Investor Presentation – Pareto Conference
September 2016
1 Forward Looking Statements
Matters discussed in this presentation may constitute forward-looking statements under U.S. federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company’s current views with respect to future events and financial performance and may 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. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including, without limitation, the delivery of vessels, the outlook for tanker shipping rates, general industry conditions future operating results of the Company’s vessels, capital expenditures, expansion and growth opportunities, bank borrowings, financing activities and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ from those projected in the forward-looking statements. 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 obligations to us, the strength of the world economies and currencies, general market conditions, including changes in tanker vessel charter hire rates and vessel values, changes in demand for tankers, changes in our vessel operating expenses, including dry-docking, crewing and insurance costs, or actions taken by regulatory authorities, ability of customers of our pools to perform their obligations under charter contracts on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. We undertake no obligation to publicly update or revise any forward looking statement contained in this presentation, whether as a result of new information, future events or otherwise, except as required by law. In light of the risks, uncertainties and assumptions, the forward looking events discussed in this presentation might not occur, and our actual results could differ materially from those anticipated in these forward-looking statements.
2 Section 1 Euronav at a Glance
2 3 Euronav – Largest Tanker Company in the World
CURRENT FLEET – TOTAL 55 VESSELS – 13.7 MM DWT WHO WE ARE
1 V – PLUS (1) 2 FSO 20 SUEZMAX 30 VLCC (+2 TBD) Over 441,000 DWT 380k barrels Leading pure-play tanker company Up to 330,000 DWT with best-in-class operating platform 150,000 – 165,000 DWT Only 4 in world fleet Stripped water capacity
Strong balance sheet
Committed to shareholder 1MM barrels 2MM barrels 3 MM barrels 2.8 MM barrels long-term value creation… Avg. age 10 years Avg. age 6 years Avg. age 13 years Avg. age 14 years … with significant direct return to shareholders Notes: 1. Only 4 V-Plus vessels in world fleet Most liquid big tanker player in the world
WELL POSITIONED FOR STRONG CASH FLOW GENERATION
Breakeven (including debt service)(1): Spot Income - High Leverage to Upside 1 ~ USD 27,300 / day for VLCC – OpEx / day USD 8,165 3 Each USD 5,000 uplift (above break-even) in both VLCC and Suezmax rates improves net revenue and EBITDA ~ USD 24,000 / day for Suezmax – OpEx / day USD 7,520 by USD 72 million
Yield or Growth – Why not both? Fixed Income 25 VLCC acquired in last 30 months 2 > USD 100 million of EBITDA (2) generated annually from 4 fixed income contracts (FSO + TC contracts) 80% of annualized P&L returned to shareholders since January 2015 (3)
1. Before TC-in/fixed income 2. Proportionate consolidation method & FSO contribution current contract runs to Q3 2017 3. Details of Company distribution policy at www.euronav.com 4 Shipping– access to finance is key in the “new normal”
Tanker sector remain CYCLICAL but……………… Financing becoming STRUCTURALLY restricted
