Euronav Annual Report 2019

← All annual reports

FY2019 Annual Report · Euronav

Loading PDF…

Annual
report

2019

Shareholder letter

Quick facts

Highlights 2019

Special report

Future capital access for
tanker shipping: new set
of rules is emerging

Directors’ report

Vision and Mission

Company proﬁ le

Highlights 2019

Corporate Governance
Statement

The Euronav Group

Activity report

Products and services

In-house Ship Management 69

Fleet of the Euronav group
as of 31 December 2019

Human resources

Environment, Social and
Corporate Governance

ESG at Euronav,
it’s in the DNA

Glossary

Key fi gures

Consolidated statement of profit or loss 2011 - 2019

(in thousands of USD)

2019 H

2018 G

2017

2016

2015

2014

2013

2012

2011

Restated A

Revenues

EBITDAB

EBIT

Net profit

932,377

540,668

202,966

112,230

600,024

231,513

(39,179)

513,368

273,451

43,579

(110,070)

1,383

684,265

475,005

247,241

204,049

846,507

612,659

402,453

350,301

473,985

202,767

41,814

(45,797)

304,622

100,096

(36,862)

(89,683)

410,701

120,719

394,457

128,368

(56,794)

(40,155)

(118,596)

(95,986)

TCE C YEAR AVERAGE

2019

2018

2017

2016

2015

2014

2013

2012

2011

VLCC

Suezmax

Spot Suezmax

35,874

37,747

24,119

23,005

30,481

15,784

27,773

22,131

18,002

41,863

26,269

27,498

55,055

35,790

41,686

27,625

25,930

23,382

18,300

22,000

16,600

19,200

24,100

16,300

18,100

27,100

15,400

IN USD PER SHARE

2019

2018

2017

2016

2015

2014

2013

2012

2011

Number of shares D

216,029,171 191,994,398 158,166,534 158,262,268 155,872,171 116,539,017 50,230,437 50,000,000 50,000,000

IN EUR PER SHARE

2019

2018

2017

2016

2015

2014

2013

2012

2011

Rate of exchange

1.1234

1.1450

1.1993

1.0541

1.0887

1.2141

1.3791

1.3194

1.2939

2.50

0.94

0.52

2.23

0.84

0.46

1.21

(0.20)

(0.57)

1.05

(0.18)

(0.50)

1.73

0.28

0.01

1.44

0.23

0.01

3.00

1.56

1.29

2.85

1.48

1.22

3.93

2.58

2.25

3.61

2.37

2.06

1.74

0.36

(0.39)

1.99

(0.73)

(1.79)

2.41

(1.14)

(2.37)

2.57

(0.80)

(1.92)

1.43

0.30

(0.32)

1.44

(0.53)

(1.29)

1.83

(0.86)

(1.80)

1.98

(0.62)

(1.48)

HISTORY OF DIVIDEND

PER SHARE

2019

2018

2017

2016

2015

2014

2013

2012

2011

Dividend (USD per share) 0.35 E

Of which interim div. of

0.06

0.12

0.06

0.12

0.06

0.77

0.55

1.69

0.62

0.00

The comparative figures for 2013 have been restated following the application of IFRS 10 & IFRS 11 on Joint Arrangements.

EBITDA (a non-IFRS measure) represents operating earnings before interest expense, income taxes and depreciation expense attributable to us. EBITDA is presented to provide investors

with meaningful additional information that management uses to monitor ongoing operating results and evaluate trends over comparative periods. We believe that EBITDA is useful to

investors as the shipping industry is capital intensive which often brings significant cost of financing. EBITDA should not be considered a substitute for profit/(loss) attributable to us or

cash flow from operating activities prepared in accordance with IFRS as adopted by the European Union or as a measure of profitability or liquidity. The definition of EBITDA used here

may not be comparable to that used by other companies.

Time Charter Equivalent.

Excluding 4,946,216 shares held by the Company in 2019 (2018: 1,237,901 shares and 2017: 1,042,415 shares).

The total gross dividend paid in relation to 2019 of USD 0.35 per share is the sum of the interim dividend paid in October 2019 in addition to the proposed amount of USD 0.29 per share

proposed to the Annual Shareholder’s Meeting of 20 May 2020.

Ratio is based on the actual exchange rate EUR/USD on the day of the dividend announcement if any.

The Group initially applied IFRS 15 and IFRS 9 at 1 January 2018. Under the transaction methods chosen, comparative information is not restated.

H The Group initially applied IFRS 16 at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.

EBITDA

EBIT

Net profit

EBITDA

EBIT

Net profit

Consolidated statement of financial position 2011 - 2019

(in thousands of USD) 31.12.2019 31.12.2018 31.12.2017 31.12.2016 31.12.2015 31.12.2014 31.12.2013

31.12.2012 31.12.2011

Restated A

ASSETS

LIABILITIES

Non-current assets

3,362,594

3,606,210

2,530,337

2,673,523

2,665,694

2,558,505

1,728,993

2,065,448

2,159,442

Current assets

802,249

521,141

280,636

373,388

375,052

537,855

191,768

297,431

291,874

TOTAL ASSETS

4,164,843

4,127,351

2,810,973

3,046,911

3,040,746

3,096,360

1,920,761

2,362,879

2,451,316

Equity

2,311,855

2,260,523

1,846,361

1,887,956

1,905,749

1,472,708

800,990

866,970

980,988

Non-current liabilities 1,536,938

1,579,706

805,872

Current liabilities

316,050

287,122

158,740

969,860

189,095

955,490

179,507

1,328,257

874,979

1,186,139

1,221,349

295,395

244,792

309,770

248,979

TOTAL LIABILITIES

4,164,843

4,127,351

2,810,973

3,046,911

3,040,746

3,096,360

1,920,761

2,362,879

2,451,316

Shareholders’ diary 2020
THURSDAY 7 MAY 2020
Announcement of ﬁ rst quarter results 2020

WEDNESDAY 20 MAY 2020
Annual General Meeting of Shareholders 2020

THURSDAY 6 AUGUST 2020
Announcement of second quarter results 2020

TUESDAY 11 AUGUST 2020
Half year report 2020 available on website

THURSDAY 5 NOVEMBER 2020
Announcement of third quarter results 2020

THURSDAY 4 FEBRUARY 2021
Announcement of fourth quarter results 2020

Representation by the persons
responsible for the fi nancial statements
and for the management report
Mr Carl Steen, Chairman of the Board of Directors, Mr Hugo De
Stoop, CEO and Mrs Lieve Logghe, CFO, hereby certify that, to
the best of their knowledge,

(a) the consolidated fi nancial statements as of and for the
year ended 31 December 2019, which have been prepared in
accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union, give a true and fair
view of the assets, liabilities, fi nancial position and results of
Euronav NV and the entities included in the consolidation, and

(b) the annual report includes a true and fair view of the
evolution of the activities, results and situation of Euronav NV
and the entities included in the consolidation, and contains a
description of the main risks and uncertainties they may face.

Key fi gures

Consolidated statement of profit or loss 2011 - 2019

(in thousands of USD)

2019 H

2018 G

2017

2016

2015

2014

2013
Restated A

2012

2011

Revenues
EBITDAB
EBIT
Net profit

932,377
540,668
202,966
112,230

600,024
231,513
(39,179)
(110,070)

513,368
273,451
43,579
1,383

684,265
475,005
247,241
204,049

846,507
612,659
402,453
350,301

473,985
202,767
41,814
(45,797)

304,622
100,096
(36,862)
(89,683)

410,701
120,719
(56,794)
(118,596)

394,457
128,368
(40,155)
(95,986)

TCE C YEAR AVERAGE

2019

2018

2017

2016

2015

2014

2013

2012

2011

VLCC
Suezmax
Spot Suezmax

35,874
37,747
24,119

23,005
30,481
15,784

27,773
22,131
18,002

41,863
26,269
27,498

55,055
35,790
41,686

27,625
25,930
23,382

18,300
22,000
16,600

19,200
24,100
16,300

18,100
27,100
15,400

IN USD PER SHARE

2019

2018

2017

2016

2015

2014

2013

2012

2011

Number of shares D
EBITDA
EBIT
Net profit

216,029,171 191,994,398 158,166,534 158,262,268 155,872,171 116,539,017 50,230,437 50,000,000 50,000,000
2.50
0.94
0.52

2.57
(0.80)
(1.92)

2.41
(1.14)
(2.37)

1.99
(0.73)
(1.79)

1.21
(0.20)
(0.57)

1.74
0.36
(0.39)

3.00
1.56
1.29

3.93
2.58
2.25

1.73
0.28
0.01

IN EUR PER SHARE

2019

2018

2017

2016

2015

2014

2013

2012

2011

Rate of exchange
EBITDA
EBIT
Net profit

1.1234
2.23
0.84
0.46

1.1450
1.05
(0.18)
(0.50)

1.1993
1.44
0.23
0.01

1.0541
2.85
1.48
1.22

1.0887
3.61
2.37
2.06

1.2141
1.43
0.30
(0.32)

1.3791
1.44
(0.53)
(1.29)

1.3194
1.83
(0.86)
(1.80)

1.2939
1.98
(0.62)
(1.48)

HISTORY OF DIVIDEND
PER SHARE

2019

2018

2017

2016

2015

2014

2013

2012

2011

Dividend (USD per share) 0.35 E
Of which interim div. of

0.06

0.12
0.06

0.77
0.55

1.69
0.62

0.00
0.00

A
B

C
D
E

The comparative figures for 2013 have been restated following the application of IFRS 10 & IFRS 11 on Joint Arrangements.
EBITDA (a non-IFRS measure) represents operating earnings before interest expense, income taxes and depreciation expense attributable to us. EBITDA is presented to provide investors
with meaningful additional information that management uses to monitor ongoing operating results and evaluate trends over comparative periods. We believe that EBITDA is useful to
investors as the shipping industry is capital intensive which often brings significant cost of financing. EBITDA should not be considered a substitute for profit/(loss) attributable to us or
cash flow from operating activities prepared in accordance with IFRS as adopted by the European Union or as a measure of profitability or liquidity. The definition of EBITDA used here
may not be comparable to that used by other companies.
Time Charter Equivalent.
Excluding 4,946,216 shares held by the Company in 2019 (2018: 1,237,901 shares and 2017: 1,042,415 shares).
The total gross dividend paid in relation to 2019 of USD 0.35 per share is the sum of the interim dividend paid in October 2019 in addition to the proposed amount of USD 0.29 per share
proposed to the Annual Shareholder’s Meeting of 20 May 2020.
Ratio is based on the actual exchange rate EUR/USD on the day of the dividend announcement if any.
The Group initially applied IFRS 15 and IFRS 9 at 1 January 2018. Under the transaction methods chosen, comparative information is not restated.

F
G
H The Group initially applied IFRS 16 at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.

Consolidated statement of financial position 2011 - 2019

(in thousands of USD) 31.12.2019 31.12.2018 31.12.2017 31.12.2016 31.12.2015 31.12.2014 31.12.2013
Restated A

31.12.2012 31.12.2011

ASSETS

Non-current assets
Current assets

3,362,594
802,249

3,606,210
521,141

2,530,337
280,636

2,673,523
373,388

2,665,694
375,052

2,558,505
537,855

1,728,993
191,768

2,065,448
297,431

2,159,442
291,874

TOTAL ASSETS

4,164,843

4,127,351

2,810,973

3,046,911

3,040,746

3,096,360

1,920,761

2,362,879

2,451,316

LIABILITIES

2,311,855
Equity
Non-current liabilities 1,536,938
Current liabilities

316,050

2,260,523
1,579,706
287,122

1,846,361
805,872
158,740

1,887,956
969,860
189,095

1,905,749
955,490
179,507

1,472,708
1,328,257
295,395

800,990
874,979
244,792

866,970
1,186,139
309,770

980,988
1,221,349
248,979

TOTAL LIABILITIES

4,164,843

4,127,351

2,810,973

3,046,911

3,040,746

3,096,360

1,920,761

2,362,879

2,451,316

On 23 October 2017, the Company announced that the USD 150
million senior unsecured bonds issued by Euronav Luxembourg
S.A. and guaranteed by Euronav NV are listed on the Oslo
Stock Exchange as of that day. On 14 June 2019 the Company
announced that it had completed a tap issue of USD 50 million
under its existing senior unsecured bond loan. The amount
outstanding after the tap issue is USD 200 million. The bonds
have been allocated the following ISIN code: NO 0010793888.

Euronav’s shareholders’ structure
According to the information available to the Company at the
time of preparing this annual report on 24 March 2020 and
taking into account the latest transparency declarations or
other offi cially fi led information with supervising authorities, the
shareholders’ structure is as shown in the table:

SHAREHOLDERS’ STRUCTURE
AS OF 24 MARCH 2020:

Shareholder

Percentage

Châteauban SA

Saverco NV*
Marshall Wace
Euronav (treasury shares)
Other

12,920,266

5.87%

11,497,088
11,199,893
4,946,216
179,461,250 81.56%

5.23%
5.09%
2.25%

Total

220,024,713 100.00%

*Including shares held directly or indirectly by or for the benefit of the ultimate
beneficial owner.

EDITOR’S NOTE:
SHAREHOLDERS’ STRUCTURE AS OF 8 APRIL
2020, DATE OF CLOSING FOR PUBLISHING:

Shareholder

Percentage

Euronav (treasury shares)

4,946,216

2.25%

Other

Total

215,078,497 97.75%

220,024,713 100.00%

The
Euronav
Share

DAILY VOLUME OF TRADED SHARES 2019

9,000,000

8,000,000

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

8
1
0
2
/
2
1
/
1
3

9
1
0
2
/
1
0
/
1
3

9
1
0
2
/
2
0
/
8
2

9
1
0
2
/
3
0
/
1
3

9
1
0
2
/
4
0
/
0
3

9
1
0
2
/
5
0
/
1
3

9
1
0
2
/
6
0
/
0
3

9
1
0
2
/
7
0
/
1
3

9
1
0
2
/
8
0
/
1
3

9
1
0
2
/
9
0
/
0
3

9
1
0
2
/
0
1
/
1
3

9
1
0
2
/
1
1
/
0
3

9
1
0
2
/
2
1
/
1
3

SHARE PRICE EVOLUTION 2019 (IN USD)

8
1
0
2
/
2
1
/
1
3

9
1
0
2
/
1
0
/
1
3

9
1
0
2
/
2
0
/
8
2

9
1
0
2
/
3
0
/
1
3

9
1
0
2
/
4
0
/
0
3

9
1
0
2
/
5
0
/
1
3

9
1
0
2
/
6
0
/
0
3

9
1
0
2
/
7
0
/
1
3

9
1
0
2
/
8
0
/
1
3

9
1
0
2
/
9
0
/
0
3

9
1
0
2
/
0
1
/
1
3

9
1
0
2
/
1
1
/
0
3

9
1
0
2
/
2
1
/
1
3

Share price NYSE in USD

Share price Euronext Brussels in USD

Dear Shareholder

2019 has been another busy year for Euronav and one largely
of preparation for IMO 2020. The switch from 3.5% to 0.5%
sulphur content in the bunker fuel used to power the world’s
shipping fleet was implemented on January 1, 2020. This
regulatory change, otherwise known as IMO 2020, required
extensive preparation by the company and it is pleasing to
report our smooth adoption at Euronav of this 85% reduction in
sulphur emissions which improves the environmental footprint
of the shipping industry at large.

It has also been a year of executive repositioning for Euronav.
The board appointed Hugo De Stoop as the company’s
CEO after a thorough international selection process and in
December we welcomed Lieve Logghe as Euronav’s new CFO.
Lieve comes with a wealth of experience from a non-shipping
industrial background and will contribute to our seasoned
executive management team.

A robust start to the year in freight rates drove a profitable Q1
reflecting a thinly balanced market between crude demand and
vessel supply. The middle two quarters were more challenging
as,
IMO 2020, refinery maintenance
programmes were longer, deeper and more detailed than
anticipated thus reducing tanker demand during a seasonally
weaker period.

in preparation for

“Euronav is fully prepared to grasp all

opportunities that come along with
fluctuating markets

However, the final quarter saw an extraordinarily strong freight
market as a constructive set up between vessel demand and
supply was augmented by a number of short term catalysts –
sanctions, geopolitical risk and reduced operational fleet (due to
US sanctions) – all combined to drive VLCC and Suezmax rates to
their highest level since 2008.

Looking forward there will be challenges in 2020 for our market
from the impact of COVID-19 on the world economy and on the
crude oil demand in particular, as well as from market share
strategies of oil producing countries and their effect on the crude
oil price. However, the balance sheet strength Euronav possesses
will provide protection for the business during this period of
uncertainty and these challenges also provide opportunities as
reflected in our recent purchase of four resale VLCCs at what we
believe are attractive prices.

Contracting of new vessels remains constrained despite elevated
freight rates with the orderbook ratio to fleet standing around 8%:
a 23 year low! On top, the existing fleet has an average age at its
highest level since 2011 implying a higher level of sustained pressure
for recycling going forward. The continued growth of ‘Atlantic
barrels’ produced in areas from the US together with Norway and
Brazil crude exports will have multiple positive ramifications for

the tanker market with this crude being transported long haul and
absorbing a high level of tonnage.

During June, our Oslo-listed bond was increased in size by a third
to USD 200 million with an oversubscribed offer at premium to
par value. It is critical for Euronav to have consistent access
to a diverse funding base as shipping banks, under regulatory
and commercial pressure, will continue to focus their lending
to fewer players.

Euronav has for 2020 onwards implemented the new Belgian
code of companies and associations which will allow the
Company to distribute dividends on a quarterly basis for the
first time. This is an important development for shareholders
and will allow management to better align shareholder returns
with the Company’s operating performance. Under its dividend
policy, Euronav targets a return of 80% of net income to
shareholders via share buy back and dividends including a fixed
cash dividend per share of USD 12 cents per annum with this
policy being applied to the final dividend for 2019.

Euronav is committed to leading the highest standards of
corporate governance and social responsibility. During the year
we established an ESG and Climate Committee at board level,
we are a supporter of the Poseidon Principles (see special
report for more details) and will become part of the Carbon
Disclosure Programme (CDP) later this year. The Supervisory
Board, with equal gender representation welcomes what we
believe is a secular trend of increased focus on ‘ESG’ and
look forward to driving further improvement with real tangible
targets for emissions reduction to be announced during 2020.

The Supervisory Board and the Management Board recognise
and thank our employees for their hard work and dedication over
the past 12 months and it is thanks to them that the Company
delivered so much during 2019. Euronav has positioned itself
for the next phase of the tanker cycle with a strong operational
management team, robust financial structure backed by a liquid
traded share and excellent access to capital markets.

Yours sincerely,

Carl Steen
Chairman

Annual report 2019

Quick facts

3,110

PEOPLE

2,900
SEAFARERS
of many
different nationalities

2,900 seafarers of many different nationalities work aboard
Euronav vessels. Their nationalities are marked by a dot on the
map alongside. In addition, Euronav has approximately 210
employees (including contractors and temporary assignments)
throughout its shore-based offices in Antwerp, Athens, London,
Nantes, Singapore, Geneva and Hong Kong. This geographical
span reflects a deep-rooted maritime history and culture built
up over generations.

Annual report 2019Quick facts565,298*

Proportionate EBITDA
for the year 2019

73
VESSELS

The world’s largest,
independent, quoted
crude tanker platform

EURN
LISTED
NYSE

EURN
LISTED
EURONEXT

EURN
LISTED
NYSE

EURN
LISTED
EURONEXT

* Proportionate EBITDA in
thousands of USD

** Of which two are owned
in a 50%-50% joint venture

*** Both owned in a 50%-
50% joint venture

27** SUEZMAX
1 million barrels
average age: 11 years

42 VLCC
2 million barrels
average age: 7,3 years

2 VPLUS
3 million barrels
average age: 17 years

2 FSO***
2.8 million barrels
average age: 17 years

Annual report 2019Highlights 2019

2 JANUARY 2019

As part of its capital allocation strategy, Euronav continued
purchasing its own shares on NYSE and Euronext Brussels stock
exchanges. Several buybacks took place between January and
July 2019.

9 JANUARY 2019

Euronav sold the Suezmax Felicity (2009 – 157,667 dwt) to
a global supplier and operator of offshore floating platforms.
The vessel is converted into a FPSO and therefore left the
worldwide trading fleet.

17 JANUARY 2019

For the second consecutive time, Euronav is included in the
Bloomberg International Gender-Equality index.

4 FEBRUARY 2019

Euronav NV announced that Paddy Rodgers decided to step
down from his role as CEO during 2019 after almost two
decades of service.

11 FEBRUARY 2019

Euronav entered into a sale agreement regarding the LR1
Genmar Compatriot (2004 – 72,768 dwt) for USD 6.75 million.
A capital gain was recorded of approximately USD 0.4 million.

12 APRIL 2019

Euronav NV registered a branch office in Geneva, Switzerland
with the purpose to conduct fleet supporting activities.

9 MAY 2019

Euronav CFO Hugo De Stoop stepped up to succeed Paddy
Rodgers as CEO of the Company. The Annual General Meeting
of Shareholders approved the annual gross dividend of
USD 0.12 per share as proposed by the Board of Directors.
Shareholders approved the appointment of Anita Odedra and
Carl Trowell to the Euronav Board.

14 JUNE 2019

Euronav Luxembourg S.A. successfully completed a tap issue
of USD 50 million under its existing senior unsecured bond with
ISIN NO0010793888. The tap was placed at 101 to par value and
has taken the total outstanding of the bond to USD 200 million
with a maturity date in May 2022.

Article

IMO 2020

On its approach towards the new sulphur fuel regulations
coming as part of IMO 2020, Euronav over 2019 invested
heavily in physical infrastructure coupled with investments
in both financial and human capital. The company
has hired a dedicated fuel oils specialist to procure,
thoroughly test and store new compliant fuels for own
use. In total 420,000 metric tons of compliant fuel oil (0.5
& 0.1) have been purchased. The ULCC Oceania (2003
– 441,585) is used to store this inventory because of its
unique size and related economies of scale.

In line with Euronav’s strategy to retain a strong balance
sheet to navigate the tanker cycle, a new $100 million
revolving loan facility has been secured in order to assist
funding of this compliant fuel inventory on the Oceania.
Euronav will continue to constantly evaluate the merits
and opportunity from retrofitting scrubber technology
particularly when a full LSFO fuel market is in place.

Annual report 2019Highlights

1 JULY 2019

Euronav announced several share repurchases during the first
semester of 2019 totalling 3.28 million shares or 1.5% of the
total number of company shares.

6 AUGUST 2019

Euronav sold and delivered the VLCC vessel VK Eddie (2005
– 305,261 dwt) to a global supplier and operator of offshore
floating platforms. The vessel will be converted into an FPSO
and therefore leave the worldwide trading fleet.

5 SEPTEMBER 2019

Euronav announced its detailed plans and preparations in
relation to IMO 2020.

19 NOVEMBER 2019

Euronav announced it has entered into a joint venture together
with affiliates of Ridgebury Tankers and clients of Tufton
Oceanic. Each 50%-50% joint venture company has acquired one
Suezmax vessel, Bari and Bastia. Euronav provided financing for
the joint ventures on commercially attractive terms.

Article

Share buy back

As part of its capital allocation strategy,
Euronav has the option of buying its own
shares back should the Supervisory Board
and Management Board believe that there is
a substantial value disconnect between the
share price and the real value of the Company.
This return of capital is in addition to the fixed
dividend of USD 0.12 per share paid each
year. The Company started opportunistically
buying back shares on Euronext Brussels
and NYSE on 19 December 2018. Between
2 January 2019 and 9 July 2019 several
purchases took place. Following these
transactions, the Company owns 4,946,216
own shares, which represents 2.25% of the
total outstanding shares.

Euronav buying back shares

Dec 2018 Jan

Feb Mar

Apr May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Annual report 2019Special
report

1Future capital access
for tanker shipping:
a new set of rules is
emerging

Introduction

In the large crude tanker market (VLCC and Suezmax) and
shipping markets in general, participants stand at an interesting
and critical intersection regarding their future and their search
for sustainable funding. The continuous and
increasing
retraction of traditional shipping banks together with the fast
emerging ESG criteria used by more and more investment
funds makes it increasingly challenging to secure funding. For
the large crude tanker market it is even more challenging as
it is a capital intensive market, that is changing mainly due to
the transition to a lower carbon future and reduced demand
growth while facing more and more stringent regulations.
This special report – the latest in a series started in 2013 by
Euronav – examines the unique dynamics of the large crude
tanker market; the history of how this capital intensive market
has been traditionally funded; why the traditional shipping
banks have been retracting from investment over the past
decade and the seven key drivers which shipowners will have
to adopt in order to remain capitalised in a challenging lower
carbon future.

Large crude tanker market
dynamics – capital intensive,
fragmented and highly cyclical

1. Capital intensive

The large crude tanker market is not only capital intensive
when buying the vessel (a new VLCC, a ship of 0.33 km long
and capable of carrying 2 million barrels of crude oil, has a
price ticket of over USD 90 million today) but also requires high
levels of working capital, to operate and maintain the vessel.
Additionally, the operational life of large tankers is shorter
compared to other vessel types and has decreased over the
past 10-15 years to 19 years on average due to new rules
and regulations large tankers need to adhere to as figure 2
illustrates. The large crude tanker market is highly regulated
with tankers having to undergo special surveys every 5 years
until 15 years of age after which the survey cycle accelerates

Figure 1: Large crude tanker market dynamics

1. Capital intensive

2. Fragmented

OIL COMPANIES

TRADERS

REFINERS

SHIPBROKER

Owner Owner Owner

Owner

POOL

3. Highly cyclical and volatile

Monthly average VLCC TCE
rate 1990-2018

100

1990

1992

1994

1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Annual report 2019Special reportto every 30 months. Large tankers are in effect wasting assets
(think 330,000 dead weight tonnes of steel in salt water).

Figure 3: Typical payment profile on large crude
tanker from contracting to delivery

Figure 2: Average age of VLCC before recycling

CONSTRUCTION

s
r
a
e
Y
n

e
g
A

0
0
-
n
a
J

1
0
-
n
a
J

2
0
-
n
a
J

3
0
-
n
a
J

4
0
-
n
a
J

5
0
-
n
a
J

6
0
-
n
a
J

7
0
-
n
a
J

8
0
-
n
a
J

9
0
-
n
a
J

0
1
-
n
a
J

1
1
-
n
a
J

2
1
-
n
a
J

3
1
-
n
a
J

4
1
-
n
a
J

5
1
-
n
a
J

6
1
-
n
a
J

7
1
-
n
a
J

8
1
-
n
a
J

9
1
-
n
a
J

Source: Clarksons

And when it comes to funding, the large crude tanker market
historically differs from other capital-intensive assets, such as
real estate and aircraft. As vessels trade internationally, ship
owners can choose to adopt less formal corporate structures.
This often leads to higher levels of volatility and risk to be taken
into account when discussing funding.

2. Fragmented

The structure of the large tanker market is simple with many
small owners and few large customers (as illustrated in figure 1).
The vessel supply side is very fragmented in terms of its
ownership structure with over 100 different owners of the 750
VLCCs in operation and a similar number for the 500 Suezmax
tankers that operate globally. This fragmentation in ownership
is completely opposite to the customer side which is highly
concentrated with only 20-30 key customers to serve. These
key customers are a diverse group of oil majors, national oil
suppliers, major refinery companies and oil trading houses.
(See 2017 Special Report from Euroav ‘Basics of the tanker
shipping market’ on www.euronav.com)

3. Highly cyclical

The large crude tanker market is a highly cyclical market with
freight rates driven by numerous factors, but in the medium
to long-term, vessel supply and demand are the main drivers.
Vessel supply is the one factor controlled by the shipping
industry and same is impacted largely by capital flows, as
well as availability of financing. A large crude tanker market
cycle generally begins with an oversupplied market where too
many vessels depress the earnings. This will cause increased
recycling of older vessels as these become uneconomical
to run. As vessels are removed from the fleet, the market
will become rebalanced, causing increased earnings. This
encourages the ordering of new tonnage. Once these newly
contracted vessels start delivering to the market it will slowly,
once again, become oversupplied and earnings will hit another
trough – bringing us back where the cycle started.

10%

Deposit on Purchase

10%

1 Stage Payment

10%

2 Stage Payment

10%

3 Stage Payment

60%

Final Payment On Vessel Delivery

DELIVERY
18-24 months

Source: Euronav

The volatility and cyclicality is stimulated further due to the
typical payment profile of a new large tanker. As only around
5-10% deposit is required, barriers to entry are very low.
This historically has attracted speculative investors adding
further to the ‘boom and bust’ nature of the large crude tanker
market as vessel supply increases with these additional risky
investments.
What happens is that with the low deposits and a lead time of
around 18-24 months to construct a VLCC, speculative ship
owners/investors order VLCCs with the sole intention to sell
them before delivery, by hoping that during the construction
time the asset prices would rise (as figure 3 shows) and they
generate a ‘quick and speculative’ profit.

History of how this capital
intensive market has been
traditionally funded

Traditionally and historically, the capital for developing shipping
companies came from two sources: bank finance and legacy
investment from ship owning families. The existence of family
capital together with the availability of low cost bank financing
made that owners had little appetite nor incentive to seek for
other sources of funding.

All this has changed over time, and dramatically over the last
decade as a mix of regulatory, commercial and allocation
factors have all combined to substantially reduce the appetite
of the banks to continue funding shipping and the large crude
tanker market to the same degree.

Shipping finance has seen a rather radical transformation since
the early 1990’s which, among other factors, has been linked
to the evolution of shipping companies from predominantly
family businesses to more corporate-oriented structures,
and was driven by their ever increasing reliance on global
capital markets. The financing evolved from plain vanilla
bank loans through charter backed financing, to higher asset

Annual report 2019

backed financing and the creation of corporate financing
and subsidized shipbuilding credit. The trend towards further
diversification of financing sources was further shaped by
the tight credit markets in the aftermath of the 2008 global
financial crisis. Following the onset of the global financial crisis
and the ensuing shipping market crash, traditional shipping
banks reduced their exposure.

European banks in particular have been on a very large-scale
reduction programme with USD 160 billion being withdrawn
from global shipping as figure 4 shows. Since the end of
2018, the withdrawal has continued and almost certainly
accelerated. US banks have continued to show very little
enthusiasm for financing global shipping. Solely the Far
Eastern/Australasian banks increased their funding since
2010, however whilst it is impressive in terms of percentage
it only covers a minor part of the gap created by the European
banking capital leaving the sector.

Figure 4: How the traditional shipping banks have
reduced exposure to shipping since 2010

Europe

USA

Far East & Australia

s
e
n
a
p
m
o
c
g
n
p
p
h
s
f
o
g
n
d
n
u
f
k
n
a
b
n
b
D
S
U

500

450

400

350

300

250

200

150

system. These reforms will be phased in over a period up
to 2027 in order to allow banks to adjust their capital ratios.
With EU banks being disproportionately important in terms
of lending to shipping as figure 4 shows, the impact for the
shipping sector is considerable.

2. Outlook oil demand & lifetime large tankers

In the past, the peak in oil demand has always been something
of a longer-term concept and outlook. However, with the
increasing pollution regulation such as the Paris Climate
agreement (2015) and reduced reliance on fossil fuels as a
policy goals in many nations together with the technological
developments in the field of solar power generation and
electric vehicles, there seem to be growing consensus about
the outlook of such peak in oil demand.

