Q1 2024 Euronav NV Earnings Call

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Speaker Change: Good afternoon, and good morning, everyone.

Alexander Saverys: Good afternoon and good morning, everyone. Welcome to the earnings call for Euronav and CMB Tech. My name is Alexander Saverys.

Alexander Saverys: I'm the CEO of Euronav and CMB Tech, and I'm joined by our CFO, Ludovic Saverys. We have a couple of topics we would like to touch upon with you today. We will start with our first quarter financials and highlights. We'll then zoom in on the Marine Division and a market update by segment, our time charter performance, and the market outlook. And then we'll close with a conclusion and have time for questions and answers.

Alex: Welcome to the earnings call of urine oven seem be take my name is Alex on the salaries of the CEO of viewers haven't seen music and I'm joined by our CFO literally centuries.

We have a couple of topics, we would like to touch upon with you today.

Alex: We will start with our first quarter financials and highlights. We'll then zoom in on the Marine Division and market updates per segments all the time.

Alex: Charter performance in the market outlook, and then we'll close with a conclusion and have time for questions and answers.

Alex: I'd like to hand over to Ludwig.

Ludovic Saverys: Yes, good afternoon, everybody, and thanks for joining us on this earnings call. We're happy to share with you a strong result for Q1 within Euronav CMB Tech. We made a net profit for the quarter of $495.2 million. There has been a significant uplift in profit thanks to the capital gains on some sailor vessels, more notably the second half of the deal with Frontline, which was widely discussed previously. If we take the capital gains out, we have a nice underlying profit of $88 million for the quarter.

Ludwig: Good afternoon, everybody and thanks for joining this earnings call and we're happy to.

Ludwig: Ill share with you a strong result.

Ludwig: <unk> for Q1 within your Neff Semitics, we did the net profits on the quarter of $495.2 million.

There has been a significant uplift and profit thanks to reduce the capital gains on some similar vessels more notably the second half of the deal with frontline which was widely.

Ludwig: Discussed previously if we dig the capital gains out we have a nice underlying profit of $88 million for the quarter.

Ludovic Saverys: At the same time, we were able to end the quarter with very strong liquidity of over 1.2 billion dollars. This is obviously even after the conclusion of the purchase of CMB Tech, which was a highlight we will mention later on. In our rewarding the shareholder strategy, there was already a distribution announcement of $4.57. The board has concluded, based on the strong results of Q1, to propose to another special general meeting an additional 1.15 distribution per share, which is again going to be a mix of dividends and distribution out of issue premium, as mentioned in the press release.

Ludwig: At the same time, we were able to end the quarter with a very strong liquidity of over one point too bill.

Ludwig: $1 billion.

Ludwig: This is obviously, even after the conclusion of the purchase of <unk>, which was a highlight we will mention later on.

Ludwig: In neuro rewarding the shareholder strategy.

Ludwig: There was already a distribution in ounce of.

Ludwig: Four point $57. The board has concluded based on the strong results of Q1.

Ludwig: To a proposed to another spur.

Ludwig: Special General meeting in additional 1.15 distribution per share, which is again going to be a mix of dividends and distributions out of issue premium as.

Ludwig: As mentioned in the press release.

Ludovic Saverys: At the same time, the company has also started a share buyback program in recent months, where we have concluded about 8 million shares purchased at around 15.5 dollars, which is another reward for our shareholders. On the business side, we have continued to optimize our fleet. We've added ten, we've contracted ten more new buildings and sold another three older tankers, as well as launching the inauguration of our first hydrogen production refueling station in Africa and an announcement of our first hydrogen-powered vessel in Africa. Next slide, please.

Ludwig: At the same time.

Ludwig: The company has also started a share buyback program when the latest months, where we have contributed about 8 million shares purchased at around $55, which is another reward for our shareholders.

Ludwig: On the business side, we have continued to optimize our fleet and we've added 10 with contracted 10 more new buildings.

Ludwig: And sold in other tree older.

Ludwig: Tankers.

Ludwig: As well as launching the inauguration of our first hydrogen production refueling station in Africa and announcement of our first hydrogen powered vessel.

Ludwig: Africa next slide please.

Ludwig: Zooming in on the various marine divisions.

Ludovic Saverys: Zooming in on the various marine divisions, as a reminder, we have Euronav in the tankers, Bossemaar in the dry bulk, Delft with the container vessels, Bochem in the chemical tankers, and Windket, which is our offshore wind division. The company has about 47 ocean-going vessels on the water, with another 45 new buildings on order, as shown on the slide in the various divisions. On top of that, we have about 53 CTVs, which are small passenger craft bringing the engineers to the windmills, and 12 CTVs or CSOVs on order. On the bottom side of the slide, you can see the P&L break-evens of the various divisions as a whole.

Ludwig: As a repeat we have your NAV in the tankers, Boston MA Drybulk dealt with with the container vessels, both Ken on the chemical tankers and wind kits, which is our offshore wind division.

Ludwig: The company has about 47 ocean going vessels on the water with another 45, new buildings on order as shown on the slide and the various divisions.

Ludwig: On top of that we have about a 50 tree ctv's, which are small passenger across to bringing the engineers to the windmills and 12, Suvs or see adobe's on border on the bottom side of the slide you can see the P&L breakeven the the various divisions as a mix you can see that.

Ludovic Saverys: You can see that on the Q1 time charter equivalent, we are well above all the P&L break-evens in all the divisions, which obviously is an explanation for the very profitable quarter we had in Q1. In terms of guidance for Q2, we've also highlighted there that on the tanker side, we're still around $46,000 on a roughly booked basis, Days on the tanker side $37,000 on the nukes. I think this is one we like to highlight. We have a big order book on Newcastle max super eco vessels coming on stream, which Alex will touch upon, but we are happy to say that we have already booked $37,000 on these fixed days in that quarter. We have a current backlog on contracts accumulated throughout the divisions of about two billion dollars, which is testimony, I think, to the diversification and decarbonization strategy we're trying to implement. Next slide

Ludwig: The Q1 time charter equivalents are we are well above all the P&L break evens in all the divisions, which obviously.