14% Mid to long term outlook positive 100
12% 95 m barrels consumed barrels consumed 10%
90
8%
85 per day
% growth %YOY fleet VLCC 6%
80 4% • “New Normal” financing restricts amount of newbuilding orders – less cyclical extremes
75 • Oil demand NOT cyclical – 1.1m average demand 2% growth last 20 years
• Industrial players (more disciplined) will retain capital access leading to higher & more sustainable returns 0% 70
Source IEA, BLoomberg 5 Oil Tankers 2015 – All Green 2016-2017 – Mixed Five Key Drivers Long Term – All Green
Demand for Oil Supply of Oil Ton Miles Supply of Vessels Financing ROBUST BALANCED REDUCED S/TERM NEW BARRIER HEADWINDS TO ENTRY • Oil demand growing • Atlantic sourced • New regulations last 25 years with Yearly • OPEC supply growth = L/TERM barrels been replaced by (Basel 3 & 4) restricting average 1.1 mbpd Non OPEC reduction primarily Middle East MANAGEABLE lending supply reducing ton • IEA forecast 1.4mbpd • USA production shale miles • Seasonal trends • Distress in shipping for 2016 and 1.2mbpd New Swing Producer impacted by factors very resilient & loans has reduced risk EVERY year to 2020 • USA crude exports to increasing tonnage responsive appetite increase ton miles from • Contracting rate fallen • Only 2 negative years 2017 substantially & shipyards • Equity in retreat of growth since 1990 for • Iran increase to pre under reform pressure PE & ship owners global crude demand sanction output forecast late 2016 1 2 3 4 5
6 Section 2 Current trading
5 7 REMEMBER – Tankers remains a Seasonal Business
SEASONALITY BUILT IN – EVERY Q2 DEMAND RETREATS AS REFINERY TANKER RATES SEASONAL BY NATURE – VLCC EARNINGS 2009-2016 MAINTENANCE & NORTHERN HEMISPHERE INTO SUMMER
120,000 97
96 $/ USD Day 100,000 2011 Million Million barrels per day 95 2012
80,000 94 2013
2014 93 60,000
2015 92
40,000 2016
91
Average 2011-2015
20,000 90
89
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 88 Minimum 2009-2014 Maximum 2009-2014 2015 2016 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source IEA Source Clarksons 8 Ton Mile Dislocation
DISLOCATION IN VLCC EQUIVALENT TERMS = LOSS OF APPROX 20 VLCCS (ANNUALISED)
1 mbpd x 365 days = 365m barrels Arabian Gulf to China 21 days 365m barrels / 2m capacity per VLCC = 183 cargoes 5,500 miles 183 cargoes / 9 annual journeys for VLCC MEG – F East = 20 VLCCs
West Africa to China 33 days 9,650 miles LatAm to China 44 days 11,500 miles Asia Pacific Middle East
China
29 – 32 West Africa VLCCs
LatAm / Caribs
52 – 54 1 mbpd x 365 days = 365m barrels VLCCs 365m barrels / 2m capacity per VLCC = 183 cargoes 183 cargoes / 4.5 annual journeys for VLCC Atlantic – F East = 40 VLCCs
Source Euronav, Morgan Stanley
9 Q4 BEYOND Q3 IMPACTS AND RESPONSE
• Reduction of delays in key ports Q2 Q3 • Weather impact less prevalent than previous CONGESTION summers (Mid East / Caribs) • One time negative impact on supply
• Seasonality built into tanker sector SEASONALITY • Cargo count all times high during 2016 • Q4 rates +70% on average in 14 out of last 16 years
• Loss of Atlantic barrels - Nigeria (600-800k bpd) & SUBSTITUTION – Venezuela (200k) has dislocated ton miles LOSS TON MILES • Nigeria force majeure ending; Far East retains focus on diversifying crude sourcing
• 29 VLCC & Suezmax delivered to global fleet April – INCREASED August 2016 v 14 in same 2015 period CAPACITY/VESSELS • New vessels not vetted so first voyage at discount WITHOUT VETTINGS • Tanker delivery rate peaks mid 2017
