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Euronav NV (EURN.BR)
Brussels - Brussels Delayed Price. Currency in EUR
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At close: 5:39PM CEST
1,032 reactions on $EURN.BR conversation
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anyone know why tankers started to move again? vlcc rates havent gone up dramatically, and while there has been scrapping it has not been a massive amount.
I own 30 shares and got a .90 cent dividend #$%$!? Did they reduce the dividend?
30% Belgian tax on returns ... not investable compared to peers
eurn results coming...
its everything about future oil price...
if oil price is 40$... newbuildings do not pay: they are relatively costly
but at oil price 80$... they can save on fuel cost (500$ ton x 80 a day, ...altrnative fuels at half of this cost...)
its difficult how opec will react on reduced oil volumes: co2 worries > less use of refined products and more energy alternatives... Will some try to sell oil at all price? ...counter alternatives orr .act responsibly:
in this case, eurn's acces to cash is important to take right decision at right time:
euronav actully has rather high financial costs..but this is finishing. A big part of leases is ending, and expensif debt is finishing and replaced by very cheap financing, allowing acquisitions or repurchasing own shares. If losses of 20-30 ct /share for quarter are possible, there is still cash adding: amrtization is 35 ct/share. And metal prices, newbuilding cost...fleet value is raising, although aging..
we already see some redressement of spot prices (see dht quarterly,: 63% booked 20% higher dan q2).
main treat is corona... but this is for everybody!
In this case, i expect newbuildings will be very limited: docks not available, and other types as big bulkers and containers have a longer economic life to expect.. priority in shipbuilding
therefore, all eco ships will have long time investing value, and newbuildings will be paid for the cheaper fuel...(ammonia?)... maybe, they will be more productif also, as others will trend to slow speed to save fuel.... Remember, published TCE are based on line charters... consumption is based on historic costs... At historic speed speed and non-eco Published TCE therefore is >20000$/day below realised spot fixtures, for DHT
tce is already 63% realised Q3 at 22000/day so far...the difference: daily cost 8000$ i guss and 20 000 savings on fuel..
(if i 'm wrong somewhere.... tell me)
"It's Break Out Time"
A challenging quarter - tanker market dynamics largely static from Q1
• OPEC+ output rises not fully translating into higher tanker shipping demand
• Counter cyclical investment in new generation of ships via 8 new eco-vessels
• Q2 cash dividend of USD 3 c per share
• Q3 so far VLCC 43% at USD 8,000 per day; Suezmax 48% at USD 8,250 per day
• Q2a net loss of USD 89.7 million or USD (0.44) per share vs (0.36) estimated-Missed target.
Things are pretty ugly in the tanker sector. Possibly getting better by the end of the year...
What is happening?
Pretty soon this stock will actually be the price of gasoline. How is it that gas keeps going up but this stock keeps going down?
Will be looking to buy back at mid seven's.
in fact Eurn doesnt loose money in this 'negativ' spot prices: At this price, they still can pay their debt with cash, but booking amortization is 'technical' necessity... over a 20 year period,. It just not the moment to do that: One condition: the older ships have to be scrapped and the oil comsumption normalised... at 2019 level. New ships and some good tc' s give a great cash-flow. The financial bareboat and intrest costs are very rapidly sinking: lower intrest rates negotiated and less bareboats...
I can live with a loss for q3 and q2...I still believe that newbuilding orders is halted for some years. Newbuildings later will be lng /ammonia dual fuel...
Older boats have to earn their scrap value investment... Actually they don't without scrubber or eco type..
Sanctions -venezuela, iran-disturb normal market conditions, using older fleet otherwise economically unviable: a number of vlcc have added a 2,5 year to their life cycle...but this is ending.
Anyway, using this vlcc and the way of scrapping is not sustainable...
i think this will end, and the 'economically viable fleet' will be sharply reduced. In fact, profit now should be on fuel... with a 100 ton/day consumption at normal speed, this is more relevant than 'spot price' taking in account that consumtion of vlsfo... 60 000 a day... Reducing fuel cost by 30% (scubbers, mgo or vlsfo bunkering as euronav oceania, slow speed, ...) is more at higher oil price: in fact , oil price is a part of the estimated tce earnings... economies are for tanker company: hterefore -7000 on spot saving 18000 can still be cash breakeven... : 8000 general cost unavoidable, slower speed reducing number of productive days..
It's a survival period, but this has also positiv aspects: we go into a period of scarcity in capacity... and remeding with newbuildings is ...delayed : and even if this vlcc save 50% on fuel cost - probable! - they are not needed for oil.. but still very cheap for water transport...hr, Hugo??
the winter is coming
oil futures are showing lower prices ahead.