Ludwig: Is there an explanation for the very profitable quarter. We had in Q1 in terms of guidance of Q2. We've also highlighted there that on the tanker side, we're still around $46000 on a roughly.

<unk> booked.

Ludwig: Days in the tanker side to 37000 nodes on the nukes I think there's one that we like to highlight we have a big order book on Newcastle Max Super Eco vessels coming on stream.

Ludwig: Alex will touch upon but we are happy to say that we have already booked $37000 on these fixed days in that quarter.

Ludwig: We have a current backlog on contracts accumulated schroeder divisions of about $2 billion.

Ludwig: Which is testimony I think to the diversification of the compensation strategy, we're trying to blast.

Ludwig: Next slide.

Ludovic Saverys: This is a highlight again for everybody to see what the strength of the platform is in terms of available days and open days. For 24, 25, 26, we will respectively have roughly 19,000 total days in 24, 24,000 in 25, and up to 30,000 open days, total days, sorry, in 2026. The blue bars obviously show what the contract backlog is. This is a way to show that our platform is rightly positioned to enjoy, especially on the tankers, all the vessels, and the dry bulk Newcastle Maxxis to enjoy the spot markets, whilst on the chemical tanks and containers and more new buildings that we try to expand our contract backlog.

Ludwig: This is a highlight again for everybody to see what's the strength of the platform is in terms of available data and open days.

Ludwig: For 'twenty four 'twenty five 'twenty, six where we respectively have roughly 19000 total date in 'twenty four 'twenty four thousands and 25 and up to $30000 30000 open days total day, sorry in 2026.

Ludwig: Blues bars, obviously show what the contract backlog is.

Ludwig: This is the way to show that our platform is writing positions.

Ludwig: Enjoy especially on the tankers older vessels in the Drybulk and you got from axis to enjoy the spot markets.

Ludwig: Whilst on the chemical tanker then of containers and more new buildings that we tried to expand or contract backlog.

Ludwig: And concludes on the highlights of Q1 as I mentioned in the press release the division are very very busy.

Ludovic Saverys: That concludes on the highlights of Q1, as we mentioned in the press release that it was a very, very busy quarter, and even up to now, where, after the very big profit we were happy to announce, we also want to repeat that we, the acquisition of CMB Tech, which was a transformatory step for Euronav CMB Tech. The mandatory bid has also closed. So our reference shell, the CMB, has opened and closed its mandatory bids.

Ludwig: Water and even up to now, whereas third the very big profit we were happy to announce we also want to repeat that.

Ludwig: The acquisition of <unk>, which was a transfer monetary steps are for you an estimate.

Ludwig: The mandatory bid has also closed so a reference shareholder <unk> has opened and closed its monetary bids.

Alexander Saverys: We're happy to say that Euronav and Anglo Eastern have joined forces on ship management. We continue to optimize our fleet, as mentioned before, the sale of some older vessels, and investment in new buildings. We had the inauguration of our production and refueling station in Africa, which is a pilot project, which is obviously the beginning of a longer story that we want to execute there in securing and producing low carbon molecules. And I think we have proposed a strong reward to shareholders with two dividends proposed in the last months and a share buyback initiated. I'll pass on the word to Alex to talk about the various markets. Thank you, Ludovic.

Ludwig: We're happy to say that your NAV and Anglo eastern.

Ludwig: Have joined forces on the ship management, we continue to optimize our fleets as mentioned before sale of some older vessels investment in new buildings.

Ludwig: We had the.

Ludwig: Inauguration of our production on a refueling station in Africa, which is a pilot project, which is obviously the beginning of a longer story that we want to execute there in securing and producing low carbon molecules.

Ludwig: And.

Ludwig: I think we have a.

Ludwig: Proposed a strong reward to shareholders with two dividends proposed in the last months and a share buyback initiatives I'll pass on the word to Alex.

Alex: Let's talk about the various markets.

Alexander Saverys: Thank you, Ludovic. I would like to take you now through our various divisions and the various markets in which we operate, starting with our most important markets still today, which are crude oil and tankers and Euronav. As you can see on the slide, we've highlighted a couple of things that have already been mentioned by Ludovic, but I'd like to take some points a bit more in detail.

Alex: Thank you Vivek.

Alex: I'd like to take you now through our various divisions in the various markets in which we operate.

Alex: Starting.

Alex: By our most important markets are still today, which is a crude oil in the tankers in your enough.

Alex: As you can see on the slide we've highlighted a couple of things that have already been mentioned by Ludovico, but I'd like to take some points a bit more in detail.

Alexander Saverys: As a recap, after the sale of our three VLCCs, we're left with a trading fleet of 14 VLCCs and 22 SUISMAXs on the water. Our order book is a total of five VLCCs ammonia-powered and four ECO SUISMAXs. We still have our two FSOs which have a long-term contract which is contributing nicely to our bottom line, and we have time charter contracts on our SUISMAXs as well, including two time charter contracts on our VLCCs. When we look at our break-evens and the spot market, you can see it split up here for VLTCs and Suismaxes. VLTC will break-even around $26,500.

Alex: As a recap on after the sale of our three Vlccs were left with a trading fleet of 14, Vlccs and 22 Suezmax <unk> on the water. Our order book is a total of five vlccs ammonia powered and for Eco Suezmax is.

Alex: We still have our two episodes of which have a long term contract, which is contributing nicely to our bottom line.

Alex: And we have a time charter contracts on our Suezmax this as well, including two time charter contracts on our Vlccs.

Alex: When we look at our our break evens in the spot market you can see it split up here.

Alex: For Vlccs and Suezmax has.

Alexander Saverys: What we achieved in Q1 was $41,700. And on the Suismaxes, we're around $20,800 with an achieved rate of $58,000. On the time charters, you can also see the numbers at the bottom of the slide.

Alex: You'll see a breakeven around 26 and a half thousand dollars.

Alex: What we achieved in Q1 is 41 seven and on the Suezmax says we're around 20008 hundreds with in achieved rates of 58 thousands.

Alex: On the time charters you can also see the numbers at the bottom of the slide.

Alexander Saverys: In general, on this market, we are still looking at a relatively low order book, even though ordering has picked up. But definitely for 2024 and 2025, we are still seeing very, very few vessels in the order book. Obviously, we are very much influenced by geopolitical tensions and all the wars.