Rystad Energy research (as figure 5 illustrates) forecasts the
peak oil demand already in 2028 based on an average review
of the major energy companies.

2010

2011

2012

2013

2014

2015

2016

2017

2018

Figure 5: Peak of oil demand growth

Source: Petrofin

Why have the banks decided to
leave now?

Average global liquid demand scenario
Analysts predicting higher demand than average (2028)
IEA (current policies), Equinor (rivalry), OPEC, IEA (stated policies), Equinor (reform), Shell
Analysts predicting lower demand than average (2028)
EIA, BP (evolving transition), BP (rapid transition), Equinor (renewal),
IEA (sustainable development), DNV-GL, RethinkX (clean disruption)

1. Recession & regulation

The impact of the 2007/8 global credit crunch and economic
recession on ship finance was profound. It caused two of the
main supporters of financing, the UK and German banks, to
progressively remove themselves from ship finance. Today
there is virtually no ship finance from UK banks left and most
German lending is in a managed exit form.

130

120

110

100

y
a
d
r
e
p

l
i

o
f
o
s
e
r
r
a
b
f
o
s
n
o

i
l
l
i

2017

2020

2025

2030

2035

2040

Source: Rystad

As a consequence and to avoid similar situations in the future,
new regulation emerged, the Basel III and IV reforms. Among
other, these reforms oblige banks to have more collateral on
their balance sheets before lending to the commercial space.
EU banks capital ratios have more than doubled since the pre-
crisis (2007) levels (source: Citigroup, 19 September 2019).
This increase is clearly a consequence of greater regulatory
focus on improving the stability and solidity of the EU banking

For a financier/investor in the large crude tanker market this
becomes important as large tankers have an operational
lifetime of around 20 years. The forecasted peak oil demand in
combination with the lifetime of large tankers, makes financing
the large crude tanker market more challenging. To some
extent, same has been reflected already in recent years as LTV
(loan amount to ship value) have reduced from around 70-80%
a decade ago to 50-60% today.

Annual report 2019Special report

Figure 6: Steps to ESG

Transparency

Good standards of Governance

Energy transition –
crude has key role to play

Bigger companies to
invest in tanker space

Diversity of capital sources

Reduce cyclicality
of tanker market

Full capture and
embrace of ESG

governance, ethical standards and other non-financial items
such as CDP (the carbon disclosure programme).

A key development within shipping in 2019 has been the
establishment of the Poseidon Principles. These bring together
for the first time a transparent body of industry participants
and practitioners directly alongside the financiers of shipping
in developing a core code of standards in order to comply with
shipping’s decarbonisation. The self-regulatory mechanism
behind this collective group will provide full transparency for all
capital providers to the shipping sector.

2. Good standards of governance

representation

lack of significant equity

the
The
capitalisation of the large crude tanker market and shipping
means that most shipping companies currently are privately
held companies. This not always ensures the highest standard
of corporate focus and behaviour that investors would like
to see. Encouragingly however is that capital markets where
shipping is engaged are showing a distinct focus on rewarding
those corporations engaged in the highest ethical standards of
corporate governance.

3. Volatile earnings and asset values competing
with more secure commercial propositions

The regulatory background highlighted earlier with Basel III
and IV along with an historically cyclical earnings stream and
associated asset values also implies that future financing of
the large crude tanker market requires sustained levels of
capital.

Shipping in general will find it more challenging to compete for
funding with other commercial and industrial sectors given this
background. Capital is slowly retracting from fossil fuels and
from oil shipping and that is a risk for the transition towards a
green economy because when the cost of capital goes up then
the cost of the transition will go up as well.

Using public equity through the capital markets has a limited
and mixed history in shipping and is often excluded because of
the generally small size of tanker shipping companies and the
volatility of earnings and asset values.

The seven key drivers to remain
capitalised in a challenging lower
carbon future

So where does shipping turn to now? Capital markets, both
equity and debt, will have to play THE leading role going forward.
Euronav believes there are 7 factors that the large crude tanker
market will need to adopt in order to gain sustained access
on a commercial basis to these capital sources. (see figure 6)

1. Transparency

Capital markets have existing structures and controls which
provide a robust and sustainable framework for investors
to have confidence that executive management teams and
boards conduct themselves and execute strategy correctly
and in a measurable way. Several agencies play a role when
a company is listed as a publicly traded company. Stock
exchanges require high standards of accounting discipline and
regulatory compliance. Investors will also demand a consistent
application of best practice in terms of presentation and
detail of financial performance. Finally, increasingly important
are third party specialist agencies measuring outputs on

Annual report 2019Figure 7: Corporate governance in shipping survey

Quartile 1 (Best)

Quartile 2

Quartile 3

Quartile 4 (Worst)

150

140

130

120

110

100

e
c
n
a
m
r
o
f
r
e
P
y
t
i
u
q
E
e
g
a
r
e
v
A
d
e
x
e
d
n

Apr-16

Oct-16

Apr-17

Oct-17

Apr-18

Oct-18

Apr-19

Source: Wells Fargo/Webber Research

Since 2016 Wells Fargo/Webber Research has regularly
surveyed the quoted shipping stocks. Figure 7 shows that
those exhibiting consistently the highest standards have
been rewarded with material outperformance versus their
peer group.

However, whilst positive, shipping in general as a wider
sector has to recognise it still has some steps to take to
improve and to be considered equal with other industrial and
transportation sectors.

3. Energy transition – crude has a key role to
play

Figure 8: Share of global primary energy
consumption by fuel

Oil

Hydroeletrical

Coal
Nuclear energy

Natural gas

Renewables

in percent

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source: BP annual energy report

Figure 8 is an important reminder of how critical crude oil
is within the energy spectrum. Crude oil remains the largest
source of primary fuel consumption, supplying around 35%
of the total. Capital is slowly retracting from fossil fuels and
shipping which poses a risk for the transition towards a
green economy. If the cost of capital goes up then the cost
of the transition will also go up. Shipping in general and the
large crude tanker market specifically - given that crude is
our only cargo/product - has a key role to play in an orderly
and meaningful transition.

set itself challenging and measurable targets via its global
regulator the IMO. The IMO has set an operational efficiency
target for the carbon intensity of international shipping to
reduce up to 40% by 2030 in comparison with 2008 levels
and up to 70% by 2050.

As of 2015, the carbon intensity of international shipping
has already dropped by more than 30% from 2008 levels and
fuel consumption moved from 330 mt in 2008 to 268 mt
in 2018 despite 62%
in global capacity
(source: Clarksons).

increase

Figure 9: Shipping has the smallest carbon footprint
of any mode of transportation

Airplane

Truck

Train

Airship

Ship

100

200

300

400

500

600

CO2 is grams emitted per metric ton of freight and per km of transportation

Source: www.timeforchange.org

Transportation per tonne of product reveals shipping has the
lowest and indeed a very limited carbon footprint as figure
9 shows. Financing via capital markets or from those banks
remaining in ship finance will continue to see links with
sustainability. ESG including carbon reduction objectives,
quite correctly became part of the mainstream provision of
financing capital intensive sectors such as the large crude
tanker market.

large crude tanker market and

The evolving partnership between those financing the
development of the
its
participants in generating sustainability will be supported and
overseen by bodies such as the Poseidon Principles. Further
potential regulation from the EU (Green Deal) coupled with
technological advances (eg propulsion systems such as
LNG, Ammonia or Hydrogen) can further underpin shipping
as a leading player and cost effective partner in the energy
transition.

4. Bigger companies to invest in tanker space

Using public equity through the capital markets has had a
limited and often mixed history in crude tanker shipping.
One specific issue beyond extreme earnings and asset value
cyclicality has historically been the small size of tanker
shipping companies within a fragmented sector background
which often exclude them from public equity finance.

Shipping more than any other transportation sector has

The quoted part of the large crude tanker market today only

Annual report 2019Special report

has a combined market cap of circa USD 5 billion. Over the
past couple of years, that number is improving, as reflected in
figure 10 below highlighting the increasing liquidity available
to shareholders in the largest quoted crude tanker companies.

Figure 10: Crude tanker companies – small but
getting bigger and more liquid

The sector remains highly fragmented (as illustrated in figure 1)
meaning consolidation into more liquid, transparent investment
vehicles - almost certainly listed and governed on and by global
capital markets – will be a pre-requisite from capital markets
for shipping to gain access to long term capital.

5. Diversity of capital sources

s
e
m
a
n
r
e
k
n
a
t
e
d
u
r
c
d
e
t
o
u
q
t
s
e
g
r
a

d
e
d
a
r
t

y
a
d
r
e
p
m
$

150

120

2017

2018

2019

2020 ytd

Source: Bloomberg

Partnering capital markets often refers to equity investors only.
However capital markets will also be open to other financing
forms such as convertibles, preferred equity or bonds. Whilst
bond markets can have difficulties in incorporating the higher
level of cyclicality associated with shipping and the large
crude tanker market specifically, Euronav believes that as
much diversity of funding as possible will be an attribute going
forward.

See figure 12 for the Euronav bond performance in 2019

6. Reduce cyclicality of tanker market

The structure of the large crude tanker market show a relatively
fixed cost base meaning revenue earned over and above
these costs flows through to the bottom line as net income.
This operational leverage underpins part of the cyclical nature

Annual report 2019

of shipping in general and the large crude tanker market
specifically even more. The operational leverage added on top
of the financial leverage via debt borrowing from the banking
sector, as done traditionally, further increases the oscillations
in this cyclical industry as figure 11 illustrates below.

Figure 11: Large crude tanker market – cyclicality
comes as standard

Average VLCC Long Run historical Earnings (USD/day)

VLCC Newbuilding prices (MUSD)

150

120

140,000

120,000

90,000

60,000

30,000

Thus, shipping in general and the large crude tanker market
specifically will have to look at possible ways to reduce such
oscillations if they want to attract capital markets to provide
partnerships and investments. Operationally this can be
achieved by moving a higher percentage of the overall business
to time charter (longer term fixed contracts) business in close
partnerships with the key oil traders, oil majors and increasingly
important scale suppliers like China. However, the award of
longer term fixed contracts comes from the oil majors and
is not in the control of the shipowner. In addition, they should
reduce financial leverage and thus reduce operating break-even
levels in order to reduced cyclical oscillations. These actions
will potentially give the large crude tanker market access to
more long-term investment options within the capital markets.

0
9
9
1

1
9
9
1

2
9
9
1

3
9
9
1

4
9
9
1

5
9
9
1

6
9
9
1

7
9
9
1

8
9
9
1

9
9
9
1

0
0
0
2

1
0
0
2

2
0
0
2

3
0
0
2

4
0
0
2

5
0
0
2

6
0
0
2

7
0
0
2

8
0
0
2

9
0
0
2

0
1
0
2

1
1
0
2

2
1
0
2

3
1
0
2

4
1
0
2

5
1
0
2

6
1
0
2

7
1
0
2

8
1
0
2

9
1
0
2

0
2
0
2

7. Full capture and embrace of ESG

ESG investing is a broad description and includes much
more than we will/can discuss in this report. However, as an
important and sustainable investment trend, we are convinced
this is a secular change and it is here to stay. ESG provides a very
robust framework for investors and financiers of businesses to
ensure the companies they are engaged with are operating to
the highest possible standards. ESG continuously evolves and
expands as a secular investment theme and structure. In order
to access both equity and bond capital markets going forward,
it will be critical for companies to comply with. Failure to do so
increases the risk of losing investors and financiers.

Figure 12: Euronav and ESG – our credentials

Environmental

Carbon
emissions cut
10% in scope 3*

CDP -
Sustainalytics

Targets in
2020

Social

Bloomberg
Gender Equality
Index

In GEI 3 years
running & only
transport co

Clean
Shipment
index

Top quartile
rank since 2016
in key surveys

50% female
representation
on board

Poseidon
Principles

Governance

* See ESG chapter

Annual report 2019Special reportExecutive summary

Shipping in general and the large crude tanker market specifically,
already underwent substantial changes in recent years especially
relating to funding. The next decade will present a range of
further challenges and opportunities that will drive a structural
change in the way both key transportation sectors are managed,
financed and operated both economically and environmentally.

Shipping is amongst the most efficient means of transportation
available and the large crude tanker market will have a key role
to play in the energy transition to a lower carbon world.

The amount of capital dedicated to our industry has reduced
but in parallel there has been a dramatic flight to quality. The
large crude tanker market will have to adapt to this new dynamic
structure because otherwise it risks being left behind in terms
of access to capital. In order to avoid a materially higher cost
of capital, shipping needs to adopt and comply with the seven
factors highlighted above.

What are the Poseidon Principles?
The Poseidon Principles provide a framework for integrating
climate considerations into lending decisions to promote
international shipping’s decarbonization. The Poseidon Principles
are a global framework for assessing and disclosing the climate
alignment of financial institutions’ shipping portfolios. They
establish a common, global baseline to quantitatively assess
and disclose whether financial institutions’ lending portfolios
are in line with adopted climate goals. Thus they also serve
as an important tool to support responsible decision-making.
These Principles apply to lenders, relevant lessors and financial
guarantors including export credit agencies. They must be
applied by all Signatories in all business activities that are credit
secured by vessel mortgages or finance leases secured by title
over vessel, and where a vessel or vessels fall under the purview
of the International Maritime Organization (IMO). The Poseidon
Principles are consistent with the policies and ambitions of the
International Maritime Organization, a UN agency responsible
for regulating shipping globally, including its ambition for GHG
emissions to peak as soon as possible and to reduce the total
annual GHG emissions by at least 50% by 2050 compared to
2008. Currently 17 financial institutions are Signatories to the
Poseidon Principles, representing a bank loan portfolio to global
shipping of approximately $140 billion – around 30% of the
global ship finance portfolio.

For more information, visit www.poseidonprinciples.org.

What is Basel IV?
In December 2017 the Basel Committee on Banking Supervision
published a package of proposed reforms for the global regulatory
framework of the banking industry which is frequently referred
to as ‘Basel IV’. The Committee’s aim is to make the capital
framework more robust and to improve confidence in the system.
Essentially the proposals will mean banks adhering globally to a
standardised process to match riskier assets with increased or
minimal levels of collateral.

History lesson – when German funding scheme drove
huge capital influx into shipping.
Germany was once one of the largest shipowning nations in
the world underpinned by a funding model that became popular
in 2004. Single ship companies (Kommanditgesellschaften,
or called 1 ship KGs) coupled with the tonnage tax, allowed a
flat-rate assessment of a ship’s profitability on the basis of its
carriage capacity, rather than on the basis of its actual generated
revenue. This made ship investments highly desirable and
provided an influx of capital into newbuildings between 2004-
2007. At its peak, 26% of the entire global orderbook of shipping
tonnage came from German 1-ship KGs. However this funding
model hit issues post the credit crunch of 2007/8 and left the
KGs and German banks with large capital losses.

Euronav Bond performance 7.5% coupon maturity May 2022
Euronav increased the size of its bond by a third in June despite
heightened tension in the tanker markets with two vessels
being attacked in the Strait of Hormuz during the marketing
period in raising the additional capital. The upscaling was
successfully priced at 101 – a small premium to the par value
and oversubscribed. Euronav remains the only crude tanker
company with a bond in issuance following the original capital
raise in Oslo in May 2017. Management believes this is an
important source and diversification of capital at our disposal
as the banks are likely to continue to reduce support to the
wider shipping sector going forward.
The performance of the bond is provided in figure 13 from
January 2019 until April 2020.

Figure 13: Euronav Bond performance

110

100

Jan 19

Mar 19

May 19

Jul 19

Sep 19

Jan 20

Apr 20

Source: Bloomberg

Annual report 2019Directors’
report

2Vision and
Mission

Vision

To lead responsibly the global crude oil tanker industry.
To seize every opportunity to reshape our industry in an era
of unprecedented changes.
To promote and support sustainable programs
minimizing the environmental impact of our industry.

Mission

For our society

To deliver an essential source of energy in ways that are
economically, socially and environmentally viable now and in
the future.

For our clients

To operate in a manner that contributes to the success of their
business objectives by providing flexible, global high-quality
and reliable services.

For our shareholders and capital providers

To create significant long-term value by strategically planning
financial and investment decisions while efficiently, consistently
and transparently act as good stewards of capital.

For our employees

To attract, inspire and enable talented, hard-working people to
develop themselves in order to contribute to our business and
its vision in a challenging and rewarding environment.

Annual report 2019Directors’ report

Company profile

Euronav is a market leader in the transportation of crude
oil. As the world’s largest, independent quoted crude tanker
platform, on 24 March 2020, Euronav owns and manages a
fleet of 72 vessels. The Company, incorporated in Belgium,
is headquartered in Antwerp. Worldwide Euronav employs
approximately 210 people on shore and has offices throughout
Europe and Asia. Over 2,900 people work on the vessels.
Euronav has progressed from a family operation with 17
vessels, to a strong international player listed on Euronext
Brussels and on the NYSE under the symbol EURN.

The need to operate a safe and reliable fleet has never been
more crucial and it is the most important strategic objective for
the Company. Euronav aims to be an efficient organization and
strives to deliver the highest quality and best possible service
to its customers.

Euronav has a long-term strategy through cycle profitability
by adapting its balance sheet leverage and liquidity position
in accordance with the sources of its revenues which can be
fixed (long term FSO Income and/or TC portfolio) or floating
(pool and spot revenues).

Sustainability is a core value at Euronav as it ensures the long-
term health and success of our people, our business and the
environment we work in. It involves a commitment to safety
and environmental practices, as well as an innovative approach
to the use of technology and information.

By employing officers who graduated from the most reputable
maritime academies in the world, on board a modern fleet,
Euronav aims to operate in the top end of the market. The
skills of its directly employed seagoing officers and shore-
based captains and engineers give a competitive edge in
maintenance as well as in operations and delivery of offshore
projects.

Annual report 2019Directors’ report:
Highlights 2019

Overview of the Market

2019 was the year when tanker markets recovered, and when
the market turned it did so with gusto. Crude oil tankers were
fixed at time charter equivalent returns higher than ever seen
before and the final quarter of the year saw tanker earnings
consistently above historical levels for most of the benchmark
routes. However, before being able to enjoy a final quarter
of fantastic earnings, the tanker market had to endure three
quarters of oil production cuts, prolonged refinery turnarounds,
accelerating fleet growth and weak crude tanker demand.

The year began with a strong baseline on the back of increased
OPEC oil production towards the end of 2018, combined with
a fairly balanced fleet profile following robust 2018 recycling
activity. This all came to an abrupt end as OPEC and its allies
began implementing agreed production cuts in January 2019,
which saw OPEC production reduced by 1.4 mbpd in the first
quarter of the year. OPEC production continued to decline
through 2019 to an average of 29.9 mbpd across the year. This
is 2 million barrels per day less than the average production in
2018.

While the official self-imposed supply constraints explain the
majority of the OPEC production decline it was also impacted
by involuntary disruptions emanating from sanctions against
countries such as Venezuela and Iran. The US conflict
with Venezuela cut production in the country by more than
500 kbpd. This crude was primarily traded into the US on
Suezmaxes and Aframaxes, and these markets took a large
hit as a consequence. The Iranian oil and shipping markets
have been subject to sanctions for some time but took a
further hit in May this year when waivers to buy Iranian crude
were removed by the US administration. This left Iran with
no official outlets for their crude oil and production from the
country declined further and is now very low with exports
close to nil.

The decline in OPEC supplied barrels was made up for by
production increases in other parts of the World. The US
continued to be the main driver of non-OPEC production
growth and added 1.25 mbpd of supply in 2019. The year
saw infrastructure improvements in the Gulf of Mexico, which
allowed US barrels better access to export markets on larger
crude tankers. The US crude found buyers in Europe, supporting
Suezmax vessel demand, and in the Far East, providing the
VLCC market with significant long ton-mile trade. Towards the
end of the year non-OPEC production received a further boost
from new fields in Brazil and Norway.

The price of oil was relatively stable through 2019 with Brent
fluctuating between USD 52 and USD 75 to average USD 64 per
barrel. The price of WTI traded at a discount to Brent through
the year and averaged USD 57 per barrel. The average price of
the OPEC basket was in line with Brent at USD 64. Following
steady price increases in the first quarter, with tightening of oil
supplies from OPEC cuts, oil prices started falling in the second
quarter. This was on the back of concerns of falling oil demand
and key forecasting agencies continuously revised down their
projections for the year. In July the oil markets experienced
a sudden 8% price drop in a single day following a tweet
announcing new US tariffs on Chinese imports, but the price
quickly recovered. Oil markets witnessed another price shock
in September when attacks on oil installations in Saudi Arabia
initially triggered the steepest oil price surge in 30 years when
Brent rose from USD 60 to USD 69 in a single day, however panic
was short lived, and prices came off again shortly after.

Oil demand growth weakened in 2019 and is estimated at
between 0.7 mbpd and 1.0 mbpd by the various reporting
agencies. This is below the long-term annual growth average
of 1.1 mbpd (since 1990). While the first half of the year was
particularly hard hit by weak oil demand, mainly due to a
slowdown in the global economy and concerns around a US-
China trade war, this rebounded in the second half as refineries
across the world started ramping up their throughput in
preparation for the IMO 2020 deadline for ships to burn bunker
fuels with a maximum sulphur content of 0.5%

World oil demand (mbpd)

105

100

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: IEA

Annual report 2019Directors’ reportThe ramping up of refineries proved to be one of many
supportive factors in the equation that makes up tanker
market fundamentals. Refineries requiring more oil translates
into increased vessel demand, especially as short haul barrels
from the Middle East to Asia were replaced with longer haul
barrels from the US and other Atlantic based producers.

The vessel supply side of the equation also experienced
tightening in the second half of the year. Fleet growth through
deliveries was concentrated in the first half of the year and a
flatter baseline fleet in the latter part was complemented by a
surge in temporary tonnage removals. These were threefold.
Firstly, sanctions on Iranian tonnage continued to remove
capacity from the trading fleet as has been the case for some
time now. Secondly, leading up to the implementation of the
IMO 2020 regulation the market saw a significant number of
large tankers moved into storage positions holding compliant
fuel oil. A third temporary cause of fleet removal was vessels
undergoing counter cyclical drydocking to retrofit scrubbers to
their exhaust systems. These drydockings proved to take longer
in many cases than originally anticipated and the average
downtime recorded in the VLCC segment was between 45 and
50 days. Just before the freight market spiked in October 2019
up to 27 VLCCs and 10 Suezmaxes were removed from the
market.

The catalyst that eventually sent freight rates surging were the
US imposed sanctions on two subsidiaries of Cosco Shipping
at the end of September. There was initially some uncertainty
around exactly which sub-divisions of the company were
sanctioned, which led to all of the company’s ships being
shunned by the market. At the time this equated to 6% of the
VLCC market being taken out of action overnight. The majority
of these vessels were still left idle and untradeable at the end
of the year.

World oil production (mbpd)

105

100

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: IEA

2019 closed out with a very strong freight market supported
by a perfect storm of tight fundamentals, geopolitical events
and IMO related market disruptions. The anticipated recovery
in the crude tanker markets meant we could end the year on a
high, and again enjoy the beneftis of the volatility and premium
earnings that a more balanced tanker market has to offer.

VLCC cargo evolution (cargoes per month)

2014

2015

2016

2017

2019

300

250

200

150

100

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: TI VLCC Database

Annual report 2019
Tanker Markets

The average Time Charter Equivalent (TCE) obtained by
the company’s owned VLCC fleet trading in the Tankers
International (TI) Pool was USD 35,900 per day for 2019,
compared to USD 23,035 per day in 2018.

The average earnings of Euronav’s VLCC time charter fleet
was USD 32,400 per day in 2019, compared to USD 33,338 per
day for 2018.

The average TCE obtained by the Company’s Suezmax spot
fleet traded by Euronav directly was USD 26,000 per day in
2019, compared to USD 15,783 per day in 2018.

The average earnings of Euronav’s Suezmax time charter fleet
was USD 29 400 per day in 2019, compared to USD 30,481 per
day in 2018.

World Fleet VLCC earnings

Baltic Exchange Dirty Tanker Index Rate
Evolution (Ws)

TI Actual PP100

BTDI VLCC TCE (average of TD1 and TD3 C)

TD20- West Africa/Cont

TD6- Black Sea/Med

300,000

250,000

200,000

150,000

100,000

50,000

-50,000

300

250

200

150

100

01 Jan 2014

01 Jan 2015

01 Jan 2016

01 Jan 2017

01 Jan 2018

01 Jan 2019

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: TI VLCC Database

Annual report 2019Directors’ reportBaltic Exchange Dirty Tanker Index Rate
Evolution (Ws)

TD1- Arabian Gulf/US Gulf

TD3- Arabian Gulf/Japan

TD15 West Africa/China

300

250

200

150

100

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: TI VLCC Database

Fleet Growth

At the start of the year the global fleet consisted of 722
VLCCs and 525 Suezmaxes. Fleet growth accelerated in both
segments particularly during the first half of the year and in
total the market took delivery of 67 new VLCCs and 26 Suezmax
vessels over the course of the year. In terms of fleet exits, the
prospect of an imminent change in the freight markets to more
prosperous returns was a discouraging factor for owners to
dispose of tonnage. In the VLCC segment there were 13 exits
and the Suezmax market saw just 6 vessels removed from the
trading fleet, a marked slowdown from the previous year. This
left VLCC fleet growth over 2019 of 7.5% and Suezmax fleet
growth at 3.8%.

Looking forward, the pace of fleet additions is slowing down.
Ordering activity has slowed down as well due to uncertainties
in
around future propulsion systems and a reduction

VLCC Fleet development

Additions

Removals

Forecast additions

Removals scenario

-20

-40

-60

-19

-23

-15

-6

-8

-16

-13

-34

-41

-19

-33

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Source: Clarksons

speculative investment activity in the large tanker space. In
2019, the tanker sector recorded 33 new VLCC orders and 23
new Suezmax orders.

Focus remains on aging tonnage and the deployment of vessels
aged 20 years and older. They are largely untradeable in the
commercial market, but some find employment in the storage
sector or within oil company own systems predominantly
in the Far East. With regulatory pressure increasing, these
older vessels are becoming less economical to run and their
mandatory periodical surveys become more costly. With this
in mind we believe there is strong incentive for owners to
consider a permanent removal of vessels in this age group
going forward.

Annual report 2019Suezmax Fleet development (Vessels)

Additions

Removals

Forecast additions

Removals scenario

-20

-40

-60

-18

-4

-7

-2

-3

-12

-6

-20

-14

-24

-41

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Source: Clarksons

(15), Southwest Asia / Middle East (14), Mediterranean (9),
South America (8), Canada (5), 4 projects each for Caribbean
and China and 1 for the Pacific region.

Over 50% of the facilities responsible for production floater
fabrication and conversion are based in Asia. Keppel, Samsung
and Sembcorp continue to be the busiest yards each with at
least six projects underway.

Projects in planning appraisal and
final design phase by region

Appraisal

Planning

Bidding/Final design

a
s
A
t
s
a
e
h
t
u
o
S

a
c
i
r
f
A

l
i

z
a
r
B

e
p
o
r
u
E
n
r
e
h
t
r
o
N

o
c
x
e
M

f
o
f
l
u
G

t
s
a
E

e
d
d
M

/
a
s
A
t
s
e
w
h
t
u
o
S

/
a

i
l

a
r
t
s
u
A

d
n
a
a
e
Z
w
e
N

n
a
e
n
a
r
r
e
t
i
d
e
M

3
2

a
d
a
n
a
C

n
a
e
b
b

i
r
a
C

a
n
h
C

/
a
s
A
t
s
a
E
h
t
u
o
S

h
t
u
o
S

r
e
h
t

s
e

i
r
t
n
u
o
c

n
a
c

i
r
e
m
A

Source: Energy Maritime Associates Pte Ltd

FSO and FPSO market

By the end of 2019 there were 406 floating production systems
in service or available worldwide among which were 175
FPSOs and 102 FSOs. This does not include 25 FPSOs that are
available for reuse. In addition there is one FPSO that is out of
service for extended repairs.

In total 52 production floaters, nine FSOs and five MOPUs are
currently on order, which is three more than during 2018. New
orders are expected to exceed the 14 deliveries scheduled in
2020, so the backlog should climb into the mid 50’s by year
end.

Currently, there are 211 floater projects in the appraisal,
planning, bidding or final design stage that may require a
floating production or storage system. Of these projects, 65
are in the bidding or final design stage and another 107 floater
projects are in the planning phase. For these planned projects,
the major hardware contracts are anticipated between 2021
to 2022 but studies are still ongoing to assess the economic
viability of the projects, particularly those in deep water and
harsh environments. Finally, 39 projects are in the appraisal
stage.

The most active region for future projects would be Africa with a
total of 44 potential floater projects planned. Next is Southeast
Asia with 37 projects. Brazil remains in third place with 30
projects. The remaining regions have fewer potential projects
including Northern Europe (24), Gulf of Mexico (16), Australia

Annual report 2019Directors’ report

Euronav Fleet

On 24 March 2020 Euronav’s owned and operated fleet consists
of 72 vessels being two V-Plus vessels, two FSO vessels (both
owned in 50%-50% joint venture) 42 VLCCs and 26 Suezmaxes
(whereof two owned in 50%-50% joint venture).

At the time of preparing this report (24 March 2020),
Euronav’s tonnage profile is as follows:

VLCC and V-Plus
Suezmax
FSO

13,707,145 dwt
4,088,564 dwt
864,046 dwt

Total owned and tonnage

18,659,755 dwt

Euronav’s vessels have an aggregate carrying capacity
of approximately 18.6 million dwt. On 24 March 2020 the
weighted average age of the Company’s trading fleet was
approximately 8.6 years.

The majority of Euronav’s VLCC fleet is operated in the Tankers
International Pool (the ‘TI Pool’) in the voyage freight market.
The TI Pool is one of the largest modern double hulled fleets
worldwide and comprises on 24 March 2020 62 vessels of
which 39 vessels owned by Euronav. The average age of
Euronav’s owned and operated VLCC fleet on 24 March 2020
is 7.4 years.

Part of Euronav’s Suezmax fleet is chartered out on long-term
contracts. On 24 March 2020 the average age of the Suezmax
fleet is approximately 11.3 years.

The vast majority of Euronav’s vessels are managed in-house,
which positions its fleet at the top of the market for tanker
assets and services. The benefits that are derived from in-
house management lie in asset maintenance, enhanced
customer service and risk management. Charterers are more
than ever seeking to do business exclusively with superior
quality operators whether through fixed rate
long-term
business or principally in the spot market.

Overview of the year 2019*

The first quarter
For the first quarter of 2019, the Company had a net gain
of USD 19.5 million or USD 0.09 per share (first quarter
2018: a net loss of USD 39.1 million or USD 0.25 per share).
Proportionate EBITDA (a non-IFRS measure) for the same
period was USD 130.0 million (first quarter 2018: USD 30.7
million). The average daily TCE obtained by the Company’s
fleet in the TI Pool was approximately USD 35,195 per day
(first quarter 2018: USD 18,725 per day). The TCE of the
Euronav VLCC fleet fixed on long-term charters, including
profit shares when applicable, was USD 27,630 per day (first
quarter 2018: USD 34,000 per day). The average daily TCE
obtained by the Suezmax spot fleet was approximately USD
27,380 per day (first quarter 2018: USD 14,000 per day). The

Additions

* The financial information in this section is based on consolidated figures
under IFRS.

Annual report 2019
TCE of the Euronav Suezmax fleet fixed on long-term time
charters, including profit shares when applicable, was USD
32,680 per day (first quarter 2018: USD 23,850 per day).

