred tax liabilities - -
Employee benefits 2,091 2,108
Amounts due to
equity-accounted joint
ventures 5,880 5,880
Provisions 669 381
Total non-current liabilities 936,792 1,328,257
TOTAL EQUITY and LIABILITIES 2,948,586 3,096,360
Consolidated statement of profit or loss
(in thousands of USD except per share amounts)
2015 2014
Jan.1 - Mar 31, 2015 Jan.1 - Mar 31, 2014
Shipping revenue
Revenue 204,521 106,051
Gains on disposal of
vessels/other tangible
assets 2,122 -
Other operating income 2,488 1,879
Total shipping revenue 209,131 107,930
Operating expenses
Voyage expenses and
commissions (21,916) (23,800)
Vessel operating expenses (36,809) (24,931)
Charter hire expenses (9,052) (4,125)
Losses on disposal of
vessels/other tangible
assets (2) -
Impairment on non-current
assets held for sale - -
Depreciation tangible assets (49,111) (33,439)
Depreciation intangible
assets (5) (5)
General and administrative
expenses (10,020) (8,540)
Total operating expenses (126,915) (94,840)
RESULT FROM OPERATING
ACTIVITIES 82,216 13,090
Finance income 643 242
Finance expenses (17,177) (19,506)
Net finance expenses (16,534) (19,264)
Share of profit (loss) of
equity accounted investees
(net of income tax) 13,624 7,529
PROFIT (LOSS) BEFORE INCOME
TAX 79,306 1,355
Income tax benefit (expense) 1,549 14
PROFIT (LOSS) FOR THE PERIOD 80,855 1,369
Attributable to:
Owners of the company 80,855 1,369
Basic net income/(loss) per
share 0.55 0.02
Diluted net income/(loss)
per share 0.54 0.01
Weighted average number of
shares (basic) 148,065,537 89,747,361
Weighted average number of
shares (diluted) 150,117,560 91,497,361
Consolidated statement of comprehensive income
(in thousands of USD except per share amounts)
Profit/(loss) for the period 80,855 1,369
Other comprehensive income,
net of tax
Items that will never be
reclassified to profit or
loss:
Remeasurements of the
defined benefit liability
(asset) - -
Items that are or may be
reclassified to profit or
loss:
Foreign currency translation
differences (504) -2
Cash flow hedges - effective
portion of changes in fair
value - 1,291
Equity-accounted investees -
share of other comprehensive
income 238 555
Other comprehensive income,
net of tax (266) 1,844
Total comprehensive income
for the period 80,589 3,213
Attributable to:
Owners of the company 80,589 3,213
Consolidated statement of changes in equity
(in thousands of USD except per share amounts)
Share Share Translation Hedging Treasury
capital premium reserve reserve shares
Balance at
January 1, 2014 58,937 365,574 946 (1,291) (46,062)
Profit (loss)
for the period - - - - -
Total other
comprehensive
income - - (2) 1,291 -
Total
comprehensive
income - - (2) 1,291 -
Transactions
with owners of
the company
Issue of
ordinary shares 41,645 308,355 - - -
Issue and
conversion
convertible
Notes 30,369 154,231 - - -
Issue and
conversion
perpetual
convertible
preferred equity - - - - -
Equity-settled
share-based
payment - - - - -
Total
transactions
with owners 72,014 462,586 - - -
Balance at March
31, 2014 130,951 828,160 944 - (46,062)
Share Share Translation Hedging Treasury
capital premium reserve reserve shares
Balance at
January 1, 2015 142,441 941,770 379 - (46,062)
Profit (loss)
for the period - - - - -
Total other
comprehensive
income - - (504) - -
Total
comprehensive
income - - (504) - -
Transactions
with owners of
the company
Issue of
ordinary shares 20,324 208,739 - - -
Issue and
conversion
convertible
Notes - - - -
Issue and
conversion
perpetual
convertible
preferred equity 10,281 64,719 - - -
Equity-settled
share-based
payment - - - - -
Total
transactions
with owners 30,605 273,458 - - -
Balance at March
31, 2015 173,046 1,215,228 (125) - (46,062)
(table cont.)