The fleet is rebalancing. More scrap, fewer newbuilds. Bright future for Euronav.
What value investors do not understand about Euronav is the long term intrinsic value of the stock. The stock does represent value as an income stock but over the next two years will have substantial capital appreciation. Currently, and for past several years this has been a 'traders' stock and still is treated that way in many ways. The stock has a history of volatility with uneven, although often spectacular, dividend growth. The company is a constant in asset growth variously shedding old ships and adding new ones in the range of fifteen years. Asset growth has also been assisted by good debt management, paying down old debt while financing new or newer ships with new debt at low rates. All of the ships are also well maintained to the most modern standards. Companies like NAT buy older ships in the 10-25 years age group and hold them until they run them onto the beaches in India for scrap. EURNONAV, with some special exceptions, does not keep ships past 15 years. In the next 5 years there will be fewer VLCCs built. There will be fewer Sueszmax ships built. One reason is owners do not have a clear picture on what the furture for hardware looks like. We are now entering an era of ships powered by LNG, hydrogen and even electricity (solar panels or hybrids). The age of crew-less ships is at hand. For safety you would still have a captain, engineer and pilot. Navigation and even docking will be computer and satellite controlled. The end of the age of intoxicated people on the bridge. They may be there but not driving the ship, to shareholders relief. I note I doubt Euronav ever had this problem. Anyway, clear skies and calm seas ahead. A happy investor.
share buyback ongoing : 10% could be reached in 6 weeks at this ritm
the first six days 1,5% was bought at an average rpice of 7,5 euro. i expect a similar volume for this week at an average of 7.65, confirmation on Friday
in Belgium, there is a very actif 'conversations ' forum (>1 milion euronav 2020 forum vieuws)
Some are extremely bullish ands see a complementary growth an profit rate resulting of the shar buybacks. the fleet evaluated based on a newbuilding price of 70% of the price results in a share value of 9$ and based on the average tce earnings published by Poten, the q2 results will result in a very high dividend yield (income very near to approx 60x180xtce/day)
60: is a recalculation for other fleet income from fso and suezmax representing 26% of the fleet. 20% of the fleet is on time charters, especially 4 recent suezmax, fso, and contango-time opportunities
Hugo de stoop, ceo also sees opportunities in 'after oil' water transport and related services...
for the long term, the investment return on new tankers is a solid capital base, undervalued and a reasonable long-term debt: cash postion announced at end q2 of … >1 billion
the ceo expect a small growth for the coming years. As a formal Greenpeace activist, he accepted transforming the company into a sustainable company, believing in consolidation of the sector into less fragmented entities. absorbing gener8 ships by cession of owned shares and cash is actually also a possibility, even absorbing companies of almost same size...
EXTREMELY IMPORTANT RE DIVIDEND POLICY
Thanks to a heads up from G , I got pointed into the proper direction regarding dividend policy. My broker TD Ameritrade was not aware of this. They are researching this now.
Belgian withholding tax on dividends distributed by Euronav NV
Draft – May 10, 2017
The content of this document is purely for general information and illustrative purposes. It is not intended to be complete. Please consult your tax advisor regarding the Belgian withholding tax treatment of dividends distributed by Euronav NV, the availability of reduced withholding tax rates or exemptions and the procedure to claim such reduced withholding tax rates or exemptions in your situation.
Belgian withholding tax: standard rate, reduced rates and exemptions
The gross amount of dividends distributed by Euronav NV is, in principle, subject to Belgian dividend withholding tax (WHT) at the rate of 30%. This applies to Euronav NV shares listed on Euronext Brussels and NYSE. However, subject to conditions and documentation requirements, reduced WHT rates or WHT exemptions may be available under Belgian domestic tax law or applicable double tax treaties (DTT). We therefore recommend you to contact your broker or tax advisor for personal advice and guidance to reclaim any overpaid withholding tax.
A reduced rate or an exemption can be applied but not limited in the following scenarios:
Reduced rates or exemption under the DTT between the U.S. and Belgium: In certain cases, a reduced rate or an exemption can be applied for dividends distributed by Euronav NV to a U.S. resident holder of Euronav NV shares (i) who beneficially owns the dividends, (ii) who does not hold the shares through a permanent establishment in Belgium, and (iii) who is entitled to claim benefits under the DTT between the U.S. and Belgium, the WHT rate is reduced from 30% to 15% of the gross amount of the dividends. For dividends distributed to U.S. resident companies that directly hold at least 10% of the voting rights of Euronav NV the WHT rate is reduced to 5%. U.S. resident pension funds benefit from an exemption from Belgian WHT. Please consult the important notice under the dividend section on the website for further guidance.