Alex: In general on this market, we are still looking at a relatively low order book, even though ordering has picked up the definitely for 'twenty four and 'twenty five we'll still seeing.

Very very few vessels in the order book, obviously, we are very much influenced by geopolitical tensions and all the walls.

Alexander Saverys: And so far, this is actually contributing positively to ton-mile demand and to our results. On this slide, we are basically monitoring the order book. As you can see, the order book has definitely picked up. There's been some good SUISMAX ordering activity and some VLCC ordering activity. However, historically, it is still quite low.

Alex: And so far this is actually contributing positively to ton mile demand and to our results.

Alex: On the slides we are basically monitoring the order book as you can see the order book has definitely picked up so there's been some good suezmax ordering activity and some VLCC ordering activity historically it is still quite low and I think for US what are the most important years or is 2024 and two.

Alexander Saverys: I think for us, the most important years are 2024 and 2025, i.e., in the near term, we will see very few vessels delivering. More generally, the fleet is aging. That is true for many shipping segments.

Alex: Twenty-five Aida near term.

Alex: We will see very few vessels with delivery.

Alex: More in general the fleet is aging and that is true for many shipping segments.

Alexander Saverys: We are reaching historical highs, and by 2026, 25% of the fleet will be older than 20 years, which should normally contribute to positive markets going forward because vessels should leave the fleet. Supply, Demand, Outlook, and Earnings. That's two different graphs just to highlight the same elements that I just mentioned in the previous slide.

We are reaching historical highs and by 2026, 25% of the fleet will be older than 20 years, which should normally contributes to positive market going forwards because vessels should leave the fleet.

Alex: Supply demand outlook in the earnings.

Alex: That's two different graphs just to highlight the same elements that I just mentioned in the.

Alex: Previous slides, but just when you look at the historical numbers on the Vlccs and Suezmax were definitely not the top top of the market right now, but the numbers are definitely very very healthy.

Alexander Saverys: But just if you look at the historical numbers on VLCCs and Suisses, we are definitely not at the top of the market right now, but the numbers are definitely very, very healthy. I'd like to continue with our dry-boat division, which will definitely become the second biggest division in the Euronav CMB Tech group. So far, we have four vessels on the water. Very soon, we will take delivery of a fifth vessel, and at the end of the year, there will be 10 ships in total on the water.

Speaker Change: I'd like to continue on our dry bulk division, which will definitely become the second biggest division in the Euro and I assume you take groups. So far we have.

Speaker Change: For vessels on the water very soon and we will take delivery of the fifth vessel and at the end of the year. There will be 10 ships in total on the water.

Alexander Saverys: This is our largest series of vessels on order. They're all being built in Qingdao Bay High in China, and the deliveries are spread between 2023 and 2027. We see in general market growth; the growth numbers are not huge, but if you combine them with the relatively low order book, the supply-demand balance looks very nice. Specifically for our company, we also look at the specifics of our Newcastle MAX design. And as you can see on the table to the right, we try to highlight a little bit what a normal 10-year-old Newcastle MAX is earning today and what kind of premium we are achieving with our super eco-vessels, which have slightly larger cargo intake but also lower fuel consumption. And you can see that this is contributing very nicely.

Speaker Change: <unk> is our largest series of vessels on order, it's all being built in Qingdao Beihai in China and the deliveries are spreads between 2023 and 2020.

Speaker Change: Seven.

Speaker Change: We see in general in the markets growth.

Speaker Change: The gross numbers are not huge but if you combine it with the relatively low order book the supply demand balance looks very nice.

Speaker Change: Pacifically for our company.

Speaker Change: We also look at the specifics of our Newcastle next design.

Speaker Change: As you can see on the table to the Reits, we tried to highlight a little bit what's a normal 10 year old Newcastle next is earning today and want to kind of premium is we are achieving with our super eco vessels, which has slightly larger cargo intake, but also a lower fuel consumption and you can see that.

Speaker Change: This is contributing very nicely.

Alexander Saverys: On the asset side, the new building side, we definitely are in the money on our whole order book. We are hearing rumors now of orders in China for 2028 delivery for Newcastle MAXs around the $80 million mark. So that's again positive for the value of our company. Order book to fleet, as I said, is low, it's historically low, again zooming in on 24 and 25, very few ships coming on stream in general on the dry bulk side, but definitely on the cave sizes and Newcastle maxes, which is a segment that is of interest to us.

Speaker Change: On the asset side of the new building side, we definitely are in the money on our whole order book, we are hearing rumors now of orders in China for 2020 delivery for Newcastle I'm anxious around to $80 million Mark. So that's again positive for the value of our company.

Speaker Change: Order book to fleet as I said is as low as historically low again.

Speaker Change: Again zooming in on 24, and 20 fives are very little ships coming on stream in general are on the dry bulk side the definitely on the Cape sizes, and new customer matches, which is a segment that is of interest to us.

Speaker Change: And the same thing as we tankers, we see that the average age of the fleet is going up.

Alexander Saverys: And the same thing as with tankers, we see that the average age of the fleet is going up; five to six years from now, one third of the fleet will be 20 years and older, again, should be supportive of our results and the market going forward. And here we try to map the supply-demand outlook specifically for Newcastle Maxes. And on the right, the current Capesize and Newcastle Max earnings historically for the last couple of years. So the average between 1990 and 2019.

Speaker Change: In the five to six years from now one third of the fleets will be 20 years and older again should be supportive for our results and the market's going forwards.

Speaker Change: And here, we try to map.

Speaker Change: The supply demand outlook, specifically for Newcastle Lexus and on the rights.

Speaker Change: The current Capesize of Newcastle next earnings historically for the last couple of years. So the average between 1990 in 2019 and then the last couple of years you can see we are above trends, we had a very strong first quarter of the year.

Alexander Saverys: And then, for the last couple of years, you can see we are above trend. We had a very strong first quarter of the year. Q1 is usually a weak quarter in the dry bulk markets. This year, it was totally the opposite.

Speaker Change: Thanks to a very good data very good cargo flows coming out Q1 is usually a weak quarter in the dry bulk markets. This year it was totally the opposite.

