Euronav Annual Report 2020

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FY2020 Annual Report · Euronav

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2020
Annual report

Shareholder letter

Quick facts

Highlights 2020

Special report

A sustainable pathway
to decarbonisation

Directors’ report
Vision and Mission

Company profile

Highlights 2020

Corporate Governance
Statement

The Euronav Group

Activity report

Products and services

In-House Ship
Management

Fleet of the Euronav group
as of 31 December 2020

Human resources

Sustainability
report

Letter from the CEO

Sustainability
Highlights 2020

Our approach to
sustainability

Stakeholder engagement

Active engagement with
financial institutions on
sustainability

Environment

Social and human capital

Corporate governance

Initiatives and
contributions to society

Glossary

101

106

107

108

116

122

124

128

Shareholders diary
Financial calendar 2021

Thursday 6 May 2021
Announcement of first quarter results 2021

Thursday 20 May 2021
Annual General Meeting of Shareholders

Thursday 05 August 2021
Announcement of second quarter results 2021

Tuesday 10 August 2021
Half year report 2021 available on website

Thursday 04 November 2021
Announcement of third quarter results 2021

Thursday 03 February 2022
Announcement of fourth quarter results 2021

Representation by the persons
responsible for the financial
statements and for the
management report

Mr Carl Steen, Chairman of the Supervisory Board, Mr Hugo
De Stoop, CEO and Mrs Lieve Logghe, CFO, hereby certify
that, to the best of their knowledge,

(a) the consolidated financial statements as of and for the
year ended 31 December 2020, which have been prepared
International Financial Reporting
in accordance with
Standards (IFRS) as adopted by the European Union, give a
true and fair view of the assets, liabilities, financial position
and results of Euronav NV and the entities included in the
consolidation.

(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 figures
Consolidated statement of profit or loss 2012 - 2020
(in thousands of USD)
2016
2019

2020

2018

2017

2015

2014

2013
Restated A

2012

Revenues

EBITDAB

EBIT

Net profit

1,230,750

864,018

544,268

473,238

TCE C year average

2020

VLCC

Suezmax

Spot Suezmax

54,600

29,600

39,100

932,377

540,668

202,966

112,230

2019

35,874

37,747

24,119

600,024

231,513

(39,179)

(110,070)

2018

23,005

30,481

15,784

513,368

273,451

43,579

1,383

2017

27,773

22,131

18,002

684,265

475,005

247,241

204,049

2016

41,863

26,269

27,498

846,507

612,659

402,453

350,301

2015

55,055

35,790

41,686

473,985

202,767

41,814

(45,797)

2014

27,625

25,930

23,382

304,622

100,096

(36,862)

(89,683)

410,701

120,719

(56,794)

(118,596)

2013

2012

18,300

22,000

16,600

19,200

24,100

16,300

In USD per share

2020

2019

2018

2017

2016

2015

2014

2013

2012

Number of shares D
EBITDA

EBIT

Net profit

210,193,707 216,029,171 191,994,398 158,166,534 158,262,268 155,872,171 116,539,017 50,230,437

50,000,000

4.11

2.59

2.25

2.50

0.94

0.52

1.21

(0.20)

(0.57)

1.73

0.28

0.01

3.00

1.56

1.29

3.93

2.58

2.25

1.74

0.36

(0.39)

1.99

(0.73)

(1.79)

2.41

(1.14)

(2.37)

In EUR per share

2020

2019

2018

2017

2016

2015

2014

2013

2012

Rate of exchange

1.2271

1.1234

1.1450

1.1993

1.0541

1.0887

1.2141

1.3791

1.3194

EBITDA

EBIT

Net profit

3.35

2.11

1.83

2.23

0.84

0.46

1.05

(0.18)

(0.50)

1.44

0.23

0.01

2.85

1.48

1.22

3.61

2.37

2.06

1.43

0.30

(0.32)

1.44

(0.53)

(1.29)

1.83

(0.86)

(1.80)

History of dividend
per share

2020

2019

2018

2017

2016

2015

2014

2013

2012

Dividend (USD per share)

1.40 E,F

Of which interim div. of

1.40

0.35

0.06

0.12

0.06

0.12

0.06

0.77

0.55

1.69

0.62

0.00

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

C Time Charter Equivalent.
D Excluding 18,346,732 shares held by the Company in 2020 (2019: 4,946,216 shares and 2018: 1,237,901 shares)
E The total gross dividend paid in relation to 2020 of USD 1.4 per share is the sum of the interim dividends paid in June 2020, August 2020, November 2020 and March 2021.
F Ratio is based on the actual exchange rate EUR/USD on the day of the dividend announcement if any.

Consolidated statement of financial position 2012 - 2020
(in thousands of USD)

31.12.2020 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

ASSETS

Non-current assets

3,235,366

3,362,594

3,606,210

2,530,337

2,673,523

2,665,694

2,558,505

1,728,993

2,065,448

Current assets

451,873

802,249

521,141

280,636

373,388

375,052

537,855

191,768

297,431

TOTAL ASSETS

3,687,239

4,164,843

4,127,351

2,810,973

3,046,911

3,040,746

3,096,360

1,920,761

2,362,879

LIABILITIES

Equity

2,311,786

2,311,855

2,260,523

1,846,361

1,887,956

1,905,749

1,472,708

Non-current liabilities

1,171,859

1,536,938

1,579,706

Current liabilities

203,594

316,050

287,122

805,872

158,740

969,860

189,095

955,490

179,507

1,328,257

295,395

800,990

874,979

244,792

866,970

1,186,139

309,770

TOTAL LIABILITIES

3,687,239

4,164,843

4,127,351

2,810,973

3,046,911

3,040,746

3,096,360

1,920,761

2,362,879

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

The Euronav
share

DAILY VOLUME OF TRADED SHARES 2020 (NYSE & EURONEXT)

Euronav’s shareholders’ structure
According to the information available to the Company
at the time of preparing this annual report on 26 March
2021 and taking into account the latest transparency
declarations or other officially filed information with
supervising authorities, the shareholders’ structure is as
shown in the table.

Shareholder structure on
31 December 2020

Shareholder

Percentage

Euronav (treasury shares)

M&G

Other

Total

18,346,732

11,279,552

8.34%

5.13%

190,398,429

86.53%

220,024,713 100.00%

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

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Editor’s note: Shareholders’ structure as of
26 March 2021, date of closing for publishing:

SHARE PRICE EVOLUTION 2020 (IN USD)

Shareholder

Percentage

Euronav (treasury shares)

M&G

Other

Total

18,346,732

11,262,506

8.34%

5.12%

190,415,475

86.54%

220,024,713 100.00%

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Share price NYSE in USD

Share price Euronext Brussels in USD

Dear Shareholder,

Crude tanker markets have historically been known for their
unpredictability. However, participants in the large crude
tanker sector experienced a year of challenge and opportunity
like no other in 2020.

Towards the end of the first quarter, the tanker market
benefited from the development of three key factors. Firstly,
unilateral actions were taken by Saudi Arabia in simultaneously
cutting their oil prices but also raising their crude oil exports.
This prompted a large short-term increase in demand for
tanker tonnage, primarily in the VLCC sector. Secondly, the
restrictions taken by governments to curtail the COVID-19 virus,
globally curbed economic activity and consequently crude
consumption. This led to a steep and rapid disconnect between
crude demand and supply alongside a wide contango. Thirdly,
this pricing structure itself further incentivised the storage of
crude oil for financial gain during April/May, thus increasing
short-term the demand for tonnage to store this excess oil.

The disruption to tanker markets from these factors combined
to take between 7-9% of the global trading fleet for storage
purposes (300 million barrels). These features combined to
create a highly favourable tanker freight market from February
until August reflected in strong earnings for Euronav. The
OPEC plus nations agreed a 9.7 mbpd cut to production of
global crude (out of 100 mbpd daily output) applicable from
May. However, the impact of these cuts was not felt in tanker
markets until the third quarter given the positive disruption
from storage on fleet supply. The returning vessels from
storage from August onwards combined with fewer available
cargoes from the production cuts has led to a challenging
freight market from August onwards.

During the first half of 2020, Euronav returned USD 237 million
in value to its shareholders with 75% of this return via cash
dividend. The increasing allocation of returns toward share
repurchases reflects a strong belief that the value ascribed by
capital markets to our equity value is below the intrinsic value
of the Company’s shares. In this situation it is an attractive

1
1

investment opportunity for our company to repurchase
our own equity, and the board shall continue to adopt this
approach if appropriate.

In November the Company announced a ten year extension
of the contract to our joint venture FSO (floating storage and
offloading) platform operating on the Al Shaheen field off
Qatar, ensuring these two converted ULCCs are operational
until 2032. This project illustrates our capability to diversify our
activities beyond the traditional crude oil transportation sector.

Our commitment towards sustainability has been embedded in
the company’s strategy since it was established 25 years ago.
Euronav was awarded a B-score (compared to the average C
rating given to other marine transport companies) for taking
coordinated action on climate issues by the CDP (Carbon
Disclosure Project) for the first time this year. The recognition
from this well respected, independent environmental body was
welcomed.

A diversified and dynamic set of funding sources to support our
asset base is critical for our future development. In September,
two existing loan facilities were merged into a single USD 713
million sustainability linked loan facility. Supported by a wide
range of banks, the new facility has specific emissions targets
integrated and covers a third of our funding requirements.

Mobility restrictions in many parts of the world, brought in to
reduce COVID-19 outbreaks, impacted our shipping operations
specifically in rotating our crew onboard our vessels. At the
peak in August, Euronav had over 680 seafarers stranded
onboard after their contracts expired. The company managed,
in challenging circumstances, to reduce this to less than 50
within three months. During 2020, Euronav has constantly
lobbied on multiple platforms to have seafarers recognised as
“key workers” and shall continue to do so.

The Supervisory and Management Board of Euronav would
like to take this opportunity to thank all seafarers and our
operational staff for their dedicated service,
in difficult
circumstances, over the past 12 months.

Strategically, Euronav has throughout its history operated a
strong capital structure in order to navigate financial cycles.
A robust balance sheet allows the company the flexibility to
manage our operations through challenging periods during
a cycle but also remain opportunistic toward expansion. The
board looks forward to further growing our platform to the
benefit of all stakeholders.

Looking forward, short-term headwinds will at some point,
we believe, give way to the more supportive fundamentals
of a 20-year low orderbook, mature global fleet, incoming
environmental regulations and the prospect of a return to
more normalised levels of crude consumption.

Yours Sincerely

Carl E. Steen

Chairman

Quick facts
3,500
SEAFARERS
different
nationalities

y
n
a
m

f
o

Around 3,500 seafarers of many different nationalities work aboard
Euronav vessels through the year. Their nationalities are marked
by a dot on the map below. In addition, Euronav has approximately
220 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 2020

3
3

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f
k
c
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Q

$ 898,898

*PROPORTIONATE EBITDA
FOR THE YEAR 2020

VESSELS

(ON 31 DECEMBER 2020)

26 SUEZMAX
1 million barrels
Average age: 10.23 years

41 VLCC
2 million barrels
Average age: 7.36 years

2 FSO
2.8 million barrels
Average age: 18 years

2 VPLUS
3 million barrels
Average age: 17.5 years

Highlights
4

Highlights 2020

9 January 2020
its return to
Euronav published updated guidance on
shareholders policy to be applied to the 2019 results and the
quarterly results as from 2020 onwards.

9 April 2020
The Suezmax Cap Diamant (2001 - 160,044 dwt) was sold for
USD 20.8 million and delivered to her new owners.

5 June 2020
The VLCC TI Hellas (2005 - 319,254 dwt) was sold for USD 38.1
million and delivered to her new owners.

25 June 2020
In an exceptional campaign, Euronav honoured ship’s crews
on the ‘Day of the Seafarer’ and demanded the status of ‘key
workers’. This would enable crew changes for the thousands
of confined seafarers worldwide due to COVID-19 related
restrictions.

22 January 202
For the third consecutive time, Euronav was included in the
Bloomberg Gender-Equality Index (GEI).

27 January 2020
For the first time, all Euronav’s managed vessels are informed of
the safety measures taken regarding the upcoming COVID-19
virus.

21 February 2020
The Suezmax M/T Finesse (2003 – 149,994 dwt) was sold for
USD 21.8 million and delivered to her new owners.

26 February 2020
Euronav entered into an agreement for the acquisition through
resale of three VLCC newbuilding contracts.

13 March 2020
Euronav shore staff started working from home to counter the
rapidly spreading COVID-19 virus.

30 June 2020
Euronav started a series of several share buybacks which
continued throughout the rest of the year.

26 March 2020
Euronav entered into an agreement for the acquisition through
resale of one more VLCC newbuilding contract.

30 September 2020
The Suezmax Bastia (2005 – 159,155 dwt) was sold for USD
20.5 million and delivered to her new owners.

Annual report 2020 5

Capital allocation at
Euronav
We believe that our approach to target a net return
of 80% of income to shareholders is prudent within
the context of a strong balance sheet. Focusing on
retaining a liquidity buffer to manage the company
through at least two years of sustained challenging
freight rates gives us the flexibility to manage the
cycle and retain sufficient capital for fleet renewal,.
This approach has been the backbone of our capital
allocation approach since 2010. (please read the full
dividend and return to shareholders policy on our
website)

During 2020 and for the first time in our history as
a listed company, Euronav has had the flexibility to
return value to shareholders on a quarterly instead
of semi-annual basis. For Q1 the company focused
on returning 100% in cash dividends, but for Q2
and Q3 we decided to allocate the capital that we
wanted to return to our shareholders in the form
of 50% share repurchases and 50% cash dividends.
In total USD 473 million was returned via these two
methods, which is the equivalent of USD 2.22 per
share.

Dividend $m

Share buy back $m

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m
$

250

200

150

100

Q2 2020

Q3 2020

Q4 2020

15 October 2020
Euronav received the award for ‘Best Market & Competitive
Information 2020’ from the Belgian Association of Financial
Analysts (ABAF-BVFA).

4 November 2020
Euronav announced that the joint venture with International
Seaways had signed an extension for ten years for the FSO
Asia and the FSO Africa, in direct continuation of their current
contractual service.

10 December 2020
Euronav obtained a ‘B’-score from the Carbon Disclosure
Project (CDP) for our actions and leadership shown against
climate change.

16 December 2020
Euronav held its first ever virtual naming ceremony to welcome
Delos and Diodorus, two out of a total of four sister Eco-type
VLCC newbuildings, that were due to join our fleet in 2021.

Source: Euronav

Highlights

Special
Report

A sustainable pathway to decarbonisation

- Part A: Shipping - In a good place
relative to other transportation
methods

- Part B: What is shipping’s emission

issue and large crude tankers
specifically ?

- Part C: How can and will shipping

decarbonise outside of a new fuel?

- A feasible, sustainable pathway

to decarbonise large crude tanker
shipping – A Conclusion

A sustainable pathway to
decarbonisation

A feasible, sustainable pathway
to decarbonise large crude
tanker shipping

Introduction
Maritime transport emits 940 million tonnes of CO2 annually,
accounting for circa 2.7% of the global CO2, an output of
around 7% of SOx and 12.5% of NOx emissions (source:
European Commission - ‘Reducing emissions from the shipping
sector’). Large crude tanker shipping transports one fossil
fuel only, crude oil, bringing more pressure into a capital-
intensive space where financing is moving ever greener. The
aim of this special paper for 2020 is to assess where shipping’s
sustainability process is, the challenges it faces and how the
large crude tanker sector and Euronav can deliver a roadmap
to decarbonisation.

Part A: Shipping - In a good place relative to
other transportation methods
Shipping finds itself in an odd juxtaposition between a perceived
reluctance to take affirmative action on climate change and the
actual planned reduction in GHG emissions. This reputation
has been driven by the sector’s absence from

the Paris Agreement on climate change, by the fact that only 21
out of 52 quoted shipping companies in the shipping corporate
governance score card provide any disclosure on carbon
emissions (source: Webber research) and the often-quoted
fact that shipping as an industry emits the same amount of
carbon as Germany in national terms .

However, a truer picture of the environmental attributes of
shipping emerges when it is compared against the other major
transportation methods. Figure 1 shows this.

Shipping is seven times more efficient than rail, sixteen times
more than road transportation and a massive eighty-five times
more efficient than air transport. For a global industry to emit
just 2.7% of the world’s carbon emissions, this is not only a very
efficient process but the least impactful on the environment,
particularly when taking into account the quantities and
services it transports. For an economic region such as the
European Union, shipping accounts for 80% of total exports
and imports by volume, and some 50% by value. Shipping is
the key transportation sector reflected in the International
(source: https://www.ics-
Chamber of Shipping’s website
shipping.org/shipping-fact/shipping-and-world-trade-driving-
prosperity/).

Figure 1 - Shipping compared to other transportation methods

Shipping - low relative emissions

AIR

ROAD

80 g/CO2

RAIL

35 g/CO2

SHIPPING

5 g/CO2

2,7 % of global CO2 emissions

425 g/CO2

Source: IMO GHG study 2009. Notes: 1) Energy-efficient transport is much dependent on the load factor, vehicle efficiency and cargo type; heavier cargo and larger
vehicles will improve the cargo/vehicle weight ratio, resulting in better CO2ton-km values; 2) Air = Boeing 747, Road = Truck > 40 ton, Rail = 3-4 hp / short-ton, Shipping
= Average of very large container vessel (3 gCO2ton-km), oil tanker (6), bulk carrier (8); 3) Estimations assuming current energy mix

Annual report 2020 9

Figure 2 – Shipping & Tanker Shipping been developing track record in emissions and environmental improvement

Dramatic improvement
in oil pollution spills

Single hull to double
hull transition

Ballast water
treatment systems

IMO 2020 – 85% cut
to SO2 emissions

No spills > 700t

VLCC global ﬂeet dwt

single hull
double hull

95% reduction in
crude spills from
tankers since 1970s

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1990

1996

2013

Mandatory since
Sept 2019

HFO

Marine Gasoil

VLSFO

28%

60%

72%

35%

1970

1990

1996

2013

2017

Q3 2019

Q1 2020

Source: Euronav

Figure 2 shows that shipping has already gained credibility in
its efforts to reduce emissions. The tanker sector specifically
shows a track record on pollution and safety which has
improved steadily over decades. The regulatory introduction of
the global cap on fuel sulfur content, the so-called ‘IMO 2020’,
was dominated with discussion over fuel spread prices and the
merits of scrubbers, or harm that they can cause. What was lost
in this noise was the fact that shipping was taking affirmative
action and reducing its sulfur emissions by 85% in one fell
swoop.