Reduced rates or exemption under other DTTs concluded by Belgium: Most DTTs concluded by Belgium provide for a reduction of the Belgian WHT rate on dividends to 15% or 10%. In some cases, a reduced rate of 5% or full exemption may be available.
Exemption for participations of at least 10%: Belgian domestic law implementing the EU Parent Subsidiary Directive provides for an exemption from dividend withholding tax for dividends distributed to qualifying companies (i) which are resident in the EU or in a jurisdiction with which Belgium has concluded a DTT that includes an exchange of information clause, and (ii) which hold (or will hold) a minimum participation of 10% for at least one year.
Shipping costs are going up everywhere, oil prices increasing everyday, why is this stock lefT behind? Isn’t it about time it takes off, or am I missing part of the equation?
Entire release sans daily purchase figures:
9 July 2020 – 10.15 p.m. CET
ANTWERP, Belgium, 9 July 2020 – Euronav NV (NYSE: EURN & Euronext: EURN)
(“Euronav” or the “Company”) announces that the Company has purchased on the NYSE
and on Euronext Brussels a total of 3,379,108 of its own shares for an aggregate price of
EUR 25,107,476 (USD 28,086,438) as part of its capital allocation strategy and returns to
Following these transactions, the Company now owns 8,325,324 shares (3.78% of the total
outstanding share count).
CAPITAL ALLOCATION STRATEGY IN ACTION
Euronav remains committed to its guidance published on 9 January 2020 to target a return
of at least 80% of net income to shareholders per quarter. This return to shareholders will
primarily be in the form of a cash dividend. The Company notes that total dividend amount
will be distributed to outstanding shares excluding those held by the Company. In
accordance with its authorization to purchase up to 10% of the company’s issued shares
granted by the 2020 shareholders’ meeting, the Company will always look at stock
repurchase as an alternative if it believes more value can be created for shareholders. As
the share price is currently trading well below the Company’s own evaluation of intrinsic
value, the Supervisory Board and the Management Board believe that buying back own
shares creates long term value for all stakeholders. Indeed, a Euronav share price of USD
9 translates into a new build VLCC valuation of just USD 68 million compared to a current
valuation of USD 89 million (source: Clarksons).
The Company will monitor market conditions to decide whether to continue buying back
shares in accordance with industry best practices, taking into account a variety of factors,
including regulatory or legal requirements and other corporate considerations.
To this end, Euronav has mandated Clarksons Securities to act as an independent broker
to coordinate and execute share repurchases on the exchanges of Euronext Brussels and/or
This share buyback reflects the strength of Euronav’s balance sheet and the confidence of
the Supervisory Board and the Management Board in the long term value in the Company’s
It is important to stress that this return to shareholders is from net income generated from
our capital base and does not impact the Company’s strong liquidity which will be
augmented by the 20% of net income that is retained. At the end of Q2 2020, Euronav’s
liquidity position will be approximately USD 1.09 billion before any returns to shareholders
are taken into account.
Comments by ING analyst Mulder
May 19 - Stock market view: ING increases price target Euronav
Euronav ( May 19 )
EUR 9,000 +0,030 (+ 0.33%)
(ABM FN) On Tuesday, ING raised the price target for Euronav from 8.50 to 11.00 euros and maintained the buying advice, after stronger than expected results in the first quarter and the attractive outlook of the oil company.
Rates, ING argued, are rising thanks to strong demand.
Analyst Mulder pointed out that the share price is currently significantly below intrinsic value due to fears of a downturn in the sector. However, Mulder believes that the current market conditions are very good for Euronav in both the short and long term. That is why the analyst adjusted its price target upwards, also pointing to the enormous dividend paid by Euronav.
from AGM Q and A 10% buy back is a "go" statement below
Euronav strongly believes that having authority to repurchase its own shares provides
management and the board with a strong mechanism to deliver lasting value to our
stakeholders. The above are most common examples of the use of shares bought back.
However, that list is not exhaustive. Indeed, buying shares back and retaining them as an asset
rather than cancelling them provides maximum optionality going forward as these held shares
can be used to create further value – for instance in purchasing another tanker fleet or
company. Therefore, in repurchasing our own shares Euronav management intend to retain
all options in what remains a very dynamic tanker market. The company however does not
and will not use the authorization to be employed as a “poison pill” or block to the generation
of shareholder value
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