Euronav NV: First Quarter Results 2015
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 bothNYSE andEuronext Brussels
(Logo: http://photos.prnewswire.com/prnh/20150206/728388 )
Results ytd
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
For the first quarter 2015, the Company had a net result of
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
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As of
THE TANKER MARKET
The first quarter 2015 started strongly with a good winter market which was unaffected by the usual hiatus of the
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
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
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.
CONFERENCE CALL
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
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
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
Extraordinary and Annual General Meetings of Shareholders 2015: Wednesday
About
Regulated information within the meaning of the Royal Decree of
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
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