Gulf Sunrise (VLCC, 2017) chartered by Tesoro for 5 years at
USD 35,750 per day.

JANUARY
Euronav
On 9 January 2019 Euronav delivered the Suezmax vessel
Felicity (2009 – 157,667 dwt) to a global supplier and operator
of offshore floating platforms in accordance with a sale
agreement dated 31 October 2018. A capital loss on the sale of
approximately USD 3.0 million has been recorded in Q4 2018.
The cash generated on this transaction after the repayment of
debt is USD 34,7 million. The vessel will be converted into an
FPSO and therefore has left the worldwide trading fleet.

On 17 January 2019 Euronav has been included, for the second
consecutive time, in the Bloomberg International Gender-
Equality Index (‘GEI’). The reference index measures gender
equality across international company statistics, employee
policies, external community support and engagement, and
gender-conscious product offerings. The GEI is voluntary and
has no associated costs. The index is not ranked.

In the market
Front Defender (VLCC, 2019) chartered by CSSA for 90 days at
USD 29,000 per day.

Dolviken (Suezmax, 2012) chartered by Vitol for 12 months at
USD 25,250 per day.

Trinity (Suezmax, 2016) chartered by Mercuria for 3 years at
USD 30,000 per day.

FEBRUARY
Euronav
On 4 February 2019 Euronav’s CEO Paddy Rodgers announced
his decision to step down from his role as CEO. Euronav
commenced a recruitment process for a new CEO with Paddy
remaining in his position until a successor was appointed to
facilitate an efficient transition period.

On 11 February 2019 Euronav entered into a sale agreement
regarding the LR1 Genmar Compatriot (2004 – 72,768 dwt)
for USD 6.75 million. The Company recorded a capital gain
of approximately USD 0.4 million in the second quarter. The
LR1 Genmar Compatriot joined the Euronav fleet as part of the
Gener8 merger in June 2018 and was always a non-core asset
to the Company. The vessel was delivered to her new owners
in the course of May 2019.

In the market
Kassos I (VLCC, 2007) chartered by Pertamina for 3 months at
USD 23,500 per day.

MARCH
In the market
Eagle Verona (VLCC, 2013) chartered by Koch for 12 months at
USD 29,000 per day.

Eco Bel Air (Suezmax, 2019) chartered by BP for 3 years at USD
25,000 per day.

The second quarter
For the first half of 2019, the Company had a net loss of USD
19.0 million or USD 0.09 per share (first half of 2018: a net
loss of USD 51.6 million or USD 0.31 per share). Proportionate
EBIDTA (a non-IFRS measure) for the same period was USD
201.0 million (first half of 2018: USD 98.2 million). For the
second quarter of 2019 the average daily TCE obtained by the
Company’s fleet in the TI pool was approximately USD 23,218
per day (second quarter 2018: USD 16,751 per day). The TCE
of Euronav VLCC fleet fixed on long-term charters, including
profit shares when applicable, was USD 27,165 per day (second
quarter 2018: USD 34,976 per day). The average daily TCE
obtained by the Suezmax spot fleet was approximately USD
17,217 per day (second quarter 2018: USD 12,883 per day).
The TCE of the Euonav Suezmax fleet fixed on long-term time
charters, including profit shares when applicable, was USD
30,375 per day (second quarter 2018: USD 20,882 per day).

APRIL
Euronav
On 12 April 2019 Euronav registered a branch office in Geneva,
Switzerland. The purpose of this branch is to conduct the new
activities with respect to compliant fuel, including procurement
of compliant fuel on the wholesale market. This allows the
group to keep track of the market and buy compliant fuel when
convenient. One vessel of the fleet is used as floating storage.

In the market
Landbridge Glory (VLCC, 2019) chartered by Trafigura for 3
years at USD 36,500 per day.

Silia T (Suezmax, 2002) chartered by Rosneft for 8 months at
USD 23,000 per day.

MAY
Euronav
On 9 May 2019 Euronav CFO Hugo De Stoop became the new
CEO of the Company. Hugo De Stoop (Belgian, 1973) joined
Euronav in September 2004 and was appointed Deputy CFO
and Head of Investor Relations. He was CFO of the Company
since January 2008.

On 9 May 2019, Mr Daniel R. Bradshaw’s and Mr Paddy
Rodgers’ terms of office as members of the Board of Directors

“In April 2019, Euronav registered a

branch office in Geneva, Switzerland,
which will enable the group to keep
track of the market and buy compliant
fuel when convenient.

Annual report 2019Directors’ report
expired at the General Shareholders’ Meeting. The General
Shareholders’ Meeting approved the appointment of Mrs
Anita Odedra and Mr Carl Trowell as members of the Board of
Directors of Euronav, both as Independent Director, with effect
as from 9 May 2019.

In the market
Landbridge Horizon (VLCC, 2019) chartered by BP for 3 years
at USD 36,000 per day.

Miracle Hope (VLCC, 2019) chartered by Trafigura for 3 years
at USD 36,500 per day.

Suez Hans (Suezmax, 2011) chartered by Trafigura for 12
months at USD 22,500 per day.

Maria Grace (Suezmax, 2002) chartered by BPCL for 8 months
at USD 16,000 per day.

JUNE
Euronav
On 14 June 2019 Euronav Luxembourg S.A., a wholly
owned subsidiary of Euronav NV successfully completed
a tap issue of USD 50 million under its existing senior
unsecured bonds with ISIN NO0010793888. The bonds
are guaranteed by Euronav NV, mature in May 2022 and
carry a coupon of 7.50%. The tap issue was priced at 101%
of par value. The outstanding amount after the tap issue
is USD 200 million. Artic Securities AS, DNB Markets and
Nordea acted as joint lead managers in connection with
the placement of the tap issue. Undertaking this tap issue
allowed Euronav the opportunity to increase the scale and
marketability of its existing bonds and provided further
strength to its capital structure.

On 18 June 2019 under the auspices of the Global
Maritime Forum, Euronav was announced as a founding
supporter of the Poseidon Principles, a global framework
for assessing and disclosing the climate alignment of
financial institutions’ shipping portfolios. The Poseidon
Principles establish a common baseline to quantitatively
assess and disclose whether financial institutions’ lending
portfolios are in line with adopted climate goals. They are
consistent with the policies and amibtions of the Initial
Greenhouse Gas (GHG) Strategy adopted in April 2018 by
member states of the International Maritime Organization
(IMO). The strategy prescribes that GHG emissions from
international shipping must peak as soons as possible
and that the industry must reduce the total annual GHG
emissions by at least 50% of 2008 levels by 2050, with a
strong emphasis on zero emissions.

In the market
Maria P. Lemos (VLCC, 2018) chartered by Mercuria for 3
years at USD 31,000 per day.

Bright Pioneer (VLCC, 2010) chartered by IOC for 5 years at
USD 32,000 per day.

Stena Surprise (Suezmax, 2012) chartered by Occidental for
12 months at USD 22,000 per day.

Nordic Zenith (Suezmax, 2011) chartered by Equinor for 12
months at USD 23,500 per day.

The third quarter
For the third quarter of 2019, the Company had a net
loss of USD 22.9 million or USD 0.11 per share (Q3 2018:
a net loss of USD 58.7 million or USD 0.27 per share).
Proportionate EBITDA (a non-IFRS measure) for the same
period was USD 96.8 million (Q3 2018: USD 50.9 million).
This quarterly result was affected by two non-cash items
representing a total of USD 6.9 million: USD 5.5 million of
swaps amortization acceleration following the refinancing
of the last Gener8 inherited facility and loss of qualification
for hedge accounting, and USD 1.4 million of deferred tax
assets mainly related to the sale of the VK Eddie.
The TCE obtained by the Company’s VLCC fleet in the TI
Pool was approximately USD 25,036 per day (third quarter

Annual report 2019
2018: USD 17,773 per day). The TCE of the Euronav VLCC
fleet fixed on long-term charters, including profit shares
when applicable, was USD 32,790 per day (third quarter
2018: 31,374 per day). The average daily TCE obtained by
the Suezmax spot fleet was approximately USD 17,121 per
day (third quarter 2018: USD 14,919 per day). The TCE of the
Suezmax fleet fixed on long-term time charters, including
profit shares when applicable, was USD 29,884 per day (third
quarter 2018: USD 29,624 per day).

JULY
In the market
Sea Emerald (VLCC, 2019) chartered by Exxon Mobile for 3
years at USD 35,000 per day.

New Vision (Suezmax, 2018) chartered by Trafigura for 8
months at USD 27,500 per day.

AUGUST
Euronav
On 5 August 2019 Euronav delivered its oldest VLCC, the VLCC
VK Eddie (2005 – 305,261 dwt), to her new owners. The vessel
was sold for conversion into an FPSO and shall therefore
leave the worldwide trading fleet. A capital gain on the sale of
approximately USD 14.4 million was recorded during the third
quarter.

In the market
DHT Taiga (VLCC, 2012) chartered by Philips 66 for 12 months
at USD 42,500 per day.

Pacific Voyager (VLCC, 2009) chartered by Chevron for 2 years
at USD 34,000 per day.

Suez Rajan (Suezmax, 2011) chartered by Trafigura for 7
months at USD 24,000 per day.

SEPTEMBER
Euronav
On 5 September 2019 Euronav announced details on its
approach towards the new Sulphur fuel regulations introduced
as part of IMO 2020. The Company established a dedicated
fuel procurement team and purchased in total 420,000 metric
tons of compliant fuel oil (0.5 & 0.1). The ULCC Oceania (2003
– 441,858 dwt) is used to store this inventory because of
its unique size and related economies of scale. In line with
Euronav’s strategy to retain a strong balance sheet to navigate
the tanker cycle, a new $100 million revolving loan facility was
secured with a club of banks in order to assist funding of this
compliant fuel inventory on the Oceania.

More info on the Company’s approach on IMO 2020 is to be
found on the following link: www.euronav.com/en/investors/
euronav-imo-2020-webinar/

In the market
Nave Universe (VLCC, 2011) chartered by Petrobras for 2 years
at USD 33,000 per day.

Dimitris P (Suezmax, 2011) chartered by Koch for 2 years at USD
26,500 per day.

The fourth quarter
For the fourth quarter of 2019, the Company had a net gain
of USD 154.2 million or USD 0.72 per share (fourth quarter
2018: a net gain of USD 0.3 million or USD 0.00 per share).
Proportionate EBITDA (a non-IRFS measure) for the same
period was USD 267.5 million (fourth quarter 2018: USD 105.9
million). The TCE obtained by the Company’s fleet in the TI
pool was for the fourth quarter approximately USD 61,700 per

Annual report 2019Directors’ report
day (fourth quarter 2018: USD 34,959 per day). The TCE of
the Euronav VLCC fleet fixed on long-term charters, including
profit share when applicable, was USD 35,700 per day (fourth
quarter 2018: USD 31,797 per day). The TCE obtained by the
Suezmax spot fleet, including profit shares when applicable,
was approximately USD 41,800 per day for the fourth quarter
(fourth quarter 2018: USD 20,553 per day). The earnings of the
Euronav Suezmax fleet fixed on long-term charters, were USD
29,300 per day (fourth quarter 2018: 40,256 per day).

Time charter equivalent for the full year

In USD

2019

2018

VLCC spot

35,900
per day

23,035
per day

VLCC time charter

32,400
per day

33,338
per day

Suezmax spot

26,000
per day

15,783
per day

Suezmax time charter

29,400
per day

30,481
per day

OCTOBER
Euronav
Euronav paid an interim dividend of USD 0.06 per share for the
first half of 2019. The dividend was payable as from 8 October
2019.

In the market
Diyala (VLCC, 2019) chartered by Trafigura for 12 months at
USD 47,000 per day.

Atlanta Spirit (Suezmax, 2011) chartered by Litasco for 12
months at USD 40,000 per day.

Pentathlon (Suezmax, 2009) chartered by Chevron for 2 years
at USD 29,000 per day.

NOVEMBER
Euronav
On 19 November 2019 Euronav announced it has entered into
a joint venture together with affiliates of Ridgebury Tankers
and clients of Tufton Oceanic. Each 50%-50% joint venture
company has acquired one Suezmax vessel. Euronav also
provides financing for the joint ventures on commercially
attractive terms. The joint ventures have acquired the two
Suezmax tankers for a total consideration of USD 40.6 million
with the vessels being delivered for the winter spot market
2019/2020. Both vessels will be commercially managed by
Euronav’s chartering desk.

In the market
C. Passion (VLCC, 2013) chartered by GS Caltex for 3 years at
USD 42,500 per day.

Annual report 2019On 22 January 2020 Euronav proudly announced that the
Company has again been included in the Bloomberg Gender-
Equality Index (‘GEI’), for the third year in a row. The reference
index measures gender equality across internal company
statistics, employee policies, external community support
and engagement, and gender-conscious product offerings.

On 23 January 2020 Euronav NV confirmed that the
attendance quorum for the Extraordinary General Meeting,
invited on 19 December 2019, was not reached. A second
Extraordinary General Meeting with the same agenda
convened on Thursday 20 February 2020.

On 12 February 2020 Euronav announced the acquisition of
three VLCCs under construction for an aggregate purchase
price of USD 280.5 million. The vessels are the latest
generation of Eco-type VLCCs. The acquisition will fully be
funded by current liquidity and debt capacity. Upon delivery
( fourth quarter of 2020, January and February 2021) these
vessels will reduce the average age of the Euronav VLCC fleet.

On 25 February 2020, Euronav NV announced it has sold the
Suezmax vessel M/T Finesse (2003 – 149,994 dwt) for USD
21.8 million. A capital gain on the sale of approximately USD
8.3 million was recorded during the same quarter.

On 6 March 2020, Euronav announced the acquisition of one
VLCC under construction for an aggregate purchase price of
USD 93 million. This modern Eco-type VLCC is due for delivery
in the first quarter of 2021 and is an identical sister ship of the
3 VLCCs acquired last month.

Prospects for 2020

The growth in demand for oil has become increasingly uncertain
in the short term as the dislocation of economic activity from
global spread of the COVID-2019 virus and aggressive discounting
of crude prices by Saudi Arabia (on 8 March 2020) have yet to
be fully assessed at the time of writing. The IEA (International
Energy Agency) forecasts negative demand growth of 90,000
barrels per day for 2020 (down from 1 mbpd positive growth in
oil demand earlier in 2020). This is the first time negative growth
has been anticipated since the financial crisis in 2008. However
the agency stresses any shrinkage in demand will be Q2 2020
focused. The aggressive price cuts from Saudi Arabia will likely
have a positive impact on the demand for crude. A lower price
should stimulate demand in the second half as well as support
from a range of fiscal stimulus packages already announced by
most nations. The demand for crude and marine oil however can
diverge and the Saudi Arabian price action combined with their

Bacaliaros (Suezmax, 2003) chartered by Navig8 for 12 months
at USD 40,000 per day.

DECEMBER
Euronav
On 19 December 2019 Euronav NV invited its shareholders
to attend the Extraordinary General Meeting to be held on
Thursday 23 January 2020 to approve the changes of the
Company’s articles of association to bring them in line with the
new Belgian code of Companies and Associations.

In December a first meeting of the newly installed ESG &
Climate Committee was held.

On 2 January 2020 Euronav announced that it had entered
into a sale and leaseback agreement for three VLCC vessels
with Taiping & Sinopec Financial Leasing Ltd. Co. The three
VLCCs are the Nautica (2008 – 307,284), Nectar (2008 –
307,284) and Noble (2008 – 307,284). The vessels were
sold for a net en-bloc purchase price of USD 126 million. The
vessels were delivered to their new owners on 30 December
2019. Euronav has leased back the three vessels under a
54-months bareboat contract at an average rate of USD
20,681 per day per vessel. At the end of the bareboat contract,
the vessels will be redelivered to their new owners. Euronav
enjoys purchase options exercisable after the first year.

In the market
Donat (Suezmax, 2007) chartered by Chevron for 18 months at
USD 35,000 per day.

Los Angeles Spirit (Suezmax, 2007) chartered by Petco for 12
months at USD 37,500 per day.

Events occurred after the end
of the financial year ending 31
December, 2019

On 1 January 2020 Mrs Lieve Logghe joined Euronav as Chief
Financial Officer. She succeeds Hugo De Stoop who took the
role of CEO.

On 9 January 2020 Euronav announced guidance to its
return to shareholders policy to be applied to the 2019 final
results and to the quarterly results as from 2020 onwards.
Each quarter Euronav will target to return 80% of the net
income (including the fixed element of USD 3c per quarter)
to shareholders. This return to shareholders will primarily be
in the form of a cash dividend and the Company will always
look at stock repurchase as an alternative if it believes more
value van be created for shareholders. The Company retains
the right to return more than 80% should the circumstances
allow. In line with the current policy, the calculation will not
include capital gains (reserved for fleet renewal) but will
include capital losses and the policy will at all times be
subject to freight market outlook, Company balance sheet
and cyclicality along with other factors and regulatory
requirements.

Annual report 2019Directors’ report

commitment to increase supply of oil to the global markets by an
additional 2-3 million barrels (with potential support from other
OPEC nations) will underpin demand for crude tanker shipping
into the summer months of 2020.

On current trends, by the end of 2020, 8% of the VLCC fleet and
4% of the Suezmax fleet will be 20 years old or older.

The upcoming year therefore is difficult to predict in terms
of demand but prospects for shipping demand look well
underpinned into the second half of the year on the increase in
crude supply. The outcome for the whole year will depend on
economic growth gaining traction post coronavirus dislocation.
Storage of crude on large tankers is likely to remain a persistent
feature of our market whilst this situation lasts. This will tie
up tanker capacity and provide a degree of tightness between
tanker demand and supply.

Oil production expansion in North America will remain uncertain
given the changed landscape framed by the Saudi Arabian
move on oil supply. This has medium term ramifications for
the tanker market as the 3-4m barrels per day in US crude
exports has been a strong driver of tanker demand and ton
miles since US crude exports were removed from an embargo
in December 2015.

Looking at the supply side, the delivery programme in 2020
shows fewer newbuildings scheduled for delivery versus
2019. However at 43 VLCC newbuildings and 23 Suezmaxes
this remains a considerable addition of capacity. The level of
fleet removals in 2019 was relatively subdued and many older
vessels found employment in the storage sector around the
implementation period of IMO 2020. It is unlikely that all of
these older vessels will return to the commercial market and
they will likely become permanent storage vessels or be sold
for recycling.

The current calendar year has started on a high with strong
underlying fundamentals that have developed during the
previous year and accelerated from Q3 2019. This has been
augmented with some short term tanker market specific
factors improving freight rates into Q2 2020.

The current uplift in oil supply and oil price structure will help
underpin additional shipping demand into the second half
of the year. However prospects for the year as a whole will
depend on the duration and depth of the impact on economic
growth from the devasting effects from the COVID-19-virus
and its economic dislocation.

Demand for shipping shall have challenges from an inevitable
build in crude inventory levels due to the current disconnect
between oil supply and oil demand.

Annual report 2019

Corporate
Governance
Statement

Introduction

Reference Code

During 2019 Euronav adopted the 12 March 2009 version of
the Belgian Code on Corporate Governance as its reference
code. In the course of the second quarter of 2020 Euronav will
update its Corporate Governance Charter in line with the more
recent Belgian Code on Corporate Governance of 2020.

The full text of the Corporate Governance Charter can be
consulted on the Company’s website www.euronav.com.

New York Stock Exchange Listing
Following the dual listing of the Company’s shares on the New
York Stock Exchange on 23 January 2015, the New York Stock
Exchange Corporate Governance rules for Foreign Private
Issuers became applicable to the Company. The Company
therefore registered and began to be a reporting company under
the U.S. Securities and Exchange Act of 1934, as amended.
Further as a result of this listing, the Company is subject to the
U.S. Sarbanes-Oxley Act of 2002 and to certain U.S. Securities
laws and regulations relating to corporate governance applicable
to reporting companies that are foreign private issuers and are
subject to SEC reporting obligations.

Changes of Belgian company law and Corporate Governance
rules
On 28 February 2019, the Belgian Parliament approved the Code
of Companies and Associations (the ‘CCA’). The CCA entered
into force on 1 May 2019. The mandatory provisions of the CCA
apply to Euronav as of 1 January 2020. The non-mandatory
provision also apply as of 1 January 2020 in as far as they do not
contradict the articles of association of Euronav. In compliance
with the new legislation, Euronav amended its articles of
association on 20 February 2020. However, as this report
relates to the financial year 2019, references in this Corporate
Governance Statement may still be to the terminology used in
the former Belgian Code of Companies. Along with the new CCA,
a new Belgian Corporate Governance Code was issued. Euronav
is in the process of adapting its Corporate Governance Charter
to align with the CCA and the 2020 Belgian Code on Corporate
Governance.

1. Capital, shares and shareholders
1.1 CAPITAL AND SHARES

On 31 December 2019 the registered share capital of Euronav
amounted to USD 239,147,505.82 and was represented by
220,024,713 shares without par value.

The shares are in registered or dematerialized form and may be
traded on the New York Stock Exchange or Euronext Brussels,
depending on in which component of the share register the
shares are registered. Shares may be transferred from one
component to the other after completion of a procedure for
repositioning.

1.2 SENIOR UNSECURED BONDS
On 23 October 2017 the Company announced that the USD 150
million senior unsecured bonds issued by Euronav Luxembourg
S.A. and guaranteed by Euronav NV are listed on the Oslo
Stock Exchange as of that day. On June 14, 2019 the Company
announced that it had completed a tap issue of USD 50 million
under its existing senior unsecured bond loan. The amount
outstanding after the tap issue is USD 200 million. The bonds
have been allocated the following ISIN code NO 0010793888.

Annual report 2019Directors’ report
“In 2020, Euronav adopted the

new Belgian Code on Corporate
Governance which enables the
Company to return 80% of net income
each quarter to shareholders.

1.3 TREASURY SHARES
On 31 December 2019 Euronav held 4,946,216 own shares.

Shareholders’ structure as of 24 March 2020:

Shareholder

Number
of shares

Percentage

Châteauban SA

12,920,266

5.87%

Saverco NV1

11,497,088

5.23%

Marshall Wace

11,199,893

5.09%

Besides the stock option plans for members of the Executive
Committee and potentially senior employees (please refer to
section 4.3. Remuneration policy for the Executive Committee
and the employees further in this Corporate Governance
Statement), there are no other share plans, stock options or
other rights to acquire Euronav shares in place.

Euronav
(treasury shares)

Other

Total

4,946,216

2.25%

179,461,250

81.56%

220,024,713

100.00%

1.4 SHAREHOLDERS AND SHAREHOLDERS’
STRUCTURE

1 Including shares held directly or indirectly by or for the benefit of the ultimate
beneficial owner

According to the information available to the Company at the
time of preparing this annual report on 24 March 2020 and
taking into account the latest declarations, the shareholders’
structure is as shown in the table:

Editor’s note:
Shareholders’ structure as of 8 April 2020, date of
closing for publishing:

Shareholder
Euronav
(treasury shares)

Other

Total

Number
of shares

Percentage

4,946,216

2.25%

215,078,497

97.75%

220,024,713

100.00%

Annual report 2019Hereunder follows a list of biographies of the members
of the Board of Directors in the composition as of 31
December 2019.

Carl Steen - Independent Director - Chairman
Carl Steen was co-opted Director and appointed Chairman of
the Board of Directors with immediate effect after the Board
meeting of 3 December 2015. Mr Steen is also a member
of the Audit and Risk Committee and a member of the of
the Corporate Governance and Nomination Committee. He
graduated from Eidgenössische Technische Hochschule
in Zurich, Switzerland in 1975 with a M.Sc. in Industrial and
Management Engineering. After working as a consultant in
a logistical research and consultancy company, he joined a
Norwegian shipping company in 1978 with primary focus on
business development. Five years later, in 1983, he joined
Christiania Bank and moved to Luxembourg, where he was
responsible for Germany and later the Corporate Division.
In 1987, Mr Steen became Senior Vice President within the
Shipping Division in Oslo and in 1992, he took charge of the
Shipping/Offshore and Transport Division. When Christiania
Bank merged with Nordea in 2001 he was made Executive
Vice President within the newly formed organization while
adding the International Division to his responsibilities. Mr
Steen remained Head of Shipping, Offshore and Oil Services
and the International Division until 2011. Since leaving

2. Board of directors and board committees
Preliminary note: with effect as of 20 February 2020,
Euronav’s governance structure was revised to adopt a two
tier governance model. As of this date the body formerly
known as the Board of Directors was converted into a
Supervisory Board and the former Executive Committee
ceased to exist and was replaced by a Management Board, in
accordance with relevant provisions of the CCA.

2.1 BOARD OF DIRECTORS/SUPERVISORY BOARD

Name

Carl
Steen

Paddy
Rodgers1

Daniel R.
Bradshaw2

Type of
mandate

Chairman -
Independent
Director

First
appointed
as director

End term
of office

2015

AGM 2022

Director

2003

9 May 2019

Director

2004

9 May 2019

Anne-Hélène
Monsellato

Independent
Director

2015

AGM 2022

Ludovic
Saverys

Grace
Reksten
Skaugen

Steven
Smith3

Anita
Odedra4

Carl
Trowell5

Director

2015

AGM 2021

Independent
Director

2016

AGM 2020

2018

6 December
2019

2019

AGM 2021

2019

AGM 2021

1 Mr Rodgers resigned from his position as director effective as of the AGM

of 9 May 2019.

2 Mr Bradshaw’s mandate expired at the AGM of 9 May 2019.
3 Mr Steven Smith resigned from his position as independent director effective

as of 6 December 2019.

4 Ms Anita Odedra was appointed Independent Director at the AGM of 9 May

2019.

5 Mr Carl Trowell was appointed Independent Director at the AGM of 9 May

2019.

Directors’ reportNordea, Mr Steen has become a non-executive Director for
the following listed companies in the finance, shipping and
logistics sectors: Golar LNG and Golar MLP, both part of the
same group and where he also sits on the Audit Committee,
Wilh Wilhelmsen and Belships. Mr Steen is also a member of
the Board of Directors of CMB.

Anne-Hélène Monsellato - Independent Director
Anne-Hélène Monsellato serves on the Board of Directors
since her appointment at the Annual General Meeting
(AGM) of May 2015, and is the Chairman of the Audit and
Risk Committee. She can be considered as the Audit and
Risk Committee financial expert for purposes applicable for
corporate governance regulations and Article 96 paragraph
1, 9° of the Belgian Company Code. Since June 2017, Mrs
Monsellato serves on the Board of Directors of Genfit, a
biopharmaceutical company
is
the Chairman of the Audit Committee. Mrs Monsellato is
an active member of the French National Association of
Directors since 2013. In addition, she is serving as the Vice
President and Treasurer of the American Center for Art and
Culture, a U.S. public foundation based in New York. From
2005 till 2013, Mrs Monsellato served as a Partner with Ernst
& Young (now EY), Paris, after having served as Auditor/
Senior, Manager and Senior Manager for the firm starting in
1990. During her time at EY, she gained extensive experience

listed on Euronext, and

in cross border listing transactions, in particular with the U.S.
She is a Certified Public Accountant in France since 2008 and
graduated from EM Lyon in 1990 with a degree in Business
Management.

Ludovic Saverys - Director
Ludovic Saverys serves on the Board of Directors since 2015
and is a member of the Remuneration Committee as well
as of the recently installed ESG & Climate Committee. Mr
Saverys currently serves as Chief Financial Officer of CMB
NV and as General Manager of Saverco NV. During the time
he lived in New York, Mr Saverys served as Chief Financial
Officer of MiNeeds Inc. from 2011 till 2013 and as Chief
Executive Officer of SURFACExchange LLC from 2009 till
2013. He started his career as Managing Director of European
Petroleum Exchange (EPX) in 2008. From 2001 till 2007 he
followed several educational programs at universities in
Leuven, Barcelona and London from which he graduated with
M. Sc. degrees in International Business and Finance.

Grace Reksten Skaugen - Independent Director
Grace Reksten Skaugen serves on the Board of Directors
since the AGM of 12 May 2016 as an Independent Director
and is Chairman of the Remuneration Committee and a
member of the Corporate Governance and Nomination
Committee as well as of the recently installed ESG & Climate
Committee. Grace Reksten Skaugen is a Trustee Advisory
council member of The International Institute of Strategic
Studies in London. In 2009, she founded Infovidi Board
Services Ltd, an independent consulting company. From
2002 till 2015 she was a member of the Board of Directors
of Statoil ASA. She is presently a Board member of Investor
AB and Lundin Petroleum AB. In 2006 she was one of the
founders of the Norwegian Institute of Directors, of which
she continues to be a member of the Board. From 1994 till
2002 she was a Director in Corporate Finance in SEB Enskilda
Securities in Oslo. She has previously worked in the fields of
venture capital and shipping in Oslo and London and carried
out research in microelectronics at Columbia University in
New York. She has a doctorate in Laser Physics from Imperial
College of Science and Technology, University of London. In
1993 she obtained an MBA from the BI Norwegian School of
Management.

Anita Odedra - Independent Director
Anita Odedra serves on the Board of Directors since her
appointment at the AGM of May 2019, and is a member
of the Audit and Risk Committee. Mrs Odedra has over 25
years of experience in the energy industry, and is currently
Chief Commercial Officer at Tellurian Inc. Prior roles include
Executive Vice President at the Angelicoussis Shipping Group
Ltd (ASGL), where she led the LNG and oil freight trading
businesses and Vice President, Shipping & Commercial
Operations for Cheniere. Anita spent 19 years at BG Group,
where she worked across all aspects of BG’s business
trading, marketing,
including exploration, production,
business development, commercial operations and shipping;
latterly holding the position of VP, Global Shipping. She began
her career with ExxonMobil in 1993 as a Geoscience analyst.
Anita was on the Board for the Society of International Gas

Annual report 2019Tanker and Terminal Operators (SIGGTO) from 2013 to 2016
and was Chair of GIIGNL’s Commercial Study Group from
2010 to 2015. She completed her PhD in Rock Physics from
University College London & University of Tokyo and has a
BSc in Geology from Imperial College, University of London.

Carl Trowell - Independent Director
Carl Trowell serves on the Board of Directors since his
appointment at the AGM of May 2019, and is Chairman of
the Corporate Governance and Nomination Committee
and a member of the Remuneration Committee. Since
2014, Carl Trowell was Chief Executive Officer of Ensco
plc, a listed London-based offshore drilling company. He
is also a member of its Board of Directors and has taken
up the position of Executive Chairman in April 2019 upon
the closing of the merger with Rowan PLC (which became
Valaris PLC). In his roles, he has substantial experience with
strategic reorganizations and mergers and acquisitions.
Prior to joining Ensco, Carl was President of oilfield services
company Schlumberger Ltd’s Integrated Project Management
(IPM) and Schlumberger Production Management (SPM)
businesses. He was promoted to this role after serving
as President of Schlumberger Western GECO, the seismic
division of Schlumberger, where he managed 6,500
employees with operations in 55 countries. Prior to this role,
he held a variety of international management positions within
Schlumberger in the fields of marketing, sales and business
development, including Global VP Strategic Marketing &

Sales, Management Director North-Sea/Europe Region, and
Business Development Manager Asia. Mr Trowell began his
professional career in 1995 as a petroleum engineer with
Royal Dutch Shell before joining Schlumberger.

Mr Trowell has been a member of several industry advisory
boards. He is on the advisory board of EVPE Private Equity
since 2007, and in 2016 he became a Non-Executive Board
Member of Ophir Energy plc.