• Speeds important as can alter tonnage capacity SPEED • Operational flexibility – affirmative action taken by ship owners reducing average VLCC speeds by c 10% since weaker rates
10 Section 3 Industry Dynamics
5 11 Oil Price – Impact on Demand 1 Demand for Oil
OIL PRICE OUTLOOK
90 Lack of disruption/market share game Demand Destructive Iran and other supply remain high Shale - as swing producer increases 2009 - 2014 proved in this oil 80 output price range that demand was destroyed USD perbarrel 70
Neutral
60
50 Demand Stimulating proven over time that the cheaper
40 the commodity price the greater it is used
30
Demand Disruptive 20 Current structure of global markets mean energy/capex/sovereign wealth Capex cuts in E&P effects > consumer stimulus from 10 Potential coordinated cuts in production lower oil prices QE returns/$ loss of value/oil as financial asset
0 2015 2016 2017 2018 2019 2020 2021 2022 2023
12 Demand – steady, robust and diversified 1 Demand for Oil
GLOBAL OIL DEMAND 1990-2016 (MB/D) CHINA CRUDE OIL IMPORT DIVERSIFICATION CONTINUES
Average oil demand growth 1990-2015 =1.1 mbpd Russia 14% Other 20% 3.5 3.1 3.1 Source IEA
3 Est. Libya 1% 2.5 Saudi Arabia 14% Kzakhstan 1% 2 Brazil 3% 1.9 1.8 2 1.7 1.6 Kuwait 4% 1.5 1.5 Est. 1.4 1.5 1.3 1.3 1.1 1 1 1 Million Million barrels per day Venezuela 6% 0.8 0.8 1 0.7 0.7 0.7 Oman 11% 0.5 0.5 0.3 0.3 0.3 Iran 6% 0 Iraq 9% Angola 10% Source Bloomberg
-0.5 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-1 -0.7 -0.9 CHINA CRUDE DEMAND – ROBUST INDIA CRUDE DEMAND – INCREASING IN IMPORTANCE
35 5 FORECAST 30 4.5 Q Q Q Q Q Q 25 1 1 2 2 3 3 4 20 2 2 2 2 2 2
Millions metric tonnes metric Millions 3.5 0 0 0 0 0 0 15 1 1 1 1 1 1 5 6 5 6 5 6 3 10
2.5 5
0 2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 2017
Source Bloomberg energy 13 Source Bloomberg Energy VLCC fleet age profile 4 Supply of Vessels
VLCC TRADING FLEET AGE PROFILE
Idle/On storage Fleet <= Sept 2001 Fleet Sept 2001-2016 On Order 70
60 No of of Vessels No 50 16% 34
40 80%
63 30 3 56 20% 52 49 39 39 36 37 20 38 39 25 29 31 29 16 24 30 29 24 10 20 18 5 8 10 5 7 5 3 3 4 3 3 4 3 4 3 0 1 1 1 2 1 1 2 2
Total <= Sept 2001 Sept 2001-2016 On Order No 680 135 545 113 % 100% 20% 80% 16% Idle/On storage 7% 37 13 N/A
Source Clarksons 14 Suezmax fleet age profile 4 Supply of Vessels
SUEZMAX TRADING FLEET AGE PROFILE
60 Idle/On storage Fleet <= Sept 2001 Fleet Sept 2001-2016 On Order 17%
50 No of of Vessels No
40
81% 30
51
45 46 21 42 20 19% 38
2 25 23 23 23 10 20 17 18 18 18 11 14 9 9 12 8 9 2 3 5 4 5 6 3 2 2 0 1 1 1 1 1 0
Total <= Sept 2001 2001-2016 On Order No 453 87 366 78 % 100% 19% 81% 17% Idle/On storage 2% 8 2 N/A
Source Clarksons 15 Scrapping Decision Making Process: 4 Supply of Vessels Driver=Time Catalyst=Rates
TANKER SHIPPING – A HIGHLY REGULATED INDUSTRY
Costs of surveys increase during tanker life leading to scrapping decision USD 4m Average cumulative survey cost
100% utilisation SS#5 (17.5 21 years) USD 3.25m > USD 7.25 mm
USD 2.5m Median scrap age IS Dry #4 Dry IS =20 years USD 2m
USD 1.5m Special Survey Survey Special #3
EARNINGS POTENTIAL REDUCES Special Survey Survey Special #2 POST 15 YEARS Special Survey Survey Special #1
5 7.5 10 12.5 15 17.5 20 22.5
Constant vetting process throughout ship life 16 Asset price background encouraging on several levels
ADJUSTED FOR INFLATION ASSET VALUES CLOSE TO 30 YEAR LOWS REPLACEMENT RATIO FOR VLCC FLEET AT HISTORIC LOWS
