Euronav(US:EURN)2023-08-04 00:42Financial Data and Key Metrics Changes - The net profit for Q2 2023 was $161.8 million, consistent with Q1 results, indicating stable financial performance [69] - The balance sheet leverage stood at 47.5%, and liquidity was boosted to $742 million through a new facility [69] - The Q2 dividend was set at $0.80 per share, reflecting the Board's confidence in the company's platform and the strength of the current tanker cycle [24][69] Business Line Data and Key Metrics Changes - The company added 3 new VLCCs and took delivery of a new Suezmax, with plans to add 4 more Suezmax vessels in the next 12 months [4] - The cash breakeven levels were reported at $16,000 for Suezmax and $19,000 for VLCC, with P&L breakeven at $18,000 and $23,000 respectively [32] Market Data and Key Metrics Changes - Oil demand forecasts have consistently grown over the past 9 to 10 months, supported by positive ton mile development [70] - Iran's production has ramped up to a 5-year high of around 1.5 million barrels per day, which could significantly impact tanker markets if allowed to export via commercial tonnage [71][26] Company Strategy and Development Direction - The company is positioned for further growth and is focused on strategic opportunities as they arise, while also delivering returns to shareholders through dividends [6] - The management emphasized a commitment to maintaining operational efficiency and controlling costs, particularly in light of recent legal expenses [13] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the tanker market's resilience, noting that the current year has defied typical seasonal trends with strong freight rates [77] - There is cautious optimism regarding the potential return of Iranian oil to the market, which could provide a significant boost to tanker demand [26][90] Other Important Information - The company is actively involved in the salvage operation of the FSO Safer off the Yemeni coast, showcasing its commitment to environmental responsibility [79] - The new Supervisory Board is seen as supportive and contributive, enhancing the company's strategic direction [39] Q&A Session Summary Question: What is the outlook for the payout ratio given the strong liquidity? - The payout ratio for Q2 was 100%, reflecting the Supervisory Board's confidence in the current market conditions, but future ratios will depend on ongoing assessments [28][82] Question: How does the company view the potential impact of Iranian oil exports? - The management highlighted that if Iran were to return to the market, it could unlock 1.5 million barrels per day of potential exports, significantly impacting the tanker market [90] Question: What is the company's strategy regarding fleet renewal? - The company plans to continue its strategy of selling older vessels and acquiring new builds, with a focus on Suezmaxes and VLCCs [109][121] Question: How is the new Supervisory Board involved in decision-making? - The management confirmed that there are no changes in strategy due to the new Board, and operations continue as usual while enjoying the current market upcycle [115]