Financial Performance - Total shipping revenues increased by 17% to $604.8 million in 2018, driven by a 33% increase in voyage charter and pool revenues to $524.8 million[520]. - Time charter revenues decreased by 37% to $75.2 million in 2018 due to the expiration of several contracts and deteriorating spot market conditions[520]. - Other income decreased by 3%, or $0.1 million, to $4.8 million for the year ended December 31, 2018, compared to $4.9 million for 2017[522]. - Net gain on sale of assets increased by 2%, or $0.4 million, to a net gain of $15.9 million for the year ended December 31, 2018, compared to a net gain of $15.5 million for 2017[524]. - Total vessel operating expenses increased by 24%, or $35.4 million, to $185.8 million during the year ended December 31, 2018, compared to $150.4 million for 2017[527]. - General and administrative expenses increased by 41%, or $19.4 million, to $66.2 million for the year ended December 31, 2018, compared to $46.9 million for 2017[532]. - Depreciation and amortization expenses increased by 18%, or $40.8 million, to $270.7 million for the year ended December 31, 2018, compared to $229.9 million for 2017[535]. - Finance expenses increased by 76%, or $38.7 million, to $89.4 million for the year ended December 31, 2018, compared to $50.7 million for 2017[538]. - Share of results of equity accounted investees decreased by 47%, or $14.0 million, to $16.1 million for the year ended December 31, 2018, compared to $30.1 million for 2017[541]. - Income tax expense decreased by 118%, or $1.6 million, to an expense of $0.2 million for the year ended December 31, 2018, compared to a benefit of $1.4 million for 2017[543]. Fleet and Asset Management - The average TCE rates for VLCC in 2018 were $33,338 for fixed charters and $25,958 for spot charters, with vessel operating days totaling 1,312[461]. - The average TCE rates for Suezmax in 2018 were $30,481 for fixed charters and $15,784 for spot charters, with vessel operating days totaling 978[461]. - The average rate for FSO vessels in 2018 was $136,022, with operating days totaling 365[461]. - The company’s vessels are depreciated over an estimated useful life of 20 years, with FSO service vessels depreciated over 25 years[463]. - The carrying values of vessels are reviewed for impairment at each reporting date, with impairment losses recognized in the income statement if necessary[466]. - The company estimates that its vessels will not have any residual value at the end of their useful lives, considering the challenges in forecasting scrap values[465]. - As of December 31, 2018, the carrying value of the fleet totaled $3,562.1 million, an increase from $2,271.5 million in 2017, with 68 vessels compared to 43 in the previous year[476]. - The impairment analysis indicated a required impairment of $47.9 million for the tanker fleet when using 10-year historical charter rates, while no impairment was required when using 5-year historical rates[470]. - The company acquired 34 vessels in 2018, increasing the total fleet from 48 to 73 vessels, with significant acquisitions in both VLCCs and Suezmax categories[483]. - As of December 31, 2018, 17 VLCCs had carrying values exceeding their market values by approximately $132.0 million, while 14 Suezmax vessels exceeded their market values by about $80.5 million[476][477]. - The company has classified one Suezmax vessel as held for sale as of December 31, 2018, with no vessels classified as such in the previous year[482]. - The company’s fleet development strategy includes acquisitions and dispositions, with a focus on enhancing operational capabilities and meeting market demand[483]. Debt and Financing - Total indebtedness increased significantly to $1,866.8 million as of December 31, 2018, up from $964.6 million in 2017[581]. - Total interest-bearing debt amounts to $1,782.8 million as of December 31, 2018, compared to $913.3 million in the previous year, reflecting a significant increase[583]. - The company has a $340.0 million senior secured credit facility with an outstanding balance of $184.8 million as of December 31, 2018, up from $111.7 million in 2017[584]. - The $750.0 million senior secured credit facility has an outstanding balance of $165.0 million as of December 31, 2018, down from $330.0 million in 2017[585]. - The $409.5 million senior secured credit facility shows an outstanding balance of $150.0 million as of December 31, 2018, compared to $118.0 million in 2017[586]. - The company assumed a $633.5 million senior secured loan facility from Gener8, with an outstanding balance of $604.8 million as of December 31, 2018[593]. - The $200.0 million senior secured credit facility was established to refinance previous debts and has an outstanding balance of $200.0 million as of December 31, 2018[597]. - The company plans to finance its funding requirements through cash on hand, operating cash flow, and various debt financing options[582]. - The company may consider raising equity or selling assets if cash flow from operations does not meet liquidity requirements[582]. - The company has multiple credit facilities secured by its vessels, indicating a strong asset-backed financing strategy[593]. - The company’s credit facilities bear interest rates ranging from LIBOR plus 1.50% to LIBOR plus 3.75%, reflecting varying risk profiles and terms[590][592][596]. - The company completed a $150.0 million issuance of senior unsecured bonds with a fixed coupon of 7.50% and maturity in May 2022, with net proceeds used for general corporate purposes[598]. - As of December 31, 2018, the outstanding balance under the Treasury Notes Program was $60.3 million (€52.7 million), an increase from $50.0 million (€41.7 million) in 2017[599]. - The company has a $220.0 million senior secured credit facility for its joint ventures, consisting of a term loan and a revolving loan, both maturing in 2022[600]. - As of December 31, 2018, the outstanding balance under the joint venture loan agreements was $186.0 million, with the company guaranteeing $93.0 million[606]. Market Conditions and Forecasts - The International Energy Agency forecasts 2019 oil demand growth of 1.42 million barrels per day, compared to an average growth of 1.28 million barrels over the last 10 years[610]. - A one percentage point increase in LIBOR would have increased the company's interest expense for the year ended December 31, 2018, by approximately $8.5 million[844]. - A 10 percent strengthening of the Euro against the dollar at December 31, 2018, would have decreased the company's profit or loss by $7.9 million[845]. - Every increase of $1,000 on a spot tanker freight market per day would have increased profit or loss by $19.3 million in 2018[847]. Rental and Lease Obligations - The company reported a total yearly rent of $2,013,887 for its New York office, with sublease income of $1,484,114[449]. - The company’s total yearly rent for its London office is $966,995, with sublease income of $717,681[449]. - The company is committed to making rental payments under operating leases, with future minimum rental payments disclosed under contractual obligations[615]. - The company had total contractual obligations of $1,903.1 million as of December 31, 2018, with significant payments due in 2022[615].
Euronav NV(CMBT) - 2018 Q4 - Annual Report