Compliance with these regulations has been very high and the
new laws have been deemed a universal success. The world
may have not noticed because the sector suffers from being
too fragmented into separate segments (dry bulk, tankers,
containers, etc.) and so lacks a single voice. What counts are the
results. Since 1 January 2020, our industry realised an 85% cut
of sulfur oxide being emitted into the air. The IMO greenhouse
gas reduction targets are the only example of a transportation
sector committing to measurable reduction targets.

Figure 3 – No seat at the table – Shipping’s value to world
economy is $14 trillion but all quoted shipping companies
make less than $100 billion

Value of shipping
transportation 2019

Market value of
quoted shipping
companies

10.000.000.000.000

Source: Bloomberg 1.1.21, International Chamber of Shipping

Since 2019, the total value of the annual world shipping trade
had reached more than 14 trillion US Dollars. Shipping’s
capacity to transfer goods and materials from where they are
produced to where they are used or consumed underpins
modern life (source: Bloomberg 1.1.21, International Chamber
of Shipping).

However, the relative lack of visibility of companies listed on
global stock markets means that to most, shipping is invisible.
This lack of transparency may have suited shipping’s needs
in the past, but the future requires a different approach,
particularly with regard to decarbonisation. Shipping requires
a key set of companies, open to the highest levels of scrutiny
and prepared to lead this drive, preferably in the quoted space.
Euronav intends to be part of this group.

tanker companies

The problem of divestment is at the heart of the challenge
crude
in driving sustainability.
face
Euronav strongly believes cooperation will achieve better and
sustainable goals as a global solution. Too often it is easier for
investors to mandate tanker shipping out of their investment
benchmark or simply divest. It is better to have a seat at the
table to influence the direction and guide the development of
crude tanker shipping over the next critical 3-5 years than to
ignore it. If ignored, the critical industry of tanker shipping will
become more privately operated and thus less influenced by
public pressure.

It is an inconvenient truth that crude is and will remain part of
the energy transition. Investors often ask Euronav for a view on
peak oil demand and the impact on our business. Given that
our assets have a finite life (based on our application) of 20
years, this subject is something we embrace rather than shun
as crude consumption will still be an important, albeit shrinking,
part of the energy mix in decades to come. There are three
factors underpinning this view.

The first of these is scale. All of the major energy agencies
recognise the need for transition but they also all see crude as
remaining a key part of the overall energy mix. Every forecast

Special report10

predicts that overall energy demand will grow annually to
at least 2040. The size of the energy pie will grow as energy
sources do not replace old ones, they supplement them. So
while the share of renewables may well grow, oil and gas will
continue to participate in the global energy mix. As the IEA
scenario shows below, oil as a percentage of the global energy
mix to 2040 will reduce, but only modestly.

Figure 4 – IEA anticipated changes in global energy mix to
2040

2040

2030

2019

)
E
O
T
M

(

t
n
e
a
v
i
u
q
E
l
i

f
o
s
e
n
n
o
T
n
o

i
l
l
i

5,000

4,000

3,000

2,000

1,000

OIL

NATURAL
GAS

COAL

OTHER
RENEWABLES

BIO
ENERGY

NUCLEAR

HYDRO

Source: IEA 2020 World Energy Outlook, Stated Policies Scenario

The second factor is necessity. Transition is defined as ‘the
process or a period of change from one state or condition
to another’. It makes sense for this process to be handled as
smoothly as possible and the crude transportation sector can
make real changes to its emissions profile that will make the
transition easier.

Thirdly, there is the economic reality. Crude oil will still retain an
important presence in the energy spectrum. The requirement
for energy will continue to grow over the next 10-20 years but
renewable and alternative sources of energy will not have the
scale or likely to be cost effective in simply replacing oil within
the spectrum AND meeting the worlds increased demand for
energy. The production of crude oil cannot simply be wished
away. The production of crude itself should be recognised as
having a key role in the wider energy transition in making it not
only feasible but at an affordable overall cost. The International
Energy Agency’s Sustainable Development Scenario (SDS) most
aggressive decarbonisation forecast predicts 70 million barrels
per day of oil being consumed in 2040.

It is important to remember how integral oil is to everyone’s
everyday life. One barrel of crude oil creates 19.4 gallons of
gasoline and other products used for transport, energy and
heating. The rest (over half) is used to make 6,000 other
products we use in everyday life such as ink, tires, sweaters,
vitamin capsules, toothpaste, deodorant, clothes, dishes,
aspirin, and electric blankets (source: www.ranken-energy.com/
index.php/products-made-from-petroleum).

Annual report 2020

The developing world must have a voice and role in the energy
transition. However, it should also have a pathway to improved
and sustained economic improvement and development, a
trend well established as Figure 5 illustrates.

Figure 5 – History of economic development and
population growth suggest crude oil will continue to have
a central role in energy transition

IEA oil consumption

Global population

104

d
p
b
m
n
o
i
t
p
m
u
s
n
o
c
e
d
u
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c

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o
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g
A
E
I

s
n
o

i
l
l
i

b
n

n
o
i
t
a
u
p
o
p
d
l
r
o
W

8,0

7,5

6,5

6,0

5,5

5,0

4,5

n
b
n
o
i
t
a
u
p
o
p

a
b
o
G

2038e

9bn

2023e

8bn

5
8
9
1

8
8
9
1

1
9
9
1

4
9
9
1

7
9
9
1

0
0
0
2

3
0
0
2

6
0
0
2

9
0
0
2

2
1
0
2

5
1
0
2

8
1
0
2

2012 7bn

1996 6bn

1987 5bn

1960 3bn

1974 4bn

1804 1bn

1927 2bn

2008

1750

1800

1850

1900

1950

2000

2050

Source: World Bank, IEA

If the transportation of crude can be done in a more sustainable
way, reducing its emissions footprint in the immediate and
medium term, then this will simultaneously provide economic
development to the developing world. It will also provide a
transition pathway for other technologies to help replace crude
over the longer term.

Special report

Part B: What is shipping’s emission issue and
large crude tankers specifically ?
As Figure 6 clearly shows, crude tankers make up around 5%
of the world’s shipping fleet in terms of ship numbers, but
represent 10% of the CO2 emissions produced by the total
global shipping fleet. This makes sense as oil tankers are
amongst the largest vessels in that global fleet, as the chart
illustrates.

Figure 6 – Largest 30% vessels account for 75% of total
shipping CO2 – tankers represent 10%

Remaining smaller fleet

Oil tanker > 5,000 DWT

change than a whole nation. Can shipping do it however?

So what does tanker shipping need to do from a regulatory
perspective?

The simple answer is: a lot. As Figure 7 makes clear, a wide
emissions gap will open up between the pathway envisaged
and set by the IMO and ‘business as usual’ emissions. This is
an ambitious trajectory for shipping to deliver on. That is the
difficult news.

Figure 7 – The decarbonisation route map for global
shipping

Liquid gas tankers

Cruise > 2,000 GT

Business as usual emissions

General cargo ships
> 5,000 DWT

Chemical tankers
> 5,000 DWT

Bulker > 10,000 DWT

Emissions pathway in line with IMO GHG strategy

100

% OF TOTAL
NUMBER SHIPS

% OF TOTAL
SHIP C02

Source: Worldometers

This encapsulates the opportunity for crude tanker shipping in
the emissions conundrum. Shipping produces 2.7% of global
CO2 emissions and crude tankers account for 10% of this,
or 0.27% of the total of global shipping (Source: European
Commission - 'reducing emissions from the shipping sector).
Put another way, this is equivalent to the CO2 emissions
produced by Belgium (population 11 million). The crude tanker
sector is on a trajectory to reduce the emissions’ intensity by
40% by 2030, with an absolute reduction target of 50% by
2050 (70% intensity target at this date). Belgium as a nation
state targets to reduce emissions by 35% by 2030, but the
EU believes current policies would only reduce emissions by
13%. (https://ec.europa.eu/energy/sites/ener/files/documents/
be_swd_en.pdf)

Therefore, shipping has undertaken clear and ambitious
commitments as nation states have, but it has a perception or
marketing problem. It is more feasible for an industry to enact

2008 as base year

Peak as soon
as possible

Intensity 40% cut

s
n
o
i
s
s
i
m
e
2
0
C

2023 EEI to apply*

Zero
emissions as
soon
as possible
within 2100

Intensity 70% cut
with 50% total cut

2008

2020

2030

2050

*EEXI to be ratiﬁed IMO June 2021

Source: IMO, DNVGL, Euronav

The good news is that this is a feasible and real measurable
change which can be monitored and regulated between now
and 2030. Part of this increase in regulatory teeth for shipping
will come from January 2023 for all ocean going vessels, with
the expected ratification of the EEXI (Energy Efficiency Existing
Ship Index) by the MEPC meeting in June 2021 at the IMO, the
enhanced SEEMP (Ship Energy Efficiency Management Plan)
and CII (Carbon Intensity Indicator) rating.

In a nutshell, vessels will be required to operate within set
emissions performance parameters both in relation to their
design characteristics and to their actual annual emissions
records. In this context the vessels will be categorised into
5 segments (A,B,C,D,E), reflecting their annual emissions
performance. A vessel will need to submit verified corrective
plans to the regulator and may be withheld from the trading
fleet if it is in the bottom two categories (D or E).

These regulations are bringing a simple message: cut emissions
NOW and EVERY year going forward and not just with a future
target. For the large crude tanker sector this focuses attention
on the emissions opportunity that the sector has; namely it’s
own age structure.

Annual report 2020
13

From an emissions perspective, the large crude tanker fleet is
arguably the wrong size and shape for the underlying market
that it serves today and will have to serve tomorrow.

Figure 8 – VLCC fleet age structure has a quarter of its
members aged over 15 years already

VLCC Fleet - Average Age

Suezmax Fleet - Average Age

11,00

10,50

10,00

9,50

9,00

8,50

8,00

7,50

7,00

s
r
a
e
y
n

e
g
a
e
g
a
r
e
v
a
x
a
m
z
e
u
S
&
C
C
L
V

10,34

9,94

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

1
2
0
2

Source: Clarksons

Special report

As figure 9 shows, the composition of the global VLCC and
Suezmax tanker fleet is split between ‘eco-vessels’ (built since
2013), mid-aged tankers (7-15 years) and those over 15 years
of age. It is these so called ‘old ladies’ that are under increasing
pressure from three sources:

(i) Regulatory: higher frequency of special survey (which moves
to every 30 instead of 60 months post-15 years);

(ii) Economics: uncompetitive older tonnage both in terms of
eligibility (see above) and consumption (see Figure 12); and

(iii) Environmental: focus on emissions by both the regulator
and the ship financing industry.

Figure 9 – Further breakdown of the global VLCC and
Suezmax fleet

VLCC

Eco vessels: 315

Mid-Age Vessels

(7-15 years): 311

Over 15 years of age: 203

Suezmax

Eco vessels: 179

Mid-Age Vessels

(7-15 years): 222

Over 15 years of age: 142

Tons of fuel consumed per day

VLCC ballast

VLCC laden

15 years old

10 years old

5 years old

New vessel

22,5

67,5

Source: Tankers International

For older tonnage, consumption is high, putting it at an
economic disadvantage (see figure 10). On top of that, the
production of emissions comes from the consumption of fuel
and large crude tankers are large scale consumers of fuel. For
a VLCC the equivalent to the ship’s dimensions and the sum of
cargo and steel weight can be compared to 3.5 football pitches
in length and 350,000 tonnes of displaced sea water.

Annual report 2020 15

Figure 10 – Illustration of different TCEs different vintage VLCCs earn from same freight rate

“Market” VLCC

15 year old VLCC

“Eco” VLCC

t
h
g
e
r
f

e
u
f

TCE

t
h
g
e
r
f

e
u
f

TCE

x 80%

t
h
g
e
r
f

e
u
f

TCE

Consumption

60 tonnes

70 tonnes

54 tonnes

Utilisation

Opex + DD

TCE rate

Source: Euronav

100%

$10,095

$15,000

80%

$11,740

$9,600

100%

$9,800

$16,800

Note: Market VLCC indicates average
age VLCC at 10 years of age

Costs
LSFO $300 p/ton
Opex $9,800 p/d

OPEX +DD
10 yr old $10,095 p/d
15 yr old $11,740 p/d

DD costs inc BWTS 15 yr old = $3m or $2740 p/d
DD costs inc BWTS 10 yr old = $2.5m or $1095 p/d

Special report
16

Older tonnage, especially when underlying freight rates are low,
will be earning substantially less than younger vintages. This is
important as during low points of the freight rate cycle, older
tonnage will come under real pressure from their owners as
to whether they should remain operational given the scale of
losses they produce (tanker shipping is in effect a fixed cost
business), or be recycled. This scenario is as old as the shipping
industry itself. What is new, is emissions. Older vessels also
mean more emissions and this is now important to financiers,
shareholders, regulators (and other stakeholders), which
means an additional level of pressure on older tonnage.

A quarter of the large tanker fleet is already over 15 years
of age and is responsible for 30-35% of tanker’s emissions.
If the world tanker fleet is downsized by removing 15 years-
plus tonnage to meet a lower level of global oil consumption,
it would be commercially attractive for the remaining ship
owners, and allow the sector to make a substantial leap to meet
the emissions reductions outlined in figure 7.

Part C: How can and will shipping decarbonise
outside of a new fuel?

Self help - Case study – use of premium anti-
fouling paint investment
Euronav has invested and will continue to invest heavily in
relatively simple technology. The focus on early detection of a
vessel’s hull fouling by analysing a vessel’s performance data,
the use of monitoring systems and application of advanced anti-
fouling paints when our vessels are undergoing remedial work,
will generate cost savings in dollar terms and more importantly,
measurable CO2 emission savings as figure 11 illustrates.

Figure 11 - Potential relative emission savings in CO2 for a
five year period - measurement to tCO2

14 000

12 000

10 000

8000

6000

4000

2000

t
n
e
m
t
s
e
v
n

k
0
0
4
$

t
n
e
m
t
s
e
v
n

k
0
0
3
$

VLCC

Suezmax

Source: Euronav

Annual report 2020

Speed
Shipping has already demonstrated a capability in delivering a
global reduction in emissions with high compliance and little
operational disruption via ‘IMO 2020’. Since the implementation
on 1 January 2020, and the control and enforcement by
shipping’s global regulator
(International Maritime
Organisation), sulfur emissions from the fuel used by the global
shipping industry have been reduced by 85%. With a global
regulator, shipping has shown it can introduce and maintain
reductions in Greenhouse Gas emissions effectively and to
substantial effect.

IMO

A lot of work has already been done on vessel speed. Between
2008 and 2018 the fuel consumption on all shipping fell
from 300 million tonnes to 268 million tonnes. This equals a
reduction of 19% in CO2 emissions through the combination of
speed reduction and improvement of vessel energy efficiency.
This is particularly impressive when during the same period
there was a 62% increase in the global capacity of shipping.

Whilst further gains could be made it is difficult to achieve
unless the primacy of a global regulator or oversight body like
the IMO is retained. Slowing down or imposing speed limits on
certain parts of a voyage or on certain sectors is (a) quick to
yield emission gains (b) relatively easy to measure and (c) with a
global regulator, simple to enforce.

Figure 12 - Average speed index changes since 2008

Crude tanker

20 %
reduction

)
r
u
o
h
r
e
p
s
t
o
n
k
(
d
e
e
p
s
e
g
a
r
e
v
a
r
e
k
n
a
t
e
d
u
r
C

14,5

13,5

12,5

12,0

11,5

11,0

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

1
2
0
2

Source: Clarksons Research

Carbon levy has potential to help reduce emissions
but it needs to be applied properly
Many commentators often make sweeping statements and
assume it is easy to introduce, apply and collect a carbon levy
or tax. There is little doubt that there is a benefit of introducing
an economic mechanism which
incentivises affirmative
action on emissions. Euronav agrees with this philosophy but
believes that in a global industry, measures should be taken
on an international level in order to protect the level playing
field. Were global regulation to come into force later, we would
recommend the EU to then follow this or be integrated into
this. The EU should try to be as consistent as possible with
existing international regulations.

Revenues from any level should all flow back to the wider
maritime industry as the scale of investments needed is
considerable on both the vessel and infrastructure side.

Part D: What new fuel does shipping need to
decarbonise?
The simple answer is that there is no magic bullet or category
killer. It is likely to be a mix of different fuels over time with
differing investment horizons and returns.

Special report

18
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Figure 13 - The most likely fuels of the future for tankers – the pro’s and con’s

LNG

Hydrogen

Ammonia

Methanol

Biofuels

Currently viable

2030? earliest

Available in 2025

Partially available

Available today

Exact CO2
emissions cut?
Infra?

Highest potential
but viable?

LT better solution
but $ costs

Scaleable?

Scale? Competing
with other industries

LNG

Hydrogen

Ammonia

Methanol

Biofuels

-162 °C

-252.87 °C

Temperature liquid state

-33.6 °C

Positive

25 °C

Depending on fuel

Available now

Bunkering capability

Proven CO2 emission
gains

Potential as category
killer

Production now as
fertilizer

Stability and low
temperature

Similarity to HFO
bunker

Already used as dual
fuel

Combination of
hydrogen with others

Developed markets

Similarity to distillate

Renewable angle

Production rising

Dollar investing in
hydrogen globally

Flexibility between
Green/Brown

Management of fuel

Storage ease

Clean fuel

Simpler handling than
others

Applicability

Methane leakage

Manageability at -253°C

Negative

Stability (difficulty to
ignite)

Not carbon free

Scaleable

Bunkering
infrastructure not
ready

Unproven in large scale
transport fuel

Need for infrastructure
(bunkering)

Limited quantity
available

Feedstock competition

Space required on deck Cost to develop as fuel

Corrosive when water
added

Limited history as fuel

Supply security

Need to keep at -160°C

Hydrogen challenges
are not new

Large tank storage
space needed

Political opposition (eg
US)

Limited history in ships

Not carbon free

Hype over Hydrogen as
fuel not new

Toxicity

Regarded as partial
solution

Cost to develop as fuel

CH2OHNH3H2Annual report 2020

ROAD MAP FOR ZERO CARBON EMISSIONS IN SHIPPING

x
e
d
n

t
u
p
t
u
o
2

O
C

140

120

100

2008 CO2 output

2050 CO2 output target

2008

2014

2020

2026

2032

2038

2044

2050

Lower ton-mile growth

Reduce speed & other
eﬃciency methods eq
paints, technology

Global ﬂeet mix fuel change
towards lower emission fuels
such as LNG, ammonia &
potentially hydrogen but these
will take time

Steps to 2050

Slower trade growth

Reduced speed

“Fleet mix change”

Senior Oﬃcer role
critical to achieve
these objectives

Source: Clarksons

sustainability platform. But standards across shipping and the
large crude tankers sector need to rise.

