Euronav announces final year results 2022

31 Mar 2023 22:15 CEST

EURONAV ANNOUNCES FINAL YEAR RESULTS 2022

2022 HIGHLIGHTS
- Final dividend of USD 1.1 to be proposed to the annual shareholders meeting
- Large crude tanker recovery delivers highest earnings for Euronav since Q2
2020
- Dislocation on energy markets boosts tanker markets
- Tanker supply fundamentals underpin strong freight market for the foreseeable
future
- 2 FSOs contracted to 2032 – fully consolidated 100% under Euronav ownership
following acquisition of JV partner
- Combination Agreement signed with Frontline in July 2022 –unilaterally
terminated by Frontline in January 2023
- Arbitration proceedings initiated against Frontline

ANTWERP, Belgium, 31 March 2023 – Euronav NV (NYSE: EURN & Euronext: EURN)
(“Euronav” or the “Company”) reported its final financial results today for the
full year to
31 December 2022.

The large crude tanker market is well positioned to start a multi-year upcycle
based on
strong fundamentals and well supported tanker market specific catalysts:
• Orderbooks at +25 years lows
• Contracting of newbuilding constrained by high vessel prices, incoming
regulations and
Shipbuilding capacity limited until 2025/26 by LNG carrier/container contracts
• Global fleet age average of large tanker segments is the highest seen in the
last 20 years.

This sector positioning has been augmented by catalysts such as Russian
crude/product
dislocation. The EU will continue to replace these lost Russian barrels via the
Middle East
and Atlantic sourcing benefitting the Suezmax and the VLCC-segment. These
displacements are expected to translate into structurally longer ton miles.
Other data
points continue to support a positive tanker market narrative. US crude exports
recently
hit a new record high of 5.1m bpd reflecting additional SPR (Strategic Petroleum
Reserves)
cargoes but also underlying strong US production growth. Incoming regulations
have been
overlooked in the current geopolitical environment but will begin with the
application of
the CII (Carbon Intensity Indicator) as part of the EEXI (Energy Efficiency
eXisting ship
Index) family of maritime regulations starting 1 January 2023. Euronav believes
that over
time the CII will act as a speed limit on maritime transportation pressurizing
further tanker
capacity.

Asset prices continue to rise for newbuildings and second-hand tankers (5 and 10
year old
VLCC & Suezmax values are up 20% in the last six months according to Clarksons)
providing owners with optionality. Given the positive set up for the market, it
is not
surprising that only 3x VLCC and 7x Suezmax exited the fleet (recycled) during
calendar
2022 (source: Clarksons).

Time charter market opportunities continue to grow. The global crude tanker
market
positioning remains very favorable and so far without the support of any
positive drivers
from China. Crude consumption from China for 2022 year to-date remains below the
run
rate of 2019 (source: Bloomberg). Recent product export and import quota
releases (three
months earlier than usual) would suggest China could be returning to previous
levels of
crude demand. This would be in addition to the supportive factors listed above.
Recent corporate events have not affected the operational performance of the
Company
as we remain focused and committed to maintain our position of market leadership
and
have managed to rejuvenate the fleet at a critical time in the market cycle both
in buying
and ordering modern vessels at good prices as well as be patient and dispose of
older
assets when the value became interesting.

SUSTAINABILITY UPDATE
May 2022 saw Euronav unveil its strategic objective to make the company net zero
in
terms of CO2 emissions by 2050. Our delivery on this objective has numerous
milestones
including reducing CO2 intensity and emissions by 40% by 2030 – in line with the
Poseidon
Principles which the majority of our bank financing is in compliance with. In
November
2022, Euronav agreed a new USD 377 million sustainability-linked loan facility,
which
brings Euronav’s funding with an integrated sustainability component to 52 % of
the
Company’s total financing. The facility has been concluded with several
commercial banks
and has a duration of 5 years. This is the fourth sustainability linked
financing Euronav has
undertaken in the last 2 years. The credit facility incorporates a number of
KPI’s which, if
met, will reduce Euronav’s interest rate cost by 10 basis points. In December
2022, for the
third year running Euronav has been awarded a “B” rating by CDP for our positive

awareness and actions on climate change. CDP is a non-profit organisation and a
highly
regarded form of accreditation on climate action. Each year the stipulations and
hurdle
requirements become more onerous meaning Euronav’s position has improved year on

year.