160 250% Ratio of order book/vessel >15 years old
140 200% 120
100 150%
80
100% 60 Asset price (in millions) (in price Asset Evercore
40 50% Source 20
0 0%
VLCC (5-Year) Inflation-Adjusted VLCC (5-Year) Source UBS, Clarksons
COST OF AND ACCESS TO CAPITAL CHANGING IN SHIPPING UNLIKE PREVIOUS CYCLES – VIRTUALLY NO SPECULATIVE ORDERS
14% 60 12% Orders since January 2015 Tier 2 - 2.0% 50
10% Additional Tier 1 - 1.5% 40 Anticyclical buffer 8% - Tier 1 - 2.0% 30
Min. Req. - Tier 2 Capt. Main. buffer 6% 20 - 4.0% - Tier 1 - 2.5%
4%
Equityrequirement 10
Min. Req. - Tier 1 Min. Req. - Tier 1 2% 0 - 4.0% - 4.5% Industrial players Quoted Companies Chinese Speculative orders
0% Source Clarksons Basel II Basel III Source Arctic 17 China & Oil Tankers – Four Reasons for Confidence 1 Demand for Oil
OPERATIONAL ECONOMY STRATEGIC PETROLEUM RESERVE (SPR)
Chinese oil imports (2006-2016) • BASE EFFECT – 600 • Storage China consumes 500 classification 1 11.8 mbpd change June 16 (source: IEA) so 400 small % change • China needs 55 means large no of 300 days coverage barrels =12m x 55days 200 = 660m bbls • Passenger car barrels million sales +26% YoY 100 • China confirmed July (Bernstein) SPR = 234m in 0 “early January”
Source China Customs 2016 Source BP Annual report
TEAPOT REFINERY EXPANSION DOMESTIC CRUDE PRODUCTION
• Reforms have granted licences • China continue 1.3 mbpd (JP diversify Morgan) sourcing of oil • Procurement JV • Domestic indicates growing production power falling (1H16: 7.3%) • Agreement to source crude via • 6% fall = 200k Unipec positive bpd = 1 VLCC for tankers needed every 10 days
Source IEA, McQuilling, Bernstein, Barclays< Petrowin, Bloomberg 18 Oil supply high - shale the new swing producer 2 Supply of Oil
WHO IS GOING TO MATERIALLY CUT? NEED CO-ORDINATION BETWEEN THE TOP 10 PRODUCERS = 60% WORLD SUPPLY MOST SHALE PRODUCTION KICKS IN AGAIN USD 50-60
FSU ex Kuwait 2.8 12.0 Russia 2.9 million barrels per day U.S. shale crude and condensate production (MMB/D) USA 12.8* Iran 2.9 11.0 USD 110-120 UAE 2.9
10.0 Iraq 4.3 USD 100-110
9.0
China 4.4 Russia 11.1 USD 90-100 8.0
USD 80-90 Canada 4.5 7.0
Saudi Arabia Source Bloomberg Energy USD 70-80 10.2 6.0 SHALE OIL SPEED TO PRODUCTION IS KEY
Average field development (approval to start up) time by resource 5.0 USD 60-70 [years, selected areas] 5.7 5.0 4.6 4.0 4.4 USD 50-60
3.3 3.5 3.0 3.1 3.0 2.5 USD 40-50
2.0 0.6 Base to USD 40 1.0
Base 0.0
Source SBC Analysis, Rystad Source Pira 19 Increasing Barriers to Entry 5 Financing
HUGE REDUCTION REGULATIONS PRIVATE SHIP OWNERS SHIPYARD IN SHIPPING FORCE EQUITY IN UNDER PRESSURE TO BANK LEVERAGE RETREAT PRESSURE RESTRUCTURE EXPOSURE DOWN & REDUCE CAPACITY Around USD 100bn • Banks lending • Other shipping withdrawn from shipping flexibility severely • PE exiting shipping segments under severe sector since 2009 curtailed due to Basel financial pressure • Low order books in all II & III shipping segments • PE been surprised by leading to ship yard the lack of liquidity • Most tanker owners distress • Shipping & Energy implying a return to the have mixed fleets so loans in distress sector difficult to pressure felt within realize ownership structure • Reforms being • Quantum of available actively adopted by lending capital shipyards driven by restricted for governments commercial reasons
Source: Tufton, Marine money london 2015
20 Section 4 Our Strategy
16 21 Maximizing Value Through Information