Thirdly, the shipping industry has a number of levers that it
uses in driving carbon reduction. Examples such as voyage
maximisation and the use of more efficient external paints will
be important but relatively modest in the overall compliance
with emission targets. Shipping fleets will need new fuels and
possibly new power production technology to do the heavy
lifting to support it. Development and transition of a USD 90
billion shipping fuel market is an attractive opportunity that
shipping must not waste and will need if it aims to meet its
decarbonisation objectives.

Finally, shipping or large crude tanker shipping cannot do this
alone. Coherent and integrated regulation is to be welcomed
and respected but needs to be applied universally, not at
differentiated regional levels. Incentivised access for capital
investment from the banking and capital markets requires a
regulated framework already established, but which shipping
in all forms should engage with as an equal partner. A carbon
levy, if applied correctly and with the proceeds recycled back
into shipping equitably, can be an example of shipping in
partnership, delivering on all its objectives with decarbonisation
at the top of the list.

The table on the left side attempts to give a summary of
what attributes and drawbacks each of the technologies has.
Development in this area is, however, expected to be quick
which is a positive as the USD 90 billion shipping fuel market
transitions. Shipowners and operators like Euronav will have
to act decisively and with flexibility in selecting appropriate
technologies, but also have to protect themselves against
technological (and regulatory) obsolescence.

A feasible, sustainable pathway to
decarbonise large crude tanker shipping
– A Conclusion
Shipping is at a crossroads so far as its decarbonisation journey
is concerned. Within shipping, the large crude tanker sector
finds itself at a more acute or sensitive point as a single (fossil
fuel) product carrier in a capital intensive and increasingly
regulated space.

However, the pathway to successful decarbonisation is both
feasible and likely to lead to a more rationalised, focused and
sustainable business model for tanker owners and operators –
IF the transition is executed correctly.

This requires several jigsaw pieces to fit together and is not
easy, but achievable.

Firstly, shipping needs to show itself in a more favourable light,
simplify the message and junk the jargon. Shipping is the most
efficient means of transportation available in terms of GHG
emissions. Yet, that often remains a hidden secret.

Secondly, shipping needs to be a better corporate citizen. The
recent COVID-19 induced crew change crisis, which is still not
over at the time of writing in March 2021 teaches shipping an
inconvenient truth. Shipping’s historical lack of transparency
and poor governance counted against the sector when it
needed political support and engagement.

Euronav plans to do more in this area but has already contributed
to increases in disclosure (for example CDP), consistently
scoring highly in corporate governance surveys (e.g. Webber
research – https://www.euronav.com/media/66171/webber-
corporate-governance-2020-report.pdf) and developing our

Special report

Directors’
report

Vision and mission

Company profile

Highlights 2020

Corporate governance statement

- Introduction
- Capital, shares & shareholders
- Supervisory Board
- Supervisory Board Committees
- Evaluation of the Supervisory Board and its

committees

- Management Board
- Remuneration report
- Internal Control and Risk Management
- Information to be included in the annual

report as per article 34 of the royal decree
of 14 November 2007
- Appropriation of profits
- Code of Conduct
- Measures regarding insider dealing and

market manipulation

- GUBERNA
- Gender diversity
- Appropriation accounts

The Euronav Group

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Vision and mission

Vision
• To lead the global crude oil tanker industry responsibly
• To seize every opportunity to reshape our industry in an era of unprecedented changes
• To promote and support sustainable programs in minimising 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 shareholders and capital
providers
To create significant long-term value by strategically planning
financial and investment decisions while efficiently, consistently
and transparently acting as good stewards of capital.

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 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.

Company profile

Euronav is a market leader in the transportation of crude
oil. As the world’s largest, independent quoted crude tanker
platform, on 15 March 2021, Euronav owns and manages
a fleet of 74 vessels. The company, incorporated in Belgium,
is headquartered in Antwerp. Worldwide Euronav employs
approximately 220 people on shore and has offices throughout
Europe and Asia. Around 3,500 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 organisation 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 protection 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 the
maintenance, as well as in the operations and delivery of
offshore projects.

Director's report24

Directors’ report:
Highlights 2020

Overview of the market
2020 was perhaps the most volatile and unpredictable year
for crude oil and tanker markets in history. Events had already
proven to be both challenging and seismic in their impact,
before the economic effects of restrictions to curb the spread
of COVID-19 in March took hold. Geopolitical risk had driven
both tanker freight rates and oil prices to higher levels during
the early part of 2020, with a robust winter underpinning crude
demand into the end of the first quarter.

However, the tanker and crude markets were turned upside
down in early March with a Saudi led move to simultaneously
cut oil prices and rapidly increase production and exports onto
the global markets. Tensions between the OPEC and OPEC+
countries, and in particular Russia, over maintaining production
cuts had been building since February. This escalation into
direct action or a ‘price war’ proved to be the catalyst for a
rapid 40% reduction in the oil price from USD 55 per barrel in
January to below USD 20 per barrel in April (source: Bloomberg).
Whilst challenging for the global oil markets, freight rates for
the tanker market rose to over USD 100,000 per day, reflecting
a shortage of vessel capacity to manage the increase in number
of cargoes being shipped.

Chart 1 - Crude oil exports mbpd per month from Persian
Gulf OPEC nations

s
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P
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Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source: Bloomberg

Annual report 2020

storage, whereby oil is stored on tankers, stood at 96 million
barrels in early January, occupying 61 tankers; mainly VLCCs.
Yet, this peaked in May, at 293 million barrels requiring 241
crude tankers; a mix of VLCCs and unusually both Suezmax and
Aframax vessels. This dislocation in tanker markets ensured
a temporary but significant reduction in tanker supply and
capacity. This impact during the summer months occupied 10%
of the VLCC fleet and 15% of the Suezmax fleet and supported
freight rates at elevated levels, despite underlying demand
and consumption of oil at approximately 85 million barrels per
day compared to a more normalised level of consumption at
100 million barrels per day. This market structure also drove a
higher level of short time charter activity, primarily during the
second quarter, as both traders and oil companies looked to
capture capacity.

The unwinding of this tanker market and oil price structure
during the second quarter has been the key feature during
the second half of 2020. While oil prices stayed volatile, they
remained largely bound between 40-50 USD until late in the
fourth quarter, as primarily in the OECD nations COVID-19
restrictions continued to flare up, reducing oil consumption
and further delaying the expected recovery.

Along with an associated expansion of onshore inventory due
to the disconnect between production and consumption of
oil during the second quarter of 2020, floating storage has
unwound steadily through the year. The number of vessels
being used as floating storage had largely reduced by the end
of 2020, with 46 million additional barrels of crude being stored
at sea compared to a year earlier, correlating with 20 VLCCs and
just five Suezmaxes. Based on EIA estimates onshore inventory
is expected to return to five year average levels by the second
quarter of 2021.

Tanker freight rates becalmed below break-even territory
during most of the fourth quarter of 2020 as the anticipated
recovery from a vaccine was postponed due to continued
COVID lockdown restrictions. However, vessel supply has begun
to respond to higher steel prices, and to increased economical
and environmental regulations coming in over the next three
years. These are causing a number of vessels to be recycled.
With the inventory picture normalising in the second quarter
of 2021, and an economic recovery at some point in the next
12 months, tanker markets will be operationally leveraged into
such an expansion.

The oil price movement was exacerbated by simultaneous
events in the global economy, which were impacted by the
spread of COVID-19 and the accompanying and increasingly
onerous restrictions on economic activity.
In effect a
disconnect grew from late March until early May, with global
crude production largely unchanged at approximately 100
mbpd, but underlying consumption falling to around 80 mbpd.
Crude production was now in surplus, further driving demand
for tankers as a flexible and immediate source of storing this
excess supply. Tanker freight rates continued to rise into
mid-May, driven by a requirement for storage, with any spare
capacity being seized, and the structure of the oil price itself.

The ‘paper’ market for crude oil is around 50 times bigger than
the market that trades the physical crude products. During April
and May, the disconnect between spot and future prices was
so big that the contango or spread between future oil prices
in six months time and the spot price was USD 14. This was a
record ‘spread’ and incentivised additional demand for tanker
services. Traders could buy oil at the spot price, forward sell
this oil for delivery in the future, and even with freight rates in
excess of USD 100,000 per day, still make an economic return.
The disconnect was further evidenced in April with the WTI oil
price (US oil) traded at a negative value due to specific technical
(and local) considerations.

Chart 2 - Contango oil price structure during 2020 (based
in spot oil price versus 6 months forward)

-5

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Source: Bloomberg

Affirmative action between OPEC and OPEC+ in a deal in April
saw large scale crude production and export cuts, effective
from early May, of 9.7m barrels per day. Such measures helped
to drive the oil price from a low of USD 33 per barrel to USD
48 per barrel in August, and also substantially reduced the
requirement for storage of crude and the economic incentive
for storage.

However, there was a legacy to the tanker markets from the
rapid and deep disconnect between global crude oil production
and underlying consumption in the global economy. Floating

Director's report

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Chart 3 - Global oil consumption over 2020 mbpd

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Tanker markets
The average Time Charter Equivalent (TCE) generated by
the company’s owned VLCC fleet trading in the Tankers
International pool (TI) was USD 54,600 per day for 2020,
compared to USD 35,900 per day for 2019.

The average earnings of Euronav’s VLCC time charter fleet was
USD 39,700 per day in 2020, compared to USD 32,400 per day
for 2019.

The average TCE obtained by the Company’s Suezmax spot
fleet, traded by Euronav directly, was USD 39,100 in 2020,
compared to USD 26,000 per day in 2019.

The average earnings of Euronav’s Suezmax time charter fleet
was USD 29,600 in 2020, compared to USD 29,400 per day in
2019.

Fleet growth
In comparison to recent years, the VLCC and Suezmax fleets
grew modestly during 2020 with 37 new VLCCs being delivered
to the global fleet, alongside 30 Suezmaxes. This corresponds
to a 3.8% growth for the VLCC fleet (compared to a 10 year
average of 4.5%) and a 4.5% growth for the Suezmax sector
(compared to a 4.7% 10 year average). These vessels were
delivered steadily throughout the year, except for a spike in
new Suezmax deliveries in the third quarter. Exits of vessels
from the global fleet in both the Suezmax and VLCC segments
were unsurprisingly limited given the elevated freight structure
through much of calendar 2020, alongside opportunities for
storage contracts driven by a contango oil price structure
which persisted for most of 2020. As a consequence, only
three Suezmax and six VLCCs left the global tanker fleet during
2020. This left the VLCC global fleet standing at 802 VLCCs and
584 Suezmax vessels at the end of 2020. All data figures are
supplied by Clarksons.

The contracting of new vessels has been restrained by
increasingly limited financing from shipping banks and the
uncertainty over future propulsion systems for the large tanker
sector. 41 new VLCC and 28 Suezmax vessels were ordered
during 2020. Order books as a percentage of the overall fleet
remain below 10% for both segments, which remains at a 20
year low.

The age profile of the two largest categories of tanker has
continued to rise with a quarter of each fleet already aged over
15 years. This is a significant milestone for tankers, as once
older then 15 years, the survey cycle for such a tanker moves
from every five years to every 30 months. The average age of
VLCC and Suezmax is at 9.94 years and 10.34 years respectively
(source: Clarksons). For a tanker fleet that is, on average, as
old as this at the end of 2020, industry analysts have to go
back to 2001. Owners of older vintages will increasingly find
trading more challenging given a reduced addressable market
in terms of cargo owners willing to use such vessels, along with
increasing regulatory pressures driven by higher emissions
coming from older vessels. Logically, this should lead to an
increase in vessels exiting the fleet, especially if freight rates
are simultaneously challenged.

Annual report 2020

FSO and FPSO market
By 14 January 2021 there were 403 floating production systems
in service or available worldwide, among which were 166 FPSOs
and 107 FSOs. This does not include the 31 FPSOs that are
available for reuse. In addition, there are two FPSOs that are
out of service for extended repairs.

Currently, there are 42 production floaters, eight FSOs and
three MOPUs on order. New orders are unlikely to keep up with
the 14 deliveries scheduled in 2021, so the backlog is expected
to decline into the low thirties by year end.

Currently, there are 202 floater projects in the appraisal,
planning, bidding or final design stage, that may require a
floating production or storage system. 65 of these projects are
in the bidding or final stage, and another 92 are in the planning
phase. The major hardware contracts for these projects are
planned between 2023 and 2024. Studies are still ongoing to
assess the economic viability of the projects, particularly those
in deep water and harsh environments. Furthermore, there are
45 projects in the appraisal stage.

Africa remains the most active region for future projects, with
41 potential floater projects in the planning cycle, followed
by Southeast Asia with 34 projects planned. 30 projects are
planned for Brazil, which may demand 44 floaters, as fields
like Buzios and Mero will require multiple units. The next large
regions are Northern Europe with 22 projects, Gulf of Mexico
with 21 projects, Australia with 15 projects, and Southwest
Asia/Middle East with 10 projects. The remaining regions have
far fewer potential projects: the Mediterranean with 9 projects,
South America with 8 projects, China with 6 projects, and
Canada and the Caribbean, each with 3 projects planned.

Over 67% of the facilities responsible for production floater
fabrication and conversion are based in Asia. Sembcorp,
Keppel, and Daewoo are the busiest yards, with each minimum
five projects scheduled.

Floating storage and offloading / floating production
storage and offloading market.

Appraisal

Planning

Bidding / Final design

Africa

GOM

BRAZ

SEA

CHINA MEDIT

SWAME SAMER

CARIB AUST/NZ

VLCC Fleet Development

Additions

Removals

Forecast Additions

Removals Scenario

-15

-6

-16

-6

-19

-34

-35

-33

-22

-20

-40

-60

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Clarksons

Suezmax Fleet Development

Additions

Removals

Forecast Additions

Removals Scenario

-24

-14

-38

-20

-40

-60

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Clarksons

Director's report28

Euronav fleet
On 15 March 2021, Euronav’s owned and operated fleet
consists of 74 vessels being two V-Plus vessels, two FSO vessels
(both owned in 50%-50% joint venture), 44 VLCCs and 26
Suezmaxes (whereof one owned in 50%-50% joint venture). As
at 15 March 2021, Euronav’s tonnage profile is as follows:

VESSELS

(ON 15 MARCH 2021)

44 VLCcs
26 SUEZMAX

2 FSO

2 V-Plus

SUEZMAX
4,082,594 dwt

VLCC AND
V-PLUS
14,288,491 dwt

FSO
864,046 dwt

total owned and tonnage: 19,235,129 dwt

Euronav’s vessels have an aggregate carrying capacity of
approximately 19.2 million dwt. On 15 March 2021 the weighted
average age of the company’s trading fleet was approximately
9.59 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 fleets
worldwide and comprises 59 vessels on 15 March 2021, of
which 40 are owned by Euronav. The average age of Euronav’s
owned and operated VLCC fleet on 15 March 2021 is 7.79 years.
Part of Euronav’s Suezmax fleet is chartered out on long-term
contracts. On 15 March 2021 the average age of the Suezmax
fleet is approximately 11.23 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.

*Our VLCC newbuilding Dickens and
two newbuilding
Suezmaxes are not included in the above calculations as they
weren’t delivered at the time of writing. Dickens joined our fleet
on the 19th of March and both Suezmaxes will join our fleet in
2022.

Overview of the year 2020

The first quarter
For the first quarter of 2020, the Company realised a net profit
of USD 225.6 million or USD 1.05 per share. In comparison, in
the first quarter of 2019 the Company’s realised net profit was
USD 19.5 million or USD 0.09 per share. Proportionate EBITDA
(a non-IFRS measure) for the same period was USD 335.2
million, where in the first quarter of 2019 this was USD 131.4
million. The average daily TCE obtained by the Company’s fleet
in the TI Pool was approximately USD 72,750 per day, whereas
in the first quarter of 2019 this was USD 35,195 per day. The
TCE of the Euronav VLCC fleet fixed on long-term charters,
including profit shares when applicable, was USD 37,000 per
day (in the first quarter of 2019: USD 27,630 per day). The
average daily TCE obtained by the Suezmax spot fleet was
approximately USD 59,250 per day. In the first quarter of 2019
this was USD 27,380 per day. The TCE of the Euronav Suezmax
fleet fixed on long-term time charters, including profit shares
when applicable, was USD 30,250 per day (first quarter 2019:
USD 32,680 per day).

January

Euronav
Euronav entered into a sale and leaseback agreement with
Taiping & Sinopec Financial Leasing Ltd Co. regarding three

Annual report 2020 29

DSME shipyard in South Korea. The vessels were acquired for
an aggregate purchase price of USD 280.5 million or USD 93.5
million per unit. All three vessels are fitted with Exhaust Gas
Scrubber technology and a Ballast Water Treatment System.

In the market

• Cascade Spirit (Suezmax, 2009) chartered by ST Shipping

for 12 months at USD 36,000 per day;

• Cosdignity Lake (VLCC, 2017) chartered by Core Petroleum

for 6 months at USD 20,000 per day;

• Good News (VLCC, 2002) chartered by IOC for 12 months at

USD 31,500 per day.

March

Euronav
From 13 March 2020 until the beginning of June 2020, all of
Euronav’s shore staff were requested to work from home in
order to slow down the spreading of the COVID-19 virus.

On 26 March 2020, Euronav entered into an agreement for
the acquisition through resale of a VLCC newbuilding contract.
The vessel was at that time under construction at the DSME
shipyard in South Korea and due for delivery in the first quarter
of 2021. It is an identical sister ship of the 3 VLCCs acquired in
February and was contracted at a similar pricing.

In the market

• Densa Whale (Suezmax, 2012) chartered by Stena at 25,000

USD per day, plus a profit share element;

• 17 February (Suezmax, 2008) chartered by Mjolner for 12
months with an optional 12 months at respectively USD
39,000 and USD 45,000 per day;

• Aura M (Suezmax, 2011) chartered by Mercuria for 24

months at USD 29,000 per day;

• DHT Raven (VLCC, 2004) chartered by Litasco for 12 months

at USD 55,000 per day;

• Olympic Lion (VLCC, 2010) chartered by Core Petroleum for

24 months at USD 47,000 per day;

VLCCs: Nautica (2008 - 307,284 dwt), Nectar (2008 - 307,284
dwt) and Noble (2008 - 307,284 dwt). The vessels were sold and
were leased back under a 54-months bareboat contract at an
average rate of USD 20,681 per day per vessel.

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

On 29 January 2020, the first internal communication was sent
to the entire Euronav fleet regarding the COVID-19 virus. This
update comprised general information about the virus, the
measures to be taken onboard, and the materials supplied to
ensure the safety of all seafarers.