EURONAV TANKER FLEET
Euronav entered into an agreement with Daehan Shipbuilding Co. Ltd. for two
Suezmax
newbuilding contracts during the year. The vessels will be sister ships to our
Cedar (2022
-157,310 dwt) and Cypress (2022 – 157,310 dwt), built at the same yard. Both
vessels
are scheduled for delivery in the third quarter of 2024.

Euronav deliberately accelerated fleet renewal during 2022 given prevailing
elevated asset
prices for older tonnage. Recycling such capital into newer, younger tonnage
provides a
more competitive platform for all stakeholders and a far lower environmental
footprint.
Below is a summary of our disposal activity during 2022.

VESSELS CAPITAL GAIN IN USD
3 N-class - VLCC USD 13.5 million
4 S-class - VLCC USD 1.8 million
Cap Leon - Suezmax USD 10.8 million
Cap Pierre - Suezmax USD 7.5 million
Cap Philippe - Suezmax USD 12.9 million
Cap Guillaume - Suezmax USD 14.6 million
Europe - ULCC USD 34.7 million
TOTAL USD 95.8 million

Euronav took delivery of the two new vessels in early 2023. VLCC Cassius (2023 –
299,158
dwt) on 11 January 2023 and Camus (2023- 299.158) on 28 February 2023.

ASSET VALUES
The pace of asset price growth for crude tankers was remarkable during 2022
especially
for older tonnage. According to data from Clarksons, new build/5/10/15 year old
tonnage
for VLCC rose 7%/43%/65% and 81% respectively. Suezmax values rose even more for

each category 4%/44%/70% and 90% respectively.

DISTRIBUTION TO SHAREHOLDERS
The Supervisory Board will propose to the Annual Shareholders’ Meeting of 17 May
2023
to distribute a full year gross return in the amount of USD 1.10 per share to
all
shareholders. This payout will be a combination of a dividend and a repayment
from the
share issue premium. This distribution approach will be optimal for shareholders
as
Euronav anticipates that the share issuance payment part of the distribution
will represent
at least 90% of the distribution and that part will be at zero withholding tax
(WHT).

This proposal adds up to the shareholders distribution already paid for Q1, Q2
and Q3 2022
of USD 0.03 each for a total of USD 0.09 out of the available issue premium,
next to the
interim dividend paid for Q4 2022 of USD 0.03.

This proposal would bring the total return to shareholders to USD 1.22 for the
full year
2022. This demonstrates the strong performance of the Company and its robust
balance
sheet, supported by the strong outlook in the quarters to come.

Q4-2022 closing dividend / return (Coupon 32)
Ex-dividend date 1 June 2023
Record date 2 June 2023
Payment date 13 June 2023

The most important key figures are: to be found in attachment.

TCE
The average daily time charter equivalent rates (TCE, a non IFRS-measure) can be
summarized as follows: to be found in attachment.

Difference between the preliminary results and final results
The final result of USD 203.3 million reported is USD 0.4 million better than
the preliminary
results reported on 2 February 2023 of USD 202.9 million. This difference is
related to the
integration of 2022 results of our joint ventures TI LLC and TUKA Ltd. and some
minor
depreciation adjustments. Furthermore, some balance sheet reclassifications have
been
processed without impact on the net result to improve presentation.

Procedures of the independent auditor
The statutory auditor, KPMG Bedrijfsrevisoren - Réviseurs d’Entreprises,
represented by
Herwig Carmans, has confirmed that the audit procedures, which have been
substantially
completed, have not revealed any material misstatement in the accounting
information
included in the Company’s annual announcement.