BARRIER TO ENTRY – INFORMATION SIZE IS CRITICAL TO IMPROVE MARKET KNOWLEDGE
Differentiate spot players vs industrial players 55 1 Ship Owner, 37 Vessels
2 Ship Owner, 52 NIOC, 38
China Merchants Grp, 37
Bahri, 36 3 Ship Owner, 27 37 18
COSCO Group, 32
Top 10 Owners • Tankers International = Only owner-led VLCC pool MOL, 32 Control 43% • No value leakage; no commissions Cost center of Global • Leading spot market oriented VLCC pool in which ship owners Euronav NV , 31 with vessels of similar sizes and quality participate VLCC Fleet 4 – 10 Ship Owner, 168 • Spreading information (VL Database, TI Pool App) Angelicoussis Group, 31
DHT Group , 19 Other VLCC Tanker Pools (Ships on the Water)
Nippon YK, 19 SK Holdings, 18 Heidmar Navig8 China VLCC 10 – 15 Ship Owner, 103 – VLCC Seawolf – VL8
Small owners are data deficient (284 VLCCs) 11 39 32 Red indicates Captive or Sovereign fleet Blue indicates fleet in stock listed companies
Source: Clarkson’s – Total 680 VLCC ships @ 6 Sept 2016 Source: Company reports
VLCC Chartering Undertaking Leadership Role
22 Capital allocation strategy
CAPITAL ALLOCATION
Strong balance sheet Leverage
1 • Maintain strong balance sheet • Target 30% to 50% leverage through cycle according to where we are in the cycle
Capex Liquidity reserve
2 • USD 169m for 2 VLCC • TWO years of operational liquidity • Approximately USD 20 million at all times maintenance capex (dry-docks) • Maintain strong banking relationships
M&A criteria – M&A – operational Shareholder Focus balance sheet
• Will never issue • Additional vessels Yield or Growth – why not both? 3 non-accretive must on pro-forma 25 VLCC acquired in last 30 months new equity basis either match or reduce break 80% of annual P&L returned to shareholders even costs since January 2015*
* See Distribution policy on Euronav website www.euronav.com
23 Section 4 Supplemental Materials
22 24 Appendix
MOST TANKER OWNERS HEAVILY EXPOSED TO OTHER SHIPPING ORDER BOOK AS % OF FLEET – MANAGEABLE
60 20++ VLCCs LNG 35% Containers 32% 50 VLCC Dry bulk 33% 15-19 VLCCs Suezmax 40
10-14 VLCCs 30 17% 5-9 VLCCs 20 16%
1-5 VLCCs 10 Source Clarksons 0 200 400 600 800 1000 0
Container Dry Bulk Product Aframax Suezmax
Source Clarksons CURRENT IRANIAN VLCC FLEET USAGE – NEUTRAL IMPACT OPEC QUOTAS? OPEC HAS NEVER COMPLIED WITH QUOTAS
In Service Long Term Repairs/ Storage Laid up
2013 7 2009 1 2009 1
2012 5 2008 4 2003 1
2009 1 2007 1 1999 1
2008 2 2004 2
2003 2 2003 2
1999 1 2002 3
1996 2 1996 2
Total 20 Total 15 Total 3
Source EIA, September 2015 Source Clarksons 25 Appendix
Q4 SEASONAL PEAK CAN BE EXTREME – AVERAGE VLCC RATE 1990-2016 GLOBAL REFINERY BUILD OUT UNDERPINS DEMAND GROWTH
$55,000 kbd 7,000 6582 $51,236
$50,000 6,000 $45,944 5,000 $45,000 $43,372 FSU Middle East $40,048 4,000 $40,000 $37,962 Asia/Pacific $36,851 $36,315 $35,652 $35,887 3,000 Africa
$35,000 $32,615 Latin America $31,114 2,000
Clarksons 1383 1431 N Am + EU $29,567 1303 Barclays $30,000 1,000 Source Source $25,000 0 Jan Feb Mrt Apr Mei Jun Jul Aug Sep Okt Nov Dec 2016E 2017E 2018E 2019++E
CURRENT US OIL EXPORTS – SMALL BASE BUT GROWING MEDIUM & LONG TERM EXPECT US EXPORTS TO GROW TO C 2M BPD (EIA)
4 800 3.5 Crude export scenarios 700 3
600 2.5
500 2
400 1.5
300 1 0.5 200 0 100
0 Low price, high oil resource Low oil price / ref case High oil resource 2014 2015 2016
Source US DoE Statistics Source Morgan Stanley 26 Euronav - Most Liquid VLCC/Suezmax Player
LIQUIDITY GIVES SHAREHOLDERS OPTIONALITY