In the market

• Libia (Suezmax, 2007) chartered by Navig8 for 9-13 months

• Maran Carina (VLCC, 2003) chartered by Shell for 6 months

at USD 35,000 per day;

at USD 72,500 per day.

• Nobleway (Suezmax, 2010) chartered by Koch for 30

months at USD 35,000 per day;

• Ridgebury John Zipser (Suezmax, 2009) chartered by Vitol

for 12 months at USD 40,000 per day;

• Katsuragisan (VLCC, 2005) chartered by Pertamina for 12

months at USD 40,000 per day;

• X 3 Newbuilding SK Shipping (VLCC, 2022) chartered by

HOB for 8 years at USD 35,000 per day.

February

Euronav
On 21 February 2020, Euronav 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. The vessel has been delivered to her
new owners.

On 26 February 2020, Euronav entered into an agreement for
the acquisition of three VLCCs under construction at the

The second quarter
For the first half of 2020 the Company had a net gain of USD
485.2 million or USD 2.26 per share. In comparison, the
Company had a net loss of USD 19 million or USD 0.09 per
share during the first half of 2019. Proportionate EBITDA (a
non-IFRS measure) for the same period was USD 697.3 million,
whereas in the first half of 2019 this was USD 203.7 million.
For the second quarter of 2020 the average daily TCE obtained
by the Company’s fleet in the TI pool was approximately USD
81,500 per day (second quarter 2019: USD 23,250 per day).
The TCE of Euronav VLCC fleet fixed on long-term charters,
including profit shares when applicable, was USD 39,250 per
day. During the second quarter of 2019 this was USD 27,250
per day. The average daily TCE obtained by the Suezmax spot
fleet was approximately USD 60,750 per day (second quarter
2019: USD 17,250 per day). The TCE of the Euronav Suezmax
fleet fixed on long-term time charters, including profit shares
when applicable, was USD 29,750 per day (second quarter
2019: USD 30,500 per day).

Director's report3030

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April

Euronav
On 9 April 2020, Euronav sold the Suezmax Cap Diamant (2001
- 160,044 dwt) for USD 20.8 million. A capital gain on the sale
of approximately USD 13 million was recorded during the same
quarter.

In the market

• Sea Garnet (Suezmax, 2017) chartered by Vitol for 6 months

at USD 55,000 per day;

• Bonny (Suezmax, 2005) chartered by Trafigura for 6 months

at USD 52,500 per day;

• Pinnacle Spirit (Suezmax, 2008) chartered by Chevron for

12 months at USD 44,000 per day;

• Eco Seas (VLCC, 2016) chartered by Equinor for 36 months

at USD 49,000 per day;

• Wasit (VLCC, 2017) chartered by Shell for 6 months at USD

85,000 per day;

• Dealta Aigaion (VLCC, 2014) chartered by Litasco for 6

months at USD 85,000 per day;

• Sea Ruby (VLCC, 2017) chartered by Occidental for 12

months at USD 85,000 per day.

May

In the market

• Eco West Coast (Suezmax, 2021) chartered by Clearlake for

36 months at USD 33,500 per day;

• Eco Malibu (Suezmax, 2021) chartered by Clearlake for 36

months at USD 33,500 per day;

• DHT Stallion (VLCC, 2018) chartered by Petrobras for 24

months at USD 41,800 per day.

The third quarter
For the third quarter of 2020, the Company had a net gain of
USD 46.2 million or USD 0.22 per share. In comparison, in the
third quarter of 2019 there was a net loss of USD 22.9 million
or USD 0.11 per share. Proportionate EBITDA (a non-IFRS
measure) for the same period was USD 151.8 million (third
quarter of 2019: USD 96.8 million). The TCE obtained by the
Company’s VLCC fleet in the TI Pool was approximately USD
42,000 per day, whereas in the third quarter of 2019 this was
USD 25,035 per day. The TCE of the Euronav VLCC fleet fixed
on long-term charters, including profit shares when applicable,
was USD 48,750 per day. In the third quarter of 2019, the
amount was 32,790 per day. The average daily TCE obtained
by the Suezmax spot fleet was approximately USD 23,500 per
day (third quarter 2019: USD 17,121 per day). The TCE of the
Suezmax fleet fixed on long-term time charters, including profit
shares when applicable, was USD 29,500 per day (third quarter
2019: USD 30,000 per day).

• Crimson (Suezmax, 1998) chartered by IOC for 6 months at

USD 43,000 per day;

July

• Jag Lateef (Suezmax, 2000) chartered by IOC for 6 months

In the market

at USD 41,900 per day;

• Nissos Sifnos (Suezmax, 2020) chartered by UML for 36

• Aragona (VLCC, 2012) chartered by Petrobras for 24 months

months at USD 30,000 per day;

at USD 47,500 per day;

• Nissos Sikinos (Suezmax, 2020) chartered by UML for 36

• FPMC C Melody (VLCC, 2012) chartered by Cepsa for 6

months at USD 30,000 per day;

months at USD 100,000 per day.

June

Euronav
On 5 June 2020, Euronav sold the VLCC TI Hellas (2005 -
319,254 dwt) for USD 38.1 million. A capital gain on the sale of
approximately USD 1.6 million was recorded during the same
quarter.

On 25 June 2020, the ‘Day of the Seafarer’, Euronav saluted
the thousands of seafarers for their efforts while ensuring
trade flows and global commerce since restrictions regarding
COVID-19 began impacting their life at sea.

On 30 June 2020, the company started a series of share
buybacks .

• Nave Galactic (VLCC, 2009) chartered by Shell for 12 months
at a floor rate of USD; 18,000 per day, with a profit share
element of maximum USD 38,000 per day

• Nave Universe (VLCC, 2011) chartered by Shell for 12
months at a floor rate of USD 18,000 per day, with a profit
share element of maximum USD 38,000 per day.

August

In the market

• SKS Sinni (Suezmax, 2003) chartered by Trafigura for 6

months at USD 20,000 per day;

• Bunga Kasturi Tiga (VLCC, 2006) chartered by Chemchina

for 6 months at USD 32,000 per day;

• Hunter Frigg (VLCC, 2020) chartered by Koch for 6-8 months

at USD 40,000 per day;

• Eco Queen (VLCC, 2016) chartered by Trafigura for 6 months

at USD 30,000 per day.

Annual report 2020

September
Euronav
On 30 September 2020, Euronav sold the Suezmax Bastia (2005
– 159,155 dwt) for USD 20.5 million. This vessel was acquired
in November 2019 in a 50/50 joint venture with affiliates of
Ridgebury Tankers and clients of Tufton Oceanic. A capital gain
on the sale of approximately USD 0.4 million was recorded in
the joint venture company.

In the market

• Almi Horizon (Suezmax, 2011) chartered by Stena for 12

months at USD 25,000 per day;

• Atina (Suezmax, 2015) chartered by Stena for 12 months at

USD 25,000 per day;

November

Euronav
Euronav announced that the joint venture with International
Seaways had signed an extension for ten years for the FSO
Asia and the FSO Africa, in direct continuation of their current
contractual service, or until 21 July 2032 and 21 September
2032 respectively. The additional ten years are expected
to generate revenues for the joint venture in excess of USD
645 million, as from the respective extension dates. Based on
Euronav’s ownership in the joint venture, this generates more
than USD 322 million in contract revenues for the company.

In the market

• Sea Gem (VLCC, 2013) chartered by Trafigura for 6 months

• SKS Skeena (Suezmax, 2006) chartered by Stena for 12

at USD 31,000 per day;

months at USD 18,000 per day;

• Yuan Hua Yang (VLCC, 2020) chartered by Unipec for 6

• Goldway (Suezmax, 2016) chartered by Trafigura for 6

months at USD 40,000 per day;

months at USD 18,000 per day;

• Nissos Donoussa (VLCC, 2019) chartered by Unipec for 12

• Hunter (VLCC, 2021) chartered by Trafigura for 12 months

months at USD 34,000 per day.

at USD 30,000 per day;

• Nissos Kythnos (VLCC, 2019) chartered by Occidental for 11

months at USD 30,000 per day.

The fourth quarter
For the fourth quarter of 2020, the Company had a net loss
of USD 58.671 million or USD 0.29 per share . In comparison,
in the fourth quarter of 2019 Euronav had a net gain of USD
154.2 million or USD 0.72 per share. Proportionate EBITDA (a
non-IFRS measure) for the same period was USD 49.8 million.
In the fourth quarter of 2019 this was USD 267.5 million. The
TCE obtained by the Company’s fleet in the TI pool was for the
fourth quarter approximately USD 20,500 per day, whereas in
the fourth quarter of 2019 this was USD 61,700 per day. The TCE
of the Euronav VLCC fleet fixed on long-term charters, including
profit share when applicable, was USD 44,700 per day (fourth
quarter 2019: USD 35,700 per day). The TCE obtained by the
Suezmax spot fleet, including profit shares when applicable,
was approximately USD 12,300 per day for the fourth quarter
(fourth quarter 2019: USD 41,800 per day). The earnings of the
Euronav Suezmax fleet fixed on long-term charters, were USD
29,300 per day. In the fourth quarter of 2019, this was 29,300
per day.

October

Euronav
On 15 October 2020 Euronav received the award for ‘Best
Market & Competitive Information 2020’ from the Belgian
Association of Financial Analysts (ABAF-BVFA). For over 60 years
the organisation has been rewarding companies that stand out
in terms of communication, with this specific award running
since 2017. Besides winning this award, Euronav was selected
top 3 in two other categories: 'Best Non-Financial Information'
and 'Best Mid & Small Cap'.

In the market

• Psara I (Suezmax, 2017) chartered by Nayara for 24 months

at USD 26,500 per day;

• Sea Pearl (VLCC, 2017) chartered by Occidental for 12

months at USD 30,500 per day.

Director's report32

December

Euronav
On 10 December 2020 Euronav received a ‘B’-score from the
Carbon Disclosure Project (CDP) for its actions against climate
change. Euronav has submitted its sustainability credentials
to the CDP platform for the first time this year, as part of an
ongoing commitment to increase the company's transparency
in this area. Euronav’s score is higher than the marine transport
sector ‘C’ average.

On 16 December 2020 Euronav held its first ever virtual naming
ceremony to welcome Delos and Diodorus.

In the market

• Concord (Suezmax, 2005) chartered by IOC for 12 months
with an optional 12 months at respectively USD 20,000 and
USD 22,000 per day;

• Densa Orca (Suezmax, 2012) chartered by Vitol for 6-12

months at USD 14,000 per day;

• Nissos Ios (Suezmax, 2021) chartered by Vitol for 6-12

months at USD 23,000 per day;

• Olympic Leopard (VLCC, 2011) chartered by Repsol for
6 months with an optional 6 months at respectively USD
24,500 and USD 29,500 per day;

• Legio X Equestris (VLCC, 2022) chartered by Trafigura for
3 years with two optional 12 months at respectively USD
36,000, USD 37,500 and USD 41,000 per day;

• Newbuilding Pan Ocean (VLCC, 2021) chartered by Koch
for 2 years with an optional 12 months at respectively USD
36,500 and USD 38,500 per day;

• Serendipity (VLCC, 2021) chartered by Trafigura for 18

months at USD 34,000 per day.

Annual report 2020 33

Events occurred after the end
of the financial year ending 31
December, 2020

January 2021
Euronav was a signatory of the ‘Neptune Declaration on Seafarer
Wellbeing and Crew Change’. The declaration addresses the
ongoing crew change crisis caused by the COVID-19 pandemic.
It contains a list of concrete actions to facilitate crew changes
and keep vital global supply chains functioning. The maritime
stakeholder initiative was officially launched during the World
Economic Forum’s Davos Agenda Week, in the week of January
25th.

inclusion

Euronav has improved the Company’s score in its fourth
consecutive
in the Bloomberg Gender-Equality
Index (GEI). The GEI provides transparency in gender-based
practices and policies at publicly listed companies, increasing
the breadth of environmental, social, governance (ESG) data
available to investors.

On 15 January 2021, Unicredit Bank lodged a claim against
Euronav for an alleged misdelivery of a cargo by Euronav’s
Suezmax vessel the Sienna. Euronav believes that it has
followed well established standard working practices. Based on
an external legal advice, Euronav believes that it has valid, strong
arguments that the risk of an outflow is less than probable and
therefore no provision is recognized. For further information
please see note 21 to the consolidated financial statements.

February 2021
On 3 February 2021 Euronav announced it has entered into
an agreement for the acquisition through resale of two eco-
Suezmax newbuilding contracts. The vessels are the latest
generation of Suezmax Eco-type tankers. They will be fitted with
Exhaust Gas Scrubber technology and Ballast Water Treatment
systems. The vessels have the structural notation to be ’LNG
Ready’ and Euronav is working closely with the shipyard to
also have the structural notation to be ‘Ammonia Ready’. This
provides the option to switch to other fuels at a later stage.

On 22 February 2021 Euronav has entered into a sale and
leaseback agreement for one VLCC with Taiping & Sinopec
Financial Leasing Ltd Co. The vessel concerned is the Newton (
2009 – 307,284 dwt). The vessel was sold for a purchase price
of USD 36 million.

Prospects for 2021
The outlook for any commodity market is uncertain but the
impact from a volatile 2020 and continued uncertainty around
the effects of COVID-19 on short-term economic activity and on
the timing of economic recovery, make forecasting prospects
for 2021 especially challenging.

In terms of the tanker market, the inventory situation looks
clear and supportive for a tanker market freight rate recovery
in the second half of 2021. Onshore global inventory should be
at five-year averages by the second quarter of 2021 as further
drawdowns are taken. Floating storage is more or less back
to the levels seen in early 2020, and economic recovery will
accelerate the demand for crude oil.

Despite the OPEC+ production cuts, and voluntary additional
cuts from Saudi on several occasions since May, oil supply is
scheduled to increase in order to meet anticipated recovery in
demand in 2022. According to softer demand forecasts it could
take until summer before inventories are back to the five-year
average. But after that, it is expected that OPEC+ will open its
production taps. An oil production delta of 5 mbpd could have
a positive impact on the tanker market and earnings towards
the end of the year, taking an average forecast for the full year
to USD 35,000 (source: Fearnleys).

Economic recovery post COVID-19 and the application of
a vaccine are, however, the key factors in driving a return to
profitable tanker market activity. The US Energy Information
Administration (EIA) expects the oil demand to grow 5.6 mbpd
in 2021 and a further 3.3 mbpd in 2022. The forecast implies
global oil consumption to be back above 100 mbpd by 2022.
OPEC production is expected to expand 3.4 mbpd by the third
quarter of 2021. This would of course underpin a recovery in
demand for tankers, potentially adding demand for 80 VLCCs
on the MEG-China route alone in the above scenario.

The fundamentals of the tanker market remain constructive.
Orderbook-to-fleet ratios are at twenty year lows. Yet the
average age of the VLCC and Suezmax fleet was last at these
levels in 2001, with the average age at over 10 years for both
segments. Around a quarter of both global fleets are already
over the important age of 15 years, which is key in terms of
regulatory cycles. Financial pressure on tanker owners is
being added with adherence to emission standards and
regulations. In the absence of a very strong freight market, and
as contracting remains restricted over concerns for future fuel
propulsion systems, all of these forces will drive the pressure
on owners and will limit global fleet growth going forward.

Director's report34

Corporate Governance
Statement

Introduction

Reference Code
During 2020 Euronav adopted the Belgian Code on Corporate
Governance of 2020 as its reference code within the meaning
of Article 3:6(2)(4) of the Belgian Code of Companies and
Associations (the ‘CCA’) and updated its Corporate Governance
Charter accordingly. The full text of the Corporate Governance
Charter can be consulted on the Company’s website www.
euronav.com under the Corporate Governance section.

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. As a further 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
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 provisions also apply as of 1 January 2020,
in as far as they were not in contradiction with the articles of
association of Euronav. In compliance with the new legislation,
Euronav amended its articles of association on 20 February
2020 and, as of the same date, adopted a two-tier governance
model including a Supervisory Board and a Management Board
as set out in Article 7:104 and following the CCA. With regard
to the period until 20 February 2020, any reference in this
Corporate Governance Statement to the Supervisory Board
shall be deemed to refer to the former Board of Directors and
any reference to the Management Board shall be deemed to
refer to the former Executive Committee.

Annual report 2020 35

Capital, shares and
shareholders

1.1. Capital and shares
On 31 December 2020 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 dematerialised form and
may be traded on the New York Stock Exchange or Euronext
Brussels, depending on which component of the share register
the shares are registered in. 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 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.

1.3. Treasury shares
On 31 December 2020 Euronav held 18,346,732 own shares.
Besides the stock option plans for the members of the
Management Board and potentially senior employees (please
refer to section 6.1 Remuneration policy for the Management
Board and the employees further on in this Corporate
Governance Statement), there are no other share plans, stock
options or other rights to acquire Euronav shares in place.

1.4. Shareholders and shareholders’
structure
According to the information available to the Company on 31
December 2020, and taking into account the transparency
declarations available on that date, the shareholders’ structure
is as shown in the table:

Shareholder

Number of shares

Percentage

Euronav
(treasury shares)

18,346,732

8.34%

M&G

Other

Total

11,279,552

5.13%

190,398,429

86.53%

220,024,713

100.0%

Editor’s note: Shareholders’ structure as of 26
March 2021, date of closing for publishing:

Shareholder

Number of shares

Percentage

Euronav
(treasury shares)

18,346,732

8.34%

M&G

Other

Total

11.262.506

5,12%

190,415,475

86.54%

220,024,713

100.0%

Director's report36

2. Supervisory Board

Name

Type of
mandate

First
appointed

End term
of office

Carl Steen

Chairman -
Independent
Member

2015

AGM 2022

Anne-Hélène
Monsellato

Independent
Member

2015

AGM 2022

Ludovic
Saverys

Member

2015

AGM 2021

Grace Reksten
Skaugen

Independent
Member

2016

AGM 2022

Anita Odedra

Carl Trowell

Independent
Member

2019

AGM 2021

2019

AGM 2021

Hereunder follows a list of biographies of
the members of the Supervisory Board in
the composition as of 31 December 2020.

