2017 Offshore Excellence Awards

16 Acquisition International - Offshore Excellence Awards 2017 Best Crude Oil Tanker Company 2017 Euronav NV Euronav NV is an independent tanker company engaged in the ocean transportation and storage of crude oil. We invited Brian Gallagher to explore the secrets behind its success so far. Company: Euronav NV Contact: Brian Gallagher Contact Email: [email protected] Address: De Gerlachekaai 20, 2000, Antwerp, Belgium Phone: +44 20 7870 0436 OE170021 Euronav is the world’s largest, independent quoted crude tanker platform and continuously adapts its strategy to the current themes of shipping markets. Headquartered in Belgium, the firm have offices throughout Europe and Asia, as well as being listed on Euronext and the NYSE. Brian outlines the firm’s service offering in more detail and explains how the firm has come to achieve the phenomenal success it enjoys today. “Here at Euronav we operate our fleet both on the spot and the charter market. We have one V-Plus, 31 VLCCs, 19 Suezmaxes, two Suezmaxes under construction and 2 floating storage platforms. Our VLCCs are operated within a pool called Tankers International which trades on the spot market. A large part of our Suezmax fleet is placed on time charter contracts allowing secure and visible income. “A key part of service offering is our people. Euronav people bring to the job a rich diversity of educational/professional qualifications, including engineering, finance, business administration and legal backgrounds, who have specialised in tanker operations, crewing, and technical shipping corporate services. Virtually everyone speaks at least two languages fluently; half speak three or more. But above all, people working or wishing to work at Euronav should be able to work autonomously, aim for mastery and feel that their job has a purpose. The executive team at Euronav has vast experience and enjoys a strong reputation in capital and shipping markets reflected in the fact that the company traversed a five year bear tanker market without defaulting or restructuring on any loans.” Supporting a range of clients including oil majors, refiners, state owned oil companies and oil traders, Euronav has a strong overview of the offshore market which Brian is keen to share with us. “Within the oil and gas space currently there are five key drivers: three are positive, one neutral and one negative. The positives are that demand remains robust. The IEA is forecasting growth of 1.2-1.3m bpd EVERY year to 2022. Financing remains very restricted as the banks reduce ship lending and adopt Basel 4. Finally, for the positives, oil supply remains elevated despite OPEC cuts and we expect rising production in Iraq, USA Shale and Brazil to benefit tankers. Ton miles currently neutral as increased voyage distance from Atlantic to Far East is offset by OPEC production cuts. Lastly vessel supply is negative with 6-7% of the current world fleet scheduled to be delivered from the order book during 2017. “The biggest challenge is the shipyards. Owners must resist placing new orders amid the temptation of lower prices being offered. The tanker market has an opportunity to break the boom-bust cycle of the past 40 years and develop a more rational sector structure which will generate more visible returns for investors.” Moving forward projects abound as Euronav seeks to build upon its current success and grow even further, as Brian concludes. “Looking forward there are two major pieces of regulation coming – ballast water systems on all ships from September 2017 and sulphur emissions being materially reduced in 2020. Euronav intends to be centre stage in the consultation, adoption and structure of these regulations. Consolidation is a feature we are keen to cultivate. We intend to do this by continuing to market the attributes of pooling and the benefits from a more concentrated ownership structure.” “Moving forward projects abound as Euronav seeks to build upon its current success and grow even further.”