Mr Trowell has a PhD in Earth Sciences from the University
of Cambridge, a Master of Business Administration from
The Open University, UK, and a Bachelor of Science degree in
Geology from Imperial College London.

Composition
The Supervisory Board currently consists of six members.
All six members are non-executive Directors of which five
are Independent Directors under the Belgian Corporate
Governance rules as well as under Rule 10A-3 promulgated
under the U.S. Securities Exchange Act of 1934 and under
the rules of the NYSE. The articles of association provide
that the members of the Supervisory Board can be appointed
for a period not exceeding four years per mandate. The
Supervisory Board members are eligible for re-election. The
articles of association of the Company do not provide an age
limit for the members of the Supervisory Board.

Annual report 2019Directors’ reportFunctioning of the Supervisory Board
In 2019 the Board of Directors (after implementation of the
CCA known as the Supervisory Board) formally met ten times
for a Board meeting, six times of which they deliberated via
telephone conference. The attendance rate of the members
was the following:

Name

Carl Steen

Type of
mandate

Meetings
attended

Chairman -
Independent
Director

10 out of 10

Paddy Rodgers1

Director - CEO

4 out of 4

Daniel R.
Bradshaw2

Director

1 out of 4

Anne-Hélène
Monsellato

Independent
Director

10 out of 10

Ludovic Saverys Director

10 out of 10

Grace Reksten
Skaugen

Independent
Director

10 out of 10

Steven Smith³

Anita Odedra4

Carl Trowell5

Independent
Director

10 out of 10

5 out of 5

1 Mr Paddy Rodgers resigned from the Board of Directors with effect
immediately after the Annual General Shareholders’ Meeting of 9 May 2019.
2 Mr Dan Bradshaw’s mandate as a member of the Board of Directors expired
immediately after the Annual General Shareholders’ Meeting of 9 May 2019.
³ Mr Steven Smith resigned from the Board of Directors with effect immediately

after the Board of Directors of 6 December 2019.

4 Ms Anita Odedra was appointed Independent Director at the AGM of 9 May

2019.

5 Mr Carl Trowell was appointed Independent Director at the AGM of 9 May

2019.

Working procedures
During 2019, before implementation of the CCA, the Board
of Directors was the ultimate decision-making body of the
Company, with the exception of the matters reserved to the
Shareholders’ Meeting as provided by law or the articles
of association. In addition to the statutory powers, the
responsibilities of the Board of Directors were further defined in
Article III.1 of the Corporate Governance Charter. All decisions
of the Board were taken in accordance with Article 22 of the
articles of association which inter alia stated that the Chairman
had a casting vote in case of deadlock. During 2019 that had
not been necessary and since 20 February 2020 the articles of
association no longer provide for such casting vote. Besides
the formal meetings, the Board members of Euronav are in
contact with each other very regularly, including by conference
call, or via e-mail. As it is often difficult to formally meet in case
an urgent decision is required, the written decision-making
process was used eighteen times in 2019. On 20 February
2020 the extraordinary shareholders meeting implemented the
CCA and adopted new articles of association including a two-
tier governance model. The powers of the Supervisory Board
are those outlined in article 7:109 of the CCA. A copy of the
new articles of association can be consulted at https://www.
euronav.com/investors/corporate-governance/articles-of-
association/.

Activity report 2019
In 2019 Euronav’s Board of Directors deliberated on:

IMO 2020 and related matters (such as scrubber policy and
compliant fuel procurement strategy);

Risk management;

HR processes (including CEO, CFO and CPO search);

Hedging policy;

ESG related matters and set up of ESG & Climate Committee;

Health, Safety, Quality and Environment (HSQE);

Annual report 2019
Implementation of the new Belgian Code of Companies and
Associations;
the re-flagging of m/t Gener8 Spartiate from Marshall
Islands to Greek flag in January 2019;
the transfer of ownership of m/t SARA from Euronav
Tankers NV to Euronav NV on 22 January 2019;
the establishment of a new Branch in Geneva, Switzerland
on 12 February 2019;
the transfer of ownership of m/t SANDRA from Euronav
Tankers NV to Euronav NV on 2 April 2019;
the re-flagging of m/t Gener8 George T from Marshall
Islands to Belgian flag on 6 May 2019;
the re-flagging of m/t SIMONE from Belgian to French flag
on 16 May 2019;
the reflagging of m/t EUROPE from French to Belgian flag
on 20 May 2019;
the Guarantee of the Nordic Bond on 13 June 2019;
the share buy-backs in January and June 2019;
the 100MUSD fuel facility on 24 June 2019;
the sale of m/t V.K. EDDIE from Euronav Luxembourg S.A.,
being 100% subsidiary of Euronav NV to BUZIOS5 MV32
B.V. on 9 July 2019;
the USD 700M facility on 27 August 2019.

Procedure for conflicts of interest
The procedure for conflicts of interest within the Board of
Directors is set out in the Company’s Corporate Governance
Charter.
In the course of 2019, the Board of Directors dealt with a
conflict of interest on one occasion for which the provisions of
article 523 of the former Belgian Company Code were applied.
In January 2019, the Board had to decide on the termination of
the employment agreement with the CEO, Mr Paddy Rodgers,
and subsequently, the settlement agreement to be entered
into with the CEO.The minutes of the meeting of the Board of
Directors of 31 January 2019 state:
‘VALIDITY’
“Since all directors are present or represented at the meeting, no
further evidence of convening notices is needed. Accordingly,
the meeting is validly convened and authorised to discuss and
vote on the items on the agenda and each other item that may
be added thereto.(...)

2. CONFLICT OF INTERESTS
Prior to the meeting Mr Patrick Rodgers, in his capacity of director
of the Company, and in accordance with Article 523 of the Belgian
Companies Code informed the directors that he, as contracting
counterparty of the Company under the Settlement Agreement
has a financial interest which is in conflict with the possible
resolution of the Board to approve the draft of the Settlement
Agreement, more specifically because Mr Patrick Rodgers, as
counterparty of the Company has the interest that the Settlement
Agreement will be entered into at conditions as favourable
as legally possible, such as an as high as possible severance
payment, respectively remuneration.
The Board takes note of the foregoing statements and of the fact
that Mr Rodgers will not be joining the meeting.
Subsequently the Board proceeds, in accordance with Article
523 of the Belgian Companies Code, with the deliberation on the
present statement, as well as on the execution of the Settlement
Agreement with Mr Patrick Rodgers.
RESOLUTIONS
APPROVAL OF THE TERMINATION OF THE CEO’S EMPLOYMENT
AGREEMENT AND APPROVAL OF THE SETTLEMENT
AGREEMENT
The Board unanimously (with the exception of Mr Rodgers who
did not take part in the deliberations nor vote on the matter in
accordance with Article 523 of the Belgian Companies Code)
RESOLVED to (i) terminate the employment agreement with the
CEO and (ii) following the Motivated Advice of the Remuneration
Committee, to approve the terms and conditions of the Settlement
Agreement."
The Motivated Advice of the Remuneration Committee reads as
follows:
"As the proposed severance payment of EUR 4,000,000 does not
exceed 18 months of remuneration paid to the CEO over 2018 (i.e.
EUR 4,077,000), the Committee deems the proposed severance
payment compliant with Belgian law, and more specifically, article
544 of the Belgian Companies Code. The remuneration paid to
the CEO over 2018 amounted to EUR 2,718,000, i.e. the sum of:
(i) EUR 675,000 in annual base salary (as per the salary increase
decided by the Board upon recommendation of the Committee
on July 1st, 2018); (ii) EUR 1,975,000 in variable remuneration (as
decided by the Board upon recommendation of the Committee
on January 28, 2019); and EUR 68,000 in benefits over 2018 (as
per the employment agreement of the CEO).

Annual report 2019Directors’ report

The Committee deems the increase of the severance payment
over 12 months, as was also initially agreed in the CEO’s
employment agreement, appropriate for the following reasons:

Mr Rodgers has served the Company for 19 years as its Chief
Executive Officer and 16 years as member of the Board, and
the Committee deems it appropriate to appreciate Mr Rodgers’
years of outstanding dedication and service;
under Mr Rodgers’ leadership, the Company has evolved from a
mid-sized player to the leading independent large crude tanker
operator in the world, due to a.o. the Tanklog transaction, the
acquisition of the Maersk fleet and the merger with Gener8
Maritime, but also Mr Rodgers efficient use of capital markets
opportunities (both debt and equity) and the internationalisation
of the Company’s investor base with the dual listing of the
Company’s stock on Euronext Brussels and NYSE. Mr Rodgers
has guided the Company through difficult years in the crude

tanker business, but his crucial actions of fleet rejuvenation and
growth make the Company fully prepared to reap the benefits
of these actions when the markets will pick-up. Mr Rodgers’
leadership has hence constituted an exceptional contribution
to the Company and its values; the evolution of the Company,
led by Mr Rodgers and crowned by the merger with Gener8
Maritime in 2018, has brought the Company to its position of
market leader today. However the Board currently considers
a change in leadership beneficial to the Company, to take a
new strategic direction taking into account the Company’s
current size and position. To therefore express the Company’s
appreciation for Mr Rodgers’ outstanding contributions to
the Company and its values over the past (almost) 20 years,
the Committee proposes to the Board to grant the proposed
severance payment of EUR 4,000,000."

2 Board Committees
2.2.1 AUDIT AND RISK COMMITTEE

Composition
In accordance with Article 526bis §2 of the former Belgian
Company Code and provision 5.2./4 of Appendix C to the
former Belgian Corporate Governance Code, the Audit and Risk
Committee is exclusively composed of non-executive Directors
and a majority of the Committee’s members are Independent
Directors. The Audit and Risk Committee of Euronav counts
three members, which are all Independent Directors.

As at 31 December 2019 the composition of the Audit and Risk
Committee was as follows:

Name

End term of
office

Independent
Director

Anne-Hélène Monsellato1
(Chair)

Carl Steen

Anita Odedra

2022

2021

1 Independent Director and expert in accounting and audit related matters
(see biography) in accordance with Article 96 paragraph 1, 9° of the Belgian
Company Code.

Annual report 2019Powers
The Audit and Risk Committee handles a wide range of
financial reporting, controlling and risk management matters
and is responsible for the appointment, the compensation
and the oversight of the independent auditor. Its main
responsibilities and its functioning are described in the
Corporate Governance Charter. The Audit and Risk Committee
reviews
its terms of reference periodically and, where
applicable, makes recommendations to the Supervisory Board,
if changes are useful or required, to ensure the composition,
the responsibilities and the powers of the Committee comply
with applicable laws and regulations.

During these meetings, the key elements discussed within
the Audit and Risk Committee included financial statements,
impairment assumptions and depreciations, implementation
of new accounting requirements (IFRS16) cash management,
external and internal audit reports, quality of the external audit
process, external audit approach and independance and external
auditor renewal, the internal audit function, old and new financing,
accounting policies, matters related to section 302 and 404 of the
Sarbanes-Oxley Actand the effectiveness of the internal control
over financial reporting and the Belgian annual report, the annual
report on Form 20-F, certain company policies, cybersecurity,
risk management, process and framework and the risk register,
whistleblowing and debt covenants.

Activity report 2019
In 2019 the Audit and Risk Committee convened eight times.
The attendance rate of the members was as listed below:

2.2.2 REMUNERATION COMMITTEE
Composition

Name

Type of
mandate

Meetings
attended

Anne-Hélène Monsellato
(Chair)

Independent
Director

Carl Steen

Independent
Director

8 out of 8

Daniel R. Bradshaw1

Director

3 out of 3

Steven Smith

Anita Odedra2

Independent
Director
Independent
Director

8 out of 8

4 out of 4

1 Mr Bradshaws’ Board of Directors mandate expired on 9 May 2019 and he
subsequently was no longer member of the Audit and Risk Committee as
from this date.

2 Ms Odedra was appointed Independent Director at the AGM of 9 May 2019.

In accordance with Article 526quater §2 of the former Belgian
Company Code, all members of the Remuneration Committee
are non-executive Directors, the majority being Independent
Directors. The Remuneration Committee consists of minimum
three Directors, two of which are Independent Directors.

As at 31 December 2019, the Remuneration Committee was
composed as follows:

Name

End term of
office

Independent
Director

Grace Reksten Skaugen
(Chair)

2020

Ludovic Saverys

2021

Carl Trowell

2021

Annual report 2019Directors’ report2.2.3 CORPORATE GOVERNANCE AND NOMINATION
COMMITTEE
Composition
At 31 December 2019, the Corporate Governance and
Nomination Committee of Euronav counted three members,
all of which are Independent Directors. In this respect, Euronav
is in compliance with provision 5.3./1 of Appendix C to the
former Belgian Corporate Governance Code of 2009, pursuant
to which a Nomination Committee should comprise a majority
of Independent non-executive Directors. The composition of
the Committee was further determined taking into account
members’ expertise in this area and their availability, given
other Committee memberships.

As of 31 December 2019, the Corporate Governance and
Nomination Committee was composed as follows:

Name

End term of
office

Independent
Director

Carl Trowell (Chairman)1

2021

Carl Steen

2022

Grace Reksten Skaugen

2020

1 With effect as of 12 December 2019, Mr Carl Trowell was appointed as
Chairman of the Corporate Governance and Nomination Committee.

Powers
The Corporate Governance and Nomination Committee’s role
is to assist and advise the Supervisory Board in all matters
relating to the composition of the Supervisory Board and
its Committees and the composition of the Company’s
Management Board,
the methods and criteria for
appointing and recruiting members of the Supervisory Board
or the Management Board, evaluating the performance of
the Supervisory Board, its Committees and the Management
Board, as well as in any other matters relating to corporate
governance. The Corporate Governance Charter contains a
detailed list of the powers and responsibilities of the Corporate
Governance and Nomination Committee.

Powers
The Remuneration Committee has various advisory
responsibilities relating to the remuneration policy of members
of the Board of Directors (after implementation of the CCA
known as the Supervisory Board), members of the Executive
Committee (after implementation of the CCA, replaced by the
Management Board) and employees in general. The Corporate
Governance Charter contains a detailed list of the powers and
responsibilities of the Remuneration Committee.

The Remuneration Committee makes recommendations
to the Supervisory Board relating to the remuneration of
the Supervisory Board members and Management Board
members, including variable remuneration, incentives, bonuses
etc. in line with suitable industry benchmarks.

The Remuneration Committee reviews its terms of reference
periodically and, where applicable, makes recommendations
to the Supervisory Board, if changes are useful or required,
to ensure that the composition, the responsibilities and the
powers of the Committee comply with applicable laws and
regulations.

Activity report 2019
In 2019 the Remuneration Committee met six times. The
attendance rate of the members was as listed hereafter:

Name

Type of
mandate

Meetings
attended

Grace Reksten Skaugen
(Chairman)

Independent
Director

6 out of 6

Ludovic Saverys

Director

6 out of 6

Carl Steen1

Steven Smith2

Carl Trowell3

Independent
Director

4 out of 4

2 out of 2

1 Mr Carl Steen ceased to be a member of the Remuneration Committee as

of 21 June 2019.

2 Mr Steven Smith ceased to be a member of the Remuneration Committee
as of 21 June 2019.
3 Mr Trowell was appointed Independent Director at the AGM of 9 May 2019
and appointed as member of the Remuneration Committee as of 21 June
2019.

During these meetings the key elements discussed within the
Remuneration Committee included the remuneration report in
the annual report, the settlement agreement with the former
CEO, the organization of the HR department, the remuneration
of Directors and members of the Executive Committee, the KPIs
for the members of the Executive Committee, the annual bonus
for the members of the Executive Committee and employees
and the set-up of a long-term incentive plan.

Annual report 2019Activity report 2019
In 2019 the Corporate Governance and Nomination Committee
met four times. The attendance rate of the members was as
follows:

Name

Type of
mandate

Meetings
attended

Daniel R. Bradshaw1

Director

1 out of 1

Anne-Hélène Monsellato2

Steven Smith3

Grace Reksten Skaugen

Carl Steen4

Independent
Director
Independent
Director
Independent
Director
Independent
Director

2 out of 2

4 out of 4

2 out of 2

1 Mr Bradshaw ceased to be a member of the Board of Directors and a
member of the Corporate Governance and Nomination Committee after the
AGM of 9 May 2019.

2 Mrs Monsellato ceased to be a member of the Corporate Governance and

Nomination Committee as of 21 June 2019.

3 Mr Smith joined the Corporate Governance and Nomination Committee
as Chairman as of 21 June 2019. Following Mr Smith’s resignation of the
Board of Directors and the Committees effective as of 6 December 2019,
Mr Trowell was appointed as Chairman of the Corporate Governance and
Nomination Committee as of 12 December 2019.

4 Mr Steen joined the Corporate Governance and Nomination Committee as a

member as of 21 June 2019.

During these meetings the key elements discussed within the
Corporate Governance and Nomination Committee included
the composition of the Board of Directors and its Committees,
including gender diversity considerations, U.S. law and Belgian
law and Corporate Governance requirements, the assessment
of the Board and its Committees, succession planning, Board
education and leadership development as well as governance
structure and the ESG and Climate Committee.

2.3 ESG AND CLIMATE COMMITTEE

Powers
The Board of Directors has established an ESG and Climate
Committee since 6 December 2019. The Committee is an
advisory body to the Board of Directors (after implementation
of the CCA, known as the Supervisory Board). The main role
of the Committee consists of assisting and advising the
Supervisory Board to monitor the performance as well as to
determine the key risks and opportunities that the Company
faces in relation to environmental, social and climate matters.
In this respect the Committee will oversee the Company’s
conduct and performance on ESG matters as well as its
reporting thereon. The committee will inform the Supervisory
Board and make recommendations to the Supervisory Board
when it deems appropriate on any area within its remit where
action or improvement is needed.

Composition
As of 31 December 2019, the ESG & Climate Committee of
Euronav counts 5 members, one Independent Director, one
Director and three members of the Executive Committee.
The composition of the Committee is determined taking

into account members’ expertise given other Committee
memberships.

As of 31 December 2019, the ESG & Climate Committee was
composed as follows:

Name

End term of
office

Independent
Director

Ludovic Saverys

2021

Grace Reksten Skaugen

2020

Egied Verbeeck

Brian Gallagher

Stamatis Bourboulis

n/a

The CEO has a permanent invitation to the committee.

Activity report 2019
In 2019, the ESG & Climate Committee met one time. The
attendance rate of the members was as follows:

Name

Type of
mandate

Meetings
attended

Egied Verbeeck (Chairman) Management

1 out of 1

Grace Reksten Skaugen

Independent
Director

1 out of 1

Ludovic Saverys

Director

1 out of 1

Stamatis Bourboulis

Management

1out of 1

Brian Gallagher

Management

1 out of 1

During the meeting the Committee discussed its Terms of
Reference, took stock of the Company's current approach and
engagement on ESG and Climate matters, and determined the
key action items for 2020.

Annual report 2019Directors’ reportpowers are further described in detail in Article V.3 and Annex 7
of the Corporate Governance Charter. The Executive Committee
reports to the Board of Directors through the CEO, enabling
the Board of Directors to exercise control on the Executive
Committee.

Since 20 February 2020, the powers of the Management Board
are those outlined in article 7:110 of the CCA.

Procedure for conflicts of interest
The procedure for conflicts of interest within the Management
Board is set out in the Company’s Corporate Governance Charter. In
the course of 2019, no decision taken by the Executive Committee
required the application of the conflict of interest procedure.

3. Evaluation of the Board of Directors and its committees
The main features of the process for evaluating the Board
of Directors (after implementation of the CCA, known as the
Supervisory Board), its Committees and the individual Directors
are described in Euronav’s Corporate Governance Charter.

In 2019 an in-house self-assessment evaluation of the Board of
Directors and its committees was conducted by the Chairman
of the Corporate Governance and Nomination Committee by
means of questionnaires. The members were asked to reflect
on the performance of individual Directors, the fulfillment
of the Board’s key responsibilities, quality of the relationship
between the Board and Management, the effectiveness of Board
processes, meetings and the Board structure. The outcome was
overall satisfactory whilst attention will be given to the format of
the Supervisory Board package.

4. Remuneration report
The remuneration report describes Euronav’s executive
remuneration policy and how executive compensation levels
are set. The Remuneration Committee oversees the executive
compensation policies and plans.

4.1 EURONAV REMUNERATION POLICY
The remuneration policy is part of a framework of employee
policies aimed at motivating and retaining current employees,
attracting talented new people and helping Euronav employees
to perform at consistently high levels. All Euronav employees
as well as the members of the Management Board are subject
to an annual performance review process and a half-year
follow up appraisal meeting with their respective department

2.4 EXECUTIVE COMMITTEE

Composition
During 2019 and in application of Article 524bis of the former
Belgian Company Code, the executive management of the
Company was entrusted to the Executive Committee chaired
by the CEO. The members of the Executive Committee are
appointed by the Board of Directors upon proposal by the
Chairman of the Board or the Chief Executive Officer and
as reviewed by the Corporate Governance and Nomination
Committee.

As of 31 December 2019, the Executive Committee was
composed as follows:

Name

Title

Hugo De Stoop

Chief Executive Officer / Chief
Financial Officer1

Alex Staring

Chief Operating Officer

Egied Verbeeck

General Counsel

Stamatis Bourboulis2

Brian Gallagher³

General Manager Euronav Ship
Management (Hellas) Ltd.

Head of Investor Relations,
Research & Communications

1 Mr Patrick Rodgers resigned as Chief Executive Officer on 9 May 2019 and
was replaced by Mr Hugo De Stoop who, until 1 January 2020 combined the
roles of Chief Executive Officer and Chief Financial Officer.

2 Mr Bourboulis has been appointed member of the Executive Committee with

effect as of 1 January 2019.

³ Mr Gallagher has been appointed member of the Executive Committee with

effect as of 1 January 2019.

Since 20 February 2020, the Executive Committee has been
replaced by the Management Board, which at the time of this
report is composed as follows:

Name permanent
representative

Name company

Hugo De Stoop

HECHO Management BV

Lieve Logghe

TINCC BV

Alex Staring

AST Projects BV

Egied Verbeeck

ECHINUS BV

Stamatis Bourboulis

N/A

Brian Gallagher

N/A

Powers and activity report 2019
The Executive Committee is empowered to take responsibility
for the daily operations of the group and the implementation of
the policy and strategy approved by the Board of Directors. Its

head. The execution of this performance review process is
ensured by the Management Board.

The General Shareholders’ Meeting decides upon the
remuneration level for the members of the Supervisory
Board, as suggested by the Supervisory Board pursuant to
proposals formulated by the Remuneration Committee. The
policy of remuneration for members of the Management
Board is set by the Supervisory Board on the basis of
recommendations by the Remuneration Committee using
suitable industry benchmarks.

The Remuneration Committee meets at least four times a
year and has the following main responsibilities which are
further outlined in its terms of reference:

to make recommendations to the Supervisory Board relating
to the remuneration policy and the individual remuneration
of the members of the Supervisory Board, its Committees
and the Management Board;
to make recommendations to the Supervisory Board with
respect to policies and principles for performance reviews
of the members of the Management Board and oversee
evaluations of the members of the Management Board;
to discuss objectives for the members of the Management
Board which subsequently serve as benchmarks for the
evaluation of their performance;
to review annually the remuneration of the members of the
Management Board and, on a non-individual basis, of the
group of employees;
to prepare the remuneration report for presentation to the
Annual Shareholders’ Meeting.

4.2 REMUNERATION POLICY FOR MEMBERS OF THE
BOARD OF DIRECTORS/SUPERVISORY BOARD
The remuneration of the members of the Board of Directors
since 20 February 2020 (known as the Supervisory Board) is
determined on the basis of four regular meetings of the full
Board per year. Directors receive an attendance fee for each
Board meeting or Committee meeting attended. The actual
amount of the remuneration is approved by the AGM.

As per decision of the AGM held on 9 May 2019 , the gross fixed
annual remuneration remains at EUR 60,000 for the members
of the Board of Directors and at EUR 160,000 for the Chairman.
The meeting further resolved that each director, including the
Chairman, shall receive an attendance fee of EUR 10,000 for
each board meeting attended. The aggregate annual amount
of the attendance fee shall however not exceed EUR 40,000.
The gross fixed annual remuneration for 2019 of Mr Daniel R.
Bradshaw was set at EUR 20,000. It was also decided to grant
him an attendance fee of EUR 10,000 for each board meeting
attended.

For their mandate within the Audit and Risk Committee, the
members received an annual remuneration of EUR 20,000
and the Chairman received a remuneration of EUR 40,000.
Each member of the Audit and Risk Committee, including the
Chairman, received an additional attendance fee of EUR 5,000 per
Committee attended with a maximum of EUR 20,000 per year.

For their mandate within the Remuneration Committee and
the Corporate Governance and Nomination Committee, the
members received an annual remuneration of EUR 5,000
and the Chairman received a remuneration of EUR 7,500.
Each member of any of the Committees, including the
Chairman, received an additional attendance fee of EUR
5,000 per Committee attended with a maximum of EUR
20,000 per year.

At present non-executive Directors do not
receive
performance related remuneration, such as bonuses or
remuneration related shares or share options, nor fringe
benefits or pension plan benefits. As such, Euronav ensures
the objectivity of non-executive Directors and encourages
the active participation of all Directors for both the meetings
of the Board of Directors and the Committee meetings.

No loans or advances were granted to any Director.

The remuneration in 2019 of the members of the Board of
Directors is reflected in the table below:

In euro:

Name

Fixed fee

Attendance
fee Board

Audit
and Risk
Committee

Attendance fee

Audit and Risk

Committee

Remuneration

Committee

Attendance fee

Remuneration

Committee

Corporate

Governance

and Nomination

Committee

Attendance fee Corporate

Governance and

TOTAL

Nomination Committee

Carl Steen

160,000.00

40,000.00

20,000.00

2,500.00

10,000.00

2,500.00

15,000.00

270,000.00

Paddy Rodgers

—

Daniel Bradshaw 5,000.00

10,000.00

5,000.00

1,875.00

5,000.00

31,875.00

Anne-Hélène
Monsellato

60,000.00

40,000.00

20,000.00

2,500.00

10,000.00

172,500.00

Ludovic Saverys

60,000.00

40,000.00

0.00

5,000.00

20,000.00

—

125,000.00

Grace Reksten
Skaugen

60,000.00

40,000.00

—

7,500.00

20,000.00

5,000.00

20,000.00

152,500.00

Steven Smith

60,000.00

40,000.00

20,000

20,000.00

2,500.00

10,000.00

3,750.00

10,000.00

166,250.00

—

Anita Odedra

45,000.00

30,000.00

10,000.00

—

Carl Trowell

45,000.00

30,000.00

—

2,500.00

10,000.00

—

95,000.00

87,500.00

TOTAL

495,000.00

270,000.00

95,000.00

75,000.00

20,000.00

70,000.00

15,625.00

60,000.00

1,100,625.00

Annual report 2019Directors’ report

Name

Fixed fee

Attendance

fee Board

Audit

and Risk

Committee

Attendance fee
Audit and Risk
Committee

Remuneration
Committee

Attendance fee
Remuneration
Committee

Corporate
Governance
and Nomination
Committee

Attendance fee Corporate
Governance and
Nomination Committee

TOTAL

Carl Steen

160,000.00

40,000.00

20,000.00

2,500.00

10,000.00

2,500.00

15,000.00

270,000.00

Paddy Rodgers

—

Daniel Bradshaw 5,000.00

10,000.00

5,000.00

Anne-Hélène

Monsellato

60,000.00

40,000.00

20,000.00

Ludovic Saverys

60,000.00

40,000.00

0.00

Grace Reksten

Skaugen

60,000.00

40,000.00

—

1,875.00

5,000.00

31,875.00

2,500.00

10,000.00

172,500.00

5,000.00

20,000.00

—

125,000.00

7,500.00

20,000.00

5,000.00

20,000.00

152,500.00

Steven Smith

60,000.00

40,000.00

20,000

20,000.00

2,500.00

10,000.00

3,750.00

10,000.00

166,250.00

Anita Odedra

45,000.00

30,000.00

10,000.00

—

Carl Trowell

45,000.00

30,000.00

—

2,500.00

10,000.00

—

95,000.00

87,500.00

TOTAL

495,000.00

270,000.00

95,000.00

75,000.00

20,000.00

70,000.00

15,625.00

60,000.00

1,100,625.00

Annual report 20194.3 REMUNERATION POLICY FOR THE EXECUTIVE
COMMITTEE/THE MANAGEMENT BOARD AND THE
EMPLOYEES
Euronav’s remuneration packages intend to be fair and
appropriate to attract, retain and motivate the employees
as well as the management and to be reasonable in view
of the Company economics and the relevant practices of
comparable peer companies.

The Executive Committee (after implementation of the
CCA, known as the Management Board) and employee
compensation packages are composed of a fixed and a
variable element. The fixed and variable remuneration are
determined according to suitable industry benchmarks for
specific positions, company performance and individual
employees’ abilities and achievements of specific objectives.

The Remuneration Committee decides annually on the
remuneration of the members of the Executive Committee.
Variable remuneration is determined on the basis of financial
performance, achievement of budget, HSQE factors and
individual KPI’s.

The Company has no other rights or remedies than the ones
provided for by civil law and company law to claim back the
variable remuneration in case it is attributed on the basis of
incorrect financial statements.

Remuneration (fixed and variable)
Annual Base Salary (fixed)
The fixed part of the remuneration package is referred to as
the Annual Base Salary (ABS). The size of the ABS is reviewed
in accordance with a range of industry benchmarks. After
reference to the detailed benchmark data, the ABS awarded
is then based on the experience of the postholders, required
competencies and responsibilities of the position.

Bonus plan for the Executive Committee (variable)
The remuneration structure includes an Executive Bonus which
considers the following elements: Company performance
(40%), meeting budget targets (30%), improvements in HSQE
factors performance (15%), and individual achievement of
objectives (15%). There is a gateway to the plan of no major
environmental issue during the course of the bonus year.
Payment is recommended by the Remuneration Committee

Annual report 2019Directors’ reportto the Supervisory Board. If the 4 targets are reached, this will
potentially result in an Executive Bonus ranging from 30% to
100% of ABS. Performance against the 4 targets is calculated
basis the 2019 financial year audited results. The Remuneration
Committee made recommendations to the Supervisory Board
in March 2020 for payments under this Executive Bonus plan
which were approved in the same month.

Assessment Process of KPI’s for the members of the Executive
Committee
As outlined above, personal KPI’s were agreed for the year
2019 by the Board of Directors upon recommendation of
the Remuneration Committee, and these form 15% of the
consideration for the Executive Bonus plan.

At year-end all members of the Executive Committee presented
a self-assessment of their performance. This self-assessment
was reviewed by and discussed with the CEO. The results of
this self-assessment were submitted to the Remuneration
Committee for recommendations to the Supervisory Board as
part of the bonus consideration.

4.4 REMUNERATION OF THE EXECUTIVE COMMITTEE

Remuneration of the Chief Executive Officer
The remuneration in 2019 of the CEO is reflected in the table
below:

In EUR:

Fixed remuneration

Variable remuneration

Pension and benefits

Other components

Paddy Rodgers 1,418,400

Hugo De Stoop* 335,875

* Since 9 May 2019

N/A

7,392

N/A

25,941

No loans or advances were granted to the CEO.