Carl Steen - Independent Member - Chairman
Carl Steen was co-opted Director and appointed Chairman of
the Supervisory Board with immediate effect after the Board
meeting on 3 December 2015. Mr Steen is also a member of
the Audit and Risk Committee and a member of the Corporate
Governance and Nomination Committee. He graduated from
Eidgenössische Technische Hochschule in Zurich, Switzerland in
1975, with an 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 for 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
organisation 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 Nordea, 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
Member
Anne-Hélène Monsellato serves on the Supervisory Board
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 3:6 paragraph 1,
9° of the Belgian Code of Companies and Associations. Since
June 2017, Mrs Monsellato serves on the Board of Directors of
Genfit, a biopharmaceutical company listed on Euronext and
the Nasdaq, and is the Chairman of the Audit Committee. Mrs
Monsellato is an active member of IFA (the French Association
of Directors) as part of the Audit Chair Group and of the ESG
reporting Taskforce, of ECODA, the European confederation
of directors' associations, and participates in the consultative
working group of ESMA Corporate Reporting Standing
Committee. In addition, she is serving as Vice President and
Treasurer of the American Center for Art and Culture, a U.S.
private foundation based in New York. From 2005 until 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 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 - Member
Ludovic Saverys has served on the Supervisory Board since
2015 and is a member of the Remuneration Committee as well
as of the Sustainability Committee. Mr Saverys currently serves
as Chief Financial Officer of CMB NV and as General Manager of

Annual report 2020 37

Saverco NV. During the time he lived in New York, Mr Saverys
served as Chief Financial Officer of MiNeeds Inc. from 2011
until 2013, and as Chief Executive Officer of SURFACExchange
LLC from 2009 until 2013. He started his career as Managing
Director of European Petroleum Exchange (EPX) in 2008. From
2001 until 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
Member
Grace Reksten Skaugen serves on the Supervisory Board since
the AGM of 12 May 2016 as an Independent Member. She is
Chair of the Remuneration Committee and a member of the
Corporate Governance and Nomination Committee, as well
as of the Sustainability Committee. Grace Reksten Skaugen
is a Trustee member of The International Institute of Strategic
Studies in London. 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, Lundin Petroleum AB, and PJT
Partners, a US boutique investment bank. In 2009 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 Member
Anita Odedra has served on the Supervisory Board since her
appointment at the AGM of May 2019 and is a member of
the Audit and Risk Committee, as well as of the Sustainability
Committee since 1 October 2020. Mrs Odedra has over 25 years
of experience in the energy industry. Prior roles include Chief
Commercial Officer at Tellurian Inc., 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 including exploration, production, trading,
marketing, business development, commercial operations and
shipping; latterly holding the position of VP Global Shipping.
She began her career at ExxonMobil in 1993 as a Geoscience
analyst. Anita was on the Board for the Society of International
Gas Tanker 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 at the
University College London and the University of Tokyo, and has
a BSc in Geology from Imperial College, University of London.

Carl Trowell - Independent Member
Carl Trowell serves on the Supervisory Board 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 June 2020,
Carl Trowell is the Chief Executive Officer of Acteon Group
Ltd., a marine energy and infrastructure services company
serving the renewables, near-shore construction and oil and
gas sectors. Prior to join Acteon, Carl served as Chief Executive
Officer of Ensco PLC, a NYSE listed London-based offshore
drilling company, since 2014, where he was also a member of
the Board of Directors and took up the position of Executive
Chairman in April 2019 upon closing of the merger with
Rowan PLC (subsequently becoming Valaris PLC) until April
2020. Prior to this Carl had an international executive career
with Schlumberger Ltd., holding the roles of President of the
Integrated Project Management, the Production Management
and the WesternGeco Seismic divisions of the company. Prior
to these roles, he held a variety of international management
positions within Schlumberger including corporate VP for
Marketing and Sales and Managing Director North-Sea/Europe
region. Mr Trowell began his career as a petroleum engineer
with Royal Dutch Shell before joining Schlumberger. Carl has
been a member of several energy industry advisory boards, he
was formally a supervisory board member for EV Private

Director's report38

Equity and served as a non-executive director on the board of
Ophir Energy PLC from 2016 to 2019. Mr Trowell has a PhD in
Earth Sciences from the University of Cambridge, a Master of
Business Administration form 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.
Five members are Independent Members 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.

Functioning of the Supervisory Board
In 2020 the Supervisory Board formally met eight times for a
Board meeting. Due to COVID-19 measures and related travel
restrictions, all meetings took place via video conferences. The
attendance rate of the members was the following:

Name

Type of mandate

Carl Steen

Chairman -
Independent Member

Meetings
attended

8 out of 8

Anne-Hélène
Monsellato

Independent Member

8 out of 8

Ludovic Saverys

Member

8 out of 8

Grace Reksten
Skaugen

Independent Member

8 out of 8

Anita Odedra

Independent Member

7 out of 8

Carl Trowell

Independent Member

8 out of 8

Besides the formal meetings, the Board members of Euronav
are regularly in contact with each other, by conference call
or via e-mail. Due to social distancing restrictions, the written
decision-making process was used regularly in 2020 when
urgent decisions were required.

Working procedures
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 and
responsibilities of the Supervisory Board are those outlined
in article 7:109 of the CCA and section III.1 of the Corporate
Governance Charter. All decisions of the Supervisory Board are
taken in accordance with article 19 of the articles of association.
A copy of the articles of association and the new Corporate
Governance Charter can be consulted at https://www. euronav.
com/investors/corporate-governance.

The Supervisory Board is the ultimate supervisory body of the
Company. It is responsible for the general policy and strategy
of the Company and has the power to perform all acts that
are exclusively reserved to it by the Code of Companies and
Associations. The Supervisory Board drafts all reports and
proposals in accordance with books 12 and 14 of the Code of
Companies and Associations. It supervises the Management
Board.

The Supervisory Board pursues the success of the Company
in terms of shareholder value while giving consideration to the
corporate, social, economic and environmental responsibility,
gender diversity and diversity in general. In doing so, members
of the Supervisory Board shall act honestly and in good faith
with a view to the best interests of the Company.

Activity report 2020
In 2020 Euronav’s Supervisory Board deliberated on a variety of
topics, including but not limited to:

• The impact of the COVID-19 pandemic on the Company’s

operations and its financial results;

• Mid- and long-term strategic perspectives for the Company;
• IMO 2020 implementation, fuel procurement and inventory

strategy;

• Capital allocation strategy and implementation, including
quarterly return to shareholders by way of dividend and/
or share buybacks;

Annual report 2020 39

3. Supervisory Board
Committees

3.1. Audit and Risk Committee

Composition
In accordance with Article 7:119 of the CCA and provision 4.3
of the Belgian Corporate Governance Code 2020, the Audit and
Risk Committee must count at least three Supervisory Board
Members, of which at least one is an Independent Member.
The Audit and Risk Committee of Euronav currently counts
three Supervisory Board members, which are all Independent
Members.

As of 31 December 2020, the composition of the Audit and Risk
Committee was as follows:

Name

End term of
office

Independent
Member

Anne-Hélène
Monsellato 1 (Chair)

Carl Steen

Anita Odedra

2022

2021

1 Independent Supervisory Board Member and expert in accounting and audit

related matters (see biography) in accordance with Article 3:6 paragraph 1, °9
of the Belgian Code of Companies and Associations

Powers
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 functions are described in the Corporate Governance
Charter. The Audit and Risk Committee reviews its terms
of reference periodically and where changes are useful or
required, makes recommendations to the Supervisory Board
with the aim of ensuring the composition, responsibilities and
powers of the Committee comply with applicable laws and
regulations.

Activity report 2020
In 2020 the Audit and Risk Committee convened nine times.
Due to COVID-19 measures and related travel restrictions,
the Committee held all meetings via video conference or
conference calls. The attendance rate of the members was as

Name

Anne-Hélène
Monsellato (Chair)

Carl Steen

Anita Odedra

Type of
mandate

Independent
Member

Meetings
attended

9 out of 9

• ESG and Sustainability matters, including conversion of the
ESG & Climate Committee into the Sustainability Committee,
developments regarding alternative
fuels, propulsion
methods and ESG related regulatory developments;

• Fleet management strategy and implementation, including

sales and purchases of vessels;

• Overseeing the purchase of four VLCC resale contracts and

a ten year extension to existing FSO contract

• (Re-)financing of existing as well as newly acquired vessels;
• Corporate governance matters, including adoption and
implementation of the new Corporate Governance Code
2020 and a general review of company policies;

• Risk management, including third party risk management

policy and processes;

• Health, Safety, Quality and Environment (HSQE) matters,
with particular focus on safety and wellbeing of seafarers
in spite of crew rotation complexities due to the COVID-19
pandemic.

Procedure for conflicts of interest
The procedure for conflicts of interest within the Supervisory
Board is set out in the CCA and in the Company’s Corporate
Governance Charter. In the course of 2020, no decision taken
by the Supervisory Board required the application of the
conflict of interest procedure as set out in provision 7:115 of
the CCA (former Art. 523 BCC).

Director's report40

During these meetings, the key elements discussed within
the Audit and Risk Committee included financial statements,
impairment methodology, assumptions and depreciations, fuel
inventory valuation, external and internal audit reports, quality
of the external audit process, external audit approach and
independence and external auditor renewal, the internal audit
function, old and new financing, LIBOR transition, ESEF XBRL
implementation, accounting policies, matters related to section
302 and 404 of the Sarbanes-Oxley Act and the effectiveness
of the internal control over financial reporting, third party risk
management policy and procedures, the Belgian annual report,
the annual report on Form 20-F, certain company policies,
implementation and monitoring, cybersecurity, tax
GDPR
matters, risk management process and framework and the risk
register, whistleblowing and debt covenants.

3.2. Remuneration Committee

Composition
As of 31 December 2020, the Remuneration Committee of
Euronav counted three Supervisory Board members, two of
which are Independent Members. In this respect, Euronav is in
compliance with Article 7:120 of the CCA and Article 4.3 of the
Belgian Corporate Governance Code 2020, pursuant to which
a Remuneration Committee should comprise at least three
members, a majority being Independent Members.

As of 31 December 2020, the Remuneration Committee was
composed as follows:

Name

Grace Reksten
Skaugen (Chair)

Ludovic Saverys

Carl Trowell

End term
of office

Independent
members

2022

2021

Powers
The Remuneration Committee has
various advisory
responsibilities related to the remuneration policy of members
of the Supervisory Board, members of 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 related 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 changes are useful or required, makes
recommendations to the Supervisory Board with the aim of
ensuring the composition, responsibilities and the powers of
the Committee comply with applicable laws and regulations.

Activity report 2020
In 2020 the Remuneration Committee met four times. The
attendance rate of the members was as listed hereafter:

Name

Type of mandate

Meetings
attended

Grace Reksten
Skaugen (Chair)

Independent member

4 out of 4

Ludovic Saverys

Member

4 out of 4

Carl Trowell

Independent member

4 out of 4

During these meetings the key elements discussed within the
Remuneration Committee included the remuneration report in
the annual report, the remuneration of the Supervisory Board
Members and members of the Management Board, the set-
up of a long-term incentive plan, the KPIs for the members of
the Management Board, implementation of the Shareholders
Rights Directive II and the annual bonus for the members of the
Management Board and employees.

3.3. Corporate Governance and
Nomination Committee

Composition
On 31 December 2020, the Corporate Governance and
Nomination Committee of Euronav counted three Supervisory
Board members, all of which are Independent Members. In
this respect, Euronav is in compliance with provision 4.19 of
the Belgian Corporate Governance Code of 2020, pursuant to
which a Nomination Committee should comprise a majority of
Independent Members. 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 2020, the Corporate Governance and
Nomination Committee was composed as follows:

Name

End term of
office

Independent
member

Carl Trowell (Chair)

Carl Steen

Grace Reksten
Skaugen

2021

2022

Powers
The Corporate Governance and Nomination Committee’s role
is to assist and advise the Supervisory Board on all matters
related to the composition of the Supervisory Board and
its Committees as well as 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, evaluation of the performance of the
Supervisory Board, its Committees and the Management Board,

Annual report 2020 41

law and Corporate Governance requirements, the adoption
of the new Corporate Governance Code 2020 and alignment
of the Corporate Governance Charter, the assessment of the
Supervisory Board and its Committees, succession planning,
the Supervisory Board education and leadership development
as well as governance structure.

3.4. Sustainability Committee

Composition
As of 31 December 2020, the Sustainability Committee of
Euronav counted 7 members: three Supervisory Board
members, two of which are Independent, and four members of
the Management Board, including the CEO as Chairman of the
Committee. The composition of the Committee is determined
taking into account members’ expertise given other Committee
memberships.

As of 31 December 2020, the Sustainability Committee is
composed as follows:

Name

End term
of office

Independent
Member

Ludovic Saverys

Anita Odedra1

2021

Grace Reksten Skaugen

2022

Hugo De Stoop 2
(Chairman)

Egied Verbeeck

Brian Gallagher

Stamatis Bourboulis

n/a

1 Ms. Anita Odedra was appointed as a Member of the Sustainability Committee
on 1 October 2020.
2 Mr. Hugo De Stoop was appointed as a Member of the Sustainability
Committee on 1 October 2020, and succeeded Mr. Egied Verbeeck as Chairman
of the Committee.

Powers
The Committee (which until November 2020 was named ESG
& Climate Committee) is an advisory body to 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 oversees the Company’s
conduct and performance on sustainability matters as well as
its reporting thereon. The Committee informs the Supervisory
Board and makes recommendations to the Supervisory Board
when it deems appropriate on any area within its remit where
action or improvement is needed.

and 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.

Activity report 2020
In 2020 the Corporate Governance and Nomination Committee
met four times. Due to COVID-19 measures and related
travel restrictions, the Committee held all meetings via video
conference. The attendance rate of the members was as
follows:

Name

Type of mandate

Meetings
attended

Carl Trowell
(Chair)

Grace Reksten
Skaugen

Independent member

4 out of 4

Independent member

4 out of 4

Carl Steen

Independent member

4 out of 4

During these meetings the key elements discussed within the
Corporate Governance and Nomination Committee included
the composition of the Supervisory Board and its Committees,
including gender diversity considerations, U.S. and Belgian

Director's report42

Activity report 2020
In 2020, the Sustainability Committee met four times. Due to
COVID measures and related travel restrictions, the Committee
held one physical meeting and three meetings through video
conference. The attendance rate of the members was as
follows:

Name

Type of mandate

Ludovic Saverys

Supervisory Board
Member

Meetings
attended

4 out of 4

5. Management Board

the Company was entrusted

Composition
During 2020, and in application of Article 7:104 of the Belgian
the operational
Code of Companies and Associations,
management of
the
Management Board, chaired by the CEO. The members of the
Management Board are appointed by the Supervisory Board
upon recommendation of the the Corporate Governance and
Nomination Committee and in consultation with the CEO, taking
into account the need for a balanced Management Board.

Anita Odedra1

Supervisory Board
Member

2 out of 2

As of 31 December 2020, the Management Board was
composed as follows:

Grace Reksten
Skaugen

Supervisory Board
Member

Hugo De Stoop2
(Chairman)

Management
Board Member

Egied Verbeeck

Stamatis
Bourboulis

Brian Gallagher

Management
Board member

4 out of 4

Name

Title

2 out of 2

4 out of 4

Hugo De Stoop1

Chief Executive Officer

Lieve Logghe2

Chief Financial Officer

Alex Staring3

Chief Operating Officer

Egied Verbeeck4

General Counsel

4 out of 4

Stamatis Bourboulis

General Manager Euronav Ship
Management (Hellas) Ltd.

Brian Gallagher

Head of Investor Relations, Research
& Communications

1. As permanent representative of Hecho BV.
2. As permanent representative of TINCC BV.
3. As permanent representative of AST Projects BV.

4. As permanent representative of Echinus BV.

Powers
The Management Board has the power to carry out all acts
necessary or useful to the realisation of the Company's
objectives, with the exception of those reserved by law to
the Supervisory Board or the general shareholders’ meeting.
Accordingly, the Management Board is exclusively empowered
for the operational functioning of the Company and has all
residual powers. The powers of the Management Board are
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 article 7:117, §1 of the CCA and in the
Company’s Corporate Governance Charter. In the course of
2020, no decision taken by the Management Board required
the application of the conflict of interest procedure.

1 Ms. Anita Odedra was appointed as a Member of the Sustainability Committee

on 1 October 2020.

2 Mr. Hugo De Stoop was appointed as a Member of the Sustainability
Committee on 1 October 2020, and succeeded Mr. Egied Verbeeck as
Chairman of the Committee.

During the meetings, the Committee took stock of existing
ESG initiatives within Euronav and discussed the Sustainability
Chapter in the Annual report 2019 and the ESG focus for 2020,
monitored ESG developments at the level of the IMO and the
European Union, oversaw the CDP scoring obtained by Euronav
during 2020 and discussed ESG and climate change risks as
well as technical developments with regard to decarbonisation
and alternative fuels and methods of propulsion.

4. Evaluation of the Supervisory
Board and its committees
The main features of the process for the evaluation of the
Supervisory Board, its Committees and the Individual Members
are described in Euronav’s Corporate Governance Charter.

In 2020 an
in-house self-assessment evaluation of the
Supervisory Board 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 Supervisory
Board members, the fulfilment of the Supervisory Board’s
key responsibilities, quality of the relationship between the
Supervisory Board and Management Board, the effectiveness of
the Supervisory Board processes, meetings and the Supervisory
Board structure. The outcome was overall satisfactory.

Annual report 2020 43

6. Remuneration report
The remuneration report describes the remuneration of the
Euronav Management Board members and how executive
compensation levels are set. The Remuneration Committee
(hereinafter “RemCo”) oversees the executive compensation
policies and plans.

6.1. Euronav remuneration policy

6.1.1. Objectives
The purpose of the Euronav remuneration policy (hereinafter
referred to as ‘this Policy’) is to define, implement and monitor
an overall group remuneration philosophy and framework,
in line with group and local regulatory requirements. More
specifically, the Policy is intended to:

6.1.2. Legal framework
The Policy is drafted in compliance with the requirements for
listed companies such as:

• The Directive (EU) 2017/828 of the European Parliament
and of the Council of 17 May 2017 amending Directive
2007/36/EC as regards the encouragement of long-term
shareholder engagement (so-called Shareholders’ Rights
Directive II, or Say on pay Directive);

• The Belgian Companies and Associations Code (the Act of 23
March 2019 introducing the Companies and Associations
Code);

• The Belgian Corporate Governance Code of 2020 (within the
meaning of Article 3:6(2) of the Companies and Associations
Code by the Royal Decree of 12 May 2019).

• Reward fairly and competitively, ensuring the organisation’s
ability to attract, motivate and retain highly skilled talent
in an international marketplace by providing them with a
balanced and competitive remuneration package;

• Promote accountability

the achievement of
through
demanding performance targets and long-term sustainable
growth, coherent with Euronav’s values, identity and culture;
• Differentiate reward by performance and recognise
sustained
(over)achievement of performance against
pre-agreed, objective goals at the corporate, operating,
company and individual level;

• Pursue long-term value creation and alignment with the
strategy, purpose and core values of Euronav, taking into
consideration the interests of all stakeholders;

• Align remuneration practices while respecting local (country)

market practice and regulation;

• Follow sound principles of corporate governance, of
responsible business conduct and comply with all legal
requirements;

• Observe principles of balanced remuneration practice that
contribute to sound risk management and avoid risk-taking
that exceeds the risk tolerance limits of Euronav.