Alexander Saverys: So we had some very, very good earnings against all expectations in Q1. Going to our chemical tankers, the chemical tanker fleet profile is that we have three ships on the water today, we're going to take delivery of another three during the next couple of months, and then we have two vessels delivered at the end of 2025. We have part of our ships that are trading in a chemical tanker pool. You can see that the earnings that we achieved in Q1 were very healthy, $25,500.

Speaker Change: So head to some very very good earnings against all expectations in Q1.

Speaker Change: Going to our chemical tankers.

Speaker Change: Chemical tanker fleet profile is we have three ships on the water today, we're going to take delivery of another three during the next couple of months and then we have two vessels delivering at the end of 2025.

Speaker Change: We have part of our ships that are trading in a chemical tanker pool, you can see that the earnings that we achieved in Q1 were very healthy $25500. The rest of our ships are fixed out long term around the 19000 dollar market as you can see on this slide.

Alexander Saverys: The rest of our ships are fixed out long term around the $19,000 market, as you can see on this slide. We see healthy growth numbers; the chemical tanker fleet is very much influenced by the swing factor of MR tankers entering the market or not. MR tankers have very good earnings right now and so don't see a need to come in and cannibalize the chemical tanker market, which again means chemical tanker rates are much better. So there are very good supply-demand dynamics in the chemical tanker markets, and earnings likewise are very favorable. Moving to containers, they're on the market. I think we can say that we are not positive.

We see healthy growth numbers, the chemical tanker fleet is very much influenced by the swing factor of MLR tankers entering the market or not.

Speaker Change: All tankers has very good earnings right now and so don't see a need to come in and kind of aligns the chemical tanker market, which again means chemical tanker rates are much better so very good supply demand dynamics on the chemical tanker markets and earnings Likewise are very favorable.

Speaker Change: Moving to the containers.

Speaker Change: They're on the market I think we can say that we are not positive.

Alexander Saverys: There is the disruption in the Red Sea right now, which is supporting rates somehow. But as soon as that situation resolves, we believe that rates will go down again. There are too many vessels. You can see in the middle of the slides the supply and trade numbers for 2024. There's a big disconnect between the amount of ships that are being delivered and the amount of growth that we see. It is countered a little bit by, of course, the larger ton miles for ships that are avoiding the Red Sea.

Speaker Change: There is the disruption of the Red Sea right now, which is supporting our rates somehow.

Speaker Change: But as soon as that situation woods resolve we believe that rates will go down again, there are too. Many vessels you can see in the middle of the slides.

Speaker Change: Supply and trading numbers.

Speaker Change: For 2024, there's a big disconnect between the amount of ships that are being delivered and the demand growth that we see it as counters a little bit by of course, the larger ton miles for ships that are avoiding the red sea.

Speaker Change: But we are afraid that once that is resolved we will see that the market will go down again, it doesn't really affect your and haven't seen them be tick because all our container vessels that we own are on long term charters at very good rates.

Alexander Saverys: But we are afraid that once that is resolved, we will see that the market will go down again. It doesn't really affect Euronav and CMB Tech, because all our container vessels that we own are on long-term charters at very good rates. You can see that we have two ships on the water today. There are another two coming in the summer.

Speaker Change: You can see that we have two ships on the water today, there's another two coming in the summer and our 1400 that you do dual fuel ammonia ship is delivering a middle of 2026. All the ships are on 10 year charters and the last one on 15 year charters, but on the markets.

Alexander Saverys: And our 1,400-year dual-fuel ammonia ship is delivering in the middle of 2026. All these ships are on 10-year charters, and the last one on 15-year charters. But on the market, I'm afraid that we are not very, very positive for ships that would be spot. Ending with our Offshore Wind division, WindCat. So what does WindCat do?

Speaker Change: I'm afraid that we are not very very positive for ships that would be spot.

Speaker Change: Ending with our offshore wind division when it gets sold.

Alexander Saverys: It brings engineers, electricians, and maintenance people to and from the offshore wind parks that are being constructed or are already in operation. We have two asset types; our crew transfer vessels, which are small boats. And you can also see the earnings are in relation to the size of the ship, earning good rates, actually, compared to our breakevens. And then we have a second asset type, which is our CSOV, our commissioning service operating vessels, the first vessel delivery next year. Then we have a series that runs into 2026.

Speaker Change: So what does wind could do and brings engineers electricians maintenance people to and from the offshore wind parks that are being constructed or are already in operation.

Speaker Change: We have two asset types, our crew transfer vessels, which are small boats and you can see also the earnings are in relation to the size of the ship.

Speaker Change: Owning good rates are actually.

Speaker Change: Compared to our breakeven and then we have a second asset type, which is our CSO V. Our commissioning service operating vessels first vessel delivering next year, then we have a series that runs into 2026.

Alexander Saverys: Nothing has been fixed on the CSOVs yet, but we did indicate what our breakeven is on our CSOVs and what the current spot market is expected to be and to generate on the ship. So the market, definitely today, is very supportive of our CSOVs. There were a couple of milestones in WindCat.

Speaker Change: Nothing has been fixed on the CS ov's, yet, but we did indicate what our breakeven is on a CTO fees and what's the current spot market.

Speaker Change: Is expected to be in to generate on the ships. So the market definitely today is very supportive for our seasonal fees. There were a couple of milestones and when cuts we took delivery.

Alexander Saverys: We took delivery of a few ships, so we have 53 CTVs on the water now. We had a long-term charter to Eneco that was concluded. We delivered the first hydrogen-powered dual fuel ship in Germany to our JV partners, FRS.

Speaker Change: Of a few ships. So we have 53 CTV is underwater now we had a long term charter to a nickel that was concluded we did it was the first hydrogen powered.

Speaker Change: <unk> fuel ships in Germany to our JV partners FRS.

Alexander Saverys: And we are seeing, in general, that the market is still relatively strong. We have good work for all our ships. That brings me to my conclusion.

Speaker Change: And we are seeing in general.

Speaker Change: That's the market is still relatively strong or we have good work for all our ships.

Speaker Change: That brings me to the conclusion.

