EURONAV NV HIGHLIGHTS
Dividend of USD 0.82 per share in line with our return to shareholders policy
Best year for Euronav since 2008 with net profit of USD 350 million for 2015
First quarter 2016 stronger than first quarter 2015
AGM to approve dividend 12 May with anticipated ex-dividend date 17 May
ANTWERP, Belgium, 17 March 2016 - Euronav NV (NYSE: EURN & Euronext: EURN) ("Euronav" or the "Company") today reported its audited financial results for the fourth quarter and full year 2015.
Paddy Rodgers, CEO of Euronav, commented on the final results: "2015 was a landmark year for Euronav with the Company achieving a number of key objectives such as delivery of the most profitable year since 2008, full listing on the NYSE and the appointment of Carl Steen as an independent Chairman. I would like to take this opportunity to thank the Board of Directors, management and staff for all their hard work and dedication in helping the group to accomplish so much during 2015".
Paddy Rodgers outlined the following thoughts on the current market: "Euronav continues to experience robust and fundamental strength in the VLCC and Suezmax sectors. The first quarter of 2016 is not only substantially better than the first quarter of 2015 but it should also beat the fourth quarter of 2015 which was the best of the four quarters for that year. We believe the current market fundamentals are not reflected in our share price."
"Vessel supply always needs to be considered in the context of the anticipated demand for oil. In the context of robust oil demand (IEA forecast 1.2 mbpd growth for 2016) and with potential for further demand stimulation from a low oil price, we believe that the supply of VLCCs and Suezmaxes is a manageable prospect for the tanker sector. At the same time, capital markets delevering and a structural restriction of availability of financing for tankers have substantially reduced the rate of large tanker ordering in the past six months. This critical factor along with a sustained positive ton-mile expansion and the likelihood of persistently high global oil production provide support for a positive outlook for large tanker markets through 2016 and beyond."
So far in the first quarter of 2016 the Euronav VLCC fleet operated in the Tankers International Pool has earned about USD 62,275 per day and 92% of the available days have been fixed. Euronav's Suezmaxes trading on the spot market have earned about USD 37,500 per day on average with 99% of the available days fixed for the first quarter.
The most important key figures are: | ||||
in thousands of USD | Fourth | Fourth | Full Year 2015 | Full Year 2014 |
Quarter 2015 | Quarter 2014 | |||
Revenue | 225,644 | 144,866 | 846,507 | 473,985 |
Other operating Income | 1,154 | 4,853 | 7,426 | 11,411 |
Voyage expenses and commissions | (15,956) | (27,176) | (71,237) | (118,303) |
Vessel operating expenses | (38,812) | (37,000) | (153,718) | (124,089) |
Charter hire expenses | (6,438) | (10,014) | (25,849) | (35,664) |
General and administrative expenses | (16,122) | (12,286) | (46,251) | (40,565) |
Net Gain (loss) on disposal of tangible | 11,165 | 4,345 | 5,300 | 5,706 |
assets | ||||
EBITDA | 160,635 | 67,588 | 562,178 | 172,481 |
Depreciation | (54,896) | (47,894) | (210,206) | (160,954) |
EBIT (result from operating activities) | 105,739 | 19,694 | 351,972 | 11,527 |
Net finance expenses | (9,799) | (37,458) | (47,630) | (93,353) |
Share of profit (loss) of equity accounted investees | 13,520 | 7,992 | 51,592 | 30,286 |
Result before taxation | 109,461 | (9,772) | 355,934 | (51,540) |
Tax Benefit (Expense) | (4,602) | 5,837 | (5,633) | 5,743 |
Profit (loss) for the period | 104,859 | (3,935) | 350,301 | (45,797) |
Attributable to: Owners of the company | 104,859 | (3,935) | 350,301 | (45,797) |
Non-controlling intrests | - | - | - | - |
The contribution to the result is as follows | ||||
in thousands of USD | Fourth | Fourth | Full Year 2015 | Full Year 2014 |
Quarter 2015 | Quarter 2014 | |||
Tankers | 96,697 | (11,243) | 317,347 | (75,250) |
FSO | 8,162 | 7,308 | 32,954 | 29,453 |
result after taxation | 104,859 | (3,935) | 350,301 | (45,797) |
Information per share: | ||||
in USD per share | Fourth | Fourth | Full Year 2015 | Full Year 2014 |
Quarter 2015 | Quarter 2014 | |||
Weighted average number of shares (basic) * | 158,628,151 | 129,300,666 | 155,872,171 | 116,539,018 |
EBITDA | 1.01 | 0.52 | 3.61 | 1.48 |
EBIT (operating result) | 0.67 | 0.15 | 2.26 | 0.10 |
Result after taxation | 0.66 | (0.03) | 2.25 | (0.39) |
All figures have been prepared under IFRS as adopted by the EU (International Financial Reporting Standards) and have been audited by the statutory auditor.
*The number of shares outstanding on 31 December 2015 is 159,208,949.
It will be proposed to the Annual Shareholders' meeting of 12 May 2016 to distribute a gross dividend in the amount of USD 0.82 per share to all shareholders. Subject to shareholder approval, this would bring the total gross dividend paid in relation to 2015 to USD 1.69. Taking into account the gross dividend of USD 0.87 per share already paid in 2015 (on 28 May and 22 September 2015), a balance of a gross amount of USD 0.82 per share will be payable as from 26 May 2016. The share will trade ex-dividend as from 17 May 2016 (record date 18 May 2016).1 The dividend to holders of Euronav shares listed and tradeable on Euronext Brussels will be paid in EUR at the USD/EUR exchange rate of the record date. The dividend calculation is aligned with our policy which refers to 80% payout of net profits excluding exceptional items such as capital gains made on vessel disposals. Exceptional items for 2015 refer to capital gains on the Antarctica (USD 2.1m) and Cap Laurent (USD 11.5m).
