Euronav(US:EURN)2021-04-14 16:00Financial Performance - The company incurred increased costs of USD 1.8 million and decreased revenues of USD 4.2 million due to crew change challenges related to COVID-19[549]. - The overall market is expected to become more challenging as crude oil demand is negatively impacted by the COVID-19 pandemic, disrupting the supply-demand balance[551]. - Total shipping revenues increased by 32% to $1,240.9 million in 2020, compared to $942.5 million in 2019, driven by a 33% increase in voyage charter and pool revenues[614]. - The average TCE rates for VLCCs and Suezmax tankers rose to $52,549 and $37,025 per day, respectively, in 2020, compared to $35,678 and $26,542 in 2019[614]. - The net gain on the sale of assets was $22.7 million in 2020, up 54% from $14.8 million in 2019, primarily from the sale of Suezmax Cap Diamant and Finesse[620]. - Time charter revenues increased by 26% to $113.9 million in 2020, compared to $90.3 million in 2019, due to new charters at improved rates[616]. Asset Valuation and Impairment - The company has not recognized any impairment losses as the recoverable amount of each cash generating unit (CGU) continues to exceed the carrying amounts[552]. - The carrying values of vessels are reviewed for impairment, with no impairment required as of December 31, 2020[571]. - As of December 31, 2020, the carrying value of the fleet was $2,865.3 million, down from $3,189.9 million in 2019, reflecting a decrease of approximately 10.2%[585]. - 18 VLCC vessels had carrying values exceeding their market values by approximately $93.5 million as of December 31, 2020, compared to $44.8 million in 2019[585]. - 15 Suezmax vessels had carrying values exceeding their market values by approximately $69.3 million as of December 31, 2020, up from $18.9 million in 2019[586]. Operational Costs and Expenses - The company is subject to various regulatory impacts, including the European Ship Recycling regulation and IMO 2020, which may affect operational costs[545]. - Time charter-in expenses surged by 1,217% to $8.0 million in 2020, attributed to new contracts signed for the Dragon Satu and an internal time charter[623]. - General and administrative expenses decreased by 2% to $65.5 million in 2020, down from $66.9 million in 2019[624]. - Depreciation and amortization expenses fell by 5% to $319.8 million in 2020, compared to $337.7 million in 2019, mainly due to the sale of several vessels[628]. - Voyage expenses decreased by 13% to $(125.4) million in 2020, compared to $(144.7) million in 2019, due to fewer vessels performing spot voyages[618]. Financing and Debt - Total indebtedness decreased from $1,853.0 million in 2019 to $1,375.5 million in 2020[649]. - Available committed secured revolving credit facilities increased from $693.1 million in 2019 to $940.4 million in 2020[646]. - The company entered into a $108.5 million revolving credit facility, which includes a $27.1 million commercial tranche and an $81.4 million K-sure tranche, with outstanding balances of $83.2 million and $90.5 million as of December 31, 2020 and 2019, respectively[659]. - A $173.5 million revolving credit facility was established, consisting of a $69.4 million commercial tranche and a $104.1 million Kexim tranche, with outstanding balances of $143.6 million and $156.9 million as of December 31, 2020 and 2019, respectively[662]. - The company secured a $200.0 million revolving credit facility, which was used to refinance previous debts, with outstanding balances of $55.0 million and $100.0 million as of December 31, 2020 and 2019, respectively[663]. - A $100.0 million senior secured amortizing revolving credit facility was established to finance low sulfur fuel oil inventory, with an outstanding balance of $0 million as of December 31, 2020, down from $70.0 million in 2019[664]. - The company entered into a $700.0 million secured revolving credit facility, with outstanding balances of $345.0 million and $560.0 million as of December 31, 2020 and 2019, respectively[665]. - A $713.0 million sustainability linked loan was established, with an outstanding balance of $185.0 million as of December 31, 2020, aimed at emission reduction targets[666]. - The company issued $150.0 million of senior unsecured bonds with a fixed coupon of 7.50%, and as of December 31, 2020, the outstanding balance was $199.0 million[668][670]. - The company has joint venture credit facilities totaling $220.0 million, with outstanding balances of $90.4 million and $139.2 million as of December 31, 2020 and 2019, respectively[673][674]. Future Outlook and Market Conditions - The company continues to monitor the evolving COVID-19 situation and its potential impact on future financial results[550]. - The company expects continued volatility in market rates for vessels, impacting short- and medium-term liquidity[640]. - A 1% increase in LIBOR would have raised interest expenses by approximately $7.6 million for the year ended December 31, 2020[1005]. - A 10% strengthening of the Euro against the dollar would have decreased profit by $10.4 million as of December 31, 2020[1006]. - Every $1,000 increase in spot tanker freight rates would have increased profit by $19.6 million in 2020[1008]. Fleet and Vessels - The total fleet decreased from 71.0 vessels at the start of 2019 to 69.5 vessels at the end of 2020, with 3.5 vessels disposed of during the year[593]. - The company took delivery of four newbuilding Ice Class Suezmax vessels in 2018, each contracted for seven-year employment contracts with a leading global refinery[595][596][599][600]. - The merger with Gener8 in June 2018 added a fleet of 29 tankers, increasing the company's carrying capacity by approximately 7.4 million dwt[597]. - As of December 31, 2020, there were no vessels classified as non-current assets held for sale, compared to one Suezmax vessel held for sale in 2019[592]. - The company took delivery of four newbuildings in early 2021, each with a deadweight tonnage of 300,200[687]. - The company entered into an agreement to acquire two eco-Suezmax newbuilding contracts for a total price of $113.0 million, with delivery expected in January 2022[689]. - A sale and leaseback agreement for the VLCC Newton was executed for $36.0 million, with a leaseback rate of $22,500 per day[690]. - The tanker orderbook is measured, with VLCCs at 7.0% and Suezmaxes at 8.1% of the current fleet[697].