Speaker Change: There's basically three things we wanted to touch upon one highlighting our return to shareholders as well as already discussed by Ludovic. After the four point $57 per share of dividends that we will approve next week at the AGM.

Alexander Saverys: There are basically three things we wanted to touch upon. One, highlighting our return to shareholders, as discussed by Ludovic, after the $4.57 per share of dividends that we will approve next week at the AGM. The board has proposed an additional dividend of $1.15, which will be put to a vote at a special general meeting in July.

Speaker Change: Bold has proposed an additional dividend of $1 $15, which will be put to a vote of the special General meeting in July So our return to shareholders is definitely a big topic for the first half of this year based also on the very good results that we have achieved.

Alexander Saverys: So return to shareholders is definitely a big topic for the first half of this year, based also on the very good results that we have achieved. Our portfolio, when you look at our delivery schedule, we're probably taking delivery of one ship per month, which is a very big program and keeps our technical teams very busy. But so, for 2024, 2025, 2026, and even in the first half of 2027, we will take delivery of many new buildings.

Speaker Change: Our portfolio.

Speaker Change: When you look at our delivery schedule, we're probably taking delivery of one ship per month, which is a very big program keeps our technical teams are very busy.

Speaker Change: So for 'twenty four 'twenty five 'twenty six and even in the first half of 'twenty seven we will take delivery of many new buildings and as we highlighted some of them have already been fixed on good long term time charters.

Alexander Saverys: And as we highlighted, some of them have already been fixed on good long-term time charters. As for decarbonization, all our ships that are on order today, bar a few exceptions, are ready to be operated by dual fuel engines or fitted with dual fuel engines.

Speaker Change: On the decarbonization all our ships that are on order today bar a few exceptions.

Speaker Change: Or are ready to be operated by dual fuel engines or fitted with dual fuel engines.

Alexander Saverys: So that remains a very key topic in our strategy for decarbonization. And very important for us as well in our portfolio approach is to increase our contract backlog. We have $2 billion in contract backlog today. We would like, by the end of the year, to bring that to $3 billion. It's important for us that we show this cash flow and that we have cash flow visibility going forward. Our outlook for 2024 and beyond, if you listen to what I just said about the markets, it's difficult to be negative, apart from containers.

Speaker Change: So that remains a very key topic here in our strategy to decarbonization and very important for us as well in our portfolio approach is to increase our contract backlog, we have $2 billion of contract backlog today, we would like by the end of the year to bring debt to $3 billion, let's.

Speaker Change: It's important for us that we show this cash flow and that we have cash flow visibility going forward.

Speaker Change: Our outlook for 'twenty, four and beyond if you listen to what I, just said about the markets its difficult to be negative a pulse on the containers I think all the segments. We are operating in are in good markets, there's always potential headwinds that nobody can see coming.

Alexander Saverys: I think all the segments we are operating in are in good markets. There are always potential headwinds that nobody can see coming, but I would say that, supply and demand-wise, in all the major markets we are operating in, it looks very, very strong, not only for 2024 but also for 2025.

Speaker Change: But I would say that supply and the supply demand wise in all the major markets. We are operating in a it looks very very strong not only for 'twenty four but also for 2025.

Alexander Saverys: We repeat, and this might be a question that some of you will ask us later on, that we want to remain listed on Euronext and NYC and maintain these two listings in the short to medium term. That ends our presentation, and we will now open the floor for questions. Please raise your hand or flag if you have a question.

Speaker Change: We repeat in this might be a question and some of you will ask US later on that we want to remain listed on Euronext and the NYSE.

Speaker Change: And keep these two listings in the short to medium term.

Speaker Change: That ends our presentation and we will now open the floor for questions.

Speaker Change: Please raise your hand or flag if you have a question.

Operator: Yes, Luc van Beek, you can now ask your question.

Speaker Change: Yes look some bits you.

Speaker Change: You can now ask your question.

Speaker Change: There's also a need.

Speaker Change: No.

Speaker Change: Yes, good afternoon.

Luc van Beek: Yes, good afternoon. I have a couple of questions. First, on your dividend policy and in combination with your leverage. So I understand that it's discretionary, but do you have some general indications of what your main considerations are when deciding whether to pay a dividend for a future quarter or not? My second question is on your capex. You gave a very useful breakdown of the capex for the next couple of years, which is around 900-950 per year.

Speaker Change: Couple of questions Firstly on your.

Speaker Change: Your dividend policy, a combination with your leverage.

Speaker Change: So I understand that this discretionary but do you have some general indications of what are your main considerations whether to pay a dividend for a future quarter or not.

Speaker Change: And my second question is on your Capex you gave it a useful breakdown of the Capex for the next couple of years, which is around two.

Speaker Change: I don't know kind of a <unk> 50 per year is that a run rate, which we intend to maintain pretty coming.

Luc van Beek: Is that a run rate which you intend to maintain for the coming, for the near future? Given the stresses it already puts on your organization, or do you intend to accelerate further and add further construction plans to your... [inaudible]

Put it in your future view of the Distresses is already puts in your organization or do you intend to accelerates birder and critical.

Speaker Change: Critical section plans to euro.

Speaker Change: For your planning.

Ludovic Saverys: Yeah, great. Luc, thanks. Ludovic here.

Speaker Change: Great and Luke thinks it's Linda the queue. So on the first question.

Speaker Change: It is a it is tough to give a.

Speaker Change: Definitive answer on percentage of profit or one other I think we have a fully discretionary policy because you have a big Capex program and we have to tailor to dividend policy towards the strength of our balance sheets now market are good today. So we can and continue to invest and continue to pay dividends I think this is a.

Ludovic Saverys: So on the first question, it is tough to give a definitive answer on the percentage of profit or other. I think we have a fully discretionary policy because we have a big capex program, and we have to tailor the dividend policy towards the strength of our balance sheets. Now, the markets are good today, so we can continue to invest and continue to pay dividends. I think this is the point we are at right now.

Speaker Change: The point, we have right now should market, obviously shifts or turn then we will have to adapt that policy, but.