6.1.3. Scope
This Policy is established, implemented, and maintained in
line with the Euronav business and risk management strategy,
with the company objectives and the long-term interests and
performance of Euronav. It aims to encourage responsible
business conduct, fair treatment, and to avoid conflict of interest
in the relationships with internal and external stakeholders.

This Policy consists of an overall framework applicable to all
staff members of Euronav NV (further referred to as Euronav)
and its subsidiaries. It contains specific arrangements for the
Members of the Supervisory Board and the Members of the
Management Board.

6.1.4. Governance

1. General
The general principles set out in this Policy are drawn up by the
Supervisory Board, which assumes the ultimate responsibility
for this Policy and shall ensure that it is applied properly.

The Supervisory Board submits this Policy to the General
Shareholders’ meeting to enable the Shareholders to vote on it
for approval. Euronav shall take the necessary steps to address
concerns in case of non- approval, and consider adapting it.

The remuneration policy shall be submitted to a vote by the
General Meeting at every material change, and in any case at
least every four years.

The Policy is reviewed annually to ensure that the internal
control systems and mechanisms and other arrangements are
effective and that its principles are appropriate and consistent
with the objectives defined in article 1 of this Policy.

This assessment will be carried out, under the supervision
of the Supervisory Board, upon recommendation of the
Remuneration Committee and Human Resources.

At the advice of the Remuneration Committee the Supervisory
Board may deviate from any items of this policy under
exceptional circumstances (i.e. circumstances in which it is
necessary to deviate from the remuneration policy to protect
the long-term interests and sustainability of the company as a
whole or to guarantee its viability) on the understanding that

Director's report44

any such deviation shall be temporary and shall only last until a
new remuneration policy has been established. Any deviation
from this policy will be reported on in the remuneration report.

2. Bodies and functions implied regarding the
remuneration
The following bodies or functions are involved in the definition,
implementation and monitoring:

(a) The Supervisory Board
The Supervisory Board determines the general principles
of the remuneration policy and the specific principles, upon
recommendation of the Remuneration Committee and Human
Resources. It decides on the remuneration of the members of
the Management Board based on input and recommendations
provided by the Remuneration Committee.

(b) The Remuneration Committee
The RemCo advises the Supervisory Board on the development,
the implementation and the continuous assessment of the
remuneration policy to be in alignment with the objectives
defined in Article 1 of this Policy.

It advises in all matters relating to the remuneration of the
Supervisory Board members, the Management Board members
and other identified staff, ensuring that all legal and regulatory
disclosure requirements are fulfilled. To safeguard coherence
throughout the group, the RemCo makes recommendations to
the Supervisory Board on the implementation of the group’s
remuneration principles.

The RemCo, makes recommendations to the Supervisory
Board on the annual objectives and subsequent evaluation
of the performance of the CEO and of the other Management
Board members (based on an evaluation of the performance of
each member submitted by the CEO).

(c) The Management Board
The implementation of this Policy is ensured by the Management
Board, with assistance of the Remuneration Committee and
Human Resources.

(d) Human Resources

The Chief People Officer

• Ensures the monitoring of the implementation and review
of this Policy and induces action whenever appropriate;
• Monitors market practice and regulation and proposes
required changes to this Policy to the RemCo for approval
by the Supervisory Board accordingly;

• Consults with the local HR Manager to ensure and facilitate
the implementation of this Policy at the level of the local
entities.

The local HR Manager

• Ensures the execution and implementation of this Policy;
• Establishes a compliant local remuneration policy;
• Consults first with the Chief People Officer on any
fundamental change in the local remuneration policy due
to local regulations.

Annual report 2020 45

3. General principles of the Euronav remuneration
policy

1. General Principles
fairly, ensuring that equal
This Policy will be applied
opportunities are given to all employees regardless of age,
gender, race, beliefs, (dis)ability or any other difference.

Euronav has a Performance Management system which
provides for:

• The setting of annual business targets;
• The setting of annual individual targets agreed upon

between the individual and her/his line manager;

• An annual appraisal of job fulfilment, targets and values.

Severance payments are based on contractual terms and
conditions and cannot reward failure.

Any substantive structural changes of the remuneration
structure shall be subject to a formal assessment by the Chief
People Officer, prior to being presented to the Management
Board, RemCo or Supervisory Board.

2. Euronav Remuneration Structure
Remuneration shall include an adequate fixed (base salary +
benefits) component and a Short-Term Incentive (STI).

The fixed component of the remuneration has to represent a
sufficiently high proportion of the total remuneration to avoid
the staff member being overly dependent on the variable
components and to allow the company to operate a fully
flexible STI policy, including the possibility of paying no variable
component.

a. Fixed remuneration
Fixed remuneration consists of a base compensation and
fringe benefits and is set on an individual basis with regards
to the market salary of the position, the relevant professional
experience and organisational responsibility, as set out in the
job description.

The STI is based on the achievement of relevant, predefined
and clearly defined SMART Key Performance Indicators (KPI’s)
fixed on different business levels, observing the following
principles:

• The choice of the KPI’s and the determination of the targets
has to be in line with the overall business strategy, values
and long-term interests of Euronav;

• The calculated variable income is based on the individual
performance compared with up-front set objectives and
the business performance;

• The assessment of the achievement of the business and
individual targets should be clear, transparent and fair, and
contribute to the overall achievement of the strategic and
sustainability ambitions of the company.

The determination and evolution of the base remuneration is
based on an objective categorising of the function according
to a validated framework of an external provider, defined at
country level in accordance with local market practice.

The grant of an STI, even during a certain period or multiple
periods, consecutive or not, shall not create any acquired rights
to an equivalent amount of STI for the future.

The target salary will be positioned on the median of the
chosen and predefined market benchmark. Exceptions to the
median positioning can be made for specific functions or in
specific market conditions ( e.g. shortage of profiles, retention
of key members).

Variable remuneration shall be based on the beneficiary’s actual
working hours. Hence, if the employee has been absent from
work or worked part-time during the relevant performance
year, the variable remuneration will be adapted accordingly
(pro-rata).

Fringe benefits include health insurance plans, death and
disability coverage and other benefits. These benefits are
developed according local regulation and local market practice.

b. Variable remuneration
Variable remuneration consists of a one-year variable
remuneration, a Short-Term Incentive (STI).

The variable remuneration can be partly deferred.

As a general principle, the variable remuneration will only be
due and paid if the beneficiary is still actively in service of the
Company on the payment date and has not resigned or been
fired. In case of termination prior to the end of the performance
year, the variable remuneration is forfeited.

Director's report46

6.1.5. The remuneration of the Board members

1. Members of the Supervisory Board
The amount and structure of the remuneration of Supervisory
Board members is submitted to approval at the General
Meeting of Shareholders by the Supervisory Board, based on
recommendations of the RemCo and taking into account the
Members’ general and specific responsibilities and per general
market principle.

Supervisory Board members receive a fixed fee and an
attendance fee per Board and Committee meeting attended.
The table below gives an overview of the fixed fees and
attendance fees applicable as per decision of the AGM of May
2020:

Fixed fee

Attendance fee

Chair

Member

Chair

Member

Cap

Supervisory Board meeting

€ 160,000

€ 60,000

€ 10,000

Audit and Risk Committee

€ 40,000

€ 20,000

€ 5,000

Remuneration Committee

€ 7,500

€ 5,000

Corporate Governance and
Nomination Committee

€ 7,500

€ 5,000

Sustainability Committee

€ 7,500

€ 5,000

maximum of € 40,000
per year

maximum of € 20,000
per year

Supervisory Board members do not receive performance
related remuneration, such as bonuses or remuneration
related shares or share options, nor fringe benefits or pension
plan benefits.

• then based on the experience of the post holders, required

competencies and responsibilities of the position;

• No fixed annual remuneration or attendance fees of any
kind will be due to Management Board members for
attending Board or Committee meetings.

2. Members of the Management Board
The remuneration of the Management Board members is
subject to the principles laid down in this Policy, following
the same framework as the wider employees population with
specific stipulations for the following parts:

Fixed remuneration

• Management Board members working under a consultancy
agreement do not participate
in Euronav’s collective
pension scheme, nor are they entitled to customary fringe
benefits as this has been taken into account and integrated
in the fixed salary;

• The size of the total remuneration is reviewed every three
years, based on an objective predefined market benchmark
done by an external provider. After reference to the detailed
benchmark data, the remuneration awarded is

Variable remuneration
Variable remuneration consist of a Short-Term Incentive Plan
(STIP) and a Long-Term Incentive Plan (LTIP).

As a general principle, variable remuneration will only be due
and paid if the Management Board member is still actively
in service of the Company on the payment date and has not
resigned.

In relation to variable remuneration for all members of the
Management Board, 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.

Annual report 2020 47

The Short-Term Incentive Plan (STIP)
The objective of the STIP is to ensure that the members of the
Management Board prioritise defined short-term operational
objectives leading to long-term value creation. The short-term
incentive consists of a (potential) cash bonus payment and is
determined by the actual performance in relation to pre-set
targets.

The financial criteria for the STIP include financial targets for:

• Company profits, representing 40% of the STIP;
• Opex and Overhead performance, corresponding to 30%

of the STIP.

The performance between pre-defined thresholds will be
measured and awarded on the basis of a linear scale.

The non-financial criteria on which each Management Board
member is evaluated includes:

• The achievement of the 6 predefined HSQE KPI’s, worth

15% of the STIP;

• The achievement of individual objectives, representing 15%

of the STIP.

The system of measurement depends on the KPI and is either
binary or on target deviation.

If the 4 targets are reached, this will potentially result in a bonus
payment ranging from 30% to 100% of the base salary.

At year-end all members of the Management Board need to
present a self-assessment of their performance. This self-
assessment will be reviewed by and discussed with the CEO.
The results of this self-assessment are submitted to the RemCo
for recommendations to the Supervisory Board, as part of the
bonus consideration.

The Supervisory Board retains discretion over and above the
set criteria to adjust upwards or downwards the STIP award, if
the calculated STIP does not adequately reflect the Company’s
results or the individual performance. The discretionary add-
on that maty be exercised is capped to never exceed 100% of
the gross annual earnings of the Management Board member.
Consequently, the total STIP awarded can never exceed 200% of
the gross annual earnings of the Management Board member.

The Supervisory Board will confirm annually the implementation
of a new LTIP.

The maximum value at grant is set at 100% of the fixed base
salary for the CEO and ranging from 75 to 30% of absolute base
salary for the other Management Board members.

The vesting is subject for:

• 75%

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

• 25% to an absolute TSR of the Company’s Shares
measured each year for 1/3rd of 25% of the award.

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

The following companies were selected to constitute the peer
group:

• Frontline US (NYSE: FRO);
• Teekay Tankers (NYSE: TNK);
• DHT (NYSE: DHT);
• International Seaways (NYSE: INSW);
• Nordic American Tankers (NYSE: NAT).

The combined use of absolute and relative TSR ensures a
solid contribution to the company’s long-term interests and
sustainability. The absolute TSR as criteria reinforces the
importance of earnings, which are expected to have a direct
relationship to the Company's share price. The relative TSR as
criteria encourages delivery of a total shareholder return in a
cyclical industry that is superior to the Company’s market peers.

Holding and share ownership requirements
Members of the Management Board are subject to a
shareholding requirement of 2 years of gross base salary for
the CEO, and 1 year of gross base salary for the CFO. For other
members this requirement applies with a value of 6 months
annual base salary. The required shareholding may be build up
in five years’ time.

The valuation of the requirement will happen yearly on 31
December.

The Long-Term Incentive Plan (LTIP)
The LTIP is designed to drive long-term performance by
realising the Company's long-term operational objectives,
to support retention, to further strengthen the alignment
with shareholders’ interests and the focus on sustainability
and long-term value creation, in accordance with the overall
Euronav strategy.

Contractual terms
The members of the Management Board have entered into
consultancy agreements with Euronav, and the terms and
conditions are aligned with the provisions of The Corporate
Governance Code of 2020. One exception applies for the
General Manager ESMH who remained under an employee
contract, taking into account his retirement in 2023.

Under the LTIP the Management Board members are eligible
to annual awards of performance shares to be awarded upon
meeting a certain performance threshold as described here-
below. The measurement is done over a three year period, the
vesting occurs at the end of the 3-year cycle.

Director's report

Duration and notice period
The consultancy agreements are contracts with an open end
and can be terminated by both parties at a notice period of:

Executive Member

Notice period

Change of
control

CEO

CFO

COO

12 months

18 months

12 months

18 months

General Counsel

12 months

18 months

Head of Investor
Relations, Research
and Communications

6 months

12 months

Change of control arrangements are based on a ‘double -trigger’
structure. This means that both a specified change of control
event and a termination of the Management Board member’s
employment must take place for any change of control based
severance payment to materialise.

Compensatory Awards
The RemCo has the flexibility to make compensatory awards
to new Management Board members, to compensate the
Management Board member for benefits lost as a result of
joining Euronav. These awards will consider the value of the
forfeited awards at the time of resignation and will be in a
similar form as the awards which are being lost.

6.2. Remuneration report

6.2.1. Introduction
The remuneration of the Management Board members is
subject to the principles laid down in the remuneration policy.
(see above)

The executive remuneration consists of a fixed and variable
(short-term incentive plan) remuneration as well as long-term
incentive plans.

The fixed and variable remuneration in 2020 of the Management
Board members is reflected in the table below.

6.2.2. Total remuneration
The remuneration in 2020 of the members of the Supervisory
Board is reflected in the table below:

Name

Fixed fee

Attendance
fee Board

Audit and Risk
Committee

Carl Steen

€ 160,000

€ 40,000

€ 20,000

Anne-Hélène
monsellato

Ludovic
Saverys

Grace
Reksten
Skaugen

€ 60,000

€ 40,000

€ 60,000

€ 40,000

€ 60,000

€ 40,000

€ 0

Anita Odedra

€ 60,000

€ 30,000

€ 20,000

Carl Trowell

€ 60,000

€ 40,000

€ 0

Total

€ 460,000

€ 230,000

€ 80,000

Annual report 2020 49

Attendance
fee Audit
and Risk
Committee

Remuneration
Committee

Attendance fee
Remuneration
Committee

€ 20,000

Corporate
Governance
and
Nomination
Committee

Attendance
fee
Corporate
Governance
and
Nomination
Committee

€ 5,000

€ 20,000

Sustainability
Committee

Attendance
fee
Sustainability
Committee

Total

€ 265,000

€ 160,000

€ 5,000

€ 20,000

€ 5,000

€ 20,000

€ 150,000

€ 7,500

€ 20,000

€ 5,000

€ 20,000

€ 5,000

€ 20,000

€ 177,500

€ 20,000

€ 2,500

€ 10,000

€ 142,500

€ 5,000

€ 20,000

€ 7,500

€ 20,000

€ 152,500

€ 60,000

€ 17,500

€ 60,000

€ 17,500

€ 60,000

€ 12,500

€ 50,000

€ 1,047,500

Director's report50

The Supervisory Board, following a recommendation by the
Corporate Governance and Nomination Committee, decided at
this stage not to comply with Clause 7.6 of the Belgian Corporate
Governance Code 2020 with regard to share remuneration
for Supervisory Board members, taking into account several
factors including the cyclicality of the company’s business and
share price which does not match well with the relevant holding
requirements, the risk of debate as to

potential conflicts of interest, adversely impacting swift decision
making, logical consistencies with Euronav’s development to
strong independent board composition and complicated tax
ramifications and practicalities related to the international
composition of the Supervisory Board.

The fixed and variable remuneration in 2020 of the Management
Board members is reflected in the table below.

Table 1a: Remuneration of Management Board Members for the previous financial year

Taking into account the fact that the Management Board Members below have entered into a consultancy agreement as of the
reported financial year, the below remuneration of 2019 has been used to calculate their actual consultancy remuneration.

Name

Position

Fixed remuneration

Base Salary

Director
Fees (2)

Fringe
benefits

One-year variable
remuneration (1)

Extra ordinary

items

Pension

Total

Proportion of fixed

Proportion of variable

Remuneration

remuneration

De Stoop Hugo

CEO

€ 211,813

€ 292,000

€ 44,437

€ 325,000

€ 22,374

€ 895,624

63,71%

Verbeeck Egied

Gallagher Brian

General
Counsel

Investor
Relations
Manager

€ 146,800

€ 180,000

€ 39,146

€ 188,500

€ 14,433

€ 568,879

66,86%

£ 190,000

£ 57,238

£ 19,000

£ 266,238

78,50%

Alex Staring

COO

€ 201,096

€ 295,000

€ 22,131

€ 227,950

€ 32,507

€ 778,684

70,73%

(1) only takes into account the STIP, for the LTIP please refer to table 3
(2) Director fees related to wholly owned subsidiaries of Euronav NV

Table 1b: Remuneration of Management Board Members for the reported financial year

Name

Position

Fixed remuneration

One-year variable
remuneration (1)

Base
Remuneration

Director
Fees

Fringe
benefits

Hugo De Stoop, as permanent representative
of Hecho BV

Alex Staring, as permanent representative of
AST Projects BV

CEO

€ 314,496

€ 292,000

€ 17,082

€ 370.000

COO

€ 255,732

€ 295,000

€ 0 €

€ 260.000

Egied Verbeeck, as permanent representative
of Echinus BV

General
Counsel

€ 219,960

€ 180.000

€ 17,082

€ 250.000

Extra ordinary

items

Pension

Total

Proportion of fixed

Proportion of variable

Remuneration

remuneration

€ 993,578

62,76%

€ 810,732

67,93%

€ 667,042

62,52%

Lieve Logghe, as permanent representative of
TINCC BV

Brian Gallagher, as permanent representative
of BG-IR Ltd.