Consolidated statement of changes in equity
(in thousands of USD except per share amounts)
Capital Other
Retained and equity Total
earnings reserves interest equity
Balance at January 1, 2014 422,886 800,990 - 800,990
Profit (loss) for the period 1,369 1,369 - 1,369
Total other comprehensive income 555 1,844 - 1,844
Total comprehensive income 1,924 3,213 - 3,213
Transactions with owners of the company
Issue of ordinary shares - 350,000 - 350,000
Issue and conversion convertible Notes (19,220) 165,380 - 165,380
Issue and conversion perpetual convertible
preferred equity - - 75,000 75,000
Dividends to equity holders - - - -
Treasury shares - - - -
Equity-settled share-based payment 1,099 1,099 - 1,099
Total transactions with owners (18,121) 516,479 75,000 1,395,682
Balance at March 31, 2014 406,689 1,320,682 75,000 1,395,682
Capital Other
Retained and equity Total
earnings reserves interest equity
Balance at January 1, 2015 359,180 1,397,708 75,000 1,472,708
Profit (loss) for the period 80,855 80,855 - 80,855
Total other comprehensive income 238 (266) - (266)
Total comprehensive income 81,093 80,589 - 80,589
Transactions with owners of the company
Issue of ordinary shares (19,212) 209,851 - 209,851
Issue and conversion convertible Notes - - - -
Issue and conversion perpetual convertible
preferred equity - - (75,000) (75,000)
Dividends to equity holders - - - -
Treasury shares - - - -
Equity-settled share-based payment 586 586 - 586
Total transactions with owners (18,626) 285,437 (75,000) 210,437
Balance at March 31, 2015 421,647 1,763,734 - 1,763,734
Consolidated statement of cash flows
(in thousands of USD except per share amounts)
2015 2014
Jan.1 - Mar 31, 2015 Jan.1 - Mar 31, 2014
Cash flows from operating
activities
Profit (loss) for the
period 80,855 1,369
Adjustments for: 49,385 46,264
Depreciation of tangible
assets 49,111 33,439
Depreciation of
intangible assets 5 5
Impairment on non-current
assets held for sale - -
Provisions 441 -
Tax benefits (expenses) (1,549) (14)
Share of profit of
equity-accounted
investees, net of tax (13,624) (7,529)
Net finance expense 16,534 19,264
Capital gain (loss) on
disposal of assets (2,120) -
Equity-settled
share-based payment
transactions 587 1,099
Changes in working
capital requirements (28,011) (28,934)
Change in cash guarantees 35 -
Change in trade
receivables 802 2,447
Change in accrued income (107,422) (21,928)
Change in deferred
charges 4,090 (16,609)
Change in other
receivables 101,604 12,153
Change in trade payables 11,245 (6,233)
Change in accrued payroll (1,103) (538)
Change in accrued
expenses 899 1,461
Change in deferred income 1,723 (1,573)
Change in other payables (39,884) 1,886
Change in provisions for
employee benefits - -
Income taxes paid during
the period 148 110
Interest paid (25,159) (20,517)
Interest received 131 103
Dividends received from
equity-accounted
investees 275 9,200
Net cash from (used in)
operating activities 77,624 7,595
Acquisition of vessels (72,526) (81,541)
Proceeds from the sale of
vessels 91,065 -
Acquisition of other
tangible assets (54) (88,099)
Acquisition of intangible
assets - -
Proceeds from the sale of
other (in)tangible assets 57 -
Loans from (to) related
parties 6,210 (538)
Proceeds of disposals of
joint ventures, net of
cash disposed - -
Purchase of joint
ventures, net of cash
acquired - -
Net cash from (used in)
investing activities 24,752 (170,178)
Proceeds from issue of
share capital 229,063 350,000
Transaction costs related
to issue of share capital (19,212) (8,305)
Proceeds from issue of
perpetual convertible
preferred equity - 150,000
Transaction costs related
to issue perpetual
convertible preferred
equity - (3,500)
Proceeds from new
long-term borrowings 128,400 200,175
Repayment of long-term
borrowings (532,317) (283,698)
Transaction costs related
to issue of loans and
borrowings - (680)
Dividends paid (2) (1)
Net cash from (used in)
financing activities (194,068) 403,991
Net increase (decrease)
in cash and cash
equivalents (91,692) 241,408
Net cash and cash
equivalents at the
beginning of the period 254,086 74,309
Effect of changes in
exchange rates (181) (80)
Net cash and cash
equivalents at the end of
the period 162,213 315,637
SOURCE Euronav NV
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