On 15 January 2015 Euronav delivered the VLCC Antarctica (2009 - 315,981 dwt) to its new owners for conversion into an FPSO. Delivery was earlier than expected, resulting in an increased sale price and a corresponding gain on disposal of assets of USD 2.1 million which was recorded in the first quarter of 2015.
On 20 January 2015 Euronav announced the commencement of its underwritten Initial Public Offering in the United States of 13,550,000 ordinary shares. On 23 January 2015 Euronav announced the upsizing (from the initially announced 13,550,000 shares to 16,260,000 shares) of its Initial Public Offering in the United States as well as pricing of the offering at an issue price per share of USD 12.25. As of that date, Euronav's shares offered in the United States commenced trading on the New York Stock Exchange (the "NYSE") under the ticker symbol "EURN". On the same date Euronav launched its U.S. Exchange Offer which enabled shareholders to reposition their shares that were listed and tradeable on Euronext Brussels into shares listed and tradeable on the NYSE.
On 28 January 2015 Euronav announced the closing of its Initial Public Offering of 18,699,000 shares at a public offering price of USD 12.25 per share for gross proceeds of USD 229,062,750. This includes the exercise in full by the underwriters of their overallotment option of 2,439,000 shares.
On 31 January 2015 the 250 remaining outstanding fixed-rate senior unsecured convertible notes due 2015, with a face value of USD 100,000 each, were fully redeemed at par. Euronav held 18 of these notes. Currently there are no convertible notes outstanding.
On 6 February 2015 Euronav's share capital was increased following the mandatory contribution in kind of 30 outstanding perpetual convertible preferred equity instruments issued on 13 January 2014 which resulted in the issuance of 9,459,283 new ordinary shares. Currently, there are no perpetual convertible preferred equity instruments outstanding.
1 Shareholders be herewith informed that in view of the proposed dividend payment with record date 18 May 2016, shares cannot be repositioned between the Belgian share register and the U.S. share register as from Monday 16 May 2016, 9 a.m. CET until Thursday 19 May 2016, 9 a.m. CET (such period, a "Freeze Period").
Likewise, in view of the record date of 28 April 2016 relating to the Company's shareholders' meeting on 12 May 2016, another Freeze Period will run from Wednesday 27 April 9 a.m. CET until Friday 29 April 2016, 9 a.m. CET.
On 19 February 2015 and following the closing of its Initial Public Offering on the NYSE, Euronav repaid the USD 235.5 million note issued to partly finance the acquisition of 15 VLCCs as announced on 5 January 2014. As the note was issued below par, in accordance with IFRS, the Company amortized USD 20.4 million (non-cash) in the fourth quarter of 2014, bringing the amortization related to this note for the full year 2014 to USD 31.9 million (non-cash) and a further USD 4.1 million (non-cash) in the first quarter of 2015.
On 26 February 2015 Euronav took delivery of the VLCC Hirado (2011 - 302,550 dwt) which was the third vessel delivered as part of the acquisition of four modern Japanese-built VLCC vessels announced on 8 July 2014.
On 23 March 2015 Euronav closed its U.S. Exchange Offer which enabled shareholders to reposition their shares that were listed and tradeable on Euronext Brussels into shares listed and tradeable on the NYSE.
On 30 March 2015 Euronav announced that a total of 42,919,647 shares that were listed and tradeable on Euronext Brussels were repositioned pursuant to the U.S. Exchange Offer into an equal number of shares listed and tradeable on the NYSE.
On 1 April 2015 Euronav announced the adoption of a new return to shareholders policy for the group to distribute 80% of its annual net result, excluding exceptional items such as capital gains made on vessel disposals.
On 9 April 2015 Euronav took delivery of the VLCC Hakata (2010 - 302,550 dwt) which was the last vessel delivered as part of the acquisition of four modern Japanese-built VLCC vessels announced on 8 July 2014.
On 27 April 2015 the temporary difference between Euronav's ordinary shares tradeable on the NYSE and its ordinary shares tradeable on Euronext Brussels expired. Since this date all ordinary shares have the same rights and privileges in all respects. As of 28 April 2015 all Euronav shares are fully fungible and are able to trade on both NYSE and Euronext Brussels. Total daily volume is therefore the aggregate of volumes of both exchanges.
On 13 May 2015 the General Meeting of Shareholders approved the gross dividend of USD 0.25 per share as proposed by the Board of Directors. This dividend was paid from profits carried forward over financial year 2014 and on this occasion considered part of the dividend policy for 2015.
On 16 June 2015 Euronav announced the acquisition through resale of newbuilding contracts of four VLCCs - at the time of acquisition under construction at Hyundai Heavy Industries - for an aggregate purchase price of USD 384 million or USD 96 million per vessel. In addition and against the payment of an option fee of an aggregate amount of USD 8 million, the seller also agreed to grant Euronav an option to acquire up to an additional four VLCCs which are sister vessels to the initial four VLCCs, at a purchase price of USD 98 million each.
Euronav NV issued this content on 17 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 17 March 2016 07:27:41 UTC
Original Document: http://investors.euronav.com/~/media/Files/E/Euronav-IR/20160317_Final year results 2015.pdf