On January 31, 2019, the Board of Directors and the CEO, Mr
Paddy Rodgers, agreed in mutual understanding, to terminate
the employment agreement of Mr Rodgers under the following
conditions:

the payment of a severance payment to the CEO of EUR
4,000,000 (the ‘Severance Payment’);
In order to facilitate the transition period until a new CEO
for the Company is found, Mr Rodgers’ employment
agreement will continue until 31 December 2019, subject
to certain amendments;
the irrevocable waiver by Mr Rodgers of any and all of its
rights under the LTIPs and TBIP, save the one of 2015.

The applicable conditions of the Settlement Agreement
were negotiated on an arm’s length basis (taking into
account that the CEO mandate of Mr Rodgers is terminated

in mutual understanding, without any wrongful conduct or
fault on the side of Mr Rodgers). Moreover, the proposed
amounts to be paid under the Settlement Agreement do not
exceed the limitations imposed by the Belgian Companies
Code. The financial consequences for the Company
are limited to the severance payment and remuneration
payable by the Company under the Settlement Agreement.
Such remuneration was justified by the Remuneration
Committee, independently of Mr Rodgers. In reference to
the exceptional service delivered by Mr Rodgers for over 20
years to the Company, 19 of which as its CEO, in relation
to the Settlement Agreement, and taking into account the
continuing obligations of Mr Rodgers under his employment
agreement until 31 December 2019, the Board decided that
the proposed Severance Payment under the Settlement
Agreement and remuneration for the services to be provided
under the employment agreement is common for this type
of agreements and that the conditions are at arm’s length.

Annual report 2019

Remuneration of the other members of the Executive
Committee

The remuneration in 2019 of the members of the Executive
Committee (excluding the CEO) is reflected in the table below:

In EUR:

Fixed remuneration

Variable remuneration

Pension and benefits

Other components

Five members* 1,578,695

Cash: 1,020,709

80,427

81,056

* As of 9 May, 4 members due to dual function CFO/CEO

The composition of the Executive Committee as per
31 December 2019 and the current composition of the
Management Board are set out in point 2.4 above. No loans
or advances were granted to any member of the Executive
Committee.

In relation to variable remuneration for all members of the
Executive Committee, the Company has the right to claim
the variable remuneration back in case of incorrect financial
statements or fraud, as provided under civil and Company law
provisions.

4.5 LONG TERM INCENTIVE PLANS OUTSTANDING

LTIP 2015
On 20 February 2015 within the framework of a management
incentive plan, the Board of Directors granted 65,433 Restricted
Stock Units (RSUs) and 236,590 stock options. On 20 February
2020 the situation is as follows:

LTIP 2015

Stock
Options
Granted

Vested

Exercised

Former CEO

80,518

Former CFO

58,716

COO

54,614

General Counsel

42,742

—

The exercise price of the options is EUR 10.0475.

LTIP 2016
On 2 February 2016 within the framework of a Phantom Stock
Plan, the Board of Directors granted 54,616 phantom stock
units. On 20 February 2020 the situation is as follows:

LTIP 2016

Granted

Vested

Former CEO

17,116

5,705*

Former CFO

20,728

COO

8,009

General Counsel

8,762

The phantom stock units will mature one-third each year on
the second, third and fourth anniversary of the award. All
of the beneficiaries have accepted the phantom stock units
granted to them. The number of phantom stocks granted was
calculated on the basis of a share price of EUR 10.6134 which
equals the weighted average of the share price of the three
days following the announcement of the preliminary full year
results of 2015.

LTIP 2017
Within the framework of a Phantom Stock Plan, 66,449
phantom stock units were granted to the Executive Committee
and the Investor Relations Manager on 9 February 2017. On 20
February 2020 the situation is as follows:

LTIP 2017

Granted

Vested

Former CEO

17,819

N/A*

Former CFO

20,229

13,486

COO

12,557

8,371

General Counsel

9,808

6,539

Investor Relations Manager

6,036

4,024

The phantom stock units will mature one-third each year on
the second, third and fourth anniversary of the award. All
of the beneficiaries have accepted the phantom stock units
granted to them. The number of phantom stocks granted was
calculated on the basis of a share price of EUR 7.2677 which
equals the weighted average of the share price of the three
days following the announcement of the preliminary full year
results of 2016.

Annual report 2019Directors’ reportLTIP 2018
Within the framework of a Phantom Stock Plan 154,431 phantom
stock units were granted to the Executive Committee and
the Investor Relations Manager on 16 February 2018. On 20
February 2020 the situation is as follows:

LTIP 2018

Granted

Vested

LTIP 2019
the
The Supervisory Board, upon
Remuneration Committee, has determined a variable
compensation structured as a LTIP Grant composed out of
RSUs. Each RSU grants the RSU Holder a conditional right to
receive one (1) Share for free upon vesting of the RSU.

recommendation of

Maximum value at grant:

100% of absolute base salary for the CEO

Ranging from 75 to 30% of absolute base salary for the
other Executive Officers

The vesting is subject for 75% to a relative TSR (Total
Shareholder Return) compared to a peer group over a three year
period. Each yearly measurement to be worth 1/3rd of 75% of
the award.

The vesting is subject for 25% to an absolute TSR of the
Company’s Shares measured each year for 1/3 of 25% of the
award.

The RSUs vested will be finally acquired by the beneficiary as of
the third anniversary.

LTIP 2020
the
The Supervisory Board, upon recommendation of
Remuneration Committee, has determined a variable
compensation structured as a LTIP Grant composed out of
RSUs. Each RSU grants the RSU Holder a conditional right to
receive one (1) Share for free upon vesting of the RSU.

Maximum value at grant:

100% of absolute base salary for the CEO

Ranging from 75 to 30% of absolute base salary for the
other Executive Officers

The vesting is subject for 75% to a relative TSR (Total
Shareholder Return) compared to a peer group over a three
year period. Each yearly measurement to be worth 1/3rd of
75% of the award.

The vesting is subject for 25% to an absolute TSR of the
Company’s Shares measured each year for 1/3 of 25% of the
award.

The RSUs vested will be finally acquired by the beneficiary as
of the third anniversary.

Former CEO

46,652

N/A*

Former CFO

37,620

12,540

COO

36,480

12,160

General Counsel

27,360

9,120

Investor Relations Manager

6,319

2,106

The phantom stock units will mature one-third each year on the
second, third and fourth anniversary of the award. All of the
beneficiaries have accepted the phantom stock units granted to
them. The number of phantom stocks granted was calculated
on the basis of a share price of EUR 7.2368 which equals the
weighted average of the share price of the three days following
the announcement of the preliminary full year results of 2017.

Transaction Based Incentive Plan (TBIP)
The members of the Executive Committee have been granted a TBIP
in the form of 1.2 million** phantom shares as per 12 January 2019.

TBIP

Granted

Vested

Former CEO

400,000

N/A*

Former CFO

300,000

36,000

COO

150,000

18,000

General Counsel

170,000

20,400

Investor Relations Manager

80,000

9,600

General Manager Hellas

50,000

6,000

The TBIP has a duration of five years. The phantom stock
awarded matures in four tranches as follows:

First tranche of 12% vesting when the average 30 days
share price reaches USD 12 (decreased with dividends paid,
if any, since date of grant)
Second tranche of 19% vesting when the average 30 days
share price reaches USD 14 (decreased with dividends paid,
if any, since date of grant)
Third tranche of 25% vesting when the average 30 days
share price reaches USD 16 (decreased with dividends paid,
if any, since date of grant)
Fourth tranche of 44% vesting when the average 30 days
share price reaches USD 18 (decreased with dividends paid,
if any, since date of grant)

* Waived as part of the settlement agreement. See chapter 4.4
** Not all of the amount is still applicable, since it includes 2 participants to the

plan that have left the company.

4.6 REMUNERATION OF THE AUDITOR KPMG
BEDRIJFSREVISOREN-RÉVISEURS D’ENTREPRISES
(KPMG)

Permanent representative: Patricia Leleu

For 2019, the worldwide audit and other fees in respect of
services provided by the statutory auditor KPMG can be
summarized as follows:

In USD

2019

2018

Audit services for the annual
financial statements

925,274

909,897

Audit related services

39,742

409,360

Tax services

728

6,180

Other non-audit services

20,151

10,076

TOTAL

985,895

1,335,513

The limits prescribed by Article 133 of the Belgian Company
Code were observed.

5. INTERNAL CONTROL AND RISK MANAGEMENT
SYSTEMS
Internal control can be defined as a system developed
and implemented by management and which contributes
to managing the activities of the Company, its efficient
functioning and the efficient use of its resources, all in function
of the objectives, the size and the complexity of its activities.

Risk management can be defined as a structured, consistent
and continuous proces aimed at
identifying, assessing,
deciding on responses to and reporting on the opportunities
and threats that may affect the achievement of the Company's
objectives.

A Risk Management Charter has been created and approved
by the Supervisory Board in furtherance of the Company's
commitment to building a strong risk management culture.
Clear roles and responsibilities have been drafted as well as
risk management procedures.

Risks (as described in more detail in the ‘Risk Factors’ section
in this annual report) are all compiled in the risk register and
mainly relate to the following aspects:

strategic: capital allocation, strategic partnerships, risks
relating to the TI Pool and VLCC Chartering, the joint
ventures and associates, risks related to communication to
stakeholders;
economic (including slowing economic growth, freight rate
volatility, oil supply and demand, inflation or fluctuations
in interest and foreign currency exchange rates) and
competitive risks (such as greater price competition);
operational: risks inherent in the operation of ocean-

going vessels, including bunker supply and management
of crew, the conversion of vessels, the operation of its
FSO activities, the integration of acquired activities, the
adequate protection of critical data and infrastructure from
unauthorized use or theft, including cyber-criminality and
the effective management of its international operations;
regulations: if the Company fails to comply with laws
regulations or other requirements or is involved in legal
proceedings in this regard, its operations and revenues may
be adversely affected;
financing: the Company is subject to operational and
financial restrictions in debt agreements; refinancing of
loans may not always be possible;
geopolitical: terrorist attacks, piracy, civil disturbances and
regional conflicts in any particular country.

The risk register identifies an individual risk owner for each risk.
Risk owners review and certify their risks on a quarterly basis.
The results of this quarterly certification are being reported to
the Audit and Risk Committee by the Chief Risk Officer who is
responsible for the effective operation of the risk management
framework.

Euronav also has developed a ‘Health, Safety, Quality and
Environmental (HSQE) Management System’ which integrates
HSQE management into a system that fully complies with
the ISM Code for the ‘Safe Operation of Ships and Pollution
Prevention’.

To support the financial reporting, Euronav has a system of
internal control over financial reporting including policies
and procedures to accurately reflect the transactions and
dispositions of assets of the Company, in order to provide
reasonable assurance that transactions are recorded
in
accordance with generally accepted accounting principles
and that provides reasonable assurance to timely detect
unauthorized acquisition or use or disposition of Company’s
assets. Compliance
is monitored by means of annual
assessments performed by the internal audit function and
their outcome is reported to the corporate finance function,
which presents a consolidated report to the Audit and Risk
Committee. More details on the exact role and responsibilities
of the Audit and Risk Committee in relation to the internal
control and risk management systems can be found in the
section on its powers, described above.

Euronav has established an internal audit function for the
purpose of reviewing and analysing strategic, operational,
financial and IT risks, to conduct specific assignment in
accordance with the annual internal audit plan and to report
and discuss the findings with the Audit and Risk Committee.
The scope of internal audit is both on operations and on
internal control over financial reporting. The Internal Audit
Department is staffed with designated resources, resources
from other departments and external service providers for
competencies that are not available within the Company. Part
of the internal audit work on internal control over financial
reporting is outsourced to a qualified service provider (EY).
The Internal Audit Manager reports both to the CEO and to the
Audit and Risk Committee.

Annual report 2019Directors’ report

Euronav has appointed KPMG as its external auditor to verify
its financial results and compliance with Belgian legislation.
The external auditor issues a report at least twice a year which
they present to the Audit and Risk Committee. They are also
invited to attend the AGM to present their report.

5.1 HEDGING POLICY
Euronav may hedge part of its exposure to cover changes in
interest rates on borrowings. All borrowings contracted for
the financing of vessels are on the basis of a floating interest
rate, increased by a margin. The Group does not hold or trade
derivatives for speculative purposes. Euronav uses derivative
financial instruments - such as foreign exchange forward
contracts, interest rate swaps, purchase of CAP options, sale of
FLOOR options, currency swaps and other derivative instruments
- solely to manage its exposure to interest rates and foreign
currency exchange rates and to achieve an appropriate mix of
fixed and floating rate exposure as defined by the Group. For a
more detailed position of Euronav’s financial instruments, we
refer to note 19 of the Financial Statements.

5.2 RISKS
Tonnage Tax Regime
Shortly after its incorporation in 2003, Euronav applied for
treatment under the Belgian tonnage tax regime. It was
declared eligible for this regime by the Federal Finance
Department on 23 October 2003 for a ten-year period. In line
with the tonnage tax regulations, which is part of the normal
corporate tax regime in Belgium, profits from the operation of
seagoing vessels are determined on a lump sum basis basis
on the net registered tonnage of the particular vessels. After
this first ten-year period had elapsed, the tonnage tax regime
has been automatically renewed for another ten-year period.
This tonnage tax replaces all factors that are normally taken
into account in traditional tax calculations, such as profit or
loss, operating costs, depreciation, gains and the offsetting
of past losses of the revenues taxable in Belgium. Two of
Euronav’s subsidiaries also applied for the Belgian tonnage tax
regime as from 2016 and have obtained the authorization for
both subsidiaries in the beginning of 2016. For 2019 one of
these entities has left the tonnage tax regime on a voluntary
basis because it did not operate ships anymore.

In 2017 and early 2018 the Company took note of the
correspondence between the Belgian authorities and the
European Commission within the framework of a request for
extension of the state aid to the maritime industry by Belgium.
Belgium decided to adjust the tonnage tax Law which entered
into force retroactively as from 1 January 2018 to comply with
the recommendations from the European Commission. The
changes to the tonnage tax regulations were reviewed but did
or do not have any adverse effect to our existing tonnage tax
regime or on the operations of the Company.

Euronav is also operating vessels under Greek, French, Marshall
Island and Liberian Flag for which the Company is paying the
required tonnage tax in these relevant jurisdiction.

Risks associated to the business
Due to the cyclical nature of its activities, Euronav’s operating
results have experienced fluctuations on an annual or quarterly
basis in the past. This will probably remain the case in the
future. The fluctuations in Euronav’s operating results are due
to various factors, a number of which lie outside Euronav’s
control. The tanker market is historically a cyclical one. It is a
market that experiences high volatility as a result of changes
in supply and demand for seaborne transportation of crude oil.
Firstly, the supply of tanker capacity is affected by the number
of newly constructed vessels, the recycling percentage of
existing tankers and the changes in laws and regulations.
Secondly, the demand for tankers is highly sensitive to global
and regional market conditions and to crude oil production and
consumption levels. The nature and timing of all these factors,
some of which are of a geopolitical nature, are unpredictable,
and may have a significant impact on Euronav’s activities and
operating results.

Euronav is subject to operational and financial restrictions in
debt agreements
Euronav’s existing debt agreements impose operational and
financial restrictions which have an impact on, and in some
respects limit or preclude, among other things, the possibility
for Euronav and its subsidiaries of taking on additional debts,
pledging securities, selling shares in subsidiaries, making
certain investments, entering into mergers and acquisitions,
buying and selling of vessels, or paying dividends without the
lenders’ approval.

Euronav’s loan agreements also stipulate a certain minimum
ratio of market value for vessels and other securities. The
financial institutions may reduce the term of the debt under
such loan agreements, and seize the securities used to
guarantee the loan in the event of bankruptcy, including
Euronav’s failure to honor these agreements in full. Under any
of these circumstances, there is no guarantee that Euronav
will have enough funds or other resources to meet all its
commitments.

Declines in charter rates, vessel values and other market
deterioration could cause Euronav to incur impairment
charges
In previous years Euronav carefully assessed through a
detailed approach if the carrying amounts of the vessels
would require an impairment of their carrying amounts. The
recoverable amount of vessels is reviewed based on events and
changes in circumstances that would indicate that the carrying
amount of the assets might not be recovered. The review for
potential impairment indicators and projection of future cash
flows related to the vessels is complex and requires various
estimates to be made, relating to, among other things, vessel
values, future freight rates, earnings from the vessels, discount
rates and economic life of vessels. In the previous years no
impairment was booked.

In 2019 the impairment exercise was limited to a two step
approach, leading to the conclusion that no further steps were
needed to conclude that no impairment was needed. The first
step focused on identifying the level at which assets are tested

Annual report 2019
for impairment. Euronav defines its cash generating unit as a
single vessel, unless such vessel is operated in a pool, in which
case such vessel, together with the other vessels in the pool,
are collectively treated as a cash generating unit.

Second step was to determine when to test for impairment.
Euronav reviewed internal as well as external indications of
impairment that are considered in assessing whether indicator-
based impairment testing is necessary:

the obsolescence or physical damage of an asset;
significant changes in the extent or manner in which an
asset is (or is expected to be) used that have (or will have)
an adverse effect on the entity;
a plan to dispose of an asset before the previously expected
date of disposal;
indications that the performance of an asset is, or will be,
worse than expected;
cash flows for acquiring the asset, operating or maintaining
it that are significantly higher than originally budgeted;
net cash flows or operating profits that are lower than
originally budgeted;

and net cash outflows or operating losses

market capitalization below net asset value

a significant and unexpected decline in market value;

significant adverse effects in the technological, market,
economic or legal environment;
increases in market interest rates

The assessment of these indicators did not reveal the existence
of events or conditions indicating that the carrying amounts of
vessels, including right of use assets related to vessels, may be
higher than its recoverable amount.
Whilst no impairment was required this year, we cannot

assure this will be also the case in the future. Any impairment
charge incurred could negatively affect our financial condition,
operating results and the value of our shares.

Euronav is subject to the risks inherent in the operation of
ocean-going vessels
Euronav’s activities are subject to various risks, including
extremes of weather, negligence of its employees, mechanical
defects in its vessels, collisions, severe damage to vessels,
damage to or the loss of freight and the interruption of
commercial activities due to (geo-)political circumstances
and events, hostilities or strikes. Moreover, the operation of
ocean-going vessels is subject to the inherent possibility of
maritime disasters such as oil spills and other environmental
accidents, and to the obligations arising from the ownership and
management of vessels in international trade.

insurance policies are
its current
Euronav believes that
sufficient to protect it against possible accidents, and that it
is also adequately covered against environmental damage
and pollution, as required by relevant legislation and standard
practices in the sector. However, there is no guarantee that such

Annual report 2019Directors’ report

Euronav’s activities are subject to fluctuations in exchange
rates and interest rates, causing pronounced variations in its
net results
Euronav’s income is mainly expressed in USD, although some
operating costs are expressed in other currencies, especially
the Euro. This partial mismatch between operating income and
expenses could lead to fluctuations in Euronav’s net results.

Euronav is subject to risks inherent in conversion of vessels
into Floating, Storage and Offloading services operation
(FSO) units and the operation of its FSO activities
Euronav’s FSO activities are subject to various risks, including
delays, cost overruns, negligence of its employees, mechanical
defects in its machinery, collisions, severe damage to vessels,
damage to or loss of freight, piracy, war, regional conflicts
or strikes. In case of delays in delivering FSO under service
contract to its end-user, can cause contracts to be amended
and/or canceled. Moreover, the operation of FSO vessels is
subject to the inherent possibility of maritime disasters such
as oil spills and other environmental accidents, and to the
obligations arising from the ownership and management
of vessels in international trade. Euronav has established
sufficient current insurance against possible accidents and
environmental damage and pollution as requested by relevant
legislation and standard practices in the sector. However, there
is no guarantee that such insurance will remain available at
rates which are regarded as reasonable by Euronav or that such
insurance will remain sufficient to cover all losses incurred or
the cost of each compensation claim made against Euronav, or
that its insurance policies will cover the loss of income resulting
from a vessel becoming non-operational. Should compensation
claims be made against Euronav, its vessels may be impounded
or subject to other judicial procedures.

Refinancing of loans may not always be possible
There is no assurance that Euronav will be able to repay or refinance
its facilities on acceptable terms or at all as they become due upon
their respective maturity dates. Financial markets and debt markets
are not always open independently of the situation of Euronav and
the lack of debt finance may adversely affect Euronav’s operations
business and results of operations.

Risks relating to the TI Pool and VLCC Chartering, the joint
ventures and associates may adversely affect Euronav’s
operations, business and results of operations
Although efforts are made to identify and manage the various
potential risks within Euronav in the same way, this is not always
possible or enforceable. In the case of the TI Pool and VLCC
Chartering, joint ventures and associates, differing views from
the other partner(s) may arise, as a result of which, according to
Euronav, specific treatment of the risks may be limited or even
prevented. The different approaches to these risks may lead
to consequences other than those which Euronav would have
incurred or would have wished to incur, which may adversely
affect Euronav’s operations, business and results of operations.

Acts of piracy on ocean-going vessels could adversely affect
Euronav’s business
Acts of piracy have historically affected ocean-going vessels
trading in regions of the world such as the South China Sea,

insurance will remain available at rates which are regarded as
reasonable by the Company, or that such insurance will remain
sufficient to cover all losses incurred by Euronav or the cost of
each compensation claim made against Euronav, or that its
insurance policies will cover the loss of income resulting from a
vessel becoming non-operational. Should compensation claims
be made against Euronav, its vessels may be impounded or
subject to other judicial procedures.

Euronav’s activities are subject to important environmental
legislation which may cause Euronav’s expenditure to
increase abruptly
Euronav’s activities are subject
to extensive, changing
environmental legislation. In the past, Euronav has incurred
significant expenses in order to comply with such legislation
and regulations, including spending on changes to vessels
and to operational procedures. It expects such expenditure to
remain high. Additional laws and regulations could be introduced
restricting Euronav’s ability to pursue its activities, or causing
its costs to increase substantially. That could have a negative
impact on Euronav’s activities, financial situation and operating
results.

The prospects for a particular period may not be attained during
that period as a result of unpredictable economic cycles
Although various analysts provide forecasts regarding the
development of the markets, these do not always precisely
reflect future freight rates, which tend to be unpredictable.
The forecasting of freight rates is difficult due to the uncertain
prospects of the global economy.

Euronav may need additional capital in the future and may
prove unable to find suitable funds on acceptable terms
Euronav has made considerable investments in recent years.
Although most of these projects are satisfactorily financed, the
risk exists that the financial markets will be unable to provide
sufficient funds to continue supporting such projects. At the
time of issuing this report, the COVID-19 virus is hitting hard
the world economy. Impact of this crisis on the renewal of
loans will be closely monitored.

Annual report 2019the Indian Ocean, the Gulf of Aden off the coast of Somalia
and in particular the Gulf of Guinea region off Nigeria, which
experienced increased incidents of piracy in 2019. Over the
past few years, the frequency of piracy incidents in the Gulf
of Aden and in the Indian Ocean has decreased significantly,
whereas there has been an increase in the Southeast Asia as
well as in the Gulf of Guinea where the various active pirate
groups have turned from mainly cargo theft to kidnapping
of crew. If these piracy attacks occur in regions in which
the Company’s vessels are deployed being characterized
by insurers as ‘high risk’ areas, premiums payable for
such coverage could increase significantly and in extreme
circumstances, such insurance coverage may be more difficult
to obtain. In addition, crew costs, as well as costs which may
be incurred to the extent the Company employs on board
security guards or hires in military patrol boats to escort the
vessel, could increase in such circumstances. Detention as a
result of an act of piracy against the Company’s vessels, or an
increase in cost, or unavailability of insurance for the vessels,
could have a material adverse impact on the Company’s
business, results of operations, cash flows, financial condition
and ability to pay dividends. In response to piracy incidents,
particularly in the Gulf of Aden off the coast of Somalia
and the wider Western Indian Ocean area and following
consultation with regulatory authorities, Euronav follows the
latest version of BMP5 (Best Management Practices) which is
a guide that has been produced and updated regularly jointly
by EUNAVFOR, the NATO Shipping Centre and UKMTO (UK
Maritime Trade Operations) in addition to several maritime
industry organizations or the Company may even consider
to station armed guards on some of its vessels. Whilst use
of armed guards has been proven to deter and prevent the
hijacking of the Company’s vessels, it may also increase
the risk of liability for death or injury to persons or damage
to personal effects and third party property, which could
adversely impact its business, results of operations, cash
flows, financial condition and ability to pay dividends.

Euronav is subject to risks related to the adequate protection
of critical data and infrastructure from unauthorized use or
any other form of cyber-criminality
Euronav’s activities are subject to risk of discontinuity
due to unauthorized use, theft, sabotage, viruses or any
other disruptive activity (such as phishing and hacking)
on the Company’s IT infrastructure, which could impact
the confidentiality, integrity and availability of data and/or
IT systems, as well as impact on the financial result of the
Company. Euronav has implemented, amongst other things,
business continuity plans, a regularly tested IT controls
framework, continuous access monitoring and independent
penetration testing in our offices and on board of our
vessels. The Company’s controls also include compliance
to existing related rules & legislation and implement full
adherence to the EU General Data Protection Regulation, as
approved on 14 April 2016.

Climate change and greenhouse gas restrictions may
adversely impact our operations and markets.
Due to concern over the risk of climate change, a number of
countries and the IMO have adopted, or are considering the
adoption of, regulatory frameworks to reduce greenhouse gas
emissions. These regulatory measures may include, among
others, adoption of cap and trade regimes, carbon taxes,
increased efficiency standards and incentives or mandates
for renewable energy. More specifically, on 27 October 2016,
the International Maritime Organization’s Marine Environment
Protection Committee announced its decision concerning
the implementation of regulations mandating a reduction
in sulphur emissions from 3.5% currently to 0.5% as of the
beginning of 1 January 2020. Since 1 January 2020, ships
have to either remove sulphur from emissions or buy fuel with
low sulphur content, which may lead to increased costs and
supplementary investments for ship owners. The interpretation
of ‘fuel oil used on board’ includes use in main engine, auxiliary
engines and boilers. Shipowners may comply with this
regulation by (i) using 0.5% sulphur fuels on board, which are
available around the world but at a higher cost; (ii) installing
scrubbers for cleaning of the exhaust gas; or (iii) by retrofitting
vessels to be powered by liquefied natural gas, which may
not be a viable option due to the lack of supply network and
high costs involved in this process. Costs of compliance with
these regulatory changes may be significant and may have a
material adverse effect on our future performance, results of
operations, cash flows and financial position.

In addition, although the emissions of greenhouse gases
from international shipping currently are not subject to the
Kyoto Protocol to the United Nations Framework Convention
on Climate Change, which required adopting countries to
implement national programs to reduce emissions of certain
gases, or the Paris Agreement, a new treaty may be adopted
in the future that includes restrictions on shipping emissions.
Compliance with changes in laws, regulations and obligations
relating to climate change could increase our costs related to
operating and maintaining our vessels and require us to install
new emission controls, acquire allowances or pay taxes related
to our greenhouse gas emissions or administer and manage a
greenhouse gas emissions program. Revenue generation and
strategic growth opportunities may also be adversely affected.

Adverse effects upon the oil and gas industry relating to
climate change, including growing public concern about the
environmental impact of climate change, may also adversely
affect demand for our services. For example, increased
regulation of greenhouse gases or other concerns relating to
climate change may reduce the demand for oil and gas in the
future or create greater incentives for use of alternative energy
sources. In addition, the physical effects of climate change,
including changes in weather patterns, extreme weather events,
rising sea levels, scarcity of water resources, may negatively
impact our operations or operations of service providers upon
whom we depend, such as ports infrastructures. Any long-term
material adverse effect on the oil and gas industry could have
a significant financial and operational adverse impact on our
business that we cannot predict with certainty at this time.

Annual report 2019Directors’ reportinstability,

terrorist attacks and

Political
international
hostilities can affect the seaborne transportation industry,
which could adversely affect our business.
Our business, results of operations, cash flows, financial
condition and ability to pay dividends, if any, in the future may
be adversely affected by changing economic, political and
government conditions in the countries and regions where our
vessels are employed or registered. Moreover, we operate in a
sector of the economy that is likely to be adversely impacted by
the effects of political conflicts, including the current political
instability in the Middle East and the South China Sea region
and other geographic countries and areas, geopolitical events
such as the withdrawal of the U.K. from the European Union,
or ‘Brexit’, terrorist or other attacks, and war (or threatened
war) or international hostilities, such as those between the
United States and North Korea or Iran. Continuing conflicts and
recent developments in the Middle East, and Iran, or between
the Houthi and Arab counties in Yemen, or internally in Libya .
Terrorist attacks such as those in Paris on 13 November 2015,
Manchester on 22 May 2017, as well as the frequent incidents
of terrorism in the Middle East, and the continuing response of
the United States and others to these attacks, as well as the
threat of future terrorist attacks around the world, continues
to cause uncertainty in the world’s financial markets and
international commerce and may affect our business, operating
results and financial condition. Continuing conflicts and recent
developments in the Middle East, including increased tensions
between U.S. and Iran which in January 220 escalated into
a U.S. airstrike in Baghdad that killed a high-ranking Iranian
general, as well as the presence of U.S. or other armed forces
in Iraq, Syria, Afghanistan and various other regions, may lead
to additional acts of terrorism and armed conflict around the
world, which may contribute to further economic instability
in the global financial markets and international commerce.
Additionally any escalations between U.S. and Iran could
result in retaliation from Iran that could potentially affect the
shipping industry, through increased attacks on vessels n the
Strait of Hormuz (which already experienced an increased
number of attacks on and seizures of vessels in 2019). These
uncertainties could also adversely affect our ability to obtain
additional financing or insurance on terms acceptable to us or
at all. Any of these occurrences could have a material adverse
impact on our operating results, revenues and costs.

Further, governments may turn and have turned to trade
barriers to protect their domestic industries against foreign
imports, thereby depressing shipping demand. In particular, by
implementing more protective trade measures. Protectionist
developments, for geopolitical or health reasons such as the
COVID-19 situation or the perception they may occur, may
have a material adverse effect on global economic conditions,
and may significantly reduce global trade.

Outbreaks of epidemic and pandemic of diseases and
governmental responses thereto could adversely affect our
business.
Our operations are subject to risks related to outbreaks of
infectious diseases. For example, the recent outbreak of
COVID-19, a virus causing potentially deadly respiratory tract
infections originating in China and subsequently spreading
around the world, has negatively affect economic conditions,
the supply chain, the labor market and the demand for oil and
natural gas shipping regionally as well as globally and may
otherwise impact our operations and the operations of our
customers and suppliers. As of March 2020, the outbreak of
COVID-19 has been declared a pandemic by the World Health
Organization (“WHO”). Governments in affected countries are
imposing travel bans, quarantines and other emergency public
health measures. Companies are also taking precautions,
such as requiring employees to work remotely, imposing
travel restrictions and temporarily closing businesses. Those
measures, though temporary in nature, may continue and
increase depending on developments in the virus’ outbreak.
These restrictions, and future prevention and mitigation
measures, are likely to have an adverse impact on global
economic conditions, which could materially and adversely
affect our future operations. As a result of these measures, our
vessels may not be able to call on ports, or may be restricted
from disembarking from ports, located in regions affected by
COVID-19.

The ultimate severity of the COVID-19 outbreak is uncertain at
this time and are likely to result in sustained market turmoil,
which could also negatively impact our business, financial
condition and cash flows. At this time, it remains impossible
to predict the impact it may have on our business, results of
operations and financial condition, which could be material
and adverse.