Ludovic Saverys: Should the markets obviously shift or turn, then we will have to adapt that policy. But as of now, we're very happy to reward our shareholders in the way we do. Towards your second question on CAPEX. So obviously, we have about 2.9 billion outstanding CAPEX, which is a run rate of 900 million per year. We don't have a policy of keeping that run rate. We need to have good projects. As Alex mentioned, on the tanker new building.

Speaker Change: As from now we're very happy to reward our shareholders and the way we do.

Speaker Change: Towards your second.

Speaker Change: Question on the Capex and so obviously, we have about $2 9 billion of outstanding Capex, which is a run rate of $900 million per year.

Speaker Change: We don't have a policy of keeping that run rates, we need to have good projects and Alex mentioned.

Speaker Change: On the tanker new building sticking.

Ludovic Saverys: Speculatively, we think the market has topped out in terms of timing of deliveries but also price, which is becoming quite expensive. On the dry build side, prices are still interesting, but the slots available are quite difficult to justify a large expansion on the new buildings. And so, first segment, we will look at that. So, no, it is not that we have a fixed target for a CAPEX program, but yes, we will jump on opportunities should we see speculative ordering at attractive prices or contracts being written before we go to do new building orders. That obviously is something different.

Speaker Change: Speculatively ordering we think the market has topped out in terms of timing of deliveries, but also price, which is becoming a quite expensive.

Speaker Change: On the Drybulk sides are prices are still interesting, but the slots available are quite difficult to justify a large expansion on the on the new buildings and so per segment, we will look at that.

Speaker Change: So no. It is not that we have a fixed targets for a capex program, but yes, we will jump on opportunities should we see because of ordering at attractive prices.

Speaker Change: Our contracts being written before we are going to do new building orders that obviously is something.

Ludovic Saverys: After the decision, obviously, we will tailor the balance sheets towards it. I think the policy of financing 65% of new building prices remains. Should we see attractive opportunities and go further, obviously, we can start selling some of the older assets, what we call the optimization part of the strategy.

Speaker Change: Often a decision obviously, we will tailor the balance sheets.

Speaker Change: Towards it.

Speaker Change: The policy of our financing 65% of the new building prices remains.

Speaker Change: Should we see attractive opportunities and go further and obviously always do can start selling some of the older assets will be called the optimization part of the strategy.

Speaker Change: Okay, that's very clear to sell for now thank you.

Luc van Beek: Okay, that's clear. That's all for now. Thank you. Thank you. Christophe Samma would like to ask a question, so you can now unmute and ask your question.

Speaker Change: Thank you.

Speaker Change: Can you sell some I would like to answer.

Speaker Change: Ask a question. So you can know unused and ask your question. Please.

Speaker Change: Okay.

Speaker Change: Yourself.

Speaker Change: Okay.

Speaker Change: Okay I was still on mute and good afternoon first.

Christophe Samma: Okay, yeah, I was still on mute. Good afternoon. First question on the MEPC meeting last March: Did anything happen there that made you evaluate the likelihood or the magnitude of, you know, a global greenhouse gas levy? Has it changed there? Has your view changed?

Speaker Change: First question on them the MEP CBD at last March.

Speaker Change: Okay.

Speaker Change: Fitbit anything that happened there that you would evaluate the likelihood or the magnitude for us.

Speaker Change: No globally.

Speaker Change: Greenhouse gases levy.

Speaker Change: Then.

Alexander Saverys: This is the first question. Then, on Namibia, could you inform us about the final investment decisions on the bunker facility and the production infrastructure plans you have there? And then, as a follow-up, the Port of Antwerp has also announced an investment in Namibia, in the Port of Namibia. Will you be co-investing with them in Namibia? And then finally, could you shed some light on potential long-term contracts for the dry bulk new builds program that you're taking on? Thank you.

Speaker Change: Has it changed there has not changed and this is the first.

Speaker Change: <unk> been on in Namibia.

Speaker Change: Could you inform us on.

Speaker Change: The final investment decisions on the bunker facility.

Speaker Change: <unk>.

Speaker Change: <unk>.

Speaker Change: Infrastructure plants.

Speaker Change: You have there.

Speaker Change: And that has a follow up.

Speaker Change: The port of Antwerp has also announced and investments and in navigating the potent Mickey.

Speaker Change: You'd be co investing with them.

Speaker Change: In aggregate.

Speaker Change: Finally could you shed some light on yeah.

Speaker Change: Yes potential long term contracts for the dry bulk.

Speaker Change: You built program at.

Speaker Change: That youre taking on thank you.

Speaker Change: Yeah. Thanks for yourself so on M. P C.

Alexander Saverys: The outcome of the last MEPC meeting was positive, but not dramatically changing anything in the very short term. It's more about the deadlines that are being put forward. There's at least a plan to come to a conclusion, to come up with this famous carbon levy and then also decide what they're going to do with the money. We, as you know, are very vocal about the fact that we want things to go faster.

Speaker Change: As always with the eye emo it goes very very slowly.

Speaker Change: We regard the outcome of the lost time, UPC meeting as positive, but not dramatically changing anything in the very short term.

Speaker Change: It's more about the deadlines that are being put forwards there's at least a plan to come to a conclusion to come to this famous carbon Levy and then also decide on what they're going to do with the with the money.

Speaker Change: We as you know are very vocal about the fact that we want things to go faster.

Alexander Saverys: We think shipping should be regulated at a global level. All these regional initiatives, like in Europe, are making our business a bit more complicated, even though we are happy with what has happened in Europe so far. So MEPC is positive, but not really a game changer yet.

Speaker Change: We think shipping should be regulated on a global level. All these regional initiatives like in Europe.

Speaker Change: Our making our business a bit more complicated even though we are happy with what has happened in Europe. So far.

Speaker Change: So Amy B C positive, but not really a game changer, yet so let's watch the next meetings that are coming.

Alexander Saverys: So let's watch the next meetings that are coming up. On Namibia and the bunkering facility, so just to recap what our plans are in Namibia, we have taken an FID and actually have nearly finished the construction of our first production and refueling plant, which is about 30 million euros investment, of which we have 10 million euros invested, and then the rest is our partner, and we get some support from the federal government of Germany.