Bourboulis Stamatis

CFO

€ 335,000

€ 90.000

€ 0

€ 280.000

€142,800

€ 847,800

50,13%

Investor
Relations
Manager
General
Manager
Hellas

£ 209,000

€ 0

£ 80.000

£ 289,000

72,32%

€ 365,147

€ 0

€ 9,690

€ 80.000

€ 18,257

€ 473,094

83,09%

(1) only takes into account the STIP, for the LTIP please refer to table 3

36,29%

33,14%

21,50%

29,27%

37,24%

32,07%

37,48%

49,87%

27,68%

16,91%

Annual report 2020 51

Extra ordinary
items

Pension

Total
Remuneration

Proportion of fixed
remuneration

Proportion of variable
remuneration

€ 22,374

€ 895,624

63,71%

€ 14,433

€ 568,879

66,86%

£ 19,000

£ 266,238

78,50%

€ 32,507

€ 778,684

70,73%

36,29%

33,14%

21,50%

29,27%

Extra ordinary
items

Pension

Total
Remuneration

Proportion of fixed
remuneration

Proportion of variable
remuneration

€ 993,578

62,76%

€ 810,732

67,93%

€ 667,042

62,52%

€142,800

€ 847,800

50,13%

£ 289,000

72,32%

€ 18,257

€ 473,094

83,09%

37,24%

32,07%

37,48%

49,87%

27,68%

16,91%

Director's report52

6.2.3. Short-Term Incentive Plan
The short-term incentive plan contributes to long-term value creation of the company, information on how the performance criteria
are applied are described hereafter.

Relative
weighting
of the
performance
criteria

Information on Performance targets

a) Minimum
target/treshold
permance and b)
corresponding
award

a)Maximum
target/treshold
permance and b)
corresponding
award

a) Measured
performance
and b) actual
award/
remuneration
outcome

Name of
Director

Position

Hugo De
Stoop, as
permanent
representative
of Hecho BV

CEO

Description
of the
performance
criteria and
type of the
applicable
remuneration

Net profit
achievement

Opex and
Overhead
performance

Health, safety,
quality and
environmental
control

40%

30%

15%

Achievement of
personal KPI's

15%

Net profit
achievement

Opex and
Overhead
performance

Health, safety,
quality and
environmental
control

40%

30%

15%

Achievement of
personal KPI's

15%

Alex Staring,
as permanent
representative
of AST
Projects BV

COO

a) US $ 50m

a) US $ 200m

a) k$ 472.771

b) 10%

b) 40%

b) € 200.000

a) 5% overspent on
budget

a) 5% better than
budget

b) 7.5%

b) 30%

a) 7.5%
overspent on
OPEX budget,
on budget for
G&A

b) € 45.000

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 7.5%

b) depending on
achievement of KPI

b) 15%

b) € 37.500

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 75/100

b)depending on
achievement of KPI

b) 15%

b) € 56.250

a) US $ 50m

a) US $ 200m

a) k$ 472.771

b) 10%

b) 40%

b) € 155.200

a) 5% overspent on
budget

a) 5% better than
budget

b) 7.5%

b) 30%

a) 7.5%
overspent on
OPEX budget,
on budget for
G&A

b) € 34.920

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 7.5%

b) depending on
achievement of KPI

b) 15%

b) € 29.100

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 62/100

b)depending on
achievement of KPI

b) 15%

b) € 36.084

Annual report 2020 53

Relative
weighting
of the
performance
criteria

Information on Performance targets

a) Minimum
target/treshold
permance and b)
corresponding
award

a)Maximum
target/treshold
permance and b)
corresponding
award

a) Measured
performance
and b) actual
award/
remuneration
outcome

a)US $ 50m

a) US $ 200m

a) k$ 472.771

Name of
Director

Position

Egied
Verbeeck, as
permanent
representative
of Echinus BV

General
Counsel

Description
of the
performance
criteria and
type of the
applicable
remuneration

Net profit
achievement

Opex and
Overhead
performance

Health, safety,
quality and
environmental
control

40%

30%

15%

Achievement of
personal KPI's

15%

Net profit
achievement

Opex and
Overhead
performance

Health, safety,
quality and
environmental
control

40%

30%

15%

Achievement of
personal KPI's

15%

Lieve Logghe,
as permenant
representative
of TINCC BV

CFO

b) 10%

a) 5% better than
budget

a) 5% overspent on
budget

b) 30%

b) 7.5%

a) achievement of
all KPI's

b) € 130.000

a) 7.5%
overspent on
OPEX budget,
on budget for
G&A

b) € 29.250

a) achievement of
1 KPI

b) 15%

a) 7.5%

b) depending on
achievement of KPI

a) achievement of
all KPI's

b) € 24.375

a) achievement of
1 KPI

b)depending on
achievement of KPI

a) 81/100

b) 15%

b) € 39.487,50

a) US $ 50m

a) US $ 200m

a) k$ 472.771

b) 10%

b) 40%

b) € 130.000

a) 5% overspent on
budget

a) 5% better than
budget

b) 7.5%

b) 30%

a) 7.5%
overspent on
OPEX budget,
on budget for
G&A

b) € 29.250

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 7.5%

b) depending on
achievement of KPI

b) 15%

b) € 24.375

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 81/100

b)depending on
achievement of KPI

b) 15%

b) € 39.487,50

Director's report54

Name of
Director

Position

Description
of the
performance
criteria and
type of the
applicable
remuneration

Relative
weighting
of the
performance
criteria

Information on Performance targets

a) Minimum
target/treshold
permance and b)
corresponding
award

a)Maximum
target/treshold
permance and b)
corresponding
award

a) Measured
performance
and b) actual
award/
remuneration
outcome

Net profit
achievement

40%

a) US $ 50m

a) US $ 200m

a) k$ 472.771

b) 10%

b) 40%

b) £ 38.000

Brian
Gallagher, as
permanent
representative
of BG-IR Ltd.

Head of
IR and
Communi-
cations

Bourboulis
Stamatis

General
Manager

Opex and
Overhead
performance

Health, safety,
quality and
environmental
control

30%

15%

Achievement of
personal KPI's

15%

a) 5% overspent on
budget

a) 5% better than
budget

b) 7.5%

b) 30%

a) 7.5%
overspent on
OPEX budget,
on budget for
G&A

b) £ 8.550

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 7.5%

b) depending on
achievement of KPI

b) 15%

b) £ 7.125

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 77/100

b)depending on
achievement of KPI

b) 15%

b) £ 10.972,50

Net profit
achievement

40%

a)US$50m

a) US$200m

a) k$ 472.771

b) 10%

b) 40%

b) € 44.040

Opex and
Overhead
performance

Health, safety,
quality and
environmental
control

30%

15%

Achievement of
personal KPI's

15%

a) 5% overspent on
budget

a) 5% better than
budget

b) 7.5%

b) 30%

a) 7.5%
overspent on
OPEX budget,
on budget for
G&A

b) € 9.909

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 7.5%

b) depending on
achievement of KPI

b) 15%

b) E 8.257,50

a) achievement of
1 KPI

a) achievement of
all KPI's

a) 80/100

b)depending on
achievement of KPI

b) 15%

b) € 13.212

Annual report 2020 55

Director's report56

6.2.4. Share based remuneration
The outstanding long-term incentive plans are summarized in table below.

The main conditions of the above mentioned plans are as follows:

Name of
Director

Position

The main conditions of share plans

Specification
of plan

Performance
period (1)

Award date

Vesting date

End of retention
period

LTIP 2016

02/02/2016-
03/02/2020

02/02/2016

03/02/2020

N/A

LTIP 2017

09/02/2017-
10/02/2021

09/02/2017

10/02/2021

N/A

Hugo De Stoop,
as permanent
representative of
Hecho BV

CEO

LTIP 2018

16/02/2018-
17/02/2022

16/02/2018

17/02/2022

N/A

TBIP

12/01/2019-
12/01/2024

12/01/2019

12/01/2024

N/A

LTIP 2019

LTIP 2020

01/04/2019 -
01/04/2022
01/04/2020 -
01/04/2023

01/04/2019

01/04/2022

01/04/2020

01/04/2023

N/A

LTIP 2016

02/02/2016-
03/02/2020

02/02/2016

03/02/2020

N/A

LTIP 2017

09/02/2017-
10/02/2021

09/02/2017

10/02/2021

N/A

Alex Staring,
as permanent
representative of
AST Projects BV

COO

LTIP 2018

16/02/2018-
17/02/2022

16/02/2018

17/02/2022

N/A

TBIP

12/01/2019-
12/01/2024

12/01/2019

12/01/2024

N/A

LTIP 2019

LTIP 2020

01/04/2019 -
01/04/2022
01/04/2020 -
01/04/2023

01/04/2019

01/04/2022

01/04/2020

01/04/2023

N/A

Annual report 2020
57

Information regarding the reported financial year

Opening balance

During the year

Closing balance

Shares held at the
beginning of the year

Shares awarded
a) total number
granted
b) value @ grant
date

Shares vested a) total
number vested
b) value @ vest date

Shares subject to
a performance
condition

Shares awarded
and unvested

Shares subject
to a retention
period

6,909

13,486

37,620

300,000

67,069

2,670

8,372

36,480

150,000

39,034

a) 48,856

b) € 500,000

a) 28,434

b) € 291,000

a) 6,909

b) € 80,308

a) 6,743

b) € 69,559

a) 12,540

b) € 129,965

N/A

6,743

N/A

25,080

N/A

a) 36,000

264,000

N/A

b) $ 430,200

a) 2,670

b) € 31,035

a) 4,186

b) € 43,181

a) 12,160

b) € 126,026

67,069

48,856

67,069

48,856

N/A

4,186

N/A

24,320

N/A

a) 18,000

132,000

N/A

b) $ 215,100

39,034

28,434

39,034

28,434

N/A

Director's report58

Name of
Director

Position

The main conditions of share plans

Specification
of plan

Performance
period (1)

Award date

Vesting date

End of retention
period

LTIP 2016

02/02/2016-
03/02/2020

02/02/2016

03/02/2020

N/A

LTIP 2017

09/02/2017-
10/02/2021

09/02/2017

10/02/2021

N/A

Egied Verbeeck,
as permanent
representative of
Echinus BV

General
Counsel

LTIP 2018

16/02/2018-
17/02/2022

16/02/2018

17/02/2022

N/A

TBIP

12/01/2019-
12/01/2024

12/01/2019

12/01/2024

N/A

LTIP 2019

LTIP 2020

01/04/2019 -
01/04/2022
01/04/2020 -
01/04/2023

01/04/2019

01/04/2022

01/04/2020

01/04/2023

N/A

Lieve Logghe,
as permenant
representative of
TINCC BV

CFO

LTIP 2020

01/04/2020 -
01/04/2023

01/04/2020

01/04/2023

N/A

LTIP 2017

09/02/2017-
10/02/2021

09/02/2017

10/02/2021

N/A

LTIP 2018

16/02/2018-
17/02/2022

16/02/2018

17/02/2022

N/A

Brian Gallagher,
as permanent
representative of
BG-IR Ltd.

Investor
Relations
Manager

TBIP

12/01/2019-
12/01/2024

12/01/2019

12/01/2024

N/A

LTIP 2019

LTIP 2020

01/04/2019 -
01/04/2022
01/04/2020 -
01/04/2023

01/04/2019

01/04/2022

01/04/2020

01/04/2023

N/A

Bourboulis
Stamatis

General
Manager
Hellas

TBIP

12/01/2019-
12/01/2024

12/01/2019

12/01/2024

N/A

LTIP 2019

LTIP 2020

01/04/2019 -
01/04/2022
01/04/2020 -
01/04/2023

01/04/2019

01/04/2022

01/04/2020

01/04/2023

N/A

Annual report 2020 Information regarding the reported financial year

Opening balance

During the year

Closing balance

Shares held at the
beginning of the year

Shares awarded
a) total number
granted
b) value @ grant
date

Shares vested a) total
number vested
b) value @ vest date

Shares subject to
a performance
condition

Shares awarded
and unvested

Shares subject
to a retention
period

2,922

6,538

27,360

170,000

21,797

4,024

6,319

80,000

9,677

50,000

14,769

a) 2,922

b) € 33,964

a) 3,269

b) € 33,722

a) 9,120

b) € 94,520

a) 20,400

b) $ 243,780

a) 2,012

b) € 20,755

a) 2,106

b) € 21,826

N/A

3,269

N/A

18,240

N/A

149,600

N/A

21,797

15,878

21,797

15,878

N/A

2,012

N/A

4,213

N/A

a) 9,600

70,400

N/A

b) $ 114,720

9,677

6,267

9,677

6,267

N/A

a) 6,000

44,000

N/A

b) $71,700

14,769

10,758

14,769

10,758

N/A

a) 15,878

b) € 162,500

a) 34,199

b) € 350,000

a) 6,267

b) £ 57000

a) 10,758

b) € 110,100

Director's report60

LTIP 2015
On 20 February 2015 within the framework of a management
incentive plan, the Board of Directors granted 65,433
RestrictedStock Units (RSUs) and 236,590 stock options. 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. 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. 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.

LTIP 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. 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.

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

• 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)

** Not all of the amount is still applicable since it includes 2 participants to the
plan that have left the company.

LTIP 2019
The Supervisory Board, upon recommendation of
the
Remuneration Committee, has determined a variable
compensation structured as a LTIP Grant composed out of
Restricted Share Units (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.

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.

• 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);

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.

• 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)

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

6.2.5. Executive severance arrangements
No occurrence during the reported year.

Annual report 2020 61

6.2.6. Use of claw-back rights
No occurrence during the reported year.

LTI plans as well as the companies selected to constitute the
TSR peer group have also been integrated in the remuneration
policy.

6.2.7. Derogations from the remuneration
policy
No derogations from the policy have been applied during the
reported year.

It should be noted that a majority of shareholders voted against
the Company's remuneration report at last year's annual
general meeting.

6.2.8. Evolution of the remuneration and of the
Company’s performance
As there was no reporting obligation for previous financial
years and taking into account the change of employment status
of the members of the Management Board to self-employed,
the information below will be submitted in the following format,
showing the relevant evolution starting from next year.

The biggest area of focus during last year’s vote, were the
concerns with the significant increase in the former CEO's
base salary, the substantial discretionary award granted to the
former CEO outside the STI plan and the severance payment
which was considered being in deviation of best market
practices.

Table 2: Comparative table on change of remuneration
and company performance over the last 5 financial
years(1) Only takes into account the STIP

6.3. Remuneration of the auditor KPMG
Bedrijfsrevisoren-Réviseurs d’entreprises
(KPMG)
Permanent representative: Herwig Carmans

Annual change

RFY

Aggregate executive compensation (1)

For 2020, the worldwide audit and other fees in respect of
services provided by the statutory auditor KPMG can be
summarised as follows:

€ 2,635,847

In USD

2020

2019

Company's performance

Net profit achievement

k$ 472,771

Opex and Overhead performance G&A

M$ 52

Audit services for
the annual financial
statements

932,112

904,965

Opex

M$ 189

Audit related services

74,838

70,552

Average remuneration on a full-time equivalent basis of
employees (2)

€ 69,400

Tax services

Ratio between highest remunerated Executive and least
remunerated employee (3)

Other non-audit
services

740

728

TOTAL

1,007,690

976,246

(2) Situation as per December 2020, taken into account annual salaries, not

including fringe benefits, not including variable remuneration.

(3) Situation as per December 2020, taken into account annual salaries, not

including fringe benefits, not including STIP or LTIP

6.2.9. Information on shareholders vote
Pursuant to art. 7:149, 3rd of the Code of Companies requiring
the Company to explain how the vote on the remuneration
report of the most recent financial year was taken into
account, we improved the transparency and the nature of
our remuneration policy to make it easier for shareholders to
understand how remuneration works at Euronav.

The limits prescribed by Article 3:62 of the CCA were observed.

Euronav strives to provide
levels,
performance criteria and performance targets for the short-
term incentive plan, enabling shareholders to assess the
stringency of the plan and how pay-outs relate to performance.

in the award

insight

The explanations about short-term and long-term variable
remuneration are more detailed than in the past. Clearly
disclosing the applicable performance metrics of the STI
and disclosing threshold, target and maximum award level.
Regarding the LTI plans, the level of achievement of the different

Director's reportThe 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
in
reasonable assurance that transactions are recorded
accordance with generally accepted accounting principles
and that provides reasonable assurance to timely detect
unauthorised acquisition or use or disposition of the
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

7. Internal Control & Risk
Management
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, appropriate to the
objectives, the size and the complexity of its activities.

Risk management can be defined as a structured, consistent
and continuous process 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.

Risks (as described in more detail in the ‘Risk Factors’ section
in this annual report with reference also to the risk section of
the US annual report on Form 20F that will be filed with the
Securities and Exchange Commission by 30 April 2021 and
at that time will become publicly available on the Company’s
website www.euronav.com in the “Investors” section under
“SEC filings”) 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, peak oil, instability of
the Euro, 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 oceangoing
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
unauthorised use or theft, including cyber-criminality and
the effective management of its international operations,
sanctions and embargoes;

• Climate change: risks inherent with increased regulatory
frameworks to reduce green house gas emissions may
adversely impact our operations and markets;

• 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;

• Counterparty creditworthiness;
• Geopolitical: terrorist attacks, political instability, piracy,
civil disturbances, pandemic and regional conflicts in any
particular country.

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.

Annual report 2020 63

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.

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.

7.1. 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.

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 applicable 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.

If we do not identify suitable tankers for acquisition or
conversion, or successfully integrate any acquired tankers,
we may not be able to grow or to effectively manage our
growth. If we are unable to operate our vessels profitably, we
may be unsuccessful in competing in the highly competitive
international tanker market, which would negatively affect our
financial condition and our ability to expand our business.

An inability to effectively time investments in and divestment
of vessels could prevent the implementation of our business
strategy and negatively impact our results of operations and
financial condition.

A substantial portion of our revenue is derived from a limited
number of customers and the loss of any of these customers
could result in a significant loss of revenues and cash flow.

7.2. Risk factors

7.2.1. Cyclical Business Risk
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.
We are dependent on spot charters and any decrease in spot
charter rates in the future may adversely affect our earnings.
The fluctuations in Euronav’s operating results are

7.2.2. 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 on the

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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 authorisation
for both subsidiaries in the beginning of 2016. In 2019 one of
these entities has left the tonnage tax regime on a voluntary
basis because it did not operate vessels 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 jurisdictions.There is, however,
no guarantee that the tonnage tax regime will not be reversed
or that other forms of taxation will not be imposed such as,
but not limited to, a carbon tax or emissions trading system
in the context of the discouragement of the use of fossil fuels.
To the extent such changes would be implemented on the EU
level only, the global level playing field may be distorted and put
the Company in a weaker competitive position compared to its
non-EU peer companies.

7.2.3. Dependence on third party service
providers
Euronav currently outsources to third party service providers
certain management services of its fleet, including certain
aspects of technical, commercial and crew management.
The third-party service providers the Company has selected
may not provide a standard of service comparable to that
of the Company if it would directly provide such service. The
Company relies on its third-party service providers to comply
with applicable law, and a failure by such providers to comply
with such laws may subject the Company to liability or damage
its reputation and could have a material adverse effect on the
Company’s reputation and business.

