Euronav(US:EURN)2024-02-02 19:44Financial Data and Key Metrics Changes - The company reported a record profit of $411 million for Q4 2023, significantly influenced by capital gains from the sale of part of the Frontline fleet amounting to $323 million [32] - The underlying profit for Q4 was $88 million, indicating strong performance driven by robust freight markets [32] - For the full year, the company achieved a profit of $862 million, with $490 million from operations and $372 million from capital gains [36] - Liquidity at the end of the year was $1.243 billion, which increased to approximately $2.5 billion following the delivery of most vessels to Frontline [35] Business Line Data and Key Metrics Changes - The Marine division's contract backlog stands at $1.75 billion, with intentions to secure long-term cash flows [2] - The company has continued fleet expansion, adding two VLCCs, maintaining an order book of four VLCCs and four Suezmaxes [33] Market Data and Key Metrics Changes - The tanker market remains healthy, with a low order book to fleet ratio historically, supporting the industry for the next two years [20] - The average age of the fleet is increasing, with many vessels approaching 20 years, indicating potential for scrapping and supporting utilization [22] Company Strategy and Development Direction - The company is focusing on fleet renewal and optimization, with a total CapEx commitment of $2.7 billion, including a $2 billion commitment from CMB.TECH [1] - The dividend policy will shift to a discretionary basis following the potential acquisition of CMB.TECH, moving away from the previous aim of distributing 80% of net profits [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the supply-demand balance in the tanker market, despite slow demand growth [24] - The company is avoiding routes through the Red Sea due to safety concerns, which has led to increased demand for shipping due to longer ton miles [8][7] Other Important Information - The company has sold 11 VLCCs to Frontline in Q4, with a capital gain of $323 million, and plans to sell 13 VLCCs in total, expecting a capital gain of $372 million for Q1 [13] - The company has decided not to declare a dividend for Q4 until the mandatory offer is completed [37] Q&A Session Summary Question: What is the voting requirement for the upcoming SGM regarding the acquisition? - The acquisition requires a simple majority vote for approval, and there is a high likelihood of the transaction going through [11] Question: When will the first consolidation of CMB.TECH be reflected in the financials if approved? - The consolidation will be visible in the Q1 figures, which will be announced in May [11] Question: How will the sale of VLCCs to Frontline impact cash flow statements? - Approximately $1.1 billion in cash was received in Q4, and $1.25 billion is expected in Q1 from the sales [14][43] Question: What is the impact of the sold VLCCs on Tankers International? - The sold VLCCs are no longer part of the pool, but operations continue as before, with new vessels added from third-party owners [10] Question: Are there additional costs for protecting vessels due to the situation with the Houthis? - The best protective measure is avoiding the area altogether, thus no extra costs are incurred [47]