Annual report 2019Rising fuel prices may adversely affect our profits.
While we do not directly bear the cost of fuel or bunkers under
our time charters, fuel is a significant factor in negotiating charter
rates. Fuel is also a significant, if not the largest, expense in our
shipping operations when vessels are operated on the spot market
under voyage charter. As a result, an increase in the price of fuel
beyond our expectations may adversely affect our profitability
at the time of charter negotiation. The price and supply of fuel is
unpredictable and fluctuates based on events outside our control,
including geopolitical developments, supply and demand for oil
and gas, actions by the Organization of Petroleum Exporting
Countries, or OPEC, and other oil and gas producers, war and
unrest in oil producing countries and regions, regional production
patterns and environmental concerns. Further, fuel has become
much more expensive as a result of new regulations mandating a
reduction in sulphur emissions to 0.5% as of January 2020, which
may reduce the profitability and competitiveness of our business
versus other forms of transportation, such as truck or rail. Other
future regulations may have a similar impact.

The IMO 2020 regulations may cause us to incur substantial
costs and to procure low-sulpher fuel oil directly on the
wholesale market for storage at sea and onward consumption
on our vessels.

Effective 1January 2020, the IMO implemented a new regulation
for a 0.50% global sulphur cap on emissions from vessels. Under
this new global cap, vessels must use marine fuels with a sulphur
content of no more than 0.50% against the former regulations
specifying a maximum of 3.50% sulphur in an effort to reduce the
emission of sulphur oxide into the atmosphere.

We may incur costs to comply with these revised standards.
Additional or new conventions, laws and regulations may be
adopted that could require, among others, the installation of
expensive emission control systems and could adversely affect
our business, results of operations, cash flows and financial
condition.

With the exception of the 4 VLCC vessels under construction at
DSME shipyard, none of our vessels are equipped with scrubbers
and as of 1 January 2020 we have transitioned to burning IMO
compliant fuels. We continue to evaluate different options in
complying with IMO and other rules and regulations. We expect
that our fuel costs and fuel inventories will increase in 2020 as
a result of these sulphur emission regulations. Low sulphur fuel
is more expensive than standard marine fuel containing 3.5%
sulphur content and may become more expensive or difficult to
obtain as a result of increased demand. If the cost differential
between low sulphur fuel and high sulphurfuel is significantly
higher than anticipated, or if low sulphur fuel is not available
at ports on certain trading routes, it may not be feasible or
competitive to operate our vessels on certain trading routes
without installing scrubbers or without incurring deviation time
to obtain compliant fuel. Scrubbers may not be available to be
installed on such vessels at a favorable cost or at all if we seek
them at a later date.

Fuel is a significant, if not the largest, expense in our shipping
operations when vessels are under voyage charter and is an

important factor in negotiating charter rates. Our operations and
the performance of our vessels, and as a result our results of
operations, cash flows and financial position, may be negatively
affected to the extent that compliant sulphur fuel oils are
unavailable, of low or inconsistent quality, if de-bunkering facilities
are unavailable to permit our vessels to accept compliant fuels
when required, or upon occurrence of any of the other foregoing
events. Costs of compliance with these and other related
regulatory changes may be significant and may have a material
adverse effect on our future performance, results of operations,
cash flows and financial position. As a result, an increase in the
price of fuel beyond our expectations may adversely affect our
profitability at the time of charter negotiation. Further, fuel may
become much more expensive in the future, which may reduce
the profitability and competitiveness of our business versus other
forms of transportation, such as truck or rail.

Developments in safety and environmental requirements
relating to the recycling of vessels may result in escalated
and unexpected costs.
The 2009 Hong Kong International Convention for the Safe
and Environmentally Sound Recycling of Ships, or the Hong
Kong Convention, aims to ensure ships, being recycled once
they reach the end of their operational lives, do not pose any
unnecessary risks to the environment, human health and
safety. The Hong Kong Convention has yet to be ratified by the
required number of countries to enter into force. Upon the Hong
Kong Convention’s entry into force, each ship sent for recycling
will have to carry an inventory of its hazardous materials. The
hazardous materials, whose use or installation are prohibited
in certain circumstances, are listed in an appendix to the Hong
Kong Convention. Ships will be required to have surveys to
verify their inventory of hazardous materials initially, throughout
their lives and prior to the ship being recycled.
The Hong Kong Convention, which is currently open for
accession by IMO Member States, will enter into force 24
months after the date on which 15 IMO Member States,
representing at least 40% of world merchant shipping by gross
tonnage, have ratified or approve accession. As of the date of
this annual report, fifteen countries representing just over 30%
of world merchant shipping tonnage have ratified or approved
accession of the Hong Kong Convention.
On 20 November 2013, the European Parliament and the Council
of the EU adopted the Ship Recycling Regulation, which retains
the requirements of the Hong Kong Convention and requires
that certain commercial seagoing vessels flying the flag of an
EU Member State may be recycled only in facilities included on
the European list of permitted ship recycling facilities. We are
required to comply with EU Ship Recycling Regulation by 31
December 2020, since our ships trade in EU region.
These regulatory developments, when implemented, may lead
to cost escalation by shipyards, repair yards and recycling
yards. This may then result in a decrease in the residual scrap
value of a vessel, and a vessel could potentially not cover the
cost to comply with latest requirements, which may have an
adverse effect on our future performance, results of operations,
cash flows and financial position.

Annual report 2019Directors’ reportWorld events could affect our results of operations and
financial condition.
We conduct most of our operations outside of the U.S. and
Belgium. Our business, results of operations, cash flows, financial
condition and available cash may be adversely affected by the
effects of political instability, terrorist or other attacks, war, trade
war or international hostilities. Continuing conflicts and recent
developments in the Middle East, the Korean Peninsula, North
Africa, China and other geographic regions and countries and the
presence of the United States and other armed forces in certain of
these regions may lead to additional acts of terrorism and armed
conflict around the world, which may contribute to further world
economic instability and uncertainty in global financial markets.
As a result of the above, insurers have increased premiums and
reduced or restricted coverage for losses caused by terrorist acts
generally. Future terrorist attacks could result in increased volatility
of the financial markets and negatively impact the U.S. and global
economy. These uncertainties could also adversely affect our
ability to obtain additional financing on terms acceptable to us
or at all.

In the past as well as recently, political instability has also
resulted in attacks on vessels, mining of waterways and other
efforts to disrupt international shipping, particularly in the
Arabian Gulf region. Acts of terrorism and piracy have also
affected vessels trading in regions such as the South China
Sea, West Africa and the Gulf of Aden off the coast of Somalia.
Any of these occurrences could have a material adverse impact
on our business, financial condition, results of operations and
available cash.

Technological
innovation and quality and efficiency
requirements from our customers could reduce our
charterhire income and the value of our vessels.
Our customers, in particular those in the oil industry, have a
high and increasing focus on quality and compliance standards

with their suppliers across the entire supply chain, including the
shipping and transportation segment. Our continued compliance
with these standards and quality requirements is vital for our
operations. The charterhire rates and the value and operational life
of a vessel are determined by a number of factors including the
vessel’s efficiency, operational flexibility and physical life. Efficiency
includes speed, fuel economy and the ability to load and discharge
cargo quickly. Flexibility includes the ability to enter harbors, utilize
related docking facilities and pass through canals and straits. The
length of a vessel’s physical life is related to its original design
and construction, its maintenance and the impact of the stress
of operations. If new tankers are built that are more efficient or
more flexible or have longer physical lives than our vessels,
competition from these more technologically advanced vessels
could adversely affect the amount of charterhire payments we
receive for our vessels and the resale value of our vessels could
significantly decrease. This could have an adverse effect on our
results of operations, cash flows, financial condition and ability to
pay dividends.

6. Information to be included in the annual report as per
article 34 of the royal decree of 14 November 2007

6.1 CAPITAL STRUCTURE
At the time of preparing this report, the registered share capital
of Euronav amounts to USD 239,147,505.82 and is represented
by 220,024,713 shares without par value. The shares are in
registered or dematerialized form. Euronav currently holds
4,946,216 own shares.

At the time of preparing this report, no convertible bonds or
perpetual preferred equity instruments of the Company were
outstanding. Besides the stock option plans referred to section
4.5 of this Corporate Governance Statement, there are no other
share plans, stock options or other rights to acquire shares of
the Company in place.

Annual report 20196.4 AGREEMENTS AMONGST SHAREHOLDERS OR
OTHER AGREEMENTS
As of the date of this report, the Supervisory Board is not
aware of any agreements among major shareholders or
any other shareholders that may result in restrictions on the
transfer of securities or the exercise of voting rights. The major
shareholders have not entered into a shareholders’ agreement
or a voting agreement, nor do they act in concert. There are
no agreements between the Company and its employees
or the members of its Supervisory Board providing for any
compensation in case of resignation or dismissal on account
of a public acquisition offer. However, if the agreement with a
member of the Management Board is terminated for reasons
of a Change of Control, the member of the Management Board
shall be entitled to a compensation.
Apart from the foregoing and from the customary change of
control provision in the financing agreements, the bareboat
charter parties
in the framework of sale-and-lease-back
transactions and the long-term incentive plans Euronav has
entered into, there are no other important agreements to
which the Company is a party and which enter into force, be
amended or be terminated, in case of a change of control of
the Company following a public offer.

6.5 APPOINTMENT AND REPLACEMENT OF MEMBERS
OF THE SUPERVISORY BOARD
The articles of association (Article 15 and following) and the
Euronav Corporate Governance Charter contain specific rules
concerning the (re)appointment, the replacement and the
evaluation of members of the Supervisory Board. The General
Shareholders’ Meeting appoints the Supervisory Board. The
Supervisory Board submits the proposals for the appointment
or re-election of members of the Supervisory Board - supported
by a recommendation of the Corporate Governance and
Nomination Committee - to the General Shareholders’ Meeting
for approval. If a Supervisory Board member's mandate
becomes vacant in the course of the term for which such
member was appointed, the remaining Supervisory Board
members may provisionally fill the vacancy until the following
General Shareholders’ Meeting, which will decide on the final
replacement. A Supervisory Board member nominated under
such circumstances is only appointed for the time required
to terminate the mandate of the member whose place he has
taken. Appointments of Supervisory Board members are made
for a maximum of four years. After the end of his/her term,
each member is eligible for re-appointment.

6.6 AMENDMENTS TO ARTICLES OF ASSOCIATION
The articles of association can be amended by the Extraordinary
General Meeting in accordance with the Belgian Code of
Company’s and Associations. Each amendment to the articles
of association requires a qualified majority of votes.

6.7 AUTHORIZATION GRANTED TO THE SUPERVISORY
BOARD TO INCREASE SHARE CAPITAL
The articles of association (Article 7) contain specific rules
concerning the authorization to increase the share capital of
the Company. By decision of the Shareholders’ Meeting held on
20 February 2020, the Supervisory Board has been authorized
to increase the share capital of the Company in one or several

6.2 RESTRICTIONS ON THE EXERCISE OF VOTING
RIGHTS OR ON THE TRANSFER OF SECURITIES
Each share entitles the holder to one vote. There are no
securities issued by the Company which would entitle the
holder to special voting rights or control. The articles of
association contain no restrictions on the voting rights, and
each shareholder can exercise his voting rights provided he is
validly admitted to the Shareholders’ Meeting and his rights
are not suspended. Pursuant to Article 12 of the articles of
association, the Company is entitled to suspend the exercise
of rights attached to shares belonging to several owners. No
person can vote at the Shareholders’ Meeting using voting
rights attached to shares for which the formalities to be
admitted to the general meeting as laid down in Article 33 of
the articles of association or the law have not been fulfilled
in time or accurately. Likewise, there are no restrictions in the
articles of association or by law on the transfer of shares.

6.3 GENERAL SHAREHOLDERS’ MEETING
The ordinary General Shareholders’ Meeting is held in Antwerp
on the third Thursday of the month of May, at 10.30 a.m., at the
registered office or any other place mentioned in the convening
notices. If such date would be a bank holiday, the Annual
Shareholders’ Meeting would take place on the preceding
business day.

Annual report 2019Directors’ reporttimes by a total maximum amount of USD 25,000,000 (with
possibility for the Supervisory Board to restrict or suspend the
preferential subscription rights of the existing shareholders) or
USD 120 000 000 (without the possibility for the Supervisory
Board to restrict or suspend the preferential subscription rights
of the existing shareholders) during a period of five years as
from the date of publication of the decision, subject to the
terms and conditions to be determined by the Supervisory
Board.

6.8 AUTHORIZATION GRANTED TO THE SUPERVISORY
BOARD TO ACQUIRE OR SELL THE COMPANY’S OWN
SHARES
Article 13 of the articles of association contains the principle
that the Company and its direct and indirect subsidiaries
may acquire and sell the Company’s own shares under the
conditions laid down by law. With respect to the acquisition of
the Company’s own shares, a prior resolution of the General
Meeting is required to authorize the Company to acquire its
own shares. Such an authorization was granted by the General
Meeting of 13 May 2015 and remains valid for a period of five
years as from the publication in the Annexes to the Belgian
Official Gazette of the decision taken by such General Meeting.
Pursuant to this authorization, the Company may acquire a
maximum of twenty percent (20%) of the existing shares of the
Company where all shares already purchased by the Company
and its direct subsidiaries need to be taken into account at
a price per share equal to the average of the last five closing
prices of the Euronav share at Euronext Brussels before the
acquisition, increased with a maximum of twenty percent
(20%) or decreased with a maximum of twenty percent (20%)
of the said average. With respect to the sale of the Company’s
own shares, the Company may dispose of the Company’s own
shares so acquired under the conditions laid down by law and
subject to certain exceptions for which a specific authorization
by the General Meeting is required.

7. Appropriation of profits
The Supervisory Board may, from time to time, declare and pay
cash dividends in accordance with the Articles of Association
and applicable Belgian law. The declaration and payment
of dividends, if any, will always be subject to the approval of
either the Supervisory Board (in the case of ‘interim dividends’)
or of the shareholders (in the case of ‘regular dividends’ or
‘intermediary dividends’).

The current dividend payment policy as adopted by the Board
is the following: the Company intends to pay a minimum
fixed dividend of at least USD 0.12 in total per share per
year provided (a) the Company has in the view of the board,
sufficient balance sheet strength and liquidity, combined (b)
with sufficient earnings visibility from fixed income contracts.
In addition, if the results per share are positive and exceed
the amount of the fixed dividend, that excess income* will be
allocated to either: additional cash dividends, share buy-back,
accelerated amortization of debt or the acquisition of vessels
which the Board considers at that time to be accretive to
shareholders’ value.

Additional guidance was provided by the Company by way of a
press release dated 9 January 2020, as follows:

Each quarter Euronav will target to return 80% of net
income (including the fixed element of USD 3c per quarter)
to shareholders
This return to shareholders will primarily be in the form of
a cash dividend and the Company will always look at stock
repurchase as an alternative if it believes more value can be
created for shareholders
The Company retains the right to return more than 80%
should the circumstances allow it

for

and

income

certain
capital

is
capital

adjusted
losses

Excess
items
gains:
such
As part of its distribution policy Euronav will continue to include
exceptional capital losses when assessing additional dividends
but also continue to exclude exceptional capital gains when
assessing additional dividend payments.
Deferred Tax Assets (DTA) and Deferred Tax Liabilities (DTL):
As part of its distribution policy Euronav will not include non-
cash items affecting the results such as DTA or DTL.

In general, under the terms of the debt agreements, Euronav is
not permitted to pay dividends if there is or will be as a result of
the dividend a default or a breach of a loan covenant. Belgian law
generally prohibits the payment of dividends unless net assets
on the closing date of the last financial year do not fall beneath
the amount of the registered capital and, before the dividend
is paid out, 5% of the net profit is allocated to the legal reserve
until this legal reserve amounts to 10% of the share capital.
No distributions may occur if, as a result of such distribution,
the net assets would fall below the sum of (i) the amount of
the registered capital, (ii) the amount of such aforementioned
legal reserves, and (iii) other reserves which may be required
by the Articles of Association or by law, such as the reserves
not available for distribution in the event Euronav holds treasury
shares. Euronav may not have sufficient surplus in the future to
pay dividends and the subsidiaries may not have sufficient funds
or surplus to make distributions to the Company. Euronav can
give no assurance that dividends will be paid at all. In addition,
the corporate law of jurisdictions in which the subsidiaries are
organized may impose restrictions on the payment or source
of dividends or additional taxation for cash repatriation, under
certain circumstances.

8. Code of Conduct
Euronav has adopted and applies a Code of Business Conduct
and Ethics. The purpose of the Code of Business Conduct and
Ethics is to assist all the Euronav employees to enhance and
protect the good reputation of Euronav. The Code of Business
Conduct and Ethics articulates the policies and guidelines
that highlight the values of Euronav, more particularly in its
relationship with customers, suppliers, shareholders and other
stakeholders as well as society in general. The full text of the
Code of Business Conduct and Ethics can be found on the
Company’s website www.euronav.com.

Annual report 2019

9. Measures regarding insider dealing and market
manipulation
In view of Regulation (EU) No 596/2014 of the European
Parliament and of the Council of 16 April 2014 on market
abuse (market abuse regulation) and repealing Directive
2003/6/EC of the European Parliament and of the Council
and Commission Directives 2003/124/EC, 2003/125/EC
and 2004/72/EC (the ‘Market Abuse Regulation’ or ‘MAR’),
the Board of Directors approved the current version of
the Company’s Dealing Code. The Dealing Code includes
restrictions on trading in Euronav shares during so called
‘closed periods’, which have been in application for the first
time in 2006, as well as other procedures and safeguards
the Company has implemented in compliance with the
Market Abuse Regulation.

The Officers, members of the Supervisory and Management
Boards, Managers and employees of the Euronav Group who
intend to deal in Euronav shares must first request clearance
from the Compliance Officer. Transactions that are to be
disclosed in accordance with the Market Abuse Regulation are
being disclosed at the appropriate time.

10. GUBERNA
As Euronav strongly believes in the merits of corporate
governance principles and is keen on further developing its
corporate governance structure, Euronav joined Guberna
as institutional member at the end of 2006. Guberna
(www.guberna.be)
is a knowledge center promoting
corporate governance in all its forms and offers a platform for
the exchange of experiences, knowledge and best practices.

11. Gender diversity
In accordance with the Corporate Governance Code, the
Supervisory Board must be composed in a manner compliant
with the principles of gender diversity as well as of diversity
in general. The Supervisory Board of Euronav currently
consists of three men and three women with varying yet
complementary expertise. The Supervisory Board has been
made aware of the law of 28 July 2011 on gender diversity and
the recommendations issued by the Corporate Governance
and Nomination Committee following the enacting of the
law with regard to the representation of women on Boards of
Directors of listed companies.

In January 2020 Euronav was selected for the third
consecutive time as one of over 300 companies from ten
sectors to join the Bloomberg Gender-Equality Index (GEI).
This comprehensive index measures gender equality across
internal company statistics, employee policies, external
community support and engagement, and gender-conscious
product offerings. This Bloomberg GI continues to gain
important traction resulting in 325 companies included in this
year’s index (last year up to 230 companies).Inclusion in this
index recognises efforts made by Euronav to create a work
environment that supports gender equality and the growing
demand for diverse and inclusive workplaces.
In order to become a participant in this Index, Euronav
submitted a survey created by Bloomberg in partnership with
third-party experts Catalyst, Women’s World Banking, Working

Mother Media, National Women’s Law Center and National
Partnership for Women & Families. Those included on this
year’s index scored at or above a global threshold established
by Bloomberg to reflect disclosure and the achievement or
adoption of best-in-class statistics and policies.

As of 24 March 2020, the Management Board consist of one
woman and five men, three of whom are based in Belgium, one
in Greece and one in the U.K. They all hold academic degrees in
various disciplines such as Law, Finance, Shipping, and Science.
Before they started working with Euronav, they were employed in
the financial, legal and shipping sector. Their ages vary between
45 and 62 years old and include their average experience of 7
years in their current executive position.

The Senior Management (Chief People Officer, Secretary
General, General Manager Nantes office, HSQE Manager)
consists of three men and one woman (two in Belgium, one in
France and one in Greece). They all have an academic degree
in various disciplines (Economics, Law, History, and Shipping).
They started their careers in the financial, legal and shipping
sector and have been working in their current Euronav role for
an average of three years. Their ages vary between 38 and 51
years old.

12. Appropriation accounts
The result to be allocated for the financial year amounts to USD
226,113,646. Together with the transfer of USD 56,649,927
from the previous financial year, this gives a profit balance to
be appropriated of: USD 282,763,573.

The Supervisory Board will propose to the Annual Shareholders’
Meeting of 20 May 2020 to distribute a full year gross dividend
in the amount of USD 0.35 per share to all shareholders. Taking
into account the interim dividend of USD 0.06 per share paid as
of October 2019, and subject to shareholders’ approval, a final
dividend of USD 0.29 per share will be paid after the Annual
General Meeting of Shareholders.
The dividend will be payable as from 9 June 2020. The share
will trade ex-dividend as from 28 May 2020 (record date 29
May 2020). The dividend to holders of Euronav shares listed
and tradable on Euronext Brussels will be paid in EUR at the
USD/EUR exchange rate of the record date.

If this proposal is agreed upon, the allocation of profits will be
as follows:

capital and reserves

USD 39,604,399

dividends

USD 77,008,650

carried forward

USD 166,150,524

24 March 2020
Supervisory Board

Annual report 2019Directors’ reportThe Euronav
Group

Euronav Ship Management SAS

Euronav Ship Management SAS, with head office in Nantes in the
South of Brittany, France and branch office in Antwerp, Belgium,
is besides the traditional shipping activities, responsible for
Euronav’s offshore projects and the management of vessels
for the offshore industry. That includes tender projects,
conversion works as well as performing the management
of these vessels including crewing, technical procurement,
accounting and quality. The Nantes office and the Antwerp
office also provide crew management for Euronav’s trading oil
tankers.

Euronav Ship Management (Hellas) Ltd

Euronav Ship Management (Hellas) Ltd, first established in
Piraeus, Greece, in 2005 and then moved offices in the centre of
Athens, as a branch office of a fully owned subsidiary of Euronav
NV, engages in the ship management of the ocean-going oil
tankers of Euronav and the supervision of the construction of
newbuildings. Ship management includes crewing, technical,
procurement, accounting, health, safety, environmental
protection and quality assurance, legal advice, claims handling
support, as well as fleet IT support.

Euronav (UK) Agencies Ltd

Located in the heart of London, Euronav (UK) Agencies Ltd is
a commercial agency of the Euronav Group. Having a London
presence enables Euronav to work closely with the major
London-based clients and international brokering houses.

Euronav Hong Kong Ltd

Euronav Hong Kong Ltd is the holding company of four wholly
owned subsidiaries and five 50% joint venture companies
(one of which is in process of winding up). The wholly owned
subsidiaries that fall under Euronav Hong Kong Ltd are Euronav
Ship Management (Hellas) Ltd (see short summary above),
Euronav Singapore Pte. Ltd, Euronav Luxembourg SA, and
E.S.M.C. Euro-Ocean Ship Management (Cyprus) Ltd, a ship
management company that handles the crew management of
the FSOs.

TI Asia Ltd and TI Africa Ltd, 50%. joint venture companies
with a company which belongs to the International Seaways
(INSW) group, are the owners of respectively the FSO Asia and
FSO Africa, both currently employed at the Al Shaheen field
offshore Qatar. The 50%. joint venture company Kingswood
Co. Ltd. with a company which belongs to the Oak Maritime

group fully owns Seven Seas Shipping Ltd. which following
the termination of the relevant joint venture sold the VLCC it
owned to Euronav NV. Both Kingswood Co. Ltd. and Seven
Seas Shipping Ltd. are now in process of winding up.

In November 2019 two joint venture agreements were signed
with Ridgetuf LLC resulting in the two 50% joint venture
companies Bari Shipholding Limited and Bastia Shipholding
Limited. Bari Shipholding Limited and Bastia Shipholding
Limited are the owners of respectively the Suezmax Bari and
Bastia.

Euronav Shipping NV and Euronav Tankers NV

Following the acquisition of 15 VLCCs in January 2014, Euronav
Shipping NV and Euronav Tankers NV were incorporated as
subsidiaries of Euronav NV, in January and February 2014
respectively.

Going forward the Euronav group purports to gradually
centralize its ship management activities within Euronav
Shipping NV. In that regard, in the course of 2019 the two French
subsidiaries Euronav SAS and Euronav Ship Management
SAS (including its Antwerp Branch) as well as the Hong Kong
subsidiary Euronav Hong Kong Ltd were transferred to Euronav
Shipping NV.

Annual report 2019Euronav MI II Inc.

In the fourth quarter of 2017, Euronav NV incorporated a
new wholly-owned subsidiary, Euronav MI Inc., a company
incorporated and existing under the laws of the Republic of
the Marshall Islands, for the purposes of the upcoming merger
(the ‘Merger’) with Gener8 Maritime Inc. (‘Gener8’). Pursuant
to the merger agreement entered into between Euronav and
Gener8 on 20 December 2017, Euronav MI Inc. merged with
and into Gener8 upon closing of the Merger on 12 June 2018,
with Gener8 being the surviving corporation wholly owned
by Euronav NV. At the same time, the name of the surviving
corporation was changed into Euronav MI II Inc.

As the ultimate parent company of the Gener8 group prior to
closing of the Merger, Euronav MI II Inc. still owns certain direct
and indirect subsidiaries most of which served as special
purpose shipowning companies within the Gener8 group.
Following the sale of the assets held by them (to Euronav NV
or, in case of non-core assets, to third party buyers) Euronav is
in the process of simplifying the group’s corporate structure by
liquidating the said subsidiaries.

Tankers UK Agencies Ltd. (TI Pool)

In 2017, the corporate structure of Tankers International pool
(‘TI Pool’) was rationalized. Under the new structure, the shares

of Tankers UK Agencies Ltd. (‘TUKA’), fully held at the time by
Tankers International LLC (‘TI LLC’), an entity incorporated
under the laws of the Marshall Islands, have been distributed to
the two remaining founding members of the TI Pool, (namely
Euronav NV and International Seaways INC), to form a 50-50
joint venture.

Additionally, a new company, Tankers International Ltd. (‘TIL’),
was incorporated under the laws of the United Kingdom, and is
now fully owned by TUKA. TIL became the disponent owner of
all of the vessels in the TI Pool as all the vessels are now time
chartered to TIL at a floating rate equivalent to the average
spot rate achieved by the pool times the pool point assigned
to each vessel.

This new structure allowed the TI Pool to arrange for a credit
line financing in order to lower the working capital requirement
for the Pool participants which potentially can attract additional
pool participants.

Euronav NV, Antwerp, Geneva Branch

In April 2019 Euronav NV established a 100% owned branch
office in Geneva (Switzerland), Euronav NV, Antwerp, Geneva
Branch. This new branch office was set up in anticipation on the
coming into force of IMO 2020 and focuses on procurement of
compliant fuel and related services.

Annual report 2019Directors’ reportCurrent structure:

Euronav NV Belgium

100%

50%

100%

Euronav
Shipping NV
Belgium

Euronav (UK)
Agencies Ltd, -
United Kingdom

Euronav NV,
Antwerp,
Geneva Branch

Tankers (UK)
Agencies Ltd

Tankers
International
LLC

Euronav
Tankers NV -
Belgium

100%

Euronav
MI II Inc

100%

Euronav
Hong Kong
Ltd. -
Hong Kong

Euronav
Ship
Management
sas -
France

Euronav
sas -
France

100%

Tankers
International
Ltd

100%

Euronav Ship
Management
(Antwerp)
Branch
Ofﬁce -
Belgium

100%

Euronav
Luxembourg
SA -
Luxembourg

100%

Euronav
Singapore
Pte. Ltd. -
Singapore

100%

50%

100%

50%

Euronav
Ship
Management
(Hellas) Ltd. -
Liberia

100%

Euronav
Ship
Management
(Hellas)
Branch
Ofﬁce -
Greece

TI AFRICA
Ltd. -
Hong Kong

TI ASIA
Ltd. -
Hong Kong

E.S.M.C.
Euro-Ocean
Ship
Management
Ltd. - Cyprus

Bari
Shipholding
Ltd. -
Hong Kong

Bastia
Shipholding
Ltd. -
Hong Kong

Kingswood -
Marshall
Islands

100%

Seven
Seas
Shipping
Ltd. -
Marshall
Islands

Annual report 2019

Activity
report

3Average age of
Euronav fleet
8.6 years

As per 24 March 2020

Annual report 2019Activity reportProducts and services

Tanker shipping

Average age profile of Euronav owned
and managed VLCC and V-Plus

Euronav is a vertically integrated owner, operator and manager
able to provide complete shipping services in addition to
the carriage of crude oil on its fleet of modern large tankers.
The crude oil seaborne transportation market is cyclical and
highly volatile requiring flexible and proactive management of
assets in terms of fleet composition and employment. On 24
March 2020 the Euronav core fleet (owned and operated) has
a weighted average age of 8.6 years. Euronav operates its fleet
both on the spot and the period market.

VLCC fleet

Suezmax fleet

43% 0-5 years old

25% 6-10 years old

27% 11-15 years old

5% > 15 years old

The Tankers International (TI) Pool

Euronav
is a founding member of the TI Pool, which
commenced operation in January 2000. The TI Pool was
established by Euronav and other leading tanker companies to
meet the global transportation requirements of international oil
companies and other major charterers. The TI Pool operates
one of the largest modern fleets available in the world. 39
Euronav VLCCs participated in the pool on 24 March 2020.
Euronav’s entire owned VLCC fleet flies Belgian, Greek, French,
Liberian and Marshall Islands flag.

By participating in a pool, Euronav and its customers benefit
from the economies of scale inherent to such an arrangement.
Furthermore, the TI Pool has been able to enhance vessel
earnings by improved utilization (increased proportion of laden
days versus ballast days) through use of combination voyages,
contracts of affreightment and other efficiencies facilitated by
the size and quality of its modern VLCC fleet. By operating
together, the TI Pool always aims to have a modern high quality
VLCC available in the right place at the right time.

Euronav’s 100% owned Suezmax fleet flies Belgian, Greek
and Liberian Flag. Its vessels in 50%-50% joint venture are
registered under the flag of Marshall Islands. The use of a
national flag together with operational and maintenance
standards in terms of age and performance, which are higher
than the industry norm, enables Euronav to employ part of its
fleet on time charter. Euronav chooses to employ a part of its
Suezmax fleet on long-term time charter. This strategy allows
the Company to benefit from a source of secure, steady and
visible flow of income. Another part of the Suezmax fleet is
traded on the spot market. On 24 March 2020 Euronav owns
and employs 26 Suezmax vessels which are traded on the spot
market.

Average age profile of Euronav owned
and managed Suezmax

16% 0-5 years old

54% 11-15 years old

15% 6-10 years old

15% > 15 years old

Annual report 2019Main shipping routes of the Euronav fleet

Far East

US Gulf

Mid East

Europe

ulf – A

sia

VLCC

Suezmax

Both VLCC and Suezmax

W
e
s
t
A
f
r

i
c

West Africa

t A

– Euro p e
frica – US G u l f

e
s
t

m - F

e - F

ar E

ast

r E

t – E u r op

Mid East – Europe
M id East – U

f
ul
S G

Asia

d Eas t - A s i a

M
i

–
Pacific Rim

atam - Far East

industry is a highly technical one with many risk factors but
with an equally high reward.