Euronav highlights in 2022
11 January 2022
Euronav became a signatory of the Neptune Declaration on Seafarer Wellbeing and
Crew Change.
27 January 2022
Euronav was included in the Bloomberg-Equality Index for the fifth consecutive
year.
28 January 2022
Michail Malliaros was nominated as General Manager Euronav Ship Management
Hellas.
18 February 2022
Euronav announced that whale protection measures would become mandatory for its
fleet.
22 March 2022
Listing of Euronav Luxembourg S.A. senior unsecured bond issue 2021 with
maturity in
2026.
7 April 2022
Euronav signed a term sheet for a combination with Frontline.
26 April 2022
Euronav sold the Suezmax Bari (2005 – 159,186 dwt).
29 April 2022
Euronav rejuvenated its VLCC fleet. The company purchased two Eco-VLCC’s, the
Chelsea (2020 – 299,995 dwt) and the Ghillie (2019 – 297,750 dwt), for USD 179
million in total in cash - and sold four older S-class VLCC’s: the Sandra (2011
– 323,
527 dwt), Sara (2011 – 322,000 dwt), Simone (2012 – 315,988 dwt) and the Sonia
(2012 – 314,000 dwt).
5 May 2022
Euronav presented its decarbonisation strategy and targets through a virtual
event
called ‘Euronav’s Road to Decarbonisation’.
23 May 2022
Euronav became a member of the Waterborne Technology Platform.
7 June 2022
Euronav purchased its joint venture partner share in two floating storage and
offloading unit (FSO) vessels.
13 June 2022
Euronav sold two of its oldest Suezmaxes: the Cap Pierre (2004 - 159,048 dwt)
and
the Cap Leon (2003 - 159,048 dwt).
23 June 2022
Euronav was awarded the 2021 sustainability-linked Deal of the Year award during

Marine Money Week in New York.
6 July 2022
Euronav was once again positioned in the top quartile of the Webber Research’s
ESG
Scorecard for 2022, taking the 5th position as the highest ranked crude tanker
company out of 52 shipping companies.
17 October 2022
Euronav sold the ULCC Europe (2002 – 441,561 dwt).
19 October 2022
Euronav sold Suezmax Cap Philippe (2006 - 158,920 dwt).
24 October 2022
Euronav contracted two new Suezmax vessels for 2024 delivery.
10 November 2022
Euronav sold the older vessel Suezmax Cap Guillaume (2006 - 158,889 dwt), as
part
of fleet rejuvenation.
16 December 2022
Euronav was awarded a B score for taking coordinated action on climate issues by
the
Carbon Disclosure Project (CDP).

Events occurred after the end of the financial year ending 31 December 2022

On 14 December 2022, the Company sold the Suezmax Cap Charles (2006 - 158,881
DWT) for USD 40.5 million. This vessel was accounted for as a non-current asset
held
for sale as at 31 December 2022. The vessel was delivered to her new owner on 16
February 2023. A capital gain of USD 22.1 million has been recognized in the
consolidated statement of profit or loss in the first quarter of 2023.

On 11 January 2023, Euronav took delivery of the VLCC newbuilding Cassius (2023
–
299,158 dwt) and on 28 February 2023 of the VLCC newbuilding Camus (2023 –
299,158
dwt).

The war between Russia and Ukraine has and will continue to impact our business
in the
following areas:
Bunker Fuel Cost – due to the risk within the market, and the self-sanctioning
of Russian
oil flows, the price of marine fuels has increased and is expected to continue
to be high
for the foreseeable future. This is due to Russia supplying bunker markets with
20% of
the global fuel demand in HSFO, VLSFO and MGO markets. These price increases
will
negatively impact the cost structure of the vessels making it more expensive to
ship
freight on long haul voyages. The spread between HSFO and VLSFO was at a high
level
pre-invasion but has begun to correct as the removal of Russian origin HSFO from
the
market has begun to tighten up supplies in Europe and in the Mediterranean.

The Company acknowledges that cybersecurity risks have significantly increased
and
has taken additional mitigating actions.

On 11 July 2022, Euronav announced that Euronav and Frontline entered into a
definitive
agreement for a stock-for-stock combination based on an exchange ratio of 1.45
Frontline shares for every Euronav share (the “Combination Agreement”), which
was
unanimously approved by all the members of Frontline's Board of Directors and by
all
members of Euronav's Supervisory Board. On 9 January 2023, Frontline announced
that
it had unilaterally decided to terminate the Combination Agreement. Euronav
determined
that unilateral action pursuing the termination of the Combination Agreement has
no
basis under the terms of the Combination Agreement and that Frontline failed to
provide
a satisfactory reason for its decision to pursue termination. On 18 January
2023, Euronav
announced that it filed an application request for urgent interim and
conservatory
measures in relation to Frontline’s unilateral action in pursuing the
termination of the
Combination Agreement. Euronav requested to suspend such termination pending a
determination on the merits pursuing primarily the specific performance of the
Combination Agreement. On 30 January 2023 Euronav announced that it has filed an