More Trading Hours Euronext Brussels: 9 a.m. – 5. 30 p.m. (CET) Ticker Symbol: EURN NYSE: 9.30 a.m. – 4 p.m. (EST)
TOTAL TRADED VALUE OF EURONAV US AND BB SHARES (SAME SHARE) - EURN US EQUITY & EURN BB EQUITY
100%
90% Average daily volume shares = 1.41 m shares per day 80%
70% Average daily volume USD = 60% USD 16 m per day TOTAL
50%
40% Velocity = 340%* 30%
20%
10% Free float = 85%
0%
*Calculation method = daily volume x trading days / free float EURN US EURN BB
Source Bloomberg based on average Exchange volumes over past 12 months (EURN US 870k + EURN BB 540k per day) to Sept 9 2016 27 Appendix – Average Speeds VLCC & Suezmax (total voyage)
10.5
Knots per per Knots hour 10
9.5
9 VLCC Suezmax
8.5
8
7.5
Source Bloomberg Energy 28 Appendix - China’s Strategic Petroleum Reserve (SPR) – some facts
2009 - China stated objective to comply with IEA best 1 practice on SPR
IEA guidance – SPR = 90 days of previous years net oil 2 imports; SPR therefore not a static number nor a luxury
Imports Days SPR target (mbpd)* (cover) (mbbls)
2016 8.0 90
2017 8.5 90 720
2018 9.0 90 763
2019 9.5 90 809
2020 10.1 90 858
Source Euronav *assume 6%pa growth Likely to have added c 110-160m bbls during 2016 – so 6 approaching SPR capacity but legislation changes increased by 160m bbls 3 New acronym CPR (Commercial Petroleum Reserve)
Total SPR capacity c 350m bbls + 160m CPR = 510m 7 bbls total strategic capacity v c 400m bbls currently June 2016 China Govt able to lease commercial stored 4 capacity = 404m bbls with 240m bbls in use; so 160m capacity added
Further SPR & CPR capacity additions expected 2017- 8 2020 Sept 2016 Chinese Govt stated SPR in “early” 2016 = 5 234m bbls
29 Appendix - Commercial Crude Inventory– an issue but manageable
CRUDE INVENTORY GLOBAL “EXCESS” 200M BBLS – PRIMARILY STORED IN USA & EUROPE AND NOT WHERE INCREMENTAL DEMAND GROWTH LOCATED IN FAR EAST
Euronav view 1.4 • 200m barrels “excess” of crude 200m barrels / 2m VLCC capacity = 100 cargoes • 100 cargoes / 4-5 voyages* = 20-25 VLCC = WORST CASE = 20-25 VLCCs displaced as “excess” is drawn down = BEST CASE = Brent /WTI differential drives inventory exported requiring VLCC Thousands 1.2
1.0
0.8
Pacific Europe
0.6 U.S.
0.4
0.2
0.0
Source IEA 30 * Average number of VLCC voyages per annum = 4.5 VLCC Order Book Dynamics 4 Supply of Vessels
VLCC – ADDITIONS, SCRAPPING, REMOVALS IMPLIED BUFFER
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
56 32 29 65 46 60
40 16 62 54 49 45 48 20 30 29 24 23 2 0 -5 -8 -7 -8 -13 -11 -1 -25 -22 -8 -10 -20 -16 -48 -25 Additions 56 Forecast Additions -40 Scrapped
Scheduled Must be scrapped (over 22,5 years old) deliveries
-60 Could be scrapped (≥20 years old) depending on market levels
BASE CASE Net:6 Net:37 Net:36 Net:8 Net:13 Net:22 Net:40 Net:37 Net:41 Net:-6
Source Clarksons NET Net: 24 Net: 29 Net: 31 Net: -31 31 POTENTIAL Suezmax Order Book Dynamics 4 Supply of Vessels
SUEZMAX – ADDITIONS, SCRAPPING, REMOVALS IMPLIED BUFFER
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 55 63 29 15 39 61
45
Q1=3 35 Q2=4 Q3=2 Q4=1
25 43 45 45 38 15 15 27 18 12 5 8 10 0 -3 -7 -7 -6 -7 -5 -9 -11 -19 -20
-15 -5 -8 -17 -15 Additions -25 63 Scheduled deliveries Forecast Additions Scrapped -35 Must be scrapped (over 22.5 years old)
-45 Could be scrapped (≥20 years old) depending on market levels
BASE CASE Net:19 Net:36 Net:25 Net:20 Net:-1 Net:10 Net:24 Net:39 Net:11 Net:-11
Source Clarksons NET Net: 31 Net: -6 Net: -26 32 POTENTIAL Net: 19