Euronav’s initial exposure to the FSO market was with VLCC
deployments in the Gulf and in West Africa back in 1998.

In May 2017, Euronav’s joint venture with International Seaways
(‘INSW’) signed a five year contract for the FSO Africa and FSO
Asia immediately following the previous service contract which
was signed with North Oil Company (‘NOC’), the new operator
of the Al Shaheen oil field, whose shareholders are Qatar
Petroleum Oil & Gas Limited and Total E&P Golfe Limited.

The FSO Africa and FSO Asia floating storage platforms are
both high specification and long duration assets. Both units
started service at the Al Shaheen field in 2010 with a potential
service life (without major modifications) to 2042.
logistical
Offshore units are unique because of
requirements and additional engineering
in designing,
transporting, installing and operating facilities in the remote
offshore environment as opposed to onshore production or
storage plants. Each unit is specifically designed for the field’s
environmental and geological characteristics.
Al Shaheen crude oil is stored in the FSO Africa and FSO Asia
and exported from a Single Buoy Mooring (SBM) system which
can be seen on the picture above.

their

FSO and FPSO market

An FPSO is a floating production system that receives fluids
(crude oil, water,…) from a subsea reservoir through risers,
which then separates fluids into crude oil, natural gas, water and
impurities within the topsides production facilities onboard.

Crude oil stored in the storage tanks of the F(P)SO is offloaded
onto shuttle tankers to be sold for consumption or for further
refining onshore.

FSOs are floating storage units for areas where the production
platform has no storage capabilities (fixed platform, MOPU,
spar, TLP, semi) and no pipeline infrastructure. They are perfect
because of their very large storage capacity and ability to
be moored in almost any water depth. Without any process
topsides (as with FPSOs), they are relatively simple to convert.

FSOs provide field storage (ranging from 60,000 to 3 million
barrels) and offloading in a variety of situations. Most of them
store oil although there are a few LPG or LNG FSOs.

The cost of a converted FSO ranges from USD 30 million to
USD 200 million, depending on the size, field location, mooring
and design life. A newbuild FSO can range from USD 100
million to USD 300 million.

There is an established market for leasing FSOs, which can
help commercialize remote or marginal fields. The offshore

Annual report 2019Activity report

Image credits: riverlakesolutions.com

Buoy Mooring FSO AFRICA and FSO ASIA

Euronav is engaged in the NOC project because of the specific
assets that it owned at that time: two of the only four V-Plus
vessels (also known as ULCCs - Ultra Large Crude Carriers)
that exist in the world, the TI Asia (which belonged to Euronav)
and the TI Africa (which belonged to OSG, now International
Seaways Inc.). Europe and Oceania (both fully owned by
Euronav) are the only two remaining unconverted V-Plus
vessels worldwide.

The Company strongly believes that the long-term employment
of these units lie in the offshore market. Most of the new oil
field discoveries are done offshore and many of them are
gigantic oil fields (Brazil, West Africa, Australia) which should
require very large FSOs. Euronav therefore believes there will
be a demand for this unit by offshore field operators.

In-house Ship
Management

The majority of the fleet is managed by three wholly-owned
subsidiaries: Euronav Ship Management SAS, Euronav SAS
and Euronav Ship Management (Hellas) Ltd. Euronav has also
established an office in Singapore, Euronav Singapore Pte
Ltd, to enhance the support of services offered to the vessels
that frequently call Asian ports. Human resources including
seagoing officers, crew and shore-based staff, including skilled
and experienced captains and marine engineers, give Euronav a
competitive edge in high quality, maintenance and operation of
the vessels, as well as project development and execution.

Euronav manages in-house the vast majority of its fleet of modern
crude oil carriers ranging from Suezmax to Very Large and V-Plus
(also known as Ultra Large Crude Oil Carriers) and FSO (Floating
Storage and Offloading). Euronav’s fleet trades worldwide in some
of the most difficult weather conditions and sea states, such as
the North Atlantic and East Canada, and for charterers with the
strictest requirements. The vessels and crews are in constant
interaction with the shore staff through regular onboard visits,
briefing and debriefing discussions upon signing on and off,
sophisticated communication systems and conferences ashore

Annual report 2019
and onboard and in-house training sessions. The Management
team, superintendents, internal and external shipping auditors,
customers, as well as national and international regulatory bodies
assess vessel and crew performance. Euronav has excellent
relations with all oil majors. The organization, and the vessels, have
successfully passed numerous oil major Tanker Management and
Self-Assessment (TMSA) reviews and vetting assessments.

All services are provided with the ultimate regard for the health,
safety, security, environmental and quality standards applicable
to the maritime transportation industry. Euronav is committed
and aims to safety, environmental protection, security and quality
excellence of the Fleet’s operation. Euronav is devoted to a culture
of teamwork where people work together along defined duties
and responsibilities for the overall success of the Company, on
shore and at sea.

Euronav practices genuine performance planning and appraisal,
training and development, and encourages the promotion
from within, while also offering opportunities to competent
professionals to join the Company. Its policies aim to enhance
and reward performance, engage its people and retain key talent.

Euronav maintains an integrated ship management approach
with the following qualities:

Proven experience in managing oil tankers;

Experienced officers and crews with professional
credentials;

Professional relations based on merits and trust;

Commitment to improving the quality of life at sea and crew
wellbeing;
Safety and quality assurance including training, auditing
and vetting;
Design and maintenance standards for increased safety
and operational performance as well as asset value;
Modern and effective computer-based management and
training systems;
Human resources policies emphasizing people work
together for common goals;
Hands-on technical management backed by the latest
software platforms and communication systems;

Commitment to long-term asset protection and upgrade;

Open communication and transparency in reporting.

Full range of services

The Euronav Group provides a full range of ship management
services:

Full technical services;

Fleet personnel comprising experienced motivated officers
and crew;
Comprehensive
integrated health, safety, quality and
environmental protection management system; certified
for ISO 9001, 14001, 45001, 50001;
Insurance claims handling;
Global sourcing of bunkering, equipment and services for
optimum synergies, pricing and quality;

Financial, information technology, human resources and
legal services to support the Group’s assets’ values;

Project management for:

- newbuilding supervision, including pre- and post-

contract consultancy and technical support;

- FSO conversions;
- Retrofits and upgrade of assets for compliance with

new Rules and Regulations and/or

- improved operational efficiency;

Commercial management;

Operational management.

Euronav utilizes a set of clearly defined Key Performance
Indicators (KPIs) for its ship management services as well
as standardized inspection reports which are thoroughly
evaluated to facilitate the measurement of:

Health & Safety performance;

Environmental performance;

Security (including Cybersecurity) performance;

Navigation performance;

Vessel reliability;

Crew and shore staff retention and wellbeing;

Vessel energy efficiency;

Vetting and port state controls;

Planned and condition-based maintenance;

Dry-docking planning and repairs based on work list from
dry-dock to dry-dock.

Quarterly management review meetings and weekly fleet
management coordination meetings monitor the trend and set
the course of action.

R
E
V
O

2,900
SEAFARERS

of many DIFFERENT

NATIONALITIES
work aboard
Euronav vessels

Annual report 2019Activity report

Euronav
Ship Management
Partners

In addition to the in house managed fleet, Euronav maintains
close relations and cooperation with high quality ship
managers which manage part of the fleet.

A dedicated Euronav team is managing the relationship and
ensures that the services rendered to Euronav ships are
in accordance with Euronav standards. The relationship is
offering opportunities for interaction and sharing of experience
between the Euronav Ship Management and Ship Management
partners while at the same time providing flexibility for potential
expansion.

Annual report 2019Fleet of the Euronav
group as of
31 December 2019

Owned VLCCs and V-plus

Owned

Built

Dwt

Draft

Flag

Length (m)

Shipyard

100%

2016

2012

2017

2016

2015

2017

2016

2017

2007

2016

299,999

298,991

299,445

299,320

320,350

298,991

299,392

299,533

299,421

298,767

298,991

299,999

298,642

306,005

306,543

299,999

21.62

21.60

22.50

21.62

21.60

21.62

22.49

21.53

Belgian

Liberian

Belgian

French

Liberian

French

Greek

Belgian

Liberian

332.97 Hyundai H.I.

333.00 Hyundai H.I.

330.00 Samsung H.I.

332.97 Hyundai H.I.

333.00 Hyundai H.I.

332.97 Hyundai H.I.

333.00 Hyundai H.I.

332.00 Daewoo H.I.

336.00 Daewoo H.I.

Name

Aegean

Alboran

Alex

Alice

Alsace

Amundsen

Andaman

Anne

Antigone

Aquitaine

Arafura

Aral

Ardeche

Daishan

Dalma

Desirade

Annual report 2019Activity reportAverage age of
Euronav fleet
8.6 years

As per 24 March 2020

Marsh I = Marshall Islands

Dia

Dominica

Donoussa

Drenec

Europe

Hakata

Hakone

Hatteras

Heron

Hirado

Hojo

Ilma

Ingrid

Iris

Newton

Oceania

Sandra

Sara

Simone

Sonia

TI Hellas

100%

2015

2016

2002

2010

2017

2011

299,999

441,561

302,550

302,624

297,363

302,550

21.52

21.54

21.53

24.53

21.03

21.62

21.03

Liberian

Belgian

French

Greek

Liberian

Greek

336.00 Daewoo H.I.

380.00 Daewoo H.I.

333.00

Universal

333.00 Hanjin Subic

333.00

Universal

2013

302,965

21.64

Belgian

330.00

Japan Marine
United

2012

2009

2003

2011

2012

2005

314,000

307,284

441,561

323,527

323,183

313,988

314,000

319,254

22.37

22.38

22.37

22.30

24.53

21.32

22.62

22.10

22.52

Belgian

French

319.00 Hyundai H.I.

333.10 Hyundai H.I.

321.70

Dalian S.I.

380.00 Daewoo H.I.

319.60

STX O&S

319.60

STX O&S

Belgian

333.00 Hyundai H.I.

Annual report 2019VLCCs Bareboat

Owned

100%

Built

2006

2007

2008

Dwt

307,284

Draft

22.72

Flag

Length (m)

Shipyard

Liberian

321.70

Dalian S.I.

321.70

Dalian S.I.

321.70

Dalian S.I.

321.60

Dalian S.I.

321.70

Dalian S.I.

321.60

Dalian S.I.

321.70

Dalian S.I.

Name

Nautilus

Navarin

Neptun

Nucleus

Nautica

Nectar

Noble

Annual report 2019Activity reportOwned Suezmax vessels

Name

Bari

Bastia

Cap Charles

Cap Corpus Christi

Cap Diamant1

Cap Felix

Cap Guillaume

Cap Lara

Cap Leon

Cap Pembroke

Cap Philippe

Cap Pierre1

Cap Port Arthur

Cap Quebec

Cap Theodora

Cap Victor

Capt. Michael

Filikon

Finesse2

Fraternity1

Sienna3

Stella4

Maria

Sapphira

Selena

Sofia

Statia

Owned

50%

100%

Built

2005

2006

2018

2001

2008

2006

2007

2003

2018

2006

2004

2018

2008

2007

2012

2002

2003

2009

2007

2011

2012

2008

2007

2010

2006

Dwt

159,186

159,155

158,881

156,600

160,044

158,765

158,889

158,826

159,049

156,600

158,920

159,083

156,600

158,819

158,853

157,648

149,989

149,994

157,714

150,205

165,000

157,523

150,205

165,000

150,205

Draft

17.072

17.00

17.15

15.62

17.02

17.00

17.02

17.15

17.00

17.02

17.15

17.00

15.95

17.02

16.02

17.17

17.00

16.02

17.17

16.02

Flag

Length (m)

Shipyard

Marsh I

Greek

Liberian

Belgian

Greek

274.47 Hyuandai H.I.

274,47 Hyuandai H.I.

274.00 Samsung H.I.

277.00 Hyundai H.I.

277.30 Hyundai H.I.

274.00 Samsung H.I.

Liberian

274.30 Samsung H.I.

Greek

277,00 Hyundai H.I.

274.00 Samsung H.I.

Liberian

274.30 Samsung H.I.

Greek

Liberian

Belgian

Greek

Belgian

Greek

Belgian

277.00 Hyundai H.I.

274.00 Samsung H.I.

274.80 Samsung H.I.

274.20

Universal

274.20 Samsung H.I.

274.20

Universal

274.19 Hyundai H.I.

274.80 Samsung H.I.

274.20

Universal

274.19 Hyundai H.I.

274.20

Universal

1 In 2019 the Cap Pierre, the Cap Diamant and the Fraternity have been in dry-dock and underwent a special survey (standard procedure for ships
every five years). The Cap Pierre in Shenzen (January), the Cap Diamant in Dubai (May) and the Fraternity in Singapore (November – December).
2 Vessel was sold and delivered to new owners during February 2020.
3 As part of the integration of the former Gener8 fleet to Euronav NV, Gener8 George T. was renamed Sienna on 3 July 2019.
4 As part is the integration of the former Gener8 fleet to Euronav NV, Gener8 Spartiate was renamed Stella on 18 February 2019.

Owned FSOs (Floating, Storage and Offloading)

Name

FSO Africa

FSO Asia

Owned

50%

Built

2002

Dwt

432,023

Draft

24.53

Flag

Length (m)

Shipyard

Marsh I

380.00 Daewoo H.I.

LR1 vessels sold in the course of 2019

Name

Genmar
Compatriot5

Owned

Built

Dwt

Draft

Flag

Length (m)

Shipyard

100%

2004

72,768

12.48

Bermuda

228.60

Dalian S.I.

5 Vessel sold on 20 February 2019 and delivered to its new owners in April 2019.

Annual report 2019Human
resources

One cornerstone of the Euronav mission is dedicated to our
people: to inspire and enable talented, hard-working people
to achieve their career goals in a healthy, challenging and
rewarding environment. Throughout its shore-based offices
in Antwerp, Athens, London, Nantes, Geneva, Singapore and
Hong Kong, Euronav has approximately 210 employees
(including contractors and temporary assignments). This
geographic span across Europe reflects a deep-rooted
maritime history and culture built up over generations.
Over 2,700 seafarers of many different nationalities work
aboard Euronav vessels. In an environment where there is
a shortening supply of competent seafarers, Euronav has
qualified and experienced masters to man all the vessels.
Masters’ conferences and crew conferences are held regularly.
Euronav is devoted to a teamwork culture and an environment
where people work together for the overall success of the
Company, on shore and at sea. Euronav practices genuine
performance planning and appraisal, training and development
and promotion from within. Our policies aim to enhance and
reward performance, engage our people and retain key talent.
We celebrate the diversity in our workforce. Many of our
employees and officers have a wealth of long service and
experience in the business while others are new entrants with
fresh perspectives. This commitment and stability enriched
with diversity has enabled us to achieve excellent results in an
extremely competitive industry. Euronav people bring to the job
a rich diversity of educational and professional qualifications,
including professionals with engineering, finance, business
administration, legal and humanities backgrounds, whom
have specialized in tanker operations, crewing, marine and
technical areas and shipping corporate services. Virtually
everyone speaks at least two languages fluently and half the
staff speaks three or more languages.

R
E
V
O

2,700
SEAFARERS

of many D I F F E R E N T
NATIONALITIES
work aboard
Euronav vessels

Annual report 2019Activity reportHuman

resources

Total

1 United States
1 Colombia
1 Italy
1 Honduras
1 Montenegro
1 Mexico
1 Poland
2 Netherlands
2 Pakistan
3 Georgia
26 Romania

27 Belgium
32 Russia
34 France
48 Ukraine
46 Croatia
49 Indonesia
66 Panama
84 Bulgaria
107 Philippines
158 Greece

Officers
Apprentices
on board

691*

Total

Ratings
on board

732*

1 Guatemala
1 Russia
1 Peru
10 Romania
16 Indonesia
70 Honduras
91 El Salvador
542 Philippines

* Crew on board at
Euronav vessels on
31 December 2019

Our Culture

Accomplishments in 2019

Euronav is an integrated shipping services provider with high
quality standards and ambitious goals. To empower its people
to meet these challenges, Euronav’s identity is characterized by:

 Common values with local authority to act;
 High involvement and flexibility in which much of the work
is carried out by cross-functional, cross-branch, self-directed
teams;

 Clarity in roles, expectations and authorities;
 Professional growth and development opportunities aligned

with business needs;

 Quality and professionalism in matters large and small;
 Communication and a no-blame culture cultivated by

example.

We encourage social responsibility and have values of fairness
and responsibility embedded in our operating ethos. We are
an equal opportunity employer; people are selected, rewarded
and advanced based on performance and merit. We act to fully
comply with all applicable laws and regulations in the markets
in which we operate. Euronav strives to be an exemplary
employer among its peers and participates in forums for an
open exchange of best practices.

In 2019 the human resources department has invested a great
deal of work in the following areas:

Performance Appraisal survey conducted for the whole staff
in cooperation with Green-Jacobsen
Introducing 360 assessment tool for Management team with
workshops and follow up sessions

Participation in quarterly Greek Shipping HR forums

Organized Teambuilding events for Finance and Legal ESMH
teams

Participation in Annual HR Shipping Conference in London

Participation in Annual Maritime HR Conference in London

Participation in Seafarers’ Salary Survey Benchmarking by
Spinnaker
Participation
Benchmarking by Korn Ferry

in Salary Survey & Organizational Design

Selection and implementation of new HRIS (SagePeople)

Performance Appraisal Survey conducted for the whole staff
Introducing Flexible Income Plan in EURB (going live 01/202)
Establish GDPR HR Privacy Statement, Recruitment Privacy
Statement
Setting up payroll system/insurances/…
Switzerland
Development of the HR team and start of Chief people Officer
in September

for Euronav

Annual report 2019

Environment,
Social and
Corporate
Governance
(ESG)

ESG

4ESG at
Euronav,
it’s in
the DNA

Customer
Responsibility

Community
Impact

Labour
Standards

Health &
Safety

i a l

Climate
Change

Ecological
Footprint

ent

Shareholder
Insights

Risk
Management

Tax
Transparency

G
o
v
e
r
n

ance

Resource
Use

Pollution

Anti-
Corruption

Intro

For many years, Euronav has been considering ESG as an
essential part towards a sustainable future of its activities.
Therefore, the company
is committed to fully capture
and embrace environment, social and governance related
measurements. Long before financiers of businesses and
regulators began doing so, Euronav has been embracing ESG
as a set of principles that the Company wants to operate by.
Euronav not only wants to preserve the ocean, but also the
environment and society they operate in.

This matrix displays an overview of the ESG related topics that Euronav actively practices.
The following pages contain clarifying explanations of some of the subjects.

Operations

Modern fleet

Yard selection in terms of HSQE assessment

Interaction with Crew

Approach to armed guards and piracy

Reduce and manage disposal of waste

FAST (Fleet Automatic Statistics and Tracking)

Whistleblower Policy

Alcohol & Drug Policy

Staff Handbook

Charity

Charity Policy

Ocean Cleanup

Social

Environment

Governance

Annual report 2019ESGAtlasGo

Sailor's Society

Valero Benefit for Children

The Care

Doctors without Borders

Hatzikyriakio

SOS Children's Villages

The Ark of the World

Le Grand Défi Pierre Lavoie

Argo Foundation

School and Training Program

Environment

GHG emissions monitoring and reduction

Supporter of Poseidon Principles

Carbon Disclosure Project (CDP)

Partner of GMF and active member of GtZ subcommittee

We fully embrace IMO 2030 and 2050

Active Member of International Tanker Owner Pollution

Federation (ITOPF)

Carbon Footprint disclosure

Governance

Social Media presence

Improve industry reputation

Gender Diversity

Incorporate E&S responsibility into travel policy

Corporate Governance index Wells Fargo top 10

Sox 302 and 404 Compliance

ESG & Climate Committee

Clean Shipping Index

Active engagement with financial institutions on ESG

Corporate Governance Policy

Code of Business and Ethics

Working from home Policy

Performance Management Policy

Compensation Guidelines

Related Party Transaction Policy

Risk Management framework and process

Annual report 2019Annual greenhouse gas emissions

Euronav has been and will continue to work on addressing the
impact of our operations on the environment. Disclosure is a
key part of this on-going process with Euronav the only quoted
crude tanker company to have been consistently publishing
our carbon footprint data since 2017.

Total organizational emissions have been normalized by total
freight moved and this increased over 2019 to 3.36 gCO2 e/t.
km when compared to 3.07 gCO2 e/t.km in 2018. This was

primarily a result of a higher average vessel speed and higher
fleet operating days during 2019. Total emissions have however
decreased by 4.1% when compared to the 2017 baseline and
our first year of reporting such data.

Euronav intends to publish emissions targets over the next
12 months. During 2019 the company established an ESG
and Climate Change committee to assist in implementing a
comprehensive climate change policy.

Type of Emissions

2017 Emissions
(tCO2 e)1

2018 Emissions
(tCO2 e)

2019 Emissions
(tCO2 e)

Change
2019 vs 2018

Scope 1 (Direct)

3,280,230

2,944,387

3,129,065

Scope 2 (Indirect Energy)

400

424

430

Scope 3 (Indirect Other)

635,830

583,547

624,824

Total

3,916,460

3,528,045

3,754,859

1 Certain aspects of the organisation’s operations have been excluded, due to a lack of data availability. These account for less than 0.3% of total emissions so
are not considered material. This includes electricity from two one-person offices and business travel from Anglo-Eastern Ship Management. Values have been
rounded so may not tally completely in Table 1. The reported figures for CO2 and other GHG emissions for 2018 in relation to the 21 ships purchased as part of the
“Gener8 merger” are not the actual ones but they are “annualized” for comparison purposes.The reported figures for 2017 have been “rebaselined” for year- on- year
comparison purposes with the 2018 figures.

Scope 1: Emissions from Euronav’s sources that are controlled
directly by the company, including the combustion of fuel from
vehicles and vessels, and building operations.
Scope 2: Emissions from imported energy, such as purchased
electricity, heat or steam.
Scope 3: Emissions from non-owned sources that are related to
the company’s activities. This includes business travel, the well-
to-tank emissions related to the processing of fuels, and the
transmission and distribution of electricity.

Methodology
Emissions have been calculated in line with the main requirements
of the GHG Protocol for all Scope 1 and 2 and material Scope
3 emissions for the period 1st January – 31st December 2019.
Scope 3 business travel and energy related emissions have
been calculated and reported. To take into account identified
improvements in data quality for natural gas and electricity
consumption in Belgium, emissions have been re-baselined back
to 2017.

The disclosed emissions cover all sources within Euronav’s
operational control. As such, all operations that are directly
managed by Euronav are included, as well as third party managed
vessels adhering to our ‘Ship Management Agreements’ and
leased ships. Emissions from lone workers in Doha and Hong
Kong and business travel from Anglo Eastern Ship Management
have been excluded due to a lack of data availability. These
emissions will be immaterial when compared to emissions from
shipping fuel.

Results
Euronav’s carbon footprint for the 2019 calendar year was
3,754,859 tonnes of CO2 equivalent, an increase of 6% in
comparison with 2018. The emissions intensity of Euronav’s
operations has increased by 9.4%, from 3.07 gCO2 e/t.km in
2018 to 3.36 gCO2 e/t.km in 2019. 83.2% of total emissions
originate from fuel used by ships, with a further 16.3% of total
emissions from the well-to-tank extraction and processing of
these fuels. Business travel represents 0.3% of total emissions.
Scope 2
increased
(indirect energy) emissions have
significantly, as a result of improving data quality in offices.

On the key IMO greenhouse gas emissions index of AER
(Annual Efficiency Ratio), there was a modest improvement in
2019 to 2.36 g/CO2/TNM, this figure being within the Poseidon
Principles targets for 2019. Euronav provides further disclosure
below related to the performance of seagoing fleet:

EEOI gCO2/TNM

AER gCO2/TNM

OEI gCO2e/T.KM

2018

2019

4.60

2.37

3.07

4.96

2.36

3.36

EEOI/Energy Efficiency Operational Index: Sea going fleet emissions (gCO2)
per unit of transport work (cargo ton miles)

AER/Annual Efficiency Ratio: Sea going fleet emissions (gCO2) per ton of
ships deadweight times total miles run in the period

OEI/Organizational Emissions Intensity: All Euronav emissions (scope 1, 2,
3) per unit of transportation work (cargo ton kilometers)

Annual report 2019ESG
Modern fleet

comply with

A modern shipping fleet is essential to manage both customers’
requirements and
stringent
environmental, financial and safety regulations. The lower the
fleet age, the lower consumption of fuel will be – giving the fleet
a competitive advantage over its peers but also crucially from
an environmental perspective as it reduces the amount of CO2
emissions per ton-mile that the fleet will produce.

increasingly

The Inventory of Hazardous Materials (IHM) as well as
relevant class notations (i.e. ENVIRO) are significant items
of the recycling policy and are documents that follow the
entire life of a vessel, beginning with its construction and
updated on a regular basis during the life cycle of a vessel
(the so called Green Passport). All Euronav’s newbuildings
already have IHM and most relevant class notations. All
ships of Euronav Fleet are planned to have an approved IHM
by the end of 2020.

Average age of Euronav VLCC fleet

Interaction with Crew

7.5

6.5

5.5

2011

2012

2013

2014

2015

2016

2017

2018

2019

The chart above illustrates how Euronav has managed the fleet
age – reducing the fleet age of our VLCC fleet by 24% between
2011 and end 2019. Younger fleet age and more advanced
technology favours emission reductions in shipping.

Euronav crews are in regular interaction with the shore
organization through briefing and debriefing sessions when
joining or disembarking, annual senior officers conference,
regional officers and crew conferences, regular visits on board
by the shore staff. All crew members interact with the company
also through the relevant crew software platform. Ships are
equipped with highly efficient communication equipment
which ensures uninterrupted connectivity with business and
personal data and information exchange as well as voice
communication. This has been especially important in dealing
pro-actively with potential mental health issues and has
been utilized extensively during the recent social restrictions
regarding the combat against COVID-19.

Yard selection in terms of HSQE assessment

Approach to armed guards and piracy

Euronav is selecting reputable shipyards for performing the
ships’ regular repairs. The selection is based on the shipyard
reliability, adherence to health, safety and environmental
protection standards and of course their competitiveness.
Shipyards are evaluated regularly for being eligible to
potential business.

Although our fleet is young, vessel recycling is an important
matter on which Euronav is actively working. Euronav fully
supports the principles of the Hong Kong convention (IMO)
as well as the EU regulation on ship recycling.

The safety and security of the Euronav sea and shore staff is a
primary concern for the Company and to that end the company
management team take every necessary precaution to ensure
our shore and onboard staff are protected and able to perform
their duties safely and responsibly. The engagement of armed
guards is based on specific security risk assessment with very
specific guidelines to protect all human lives whilst acting to
prevent any attacks.

Annual report 2019Reduce and manage disposal of waste

During normal vessels’ operations, Euronav tries to reduce
vessels’ waste to a maximum by:

Air pollution

SOx NOx particulate matter
Greenhouse Gases

Air pollution

SOx NOx particulate matter
Greenhouse Gases

Marine invasive
species

Water
polution

Noise pollution

Chemicals

Water

waste

Particulate

matter

Marine invasive
species

Water
polution

Noise pollution

SOx

NOx

CO2

Chemicals

Water
&
waste

Particulate
matter

SOx

NOx

Reducing the plastic packaging on board to a strict
minimum;

Recycling packing material;

Compacting rubbish prior to discharging;

Keeping on board minimum cargo residues and
delivering ashore at proper reception facilities;
Participating in the International Maritime Organisation
(IMO) initiatives to improve the port reception facilities
by reporting any deficiencies by using the IMO relevant
questionnaire;
Placing sewage treatment plants on board handling the
black and grey waters in order to minimize the impact
on the environment.

FAST (Fleet Automatic Statistics & Tracking)

Euronav aims to be a pioneer in fleet management digitalisation.
The capture and visualisation of fleet and energy performance
information is the key source for a disruptive management
strategy. Therefore, the company
launched FAST: Fleet
Automatic Statistics & Tracking. This innovative project will
enable Euronav to take the next step towards improved fleet
performance and fuel efficiency by utilizing real-time sensor
data and improving communication and collaboration between
vessel and shore. During 2020 all vessels will be equipped with
a new set of hardware to make this possible.

Whistleblower Policy

Euronav has adopted a Whistleblower Protection Policy
in order to protect individuals who want to lawfully raise a
legitimate concern. If an individual does not feel comfortable
reporting concerns to a supervisor, manager or any other
appropriate person within the Company, he or she can use a
free telephone service or web-based platform that enables him
or her to report a concern in complete confidentiality.

Alcohol & Drug Policy

CO2

Euronav is fully committed to maintaining a safe and healthy
working environment by implementing a strict drug and alcohol
policy. Any violation of that policy, including illegal possession,
consumption, distribution or sale of drugs or alcohol by any
shipboard personnel, shall lead to instant dismissal and will
expose the person to legal proceedings.

Staff Handbook

The Staff Handbook sets out guidelines for ensuring high
standards of ethical practices that needs to be applied
throughout the Euronav community. These include policies,
amongst others, relating to working culture, employee
retention and turnover rates, remuneration and workforce
diversity, regulated working hours, regulation of labour supply,
protection of the worker against sickness, disease and injury.

Charity Policy

Euronav does not make any contributions to political
parties of any persuasion. Euronav’s focus is on charitable
donations where the Company believes it can make a tangible
improvement to sections of society that we are engaged with
or in proximity to. This is a dynamic area and we are constantly
assessing the efficacy and focus of our charitable efforts. A
summary can be found on our website below.

www.euronav.com/en/hsqe-society/society/community-
involvement/

www.euronav.com/en/hsqe-society/society/education/

Ocean Cleanup

For over many years, Euronav has contributed various amounts
to The Ocean Cleanup. The Ocean Cleanup’s mission is to
develop advanced technologies to rid the world’s oceans of

Annual report 2019ESG

“Euronav not only wants to preserve

its environment known as the ocean,
but also the society they operate in.

plastic. In 2018 they started the cleanup, by developing their very
first cleanup system in the Great Pacific Garbage Patch. They
estimate to remove 50% of the Great Pacific Garbage Patch
within 5 years time from full-scale deployment of 50 cleanup
systems. This year, our contribution amounts to EUR 50,000
and was linked to the internal ‘Euronav on the Move’ health
initiative and is part of Euronav’s corporate social responsibility
program. Its aim is to help preserve our environment: the ocean.

AtlasGo

In 2019, Euronav launched ‘Euronav on the move’. This internal
programme to fight sedentary behaviour, was combined
with the app AtlasGo. This tool gave all Euronav employees
the possibility to track and register their activities. The more
registrations, the more the ultimate goal was supported: a
substantial financial aid to The Ocean Cleanup.

Sailor’s Society

The Sailors’ Society is a charity which operates globally through
a network of interdenominational Port Chaplains, who supports
all seafarers irrespective of their background, faith or nationality.

The busy Port of Antwerp is vital to European and global trade,
handling approximately 17,000 ships per year. With so many
seafarers visiting the port, there is a need for access to welfare
services on a large scale. Euronav has donated funds which will
help the Sailor Society work of the Antwerp port chaplain Marc
Schippers. The Antwerp Port Chaplain, also visits ships to offer
his assistance to the crew onboard. He takes practical items
such as phone cards to help seafarers to contact their families
and international news printed from the internet to connect
them with news from home. As well as practical assistance,
Marc offers a listening ear to seafarers, providing emotional
support when requested.

