Euronav 1Q 2009 Results & New Financing
The executive committee of Euronav NV (Euronext Brussels: EURN) reported its financial results for the three months ended 31st March 2009.
The most important key figures are (in thousands of USD):
first quarter 2009 first quarter 2008
Turnover 128,505 218,004
EBITDA 73,208 154,156
Depreciation -39,005 -36,138
EBIT (operating result) 34,203 118,018
Financial result -17,061 -36,884
Result before tax 17,142 81,134
Tax expense -354 -386
Result for the period 16,788 80,748
of the Company 16,788 80,748
Minority interest 0 0
Information per share (in USD per share)
first quarter 2009 first quarter 2008
Number of shares 50,000,000 51,750,000
EBITDA 1.46 2.98
EBIT (operating result) 0.68 2.28
Result for the period 0.34 1.56
All figures have been prepared under IFRS (International Financial Reporting Standards) and have not been reviewed by the joint statutory auditors. The figures have been prepared without taking into account any impact of deferred taxes.
The company had a net income of $16.8m (first quarter 2008: $80.7m) or $0.34 (first quarter 2008: $1.56) per share, for the first quarter 2009. EBITDA for the same period was $79m (first quarter 2008: $154.2m).
The average daily time charter equivalent rates (TCE) obtained by the company’s fleet in the Tankers International pool was approximately $47,000 per day in the first quarter of 2009 (first quarter 2008: $100,000 per day). The time charter equivalent earnings of the Euronav Suezmax fleet which is fixed on long term time charters, including profit shares when applicable, $38,500 per day (first quarter 2008: $36,600 per day) for the first quarter 2009. The result is affected by the revaluation at marked-to-market levels of non cash items such as hedge instruments on interest rates for a total of $-3.6m and rate of exchange difference for a total of $1.3m. During the first quarter, Euronav took delivery of the double hulled VLCC Antarctica (2009 – 315,981 dwt) which was put immediately under time charter to Total for a period of just over 6 years.
The company also renewed the time charter contract on the Finesse (149,994 dwt – 2003) with Petrobras for an additional period of 36 months. Euronav will also take delivery of a Newbuilding Suezmax from Samsung Heavy Industries (010140.KS) from South-Korea in June. The ship to be named Felicity (hull 1743 – 159,000 dwt) will be operated under time charter contract with Total for a period of up to 30 months. These contracts further increase the cover ratio of the company. Euronav intends to continue to operate its fleet in a balanced strategy of spot market and long term contracts.
Euronav also announced that it has signed a $300m senior secured facility with Nordea, Calyon, Societe Generale (SGE.SG), Bank of America (BCXQL.PK) and Scotiabank acting as Lead arrangers; Nordea, Calyon and Societe Generale acting as bookrunners and Nordea as sole facility agent. Skandinaviska Enskilda Banken, Dexia Bank, Fortis Bank Belgium and Ethias acting as co-arrangers. The credit facility will finance two VLCCs: the Olympia (2008 – 315,981) and the Antarctica (2009 – 315,981 dwt) and four Suezmaxes: the Cap Felix (2008 – 158,764 dwt) and the Cap Theodora (2008 – 158,800 dwt) and two newbuilding Suezmaxes: hull 1743, to be named Felicity, (159,000 dwt) and scheduled for delivery in June of this year and hull 1744, to be named Fraternity (159,000 dwt) scheduled for delivery in November of this year.
Following seasonal trends the market has softened significantly in recent weeks but at rates lower than expected. This is due to a lower demand for transportation caused by a reduced demand for crude oil as part of the global economic recession. Management remains cautious over the outlook for the rest of the year. So far in the second quarter, Euronav VLCC fleet operated in the Tankers International pool has earned $37,000/day and 44% of the available days have been fixed.