Speaker Change: On Namibia and the Bunkering facility. So just to recap what our plans are in Namibia, we have taken a nice idea and actually have nearly finished the construction on our first production and rehearing plants, which is about 30 million euros investment of which we have 10 million Euro <unk> invested and then the rest is our partner.

Speaker Change: And we get some support from the federal government of Germany.

Speaker Change: The next phase.

Speaker Change: Would be the ammonia bunkering facility.

Alexander Saverys: The next phase would be the ammonia bunkering facility. We are in the midst of the feed, and we are going to take FID towards the end of this year. That's probably a topic we want to touch upon in future calls, so FID definitely has not been taken yet; we're still in the feed phase.

Speaker Change: We are in the midst of the feeds and we are going to take if I D. Towards the end of this year, that's probably a topic we want to touch upon in the next calls so if I need definitely has not been taken yet we're still in the feed phase.

Alexander Saverys: Looking at your question on the Port of Antwerp and what they have announced, so let us be clear: what the Port of Antwerp has announced is a phased approach to develop a new port to the north of Walvis Bay. So we are already active in the port. What they will do first is do a study. Once the study is finished, they will then decide whether to take the investments to the next level.

Speaker Change: Looking at your question on the Port of Antwerp, and what they have announced so let us be clear what's part of Endo has announced it's a phased approach to develop a new ports to the north of Wolters space. So we are already active and and reports.

Speaker Change: What they will do first is do a study once the study is finished they will then decide whether they take the investments to the next level and then of course, we will have discussions with them I mean logically.

Alexander Saverys: And then, of course, we will have discussions with them. I mean, logically, they are our neighbors and partners here in Antwerp. We will discuss whether it would make sense for our bunkering facility and other projects to invest in certain parts of the new ports that they will build. And then on the coverage on the Belker vessels, everything is spot on right now. We see a lot of interest from our end users and customers to charter our ships, but we have not concluded anything yet.

Speaker Change: They are our neighbors and partners here in Antwerp, we will discuss whether it would make sense for our bunkering facility and or different projects to invest in certain parcels in your reports that they will built.

Speaker Change: And then on the coverage on the bulker vessels everything is spot right now.

Speaker Change: We see a lot of interest from our end users and customers to charter our ships, but we have not concluded anything yet.

Christophe Samma: Okay, that's all for now. Thank you. Thank you.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: You see anyone else, who would you like to ask a question. Please raise your hands.

Operator: If anyone else would still like to ask a question, please raise your hand. Liesbeth, did you have another question? Because you raised your hand again.

Speaker Change: Please go ahead you have another question because you raise your hands.

Speaker Change: Yes, it is nobody else's raising questions then.

Liesbeth: Yes, if nobody else is raising questions, then I might squeeze in a few more, if I may. Just in terms of future vessel disposals of older vessels, can we expect a certain segment to be more likely to witness disposals? For instance, would there be a reason to assume that disposals would be more in VLCCs than in CSMAXs? And secondly, could you shed some light on the CII metrics of your VLCC fleet and CSMAX fleet, please?

Speaker Change: Like to squeeze in a few more if I may.

Speaker Change: Just.

Speaker Change: And in terms of future vessel disposals Zhao for older vessels.

Speaker Change: <unk>.

Speaker Change: Got it wont expect a certain segments to be more likely.

Speaker Change: To witness disposal prices would you.

Speaker Change: With MTO reason to assume that the disposals would be rather in VLCC and Suezmax is.

Speaker Change: And secondly.

Speaker Change: Could you shed some light on the CIA.

Speaker Change: Metrics off of your VLCC fleet.

Speaker Change: We've seen as much heat piece.

Speaker Change: Yes.

Alexander Saverys: Okay, so, on the disposals, um... We have been very clear that if we see good prices for older tonnage, we will probably look at selling them and then recycling the cash to invest in more modern ships. What we just did with the three VLCCs, what we call our N-types, that we recently disposed of, that is clearly a recycling of money. I mean, this is something we can reinvest in further new buildings.

Speaker Change: Okay. So on the on the disposals.

Speaker Change: We have been very clear that if we see good prices for older tonnage, we will probably look at selling them and then recycling that cash and invest in more modern ships or we just did with the three vlccs are what we call our enzymes are though.

Speaker Change: We recently disposed of that is clearly recycling of money I mean, this is something we can reinvest in further new buildings.

Alexander Saverys: Is there a specific asset class that we will focus on? No, but you just take the age profile of the current Euronav CNB Tech fleet. The obvious candidates are more in the Euronav tanker division than in other divisions, but whether it's going to be a VLCC or a Suismax will depend on the price, the buyer, and the opportunity that presents itself. On CII, Christophe, I would suggest that you ask me this question in an email that I can refer to my technical people on the profile of our fleet. I'm sure we have that data, but I don't have it at hand right now. So, apologies; I can't give you an answer on this call.

Speaker Change: There are specific asset class, where we will focus on no but you just take the age profile of the current Zhirinovsky MB take fleet.

Speaker Change: Obvious candidates are more in the urine of tanker division than in other divisions, but whether its going to be a VLCC or a suezmax will depend on the price the buyer and the opportunity that presents itself.

Speaker Change: On the Ci Ike yourself.

Speaker Change: I would suggest that you asked me. This question on an email that I referred to my technical people on the profile of our fleet and I'm sure. We have that data, but I don't have it at hand, right now so apologies I Couldnt give you an answer in this call.

Speaker Change: Okay.

Alexander Saverys: Okay, thank you. And then maybe another question, if I may. I mean, we read a lot from different sources that oil majors are loosening age constraints for vessels they charter. Can you confirm this from your experience in chartering then?

Speaker Change: Thank you and then maybe another question if I may I mean, we read a lot on that from different sources that.

Speaker Change: Oil majors.

Speaker Change: Or are loosening H constraining spark for vessels the charter.

Speaker Change: Can you kind of confirm this from from practice hidden in there from the chartering desk.

Speaker Change: Well I cannot speak for specific oil majors, but in general I would say you are right that is correct.

Alexander Saverys: Well, I cannot speak for all majors specifically, but in general, I would say you are right. That is correct. It is typical of strong markets; when the market is very high, you know, our customers loosen their self-imposed regulations on age because they just don't want the prices to go too high for modern investors.

