here Stamp In The Wake EURONAV De Gerlachekaai 20 B-2000 Antwerpen Belgium Of The Belgica 2007 - ANNUAL REPORT - ANNUAL EURONAV Registered within the jurisdiction of the Commercial Registered offi ces Responsible editor Court of Antwerp / VAT BE 0860.402.767 De Gerlachekaai 20 Marc Saverys B-2000 Antwerpen De Gerlachekaai 20 Ce rapport annuel est également disponible en français. B-2000 Antwerpen Dit jaarverslag is ook beschikbaar in het nederlands. tel. + 32 3 247 44 11 ANNUAL REPORT 2007 fax + 32 3 247 44 09 Annual reports can be downloaded on our website: www.euronav.com e-mail [email protected] website www.euronav.com Dutch NUMBER OF COPIES E-mail Country Postcode Street ADRESS ACTIVITY COMPANY SURNAME-FIRST NAME thank you in advance for helping us achieving our goals. We future editions of our annual report will be sent to you only if are a registered shareholder or your return this reply- the paper version of annual report. Please help us achieving our goal by downloading reports from website (w With that in mind, we woul In order to reduce its impact on the environment, Euronav is aiming at becoming a paperless company. Reply-card ........................................................................................ .............................................................................................................................. .............................................................................................................................. 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TABLE OF CONTENT English City .............................................................. .............................................................................................................................. ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................. Mission & Vision 1 ...................................................................................................... French In The Wake Of The Belgica 2 card duly fi lled out. lled out. card duly fi Message from the Chairman 3 .............................................................................. ww.euronav.com). Please also note that Please also note that ww.euronav.com). d like to minimise the production of d like to minimise the production of CORPORATE REPORT 4 Highlights 2007 6 Our business 12 ................................. Fleet 16 .............. .......... 20 ........ Tonnage Tax Regime ..... Health, Safety, Quality and Environment 22 Corporate Social Responsibility Report 24 Human Resources 28 Investor Relations 30 Corporate Governance 32 FINANCIAL REPORT 42 Consolidated fi nancial statements 45 Signifi cant accounting policies 50 Notes to the consolidated fi nancial statements 56 Statutory fi nancial statements Euronav NV 77 Glossary 80 Design and production Printed by www.concerto.be Dereume Printing Photography Antarctic theme: Laurent Dick Sculpture by Strebelle : Pierre Moreau VISION & MISSION Vision To continue to be recognised globally as a leader in the shipping of crude oil. We are and will remain dedicated to safety, quality, health and environmental protection. We will pursue excellence through innovation, know-how, and continual improvement. Mission For Our Society To deliver an essential source of energy in ways that are economically, socially, and envi- ronmentally viable now and in the future. For Our Clients To operate in a manner that contributes to the success of their business objectives by set- ting increasingly higher standards of quality and reliability. For Our Shareholders To create signifi cant, lasting value by strategi- cally planning fi nancial and investment deci- sions while operating in a manner consistent with the highest professional standards. For Our Employees To inspire and enable talented, hard-working people to achieve their career goals in a healthy, challenging, and rewarding environment. EURONAV - ANNUAL REPORT 2007 1 In The Wake Of The Belgica Christiana Island Liège Island Auguste Island Murray Cape Palmer Archipelago Brabant Island Hughes Bay Spring Cape Cape d’Ursel Buls Bay Gaston Island Van Ryswyck Cape Nansen Island Anvers Island Brooklyn Island Van Beneden Cape Wiencke Island Danco Coast Antarctic Peninsula Cloos Cape 110 years ago, on 16th August 1897, Adrien Victor Joseph de Gerlache (commander in the Royal Belgian Navy) and his multinational crew set sail from Antwerp to Antarctica. This expedition was the most cosmopolitan of the Heroic Age of Antarctic exploration. Between January and Febru- ary 1898 the expedition completed 20 landings on the islands along the Belgica Strait (later to be renamed the “de Gerlache Strait”). Following the steps of Adrien de Gerlache, Dixie Dansercoer and the crew of the “Euronav Belgica” repeated the expedition during the southern hemisphere summer of 2007-2008. Euronav was proud to be the sole sponsor of “In The Wake Of The Belgica” title of the expedition, chosen to pay tribute and to honour this courageous and adventurous expedition. EURONAV INVOLVEMENT “ The reason Euronav was involved in this project comes out of an introspective refl ection about the company’s responsibilities and how the company can act responsibly in order to reduce its eco-footprint. Instead of remaining silent about hot topics and not taking responsibility for wider issues, Euronav wants to be open for discussion. The “you don’t have to worry about it”-attitude has changed into a “we should talk about this”-attitude. Opening up the minds of people to these issues already is a major step. Offering a blueprint for improved ecological behavior in one’s every day life should become a source of inspiration to everyone. At Euronav, we have a strong belief in selfi mprovement and we endeavour to set new and better ways of working. By sponsoring this expedition, we express our support for a pioneering spirit and a belief in the power of inspiration to effect change. We also state our desire to take responsibility for our working environment – the ocean – and motivating our staff, families and friends in the process.” Paddy Rodgers - CEO 2 EURONAV - ANNUAL REPORT 2007 Message from the Chairman Dear Shareholder, Euronav has gone from strength to strength during the three years since public fl oatation in 2004. Its customer base has strengthened and broadened, its operations have been recognised as world class and its fl eet has expanded with a focus on youth and quality. The fi nancial markets that we face are the subject of more strongly divided opinion as to their condition and outlook than we have seen for many years but Euronav has a strong position fi nancially and is supported by banks that remain solid in the current turmoil. Despite the highest nominal oil price ever seen, demand is also at its highest ever and the outlook for coming years is set for continued growth. In the current fi nancial environment of complexity and opacity, the values that Euronav expounds is a clear business plan immediately comprehensible to offi cers, employees and shareholders alike. Delivering that plan effectively, professionally and openly has proven a success for Euronav and should, we believe, become increasingly valued by investors and the wider public. We look forward to 2008 and beyond with excitement and confi dence in our people and trust that you will be with us on these voyages to deliver oil, and results! Yours sincerely Marc Saverys Chairman of the board of directors of Euronav NV EURONAV - ANNUAL REPORT 2007 3 CORPORATE REPORT 6 Highlights 2007 12 Our business 16 Fleet 20 Tonnage Tax Regime 22 Health, Safety, Quality and Environment 26 Corporate Social Responsibility Report 32 Human Resources 34 Investor Relations 36 Corporate Governance 42 Financial Report CORPORATE REPORT Highlights 2007 DIRECTOR’S REPORT HIGHLIGHTS AND ACTIVITY REPORT FOR THE YEAR 2007 World VLCC fl eet growth by year (at start of year) Overview of the Market 600 Total crude oil tanker deliveries across all sizes for 2007 were 559 531 550 5.7% of the world fl eet. In fact only 29 VLCCs were delivered 498 500 467 483 483 this year which corresponds to a growth of 6% of the exist- 437 428 427 447 400 ing fl eet. This growth has been offset by the same number of VLCCs leaving the fl eet due to very strong demand from the 300 dry cargo and offshore markets which have caused vessels to 200 be converted for use outside the transportation of crude oil. A strong customer requirement for modern