Using his Sailors’ Society vehicle, the Antwerp Port Chaplain
also offers seafarers free transport to wherever they need to
go, such as the nearest phone and internet facilities, the shops
or the doctors. This is a crucial service for visiting seafarers, as
their time ashore is often limited to just a few hours.

Valero Benefit for Children

The Valero Texas Open Benefit for Children Golf Classic,
which has been running since 2002, is a project of the Valero
Energy Corporation raising money for children’s charities in the
communities where Valero has major operations. The 2016
Valero Texas Open Benefit for Children Golf Classic and the
Valero Texas Open contributed USD 10.5 million to children.
As in previous years, Euronav specifically requested for its

donation to be oriented towards children’s charities based in
Quebec where a large number of our vessels trade.

The Care

in 2008

The Association of Care is a Panhellenic Association which
facilitates prevention, information and support for people
with cerebral palsy, mental retardation and Down syndrome.
Founded
in Piraeus, the organization provides
community service to families fleeing while seeking help for
health problems. They adopt families, focusing on children with
special abilities and help them in various ways by offering basic
necessities and accommodating care thanks to collaboration
with health specialists.

Doctors without Borders

Doctors without Borders is an international humanitarian NGO
best known for its projects in war-torn regions and developing
countries affected by endemic diseases. In 2018, over 40,000
personnel provided medical aid in over 70 countries. The
organization was founded in the aftermath of the Biafra
secession in 1971, by a small group of French doctors and
journalists who sought to expand accessibility to medical care
across national boundaries and irrespective of race, religion,
creed or political affiliation.

Hatzikyriakio

Hatzikyriakio Childcare
Institution was built to support
orphaned and homeless girls in Greece. Today, children from
the age of 6, suffering social and financial problems, have
more than a place to stay. The institution offers educational
opportunities and emotional support in order to help these
children grow and learn how to live as adults in a modern
society.

SOS Children’s Villages

SOS Children’s Villages is an independent non-governmental
international development organization which strives to meet
the needs and protect the interests and rights of children since
1949. The organization’s work focuses on abandoned, destitute
and orphaned children requiring family-based child care.

The Ark of the World

The Ark of the World is a Charitable nonprofit Organization
providing special care and protection to mothers and children.
The organization operates as an orphanage as well as a day-
care center for low-income families that are in need of a safe
place for their children during working hours. The Ark also
started assisting low-income single mothers and they provide
a safe haven for mothers who need protection form abusive
partners.

Le Grand Défi Pierre Lavoie

Euronav is contributing to this fundraising event which takes
place in Quebec by supporting the Pilots’ team of lower St

Annual report 2019Lawrence river. The proceeds are offered mainly to elementary
schools with limited resources in order to invest in promoting
healthy lifestyle habits, as well as to the Pierre Lavoie
Foundation to support research on orphan diseases.

Argo Foundation

“Euronav offered 170 trainees

the opportunity to take their first
professional steps in 2019.

ARGO is dedicated to assisting families of Greek seamen of
which the children battle with intellectual deprival, autism or
infirmities. The organization offers education and care to
those with special needs. The charity was founded in 1985
by seamen’s wives with disabled children. Nowadays, Piraeus
based ARGO arranges services for 60 individuals from 17 to 45
years old, mainly children of seamen, with medium and heavy
learning disabilities.

School and Training Program

Euronav has a long history of supporting apprentices, cadets,
interns and trainees on our ships and in our shore based
offices. For the year of 2019, this has led to trainee programs
for 170 individuals company wide. Being committed to learning
about life at sea and about obtaining the special skills needed
to be successful in this environment are key factors to inviting
young professionals to join our Company. Having the capability
and potential to thrive in this challenging sector are vital
characteristics we look for in students.

We work with the following prestigious higher education bodies
to take students, apprentices, graduates and cadets into our
ships for practical training, and this includes a limited number
of student sponsorships:

National Technical University of Athens,

Technological Education
Architects and Marine Engineers,

Institute of Piraeus, Naval

University of Piraeus, School of Maritime and Industrial
Studies, & School of Informatics,
University of the Aegean, School of Shipping, Trade and
Transport,

University of West Attica, Department of Engineering,

Technical University of Crete, School of Production
Engineering and Management,

ALBA Graduate Business School, Athens,

Greek Marine Academies,

French Maritime School (Ecole Supérieure de la Marine
Marchande),

Antwerp Maritime Academy.

The Company attends student events to discuss the
opportunities involved in maritime careers and to encourage
wider environmental debate.
In 2019 we supported
Isalos.net, an educational initiative which invites students
of marine academies and universities in maritime studies
to conferences. Its panel consists of executives and experts
in the maritime industry and from other well established
companies in Greece. In 2019 Euronav participated in four
Isalos.net events.

The Euronav Nantes office participates in the local school
Ship Owner Careers Day, which shares information about the
shipping sector with young people who are contemplating
their future careers. We also invite high potential 5th year
students to Junior Officers Conferences. Our Athens office has
been supporting the Engineer School of Marine Academies in

Annual report 2019ESG

Chios and Macedonia to visit the engine makers’ factories in
Germany and Italy for wider understanding.

Carbon Disclosure Project (CDP)

Euronav Ship Management (Hellas) Ltd
is participating
in internship programs of Greek Universities, focusing on
Marine studies, by offering their students the opportunity to
work in shipping companies for a couple of months, usually
during the summer. The Company has also been sponsoring
distinguished graduates of these schools.

The Euronav Antwerp office participates in the Open Campus
Day of the Antwerp Maritime Academy, where we present our
Company and share information with students considering
a career at sea. Each year during the summer months, we
also give students of the Antwerp Maritime Academy the
opportunity to do a Cadet traineeship on board our vessels
to experience the life and work of a seafarer. This training
program is established in cooperation with the Royal Belgian
Ship Owners’ Association. In 2010 we hired six Cadets in this
program, in the Deck Department.

Energy Management - GHG emissions
monitoring and reduction

Euronav pays particular attention to the ships energy
management, starting at the design and specification of the
new buildings as well as the maintenance and upgrade of the
existing fleet.

At the shipyard repairs, the ship’s hull surface is treated and
coated with the highest standards.This reduces friction with the
water, resulting in lower fuel consumption. Enhanced energy
consumption monitoring equipment and systems provide the
capability for operational measures are to be taken. In this
regard, Euronav launched its FAST project, which will convert
the vessels into smart and connected objects using Internet of
Things (IoT).

A variety of ship specific measures are described in a
comprehensive Ship Energy Efficiency Management Plan for
each vessel. Actions and measures are monitored through all
levels of shore and sea staff towards an as much as possible
energy efficient vessel operation.

Supporter of Poseidon Principles

into

Euronav is a founding supporter of this framework for
lending decisions
integrating climate considerations
to promote
international shipping’s decarbonization. The
Poseidon Principles are a global framework for assessing
and disclosing the climate alignment of financial institutions’
shipping portfolios. They establish a common, global baseline
to quantitatively assess and disclose whether financial
institutions’ lending portfolios are in line with adopted climate
goals. Thus they also serve as an important tool to support
responsible decision-making.

CDP runs a global environmental disclosure system that it has
been creating over the past 20 years and which has resulted in
unparalleled engagement on environmental issues worldwide.
international non-profit organization CDP assists
As
corporates that undertake a detailed and thorough review of
their environmental risk assessment.

that measure

that companies

Euronav believes
their
environmental risk are better able to manage it strategically.
Euronav is currently undertaking its first thorough review with
CDP with a score expected to be given in July 2020. This will
enable investors to compare Euronav with other companies on
our emissions track record.

Partner of GMF and active member of GtZ
subcommittee

Euronav is a founding partner of the Global Maritime Forum, an
international not-for-profit organization committed to shaping
the future of global seaborne trade to increase sustainable
long-term economic development and human wellbeing. To
serve its mission, the Forum convenes leaders from across the
maritime community with policy-makers, NGOs, experts, and
other influential decision-makers and opinion shapers from all
geographies in a community of purpose to discuss collective
challenges and to work together on developing new solutions
and recommendations for action. In order to do so, the Forum
identifies, develops and shares new insights and key issues
on the global agenda and facilitates collaborative projects and
initiatives that can deliver long-term impact and sustainable
change. One of their goals is to contribute to the IMO strategy
regarding the reduction of Green House Gas (GHG) emissions.
The Getting to Zero Coalition (GtZ) is a powerful alliance of more
than 90 companies within the maritime, energy, infrastructure

Annual report 2019

and finance sectors, supported by key governments and IGOs.
The Coalition is committed to getting commercially viable deep
sea zero emission vessels powered by zero emission fuels into
operation by 2030 – maritime shipping’s moon-shot ambition.

to Zero, Global Maritime Forum, Poseidon Principles), direct
corporate actions (reducing fleet age and carbon footprint) and
with tangible technical support to a number of R&D initiatives
focusing on reducing emissions.

Euronav fully embraces objectives to
IMO 2030 and IMO 2050

Active Member of International Tanker Owner
Pollution Federation (ITOPF)

The IMO is looking to reduce the carbon intensity of shipping
through implementation of further phases of the energy
efficiency design index (EEDI) for new ships. This has in popular
terms focused on two key policy objectives:

‘IMO 2030’ - to reduce CO2 emissions per transport work, as an
average across international shipping, by at least 40% by 2030,
pursuing efforts towards 70% by 2050, compared to a 2008
baseline.

‘IMO 2050’ - decline peak GHG emissions from international
shipping as soon as possible and to reduce the total annual
GHG emissions by at least 50% by 2050 compared to 2008.

Established in 1968, ITOPF is maintained by the world’s
shipowners and their insurers on a nonprofit basis to promote
effective response to spills of oil, chemicals and other
substances in the marine environment. ITOPF’s membership
currently comprises around 8,000 owners and bareboat
charterers of approximately 13,600 tanker vessels with a
total gross tonnage of over 430 million GT. The organisation
also benefits from the participation of over 810 million GT of
non-tanker tonnage owned and operated by its Associates.
Euronav’s COO Capt Alex Staring is member of the Board of
ITOPF.

Carbon Footprint Disclosure

Euronav is fully supportive of both policy objectives as reflected
in our wholehearted commitment to various initiatives (Getting

Euronav has led the way with disclosure in the large tanker
market providing full scope 1, 2 and 3 disclosure of our carbon

Annual report 2019ESGemissions and footprint since 2017 – the only large quoted
crude tanker company to do so. More information is to be
found in Greenhouse Gas Emissions paragraph on page 82 of
this report.

Social Media presence

Euronav regularly shares information and images on its
Instagram and LinkedIn-page. The Company offers insights in
its activities and creates a possibility to all of its followers to
reach out. In addition, content sent by the Euronav sea staff can
also be published on the above listed channels. This positions
the seafarers as company ambassadors.

Improve industry reputation

Euronav, along with other responsible tanker operators, has
an obligation and duty to defend and promote our business
models and wider corporate reputation. Euronav believes
that by joining bodies such as the Poseidon Principles and
Global Maritime Forum along with initiatives such as Getting
to Zero, the Company is contributing actively and positively
to improving shipping and crude tanker shipping’s reputation
by engaging with a diverse base of stakeholders. Providing a
leadership role and undertaking (voluntarily) features such as
the special report in our annual report are examples of how we
as a specific industry sector can improve the transparency on
the organization of the industry.

Corporate Governance excellence

Since 2016 Webber research (Wells Fargo) has adopted a
corporate governance scorecard on all shipping companies
using publicly available data to rank each company on a range
of evolving corporate governance factors – the latest iteration
highlighted below.

Current Corporate
Governance Factor

Factor #1

Factor #2

Related Party Commercial
Management

Related Party Technical
Management

Weight

12.5%

Factor #3

Sale And Purchase Fees

12.5%

Factor #4

Related Party Transactions

12.5%

Factor #5

Board Independence

Factor #6

Board Composition

Factor #7

Board Policy

Factor #8

Subjective

Source: Webber Research & Advisory, LLC

12.5%

Gender Diversity

Euronav percentile ranking in Webber research
corporate governance scorecard since inception

For the third consecutive time, Euronav was included in the
Bloomberg Gender Equality Index – an area which is very
important within the Company. Throughout its organisation
Euronav continues to look to make progress and provide an
inclusive environment for all its employees. This Bloomberg GEI
continues to gain important traction with itself with a record 325
companies included in this year’s Index – up from 230 companies
last year. Euronav embraces the initiative wholeheartedly.

Incorporate E&S responsibility into travel
policy

travels extensively: crew

Euronav staff
joining and
disembarking, visits to yards, business travel, etc. With
this comes a responsibility to do so in the most cost and
environmentally effective way. We are measuring the efficacy
and carbon footprint of our travels.

100

H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 H2 2019 H1 2020

Source: Webber research & Wells Fargo

Webber research believes its scorecard can be used as a tool
to help evaluate degrees of corporate governance across
shipping sectors and individual companies. All else equal,
companies in quartile 1 generally screen more favourably than
the lower quartiles, presenting stronger governance standards
than many of their peers. See special report for more details.

SOx 302 and 404 Compliance

Euronav adopted the COSO 2013 framework for verifying its
Internal Controls over Financial Reporting (ICOFR). In the effort
to comply with Section 404 of the Sarbanes-Oxley Act of 2002,
the Company has introduced a reporting structure in all levels
of the Company. This implies operational and compliance
reporting. The framework leads to improved governance,
higher quality of risk assessment and strengthened anti-

Annual report 2019fraud and anti-corruption efforts. It also allows for a rational
and systematic analysis, thus enables for a swift change
of business processes in this rapidly evolving business
environment.

ESG & Climate Committee

Since 2019, Euronav established an ESG & Climate Committee.
Its role consist of assisting and advising the Supervisory
Board to monitor the performance as well as key risks
and opportunities that the Company faces in relation to
environmental, social and climate matters. More info is to be
found in chapter 2.3 of the Directors’ Report section in this
document.

Clean Shipping Index (CSI)

Clean Shipping Index is an independent and holistic labelling
system of a vessels environmental performance. It ranks
vessels on environmental performance beyond regulatory
compliance. Euronav intends to migrate some of its credit
facilities to be assessed using the CSI system in order to
assess whether Euronav would qualify for a reduction in its
lending costs should it outperform this index. The assessment
would be carried out by an independent third party.

Active engagement with financial
institutions on ESG

Euronav believes ESG is a secular change within capital markets
which will increasingly shape and influence the allocation of
investment capital going forward. For a capital intensive sector
such as crude tanker shipping this is of critical importance as
our special report underlines this year. Euronav has and will
continue to focus more resource and time in addressing ESG
related issues with investors with separate ESG sections in our
investor presentations the start of a longer term commitment
to this important area.

Corporate Governance Policy

Euronav pays great attention to good corporate governance
as a necessary condition for its long term success. Good
corporate governance implies that correct and transparent
structures are in place ensuring best practice in determining
the policy of Euronav. The corporate governance charter can
be consulted on www.euronav.com.

Code of Business and Ethics

The Board of Directors (since 20 February 2020 called
Supervisory Board) approved the Euronav Code of Conduct
at its meeting of 9 December 2014. The purpose of the Code
of Conduct is to assist all the Euronav employees to enhance
and protect the good reputation of Euronav, more particularly
in its relationship with customers, shareholders and other
stakeholders as well as society in general. The Code of
Conduct therefore intends to ensure that all persons acting on
behalf of Euronav do so in an ethical way and with respect of
the applicable laws and regulations.

Working from home Policy

its employees and actively
Euronav cares highly about
supports their wellbeing. It actively creates a collaborative and
stimulating work environment which caters to the different
staff needs and encourages a healthy work-life balance by
offering flexible working arrangements, such as teleworking.

Performance Management Policy

Euronav’s employees are the most valuable asset. The
employees are put first because the Company recognizes that
it cannot provide exemplary service without satisfied, secure,
and knowledgeable employees. The ultimate goal is to increase
the employees’ skills, competitiveness, and efficiencies which
increase their long-term value within the workplace.

Anti-Corruption Policy

Euronav is committed to conduct all of its business operations
around the world in an honest, fair, transparent and ethical
manner. The Anti-Corruption Policy is applicable to employees
and persons who act on behalf of Euronav in a long-term
relationship. In general, any third parties who intend to trade
with Euronav are subject to detailed scrutiny by the Internal
Control department, which also considers the appropriateness
of the business relation in view of the Company’s Anti-
Corruption Policy in addition to the Third Party Risk Policy. Any
concerns in relation to the Anti-Corruption Policy may be raised
through the Company’s Whistleblower Hotline Platform.

Compensation Guidelines

These guidelines explain how Euronav sets pay, provides shore
based employee benefits and bonuses. It sets out principles,
timing and process to explain how reward is determined.
This includes annual salary increases, pay review processes,
employee benefits and bonuses.

Annual report 2019ESGESG is an important area of
focus for the management and
Supervisory Board of Euronav.
The Company will continue
to expand the presence and
disclosure in this area going
forward.

Related Party Transaction Policy

Euronav has a very robust approach towards related party
transactions, payments and
listed
company we strongly believe that in most circumstances,
such arrangements present a higher level of potential risk for
stakeholders and principally the potential for conflicts of interest.

relationships. As a

This is a specific point in the Webber research scorecard on
which the company scores highly (see corporate governance
excellence).

Risk Management framework and process

The Euronav Enterprise Risk Management framework does
include ESG factors, not just as a way to avoid risk but also
as a means to identify future opportunities. These risks and
opportunities are being regularly reported to the Supervisory
Board by the Audit & Risk Committee as well as by the recently
implemented ESG & Climate Committee. As ESG should,
however, not be the sole responsibility of an ESG team, these
risks are through the risk management process designated
to individual risk owners within the organization. By doing
so, the Company believes that it will be able to articulate the
most significant ESG related risks that impact our strategy and
decision making. The ESG principles are also embedded in the
management and staff KPI’s.

Annual report 2019Glossary

Aframax - A medium-sized crude oil tanker of approximately
80,000 to 120,000 deadweight tons. Aframaxes can generally
transport from 500,000 to 800,000 barrels of crude oil and
are also used in lightering. A coated Aframax operating in the
refined petroleum products trades may be referred to as an
LR2.

Ballast - Seawater taken into a vessel’s tanks in order to
increase draft, to change trim or to improve stability. Ballast
can be taken into cargo tanks, double bottoms, fore and aft
peak tanks and/or segregated ballast tanks (SBT). All Euronav
vessels are equipped with segregated ballast tanks.

Bareboat Charter - A Charter under which a customer pays a
fixed daily or monthly rate for a fixed period of time for use of
the vessel. The customer pays all costs of operating the vessel,
including voyage and vessel expenses. Bareboat charters are
usually long term.

Barrel - A volumetric unit of measurement equal to 42 U.S.
gallons or 158.99 liter. There are 6.2898 barrels in one cubic
meter. Note that while oil tankers do not carry oil in barrels
(although ships once did in the 19th century), the term is still
used to define the volume.

BITR - Baltic Index Tanker Routes. The Baltic Exchange is
a source of independent, freight market data. Information
collected from a number of major shipbrokers around the
world is collated and published daily. The Exchange publishes
the following daily indices: the Baltic Panamax Index, the Baltic
Capesize Index, the Baltic Handymax Index and the Baltic
International Tanker Routes - clean and dirty. The Exchange
also publishes a daily fixture list.

Bulk cargo - Bulk cargo is commodity cargo that is transported
unpackaged in large quantities. The containment for this type
of cargo is the tanks of the ship.

Charter - Contract entered into with a customer for the use
of the vessel for a specific voyage at a specific rate per unit
of cargo (Voyage Charter), or for a specific period of time at
a specific rate per unit (day or month) of time (Time Charter).

Charterer - The company or person to whom the use of the
vessel is granted for the transportation of cargo or passengers
for a specified time.

Classification Societies - Organizations that establish
and administer standards for the design, construction and
operational maintenance of vessels. Vessels cannot trade
unless they meet these standards.

and associated functions, including seeking and negotiating
employment for vessels, billing and collecting revenues,
issuing voyage instructions, purchasing fuel and appointing
port agents.

Contango - Is a term used in the futures market to describe
an upward sloping forward curve. Such a forward curve is said
to be ‘in contango’. Formally, it is the situation where and the
amount by which, the price of a commodity for future delivery
is higher than the spot price, or a far future delivery price higher
than a nearer future delivery. The opposite market condition to
contango is known as backwardation.

Contract of Affreightment or COA - An agreement providing
for the transportation between specified points for a specific
quantity of cargo over a specific time period but without
designating specific vessels or voyage schedules, thereby
allowing flexibility in scheduling since no vessel designation is
required. COAs can either have a fixed rate or a market-related
rate.

Crude oil - Oil in its natural state that has not been refined or
altered.

DWT - Deadweight Tonnage - The lifting or carrying capacity
of a ship when fully loaded. This measure is expressed in
metric tons when the ship is in salt water and loaded to her
marks. It includes cargo, bunkers, water, stores, passengers
and crew.

Demurrage - Additional revenue paid to the ship owner on
its Voyage Charters for delays experienced in loading and/or
unloading cargo that are not deemed to be the responsibility of
the ship owner, calculated in accordance with specific Charter
terms.

Double hull - A design of tanker with double sides and a
double bottom. The spaces created between the double
sides and bottom are used for ballast and provide a
protective distance between the cargo tanks and the
outside world.

Draft - The vertical distance measured from the lowest point
of a ship’s hull to the water surface. Draft marks are cut into
or welded onto the surface of a ship’s plating. They are placed
forward and aft on both sides of the hull and also amidships.
The Plimsoll lines which designate maximum drafts allowed
for vessels under various conditions are also found amidships.

Dry-dock - An out-of-service period during which planned
repairs and maintenance are carried out,
including all
underwater maintenance such as external hull painting. During
the dry-docking, certain mandatory Classification Society
inspections are carried out and relevant certifications issued.
Modern vessels are designed to operate for five years between
dry-dockings. Normally, as the age of a vessel increases, the
cost and frequency of dry-docking increase. After the third
Special Survey, dry-docks will be conducted every 2.5 years.

Commercial Management or Commercially Managed -
The management of the employment, or chartering, of a vessel

FPSO - Stands for Floating Production, Storage and Offloading.

Annual report 2019GlossaryFPSOs are designed to receive all of the hydrocarbon fluids
pumped by nearby offshore platforms (oil and gas), to process
it and to store it. FPSOs are typically moored offshore ship-
shaped vessels, with processing equipment, or topsides,
aboard the vessel’s deck and hydrocarbon storage below, in
the hull of the vessel.

FSO - A Floating, Storage and Offloading vessel is commonly
used in oil fields where it is not possible or efficient to lay a
pipeline to the shore. The production platform will transfer the
oil to the FSO where it will be stored until a tanker arrives and
connects to the FSO to offload it.

IMO - International Maritime Organization - IMO’s main task is to
develop and maintain a comprehensive regulatory framework
for shipping including safety, environmental concerns, legal
matters, technical co-operation, maritime security and the
efficiency of shipping. The Convention establishing the
International Maritime Organization was adopted in Geneva in
1948.

Intertanko - International Association of Independent Tanker
Owners.

ISM - International Safety Management is a set of regulations
that operators of tankers must comply with, which aims to
improve the safety standards of the tanker industry.

Knot - A unit of speed equal to one nautical mile (1.852 km) per
hour, approximately 1.151 mph.

KPI - Key Performance Indicator. A performance indicator
or key performance indicator is a type of performance
measurement. An organization may use KPIs to evaluate its
success, or to evaluate the success of a particular activity in
which it is engaged.

LR1/LR2 - Abbreviations for Long Range oil tankers. Tankers
with approx. 50-80,000 dwt (LR1) and approx. 80-120,000 dwt.
(LR2).

MOPU - Mobile Offshore Production Unit.

OCIMF - The Oil Companies International Marine Forum is
a voluntary association of oil companies with an interest
in the shipment and terminalling of crude oil, oil products,
petrochemicals and gas.

indemnity

Insurance

- Protection and

P&I
insurance,
commonly known as P&I insurance, is a form of marine
insurance provided by a P&I club. A P&I club is a mutual (i.e.
a co-operative) insurance association that provides cover for
its members, who will typically be ship owners, ship operators
or charterers.

Pool - A pool is a group of similar size and quality vessels with
different ship owners that are placed under one administrator
or manager. Pools allow for scheduling and other operating
efficiencies such as multi-legged charters and Contracts of
Affreightment.

Pool points - A system of pool points creates a model for a
ship with a performance equating to the average of those being
pooled. This ship is awarded 100 pool points. All other ships in
the pool are then given more or less pool points adjusted for
the characteristics of each vessel. Pool points, by their nature,
can only be used to address the differences between the ships
as described, and not the ship as performed.

Profit share - A mechanism where, depending on the outcome
of the negotiations and under certain Time Charter contracts
it is being agreed that the owner of the vessel is entitled to
an increase of the agreed base hire rate (minimum or floor)
amounting to a certain percentage of the difference between
that base rate and the average of rates applicable for a certain
period on certain routes.

Rate - The cost or revenue for a particular voyage based on a
standard reference, e.g. Worldscale.

Reverse lightering - Loading VLCCs via reverse lightering
is an interim and costly alternative to loading directly from a
deepwater terminal. Panamax and Aframax tankers are used
to shuttle crude from land-based ports to offshore VLCCs.

Semi - A semi-submersible (semi-submerged ship) is a
specialized marine vessel used in a number of specific offshore
roles such as offshore drilling rigs, safety platforms, oil
production platforms and heavy lift cranes. They are designed
with good stability and seakeeping characteristics. Other terms
include semisubmersible, semi-sub, or simply semi.

Shale oil - Crude oil that is extracted from oil shale (fine-
grained sedimentary rock containing kerogen) by using
techniques other than the conventional (oil well) method, for
example heating and distillation.

Spar - Single Point Mooring and Reservoir - A spar is a type
of floating oil platform typically used in very deep waters and
is named for logs used as buoys in shipping that are moored
in place vertically. Spar production platforms have been
developed as an alternative to conventional platforms.

Special Survey - The survey required by the Classification
Society that usually takes place every five years and usually
in a dry-dock. During the Special Survey all vital pieces of
equipment and compartments and steel structures are opened
up and inspected by the classification surveyor.

Spill - Oil getting into the sea, in any amount, for any reason.

Spot (Voyage) Charter - A charter for a particular vessel to
transport a single cargo between specified loading port(s)
and discharge port(s) in the immediate future. The contract
rate (spot rate) covers total operating expenses such as port
charges, bunkering, crew expenses, insurance, repairs and
canal tolls. The charterer will generally pay all cargo-related
costs and is liable for Demurrage, if incurred. The rate is usually
quoted in terms of Worldscale.

Annual report 2019Tramp - As opposed to freight liners, tramp ships trade on the
spot market with no fixed schedule, itinerary or ports-of-call.
Trampers go wherever the cargo is and carry it to wherever it
wants to go, within reason, like taxi cabs.

Ultra Deep Water (UDW) - Water depth of more than 1500
meters.

Vessel Expenses - Includes crew costs, vessel stores and
supplies, lubricating oils, maintenance and repairs, insurance
and communication costs associated with the operation of
vessels.

Vetting - The Oil Companies International Maritime Forum
set up a system for inspecting ships to ensure they are fit for
purpose. They use a system called Ship Inspection Report
Programme (SIRE) which requires six-monthly inspections.
Most cargo moves require a SIRE inspection within the last six
months and each oil company is free to decide if it considers
the inspection report satisfactory. The SIRE report system can
only be viewed by the members of OCIMF and not by brokers
or ship owners.

VLCC - The abbreviation for Very Large Crude Carrier. Tankers
with a capacity between 200,000 and 320,000 dwt. These
tankers can transport up to two million barrels of crude oil.

VLCC Equivalent - The capacity of 1 VLCC or 2 Suezmax
vessels.

Voyage Expenses - Includes fuel, port charges, canal tolls,
cargo handling operations and brokerage commissions paid
by the ship owner under Voyage Charters. These expenses are
subtracted from shipping revenues to calculate Time Charter
Equivalent revenues for Voyage Charters.

V-Plus - A crude oil tanker (ULCC or Ultra Large Crude Carrier)
of more than 350,000 dwt which makes it one of the biggest oil
tankers in the world. These tankers can transport up to three
million barrels or more of crude oil and are mainly used on the
same long-haul routes as VLCCs.

Worldscale - The New Worldwide Tanker Nominal Freight
Scale is a catalogue of theoretical freight rates expressed as
USD per ton for most of the conceivable spot voyages in the
tanker trade. The final rate agreed will be determined as a
percentage of the ‘Worldscale’ rate, based upon a guaranteed
minimum quantity of cargo. That allows for charter parties
to cover a wide range of possible voyage options without the
need to calculate and negotiate each one separately.

Spot Market - The market for the immediate charter of a
vessel.

Suezmax - The maximum size vessel that can sail loaded
through the Suez Canal. This is generally considered to be
between 120,000 and 199,999 dwt and mostly about 150,000
dwt, depending on a ship’s dimensions and draft. These tankers
can transport up to one million barrels of crude oil.

(Super) slow steaming - Reducing operating speeds in order
to save fuel. Operating laden speeds are reduced from 15
knots to 13 knots and operating ballast speeds from 15 knots
to 8 knots.

Technical Management - The management of the operation
of a vessel, including physically maintaining the vessel,
maintaining necessary certifications and supplying necessary
stores, spares and
lubricating oils. Responsibilities also
generally include selecting, engaging and training crew and
could also include arranging necessary insurance coverage.

Time Charter (T/C) - A charter for a fixed period of time,
usually between one and ten years, under which the owner
hires out the vessel to the charterer fully manned, provisioned
and insured. The charterer is usually responsible for bunkers,
port charges, canal tolls and any extra cost related to the
cargo. The charter rate (hire) is quoted in terms of a total cost
per day. Subject to any restrictions in the charter, the customer
decides the type and quantity of cargo to be carried and the
ports of loading and unloading.

Time Charter Equivalent (TCE) - TCE revenues, which are
voyage revenues less voyage expenses, serve as an industry
standard for measuring and managing fleet revenue and for
comparing results between geographical regions and among
competitors.

Tension Leg Platform (TLP) - A tension-leg platform or
extended tension leg platform (ETLP) is a vertically moored
floating structure normally used for the offshore production of
oil or gas and is particularly suited for water depths greater
than 300 meters (about 1,000 ft.) and less than 1,500 meters
(about 4,900 ft). Use of tension-leg platforms has also been
proposed for wind turbines.

Tonnage Tax Regime - An alternative way of calculating
taxable income of operating qualifying ships. Taxable profits
are calculated by reference to the net tonnage of the qualifying
vessels a company operates, independent of the actual
earnings (profit or loss).

Ton-mile - A unit for freight transportation equivalent to a ton
of freight moved one mile.

Ton-mile demand - A calculation that multiplies the average
distance of each route a tanker travels by the volume of cargo
moved. The greater the increase in long-haul movement
compared with shorter haul movements, the higher the
increase in ton-mile demand.

Annual report 2019Glossary95

Annual report 2019REGISTERED OFFICE
De Gerlachekaai 20
B-2000 Antwerp - Belgium
tel. + 32 3 247 44 11
fax + 32 3 247 44 09
e-mail admin@euronav.com
website www.euronav.com

RESPONSIBLE EDITOR
Lieve Logghe
De Gerlachekaai 20
B-2000 Antwerp - Belgium

Registered within the
jurisdiction of the Commercial
Court of Antwerp -
VAT BE 0860 402 767

Dit verslag is ook beschikbaar in
het Nederlands.

This report can be
downloaded on our website:
www.euronav.com