application request for arbitration on the merits in relation to Frontline’s
unilateral action
in pursuing the termination of the Combination Agreement. A judgement in the
pending
emergency arbitration proceedings was provided on 7 February 2023. The emergency

arbitrator has dismissed Euronav’s request for provisional and interim measures
on the
basis of the specific and procedural rules applicable to the emergency
proceedings and
in particular a lack of urgency for Euronav in obtaining the requested interim
and
provisional measures.
In the meantime, Famatown Finance Limited (“Famatown”), a related-party to
Frontline’s
largest shareholder has continued to accumulate shares of Euronav. The total of
these
transactions means that Famatown, (together with Frontline and on the basis of
public
disclosures of their holdings), hold 50,426,748 shares in Euronav, or 24.99% of
the
shares outstanding (excluding treasury shares).

CMB NV and its affiliates (“CMB”) jointly own 25% of the voting shares of
Euronav
(excluding treasury shares). On 16 January 2023, Euronav received a letter from
CMB
requesting that the Supervisory Board convenes a general meeting of Euronav to
replace
the entire current Supervisory Board and appoint new members. A Special General
meeting (‘SGM’) of shareholders has been convened in accordance with the Belgian
Code
of Companies and Associations. Euronav noted that the agenda items intended to
replace
the entire current Supervisory Board, with members nominated by CMB.

On 23 March 2023, Euronav held a Special Meeting of Shareholders to vote on
resolutions submitted by Famatown Finance Ltd. and CMB NV. Shareholders voted to

maintain independent directors Grace Reksten Skaugen, Anita Odedra and Carl
Trowell.
They approved a resolution proposed by CMB to terminate the mandates of the
other
independent Board members Anne-Hélène Monsellato and Steven Smith. The
shareholders also approved the appointments of four new directors: John
Fredriksen and
Cato H. Stonex, representing Famatown; and Marc Saverys and Patrick De
Brabandere,
representing CMB.

On 10 March 2023, Euronav signed an agreement with the United Nations to sell
the
Nautica, a VLCC, as part of a wider salvage operation for the FSO Safer located
in
Yemen. The vessel will replace the FSO Safer (1976 – 406,639 dwt) and will stay
there.
Euronav will help operate the vessel including after the transfer of the oil for
several
months afterwards.

Financial calendar 2023
11 May 2023
Announcement of first quarter results 2023
17 May 2023
Annual General Meeting of Shareholders
03 August 2023
Announcement of second quarter results 2023
8 August 2023
Half year report 2023 available on website
26 October 2023
Announcement of third quarter results 2023
01 February 2024
Announcement of fourth quarter results 2023

The Supervisory Board, represented by Grace R. Skaugen, its Chairwoman, and the
Management Board, represented by Hugo De Stoop, Chief Executive Officer, and
Lieve
Logghe, Chief Financial Officer, hereby confirm, in the name and for account of
Euronav
that, to the best of their knowledge the consolidated financial statements as of
and for the
year ended 31 December 2022 presented herein were established in accordance with

applicable accounting standards (IFRS as adopted by the EU) and give a true and
fair view,
as defined by these standards, of the assets, liabilities, financial position
and results of
Euronav NV.

On behalf of the Supervisory Board and the Management Board:
Hugo De Stoop
Chief Executive Officer

Grace R. Skaugen
Chairwoman of the Supervisory Board

Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking
statements. The
Private Securities Litigation Reform Act of 1995 provides safe harbour
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 harbour
provisions of
the Private Securities Litigation Reform Act of 1995 and is including this
cautionary
statement in connection with this safe harbour 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,
dry-docking 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.

Contact:
Brian Gallagher – Head of IR, Research and Communications & Management Board
member
Tel: +44 20 78 70 04 36
Email: IR@euronav.com

Annual report 2022 available on website: Thursday 13 April 2023
About Euronav NV
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 1 V-Plus
vessel, 41 VLCCs (with further one
under construction), 21 Suezmaxes (with a further five under construction) and 2
FSO vessels under long term
contract.

The condensed consolidated statements(unaudited) are: to be found in attachment.

More information:
Access the news on Oslo Bors NewsWeb site

586955_20220331_EURN Final year results 2022 ENG_.pdf