Presentation

Euronav was established in 1989 to be a 'reliable transporter of crude oil worldwide' and has since also expanded with investments into two FSO-conversions. The company is headquartered in Antwerp and has the world’s largest, independent quoted crude tanker platform. Euronav is dual-listed on Euronext Brussels and the New York Stock Exchange with a market capitalization of USD 2.0bn, and net debt of USD 1.1bn as of Q2’20.

Euronav’s tanker fleet consists of 45 VLCCs (including four newbuildings), two ULCCs and 25 suexmaxes (including two owned through a 50-50 JV). The company primarily trades in the spot market and has ~80% of remaining vessel days in 2020 exposed to the spot market. Euronav was part of forming what is today the world’s largest VLCC pool (Tankers International Pool) which is still in charge of the spot trading for the company’s fleet. In addition, Euronav owns two FSOs through a 50-50 JV.

We estimate a Q3 parity NAV in Euronav of USD 12 and continue to view the company as a market leader with stellar capital management. Despite the negative shocks of Covid-19, we still estimate Euronav’s 2020 ROE at 23% with P/B of 0.9x. The company has a strong balance sheet that it can use for accretive growth opportunities when the timing is right.