Speaker Change: It is typical of a strong markets when market saw very high and all our customers.

Speaker Change: Loosen their or self imposed regulations on age.

Speaker Change: Because I just don't want to prices to go too high for modern vessels.

Speaker Change: Okay.

Liesbeth: Okay, thank you. That's all for me. Thank you.

Speaker Change: Thank you.

Speaker Change: That's all for me.

Speaker Change: Thank you.

Operator: Clément Mollet, you can now unmute and ask your question, please. Meijer is still on mute, so...

Chemo Malay: Chemo Malay you can now unused and ask your question.

Chemo Malay: My are still on mute.

Chemo Malay: Yeah.

Chemo Malay: Can you hear me.

Clément Mollet: Yes, we can hear you. Sorry about that.

Chemo Malay: Yes, we can hear you perfect I'm, sorry about that I wanted to start by asking about the epitopes, how do those speeds in your overall portfolio approach.

Alexander Saverys: I wanted to start by asking about the episodes. How do those fit in your role portfolio approach? They're still contracted for a few years, but given their nature, do you view them as non-contracted?

Chemo Malay: They are still contracted for a few years, but given their nature do you view them as noncore.

Speaker Change: It's a very good question.

Alexander Saverys: It's a very good question. Well, first and foremost, these are assets that we've had in our portfolio for a very, very long time. And we are very satisfied with the quality of the assets and the contract coverage. Going forward, we don't know what will happen to these assets. We have not made up our minds, but we are definitely not against these assets per se. We will just see what happens when the contracts come to expiry and what we can find as a new business.

Speaker Change: Well first and foremost a these are S. As such we've had in our portfolio for a very very long time.

Speaker Change: And we are very satisfied with the quality of the assets and the contract coverage.

Speaker Change: <unk> forwards, we don't know what's will happen to these assets, we have not made up our minds, but we are definitely not against these assets per se.

Speaker Change: We will just see what happens when the contracts comes to expiry and then and once we can find as a new business. So to answer. Your question simply is not that we are gung ho at selling them per se.

Alexander Saverys: To answer your question simply, it is not that we are gung-ho about selling them per se or holding on to them per se. We will just look at the opportunities that present themselves. It is true, of course, that the assets are slightly older, but as you know, they have been totally reconverted. So, reconversions can happen and then extend the life of these assets.

Speaker Change: Or holding onto them per se, we will just look at the opportunities that present themselves is to of course the assets all slightly older but as you know they have been totally re converted so reconversion as can happen and then extend the life of these assets.

Speaker Change: Right.

Alexander Saverys: That's helpful. Thank you. I also wanted to ask about the CSOBs. You mentioned they are still open, and I was wondering what kind of term contracts are available amid the current market conditions.

Speaker Change: That's helpful. Thank you I also wanted to ask about the T. S. Obese you mentioned, they're still open.

Speaker Change: And I was wondering what kind of term contracts are available.

Speaker Change: Current conditions.

Alexander Saverys: That's a very good question. There are two types of contracts that you can find for CSUVs, either very short-term contracts during the construction phase of off-flow wind parks, so say three months, six months, maybe nine months, or much longer-term contracts, five, even ten years, for either very large construction works that last much longer or for the maintenance of the parks. We are looking at both, but our inclination so far is that the long-term contracts are very low margin. It's usually the big majors that do these tenders, so our preference would be right now to go for some shorter-term contracts unless we see a very good rate that gives us a good return.

Speaker Change: That's.

Speaker Change: That's a very good question. There's two types of contracts that you can find foresees vs. Either very short term contracts during the construction phase of offshore wind parks. So say three months six months, maybe nine months or much longer term contracts of five even to 10 years for are either very large construction works at last much longer or for the main.

Speaker Change: Tenants of the box, we're looking at both.

Speaker Change: Our inclination so far is that the long term contracts are a very low margin is usually with big majors that duty centers.

Speaker Change: Our preference would be right now to more go for some shorter term contracts unless we see a very good rate that gives us a good return.

Speaker Change: Thank you that's very helpful. That's all from me.

Operator: Thank you. That's very helpful. That's all from me.

Clément Mollet: Thank you. That's very helpful.

Speaker Change: Thank you.

Speaker Change: As a Christian.

Speaker Change: Thank you me.

Operator: Will you give me a mute, please?

Operator: Yes, two follow-ups on your disclosure. Would it be possible to give a breakdown in the future of the revenues and EBIT by second, because they're such different markets? And also to give a bit more disclosure about the order backlog that you talked about of 2 billion, so in which segments, what's the duration, and so on? Look, I suggest I'll give you the answer that we give to other...

Speaker Change: Yes.

Speaker Change: Two follow ups on your disclosure would it be possible to give a brief.

Speaker Change: And in the future of the <unk>.

Speaker Change: Revenues and EBIT by year by second because they're such different markets.

Speaker Change: And also to give a bit more disclosure about E E.

Speaker Change: Artifact because you talked about two 1 billion as home and which segments, what's the duration Angela.

Speaker Change: Hey, look I suggest alban.

Alexander Saverys: Look, I'll give you the answer that we give to other people that are asking this from the analyst community. Reach out to Joris Daman and my brother Ludovic, and they will be able to answer that question.

Speaker Change: Give you the answer that we give to other people that are asking this from the analyst community reach out to your wisdom on than my brother Ludwig.

Speaker Change: They will be able to answer that question.

Speaker Change: Okay. Thank you.

Speaker Change: Yes.

Speaker Change: Unless anybody else has a question claim all you still have a question or.

Speaker Change: No.

Speaker Change: Okay.

Alexander Saverys: Okay, thank you. Unless anybody else has a question, Clément, do you still have a question, or not? Okay, then I would like to thank you for taking the time and joining us on this earnings call. Thank you for your questions and look forward to seeing you and speaking to you in the very near future. Thank you very much. Bye-bye.

Speaker Change: I would like to thank you for taking the time and joining us in this earnings call. Thank.

Speaker Change: Thank you for your questions and looking forward to seeing you and speaking to you in the very short future. Thank you very much bye bye.

Speaker Change: Thank you.