7.2.4. 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

Annual report 2020

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 honour 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.

7.2.5. 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. No impairment was booked so far. In 2019 we
did not perform an impairment test because we concluded that
there were no indicators of impairment.

In 2020 however, the carrying values required a review based
on changed events and circumstances, consistent with prior
years. The annual impairment tests were performed for the
cash-generating unit, defined consistently with prior year. The
recoverable amount of those cash-generating units has been
determined based on a value-in-use calculation using cash flow
projections generated. This exercise 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.

These assumptions are based on historical trends and/or on
future expectations of expenses and potential investments
pursuant to upcoming regulations, which can be difficult to
predict.

Specifically, in estimating future charter rates or service contract
rates, management takes into consideration estimated daily
rates for each asset over the estimated remaining lives. In the
past, we have used a fixed cut of 10 years to define a shipping
cycle. As management is assessing continuously the resilience
of its projections to the business cycles that can be observed in
the tanker market, it concluded that a business cycle approach
provides a better long-term view of the dynamics at play in the
industry. By defining a shipping cycle from peak to peak over the
last 20 years and including management's expectation of the
completion of the current cycle, management is better able to
capture the full length of a business cycle while also giving more
weight to recent and current market experience. The current
cycle is forecasted based on management judgment, analyst
reports, taking into considerations the length of recovery post
COVID-19 and past experience.

The assessment did not reveal the existence of events or
conditions indicating that the carrying amounts of the cash
generating units, including right of use assets, may be higher
than its recoverable amount. Whilst no impairment is 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.

7.2.6. 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 by its employees, mechanical
defects, 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
and pandemics. 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. Euronav believes that its current
insurance policies are 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 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.

Our international operations also expose us to additional
costs and legal and regulatory risks, which could have a
material adverse effect on our business, results of operations
and financial conditions. If our vessels call at ports located
in countries or territories that are subject to sanctions or
embargoes imposed by the U.S. government, the European
Union, the United Nations, or other governments, or carry
cargo from a sanctioned origin, it could lead to monetary fines
or penalties and adversely affect our reputation and the market
for our ordinary shares.

7.2.7. 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.

Increasing scrutiny and changing expectations from investors,
lenders and other market participants with respect to our
Environmental, Social and Governance (‘ESG’) policies may
impose additional costs on us or expose us to additional risks.

7.2.8. 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

Director's report66

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.

7.2.9. 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, in
particular the Euro. This partial mismatch between operating
income and expenses could lead to fluctuations in Euronav’s
net results.

We are exposed to volatility in the London Interbank Offered
Rate or LIBOR, and we intend to selectively enter into derivative
contracts, which can result in higher than market interest rates
and charges against our income. If volatility in LIBOR occurs, it
could affect our profitability, earnings and cash flow.

7.2.10. 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. Delays in delivering an FSO vessel under service
contract to its end-user, can cause contracts to be amended
and/or cancelled. 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.

7.2.11. 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.

7.2.12. Increased risk and the monitoring
applied with regard to the counterparty risk
Euronav has established a detailed counterparty risk policy to
set forth processes for avoiding, monitoring, mitigating and
effectively managing this risk exposure:

• Euronav has

implemented a credit

limit system to
mitigate the risk of default of its counterparties. The limits
restrict the exposure Euronav may have on any single
counterparty. Counterparty limits are calculated taking
into account a range of factors that govern the approval
of all counterparties. The factors include an assessment
of the counterparty’s financial soundness and its ratings if
existing, which must be of high quality. Counterparty limits
are monitored on a periodic basis;

• Next to credit risk, the reputation of the third party is
assessed, based on press & media exposure, market
drift, competitor positioning, market losses and their
sustainability approach;

• The compliance and regulatory/legal risk of the third party
based on current and prospective risk to earnings or capital
arising from violations by Euronav’s counterparties of or
nonconformance with, international sanction lists (OFAC,
UK Bribery Act, EU Sanction List, …), laws, rules, regulations,
prescribed practices, internal policies and procedures, or
ethical standards.

• The ability of each of our counterparties to perform its
payment and other obligations under a contract with us
will depend on a number of factors that are beyond our
control and may include, among other things, general
economic conditions, the condition of the maritime and
offshore industries, the overall financial condition of the
counterparty, charter rates received for specific types of
vessels, work stoppages or other labour disturbances,
including as a result of the outbreak of COVID-19 and various
expenses. Charterers are sensitive to the commodity
markets and may be impacted by market forces affecting
commodities such as oil.

Annual report 2020 67

7.2.13. Risks relating to the TI Pool, 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, 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.

7.2.14. 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,
the Indian Ocean, the Gulf of Aden off the coast of Somalia
and in particular the Gulf of Guinea region off Nigeria, which
continues to experience increased incidents of piracy in 2020.
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
characterised 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 and following consultation with
regulatory authorities, Euronav follows the latest version of
BMP5 (Best Management Practices). This is a guide that has
been produced and is updated regularly by BIMCO, ICS, IG
P&I Clubs, Intertanko and OCIMF together with several other
maritime industry organisations. 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.

7.2.15. Euronav is subject to risks related to
the adequate protection of critical data and
infrastructure from unauthorised use or any
other form of cybercriminality.
Euronav’s activities are subject to risk of discontinuity due to
unauthorised 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.

technology

We rely on industry accepted security and control frameworks
and
to securely maintain confidential and
proprietary information and personal data held on our
information systems. However, these measures and technology
may not adequately prevent security breaches. In addition, the
unavailability of the information systems or the failure of these
systems to perform as anticipated for any reason, could disrupt
our business and could result in decreased performance and
increased operating costs, causing our business and results of
operations to suffer. Any significant interruption or failure of
our information systems or any significant breach of security
could adversely affect our business, results of operations and
financial condition, as well as our cash flows. Furthermore, as
from May 25, 2018, data breaches on personal data as defined
in the General Data Protection Regulation 2016/679 (EU), could
lead to administrative fines up to EUR 20 million or up to 4% of
the total worldwide annual turnover of the company, whichever
is higher.

7.2.16. 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 October 27, 2016, the International
Maritime Organization’s Marine Environment Protection
Committee (‘MEPC') announced its decision concerning the
implementation of regulations mandating a reduction in sulfur
emissions from 3.5% currently to 0.5% as of the beginning
of January 1, 2020. Additionally, in April 2018, nations at the
MEPC 72 adopted an initial strategy to reduce greenhouse gas
emissions from ships. The initial strategy identifies levels of
ambition to reducing greenhouse gas emissions, including

Director's report7.2.17. Political instability, terrorist attacks,
international hostilities and global public
health threats can affect the seaborne
transportation industry, which could adversely
affect our business.
We conduct most of our operations outside of the United States,
and 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.

The world economy currently faces a number of challenges,
including the effects of volatile oil prices, trade tensions between
the United States and China and between the United States
and the European Union, continuing turmoil and hostilities in
the Middle East, the Korean Peninsula, North Africa, Venezuela,
Iran and other geographic areas and countries, continuing
economic weakness in the European Union, geopolitical events
such as the withdrawal of the U.K. from the European Union
(‘Brexit’), the continuing threat of terrorist attacks around the
world, continuing instability and conflicts and other recent
occurrences in the Middle East and in other geographic areas
and countries such as those between the United States and
North Korea or Iran, or between the Houthi and Arab counties
in Yemen, or internally in Libya, and stabilising growth in China,
as well as the public health concerns stemming from the
COVID-19 outbreak.

The threat of future terrorist attacks around the world,
continues to cause uncertainty in the world's financial markets

intensity from ships through
(1) decreasing the carbon
implementation of further phases of the Energy Efficiency
Design Index (‘EEDI’) for new ships; (2) reducing carbon
dioxide emissions per transport work, as an average across
international shipping, by at least 40% by 2030, pursuing efforts
towards 70% by 2050, compared to 2008 emission levels; and
(3) reducing the total annual greenhouse emissions by at least
50% by 2050 compared to 2008 while pursuing efforts towards
phasing them out entirely. The European Union on the other
hand has indicated that it intends to accelerate its plans to
include shipping into the emissions trading scheme.

Since 1 January 2020, vessels have to either remove sulfur from
emissions or buy fuel with low sulfur 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% sulfur 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 and/or the public interest for
our shares. 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 2020 69

and international commerce and may affect our business,
operating results and financial condition. Continuing conflicts
and recent developments in the Middle East 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 the United States and
Iran could result in retaliation from Iran that could potentially
affect the shipping industry, through increased attacks on
vessels in the Strait of Hormuz (which already experienced
an increased number of attacks on and seizures of vessels
in 2019 and 2020). These uncertainties could also adversely
affect our ability to obtain additional financing or insurance on
terms acceptable to us or not at all. Any of these occurrences
could have a material adverse impact on our operating results,
revenues and costs.

Additionally, in Europe, large sovereign debts and fiscal
deficits, low growth prospects and high unemployment rates
in a number of countries have contributed to the rise of
Eurosceptic parties, which would like their countries to leave
the Euro. Brexit further increases the risk of additional trade
protectionism. Brexit, or similar events in other jurisdictions,
could impact global markets, including foreign exchange and
securities markets; any resulting changes in currency exchange
rates, tariffs, treaties and other regulatory matters could in turn
adversely impact our business and operations.

Furthermore, China and the US have implemented certain
trade measures with continuing
increasingly protective
trade tensions, including significant tariff increases between
these countries. These trade barriers to protect domestic
industries against foreign imports, depress shipping demand.
Protectionist developments, or the perception they may
occur, may have a material adverse effect on global economic
conditions, and may significantly reduce global trade. Moreover,
increasing trade protectionism may cause an increase in (a) the
cost of goods exported from regions globally, (b) the length of
time required to transport goods and (c) the risks associated
with exporting goods. Such increases may significantly affect
the quantity of goods to be shipped, shipping time schedules,

voyage costs and other associated costs, which could have an
adverse impact on our charterers’ business, operating results
and financial condition and could thereby affect their ability
to make timely charter hire payments to us and to renew and
increase the number of their time charters with us. This could
have a material adverse effect on our business, results of
operations, financial condition and our ability to pay any cash
distributions to our stockholders.

In addition, public health threats such as influenza and other
highly communicable diseases or viruses, outbreaks of which
have from time to time occurred in various parts of the world
in which we operate, including China, Japan and South Korea,
which may even become pandemics, such as the COVID-19
virus, could lead to a significant decrease of demand for the
transportation of crude oil. Such events may also adversely
impact our operations,
including timely rotation of our
crews, the timing of completion of any outstanding or future
newbuilding projects or repair works in dry-dock as well as
the operations of our customers and may increase the cost
of obtaining supplies or restrict our ability to obtain needed
supplies. Delayed rotation of crew may adversely affect the
mental and physical health of our crew and the safe operation
of our vessels as a consequence.

7.2.18. 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 COVID-19 pandemic has
negatively affected economic conditions, the supply chain, the
labour market, the demand for oil and natural gas shipping
regionally as well as globally, the rotation of our crew and the
operations of our customers and suppliers, and may otherwise
impact our operations. As of March 2020, the outbreak of
COVID-19 has been declared a pandemic by the World Health
Organisation (“WHO”). Governments in affected countries
have imposed and still impose travel bans, quarantines and
other emergency public health measures. Apart from serious
humanitarian and crew welfare concerns, and issues of
regulatory compliance, there is an increasing risk that fatigue will

Director's report70

lead to serious maritime accidents. Companies have taken and
are 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 and successful roll-out of a vaccine. 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
at ports or may be restricted from disembarking from ports
located in regions affected by COVID-19. The ultimate severity
of the COVID-19 pandemic continues to be uncertain.

7.2.19. Rising 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 Organisation
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. Furthermore, fuel has become much more expensive
as a result of new regulations mandating a reduction in sulfur
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.

7.2.20. The IMO 2020 regulations may cause us
to incur substantial costs and to procure low-
sulfur fuel oil directly on the wholesale market
for storage at sea and onward consumption
on our vessels.
Effective 1 January 2020, the IMO implemented a new regulation
for a 0.50% global sulfur cap on emissions from vessels. Under
this new global cap, vessels must use marine fuels with a
sulfur content of no more than 0.50% against the former
regulations specifying a maximum of 3.50% sulfur in an effort
to reduce the emission of sulfur oxide into the atmosphere.
We incurred and may continue to 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. The vast majority of our fleet
is not equipped with scrubbers. Since 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. Low sulfur fuel is more expensive than
standard marine fuel containing 3.5% sulfur content and may
become more expensive or difficult to obtain as a result of
increased demand. If the cost differential between low sulfur
fuel and high sulfur fuel is significantly higher than anticipated,

or if low sulfur 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 favourable 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 sulfur 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. Furthermore, 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.

7.2.21. 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 that vessels, being recycled
once they reach the end of their operational lives, do not
pose any unnecessary risks to the environment or 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. Vessels 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

Annual report 2020 71

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 vessels trade in
the 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 the latest requirements, which may
have an adverse effect on our future performance, results of
operations, cash flows and financial position.

7.2.22. Technological innovation to meet
quality and efficiency requirements 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 harbours, use different means of propulsion
and fuels, utilise 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 charter
hire 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.

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

8.1. 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 dematerialised form. Euronav currently holds
18,346,732 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 6.4 of this Corporate Governance
Statement, there are no other share plans, stock options or
other rights to acquire shares of the Company in place.

8.2. 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.

8.3. 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.

Director's report72

8.4. Shareholders’ meeting
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
in the framework of sale-and-lease-back
charter parties
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.

8.5. 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.

8.6. 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.

8.7. Authorisation granted to the
Supervisory Board to increase share
capital
The articles of association (Article 7) contain specific rules
concerning the authorisation to increase the share capital of
the Company. By decision of the Shareholders’ Meeting held on
20 February 2020, the Supervisory Board has been authorised
to increase the share capital of the Company in one or several
times 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.

8.8. Authorisation 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 authorise the Company to acquire its
own shares. Such an authorisation was granted by the Special
General Meeting of 20 May 2020 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 authorisation, the Company may acquire a
maximum of ten percent (10%) 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 not exceeding the maximum price allowed
under applicable law and not to be less than EUR 0.01.

Annual report 2020 73

which the subsidiaries are organised may impose restrictions
on the payment or source of dividends or additional taxation
for cash repatriation, under certain circumstances.

9. 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 amortisation 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.

Excess income is adjusted for certain items such as capital losses
and capital gains. 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

Director's report74

10. 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 relation
to 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
consulted on the Company’s website www.euronav.com, under
the section Corporate Governance.

11. 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 Supervisory Board
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 members of the Supervisory and Management Boards
and the 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.

12. 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 centre promoting corporate
governance in all its forms and offers a platform for the
exchange of experiences, knowledge and best practices.

13. 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 Supervisory
Boards of listed companies.

In January 2020 Euronav was selected for the third consecutive
time as one of over 325 companies from ten sectors,
headquartered in 42 countries, 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 GEI
continues to gain important traction resulting in 325 companies
included in the index of 2020 (up to 230 companies in 2019).
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 15 March 2021, the Management Board consists of
one women and five men: four of the board 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, engineering and science. Before they started working
with Euronav, they were employed in the financial, legal and
shipping sector. Their ages vary between 47 and 63 years old,
and include their average experience of 7 years in their current
executive position.

Annual report 2020 75

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 four years. Their ages vary between 38 and 51
years old.

14. Appropriation accounts
The result to be allocated for the financial year amounts
to USD 452,656,962.98. Together with the transfer of USD
167,584,926.73 from the previous financial year, this gives a
profit balance to be appropriated of: USD 620,241,889.71.

Ex dividend

15 June 2020

18 August 2020

19 November 2020

24 February 2021

Payment date

26 June 2020

28 August 2020

30 November 2020

5 March 2021

USD per share

0.81

0.47

0.09

0.03

The USD 1.40 / share paid to the shareholders represent
USD 295,729,618.71. Further return to the shareholders was
realized through share buy back for a total amount of USD
118,487,742.56.

The Supervisory Board shall propose the Annual Shareholders’
Meeting of 20 May 2021 to acknowledge a full year gross
dividend in the amount of USD 1.40 per share. Taking into
account the interim dividends totalling USD 1.40 per share, and
subject to shareholders’ approval, no final dividend will be paid
after the Annual General Meeting of Shareholders.

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

Capital and reserves

USD 118,487,742.56

Dividends

USD 295,729,618.71

Carried forward

USD 206,024,528.44

Director's report7676

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The 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., was established in
2005 in Piraeus, Greece, and moved to offices in the centre
of Athens in 2017. It is as a branch office of a fully owned
subsidiary of Euronav NV that 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 &
Euronav NV, London branch

Located in the heart of London, Euronav (UK) Agencies Ltd used
to host the 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. Since 2020, most commercial activities are organised
through a newly established London-based branch office of
Euronav NV.

Euronav Hong Kong Ltd.
Euronav Hong Kong Ltd. is the holding company of three wholly
owned subsidiaries and four 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. and E.S.M.C. Euro-Ocean
Ship Management (Cyprus) Ltd., a ship management company
that handles the crew management of the FSOs. Since 30 June
2020, Euronav Luxembourg SA is no longer a subsidiary

of Euronav Hong Kong Ltd. but wholly owned by Euronav NV.
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 belonged to the Oak Maritime
Group, fully owned Seven Seas Shipping Ltd., which following
the termination of the relevant joint venture sold the VLCC to
Euronav NV in 2018. Meanwhile both Kingswood Co. Ltd. and
Seven Seas Shipping Ltd. are dissolved as of 15 May 2020.

In November 2019 two joint venture agreements were signed
with Ridgetuf LLC resulting in the two 50% joint venture
companies Bari Shipholding Limited (owner of the Suezmax
Bari) and Bastia Shipholding Limited (owner of Suezmax Bastia).
On 30 September 2020 the Suezmax Bastia was successfully
sold and delivered to the third party Buyers, Messrs. Seven
Island Shipping Limited.

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 gradually
centralised 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.

Euronav 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.

Annual report 2020

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 ship-owning 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 (TI Pool)
In 2017, the corporate structure of ‘Tankers International Pool’
(TI Pool) was rationalised. 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 multiplied by 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 branch office in Geneva
(Switzerland), Euronav NV, Antwerp, Geneva Branch. This new
branch office was set up in anticipation of the coming into force
of IMO 2020 and focuses on procurement of compliant fuel
and related services.

Euronav NV Belgium

100%

Euronav
Shipping NV
Belgium

Euronav (UK)
Agencies Ltd
United Kingdom

Euronav
Luxembourg
SA - Luxembourg

Euronav NV,
Antwerp, Geneva
Branch

Euronav NV,
London
Branch

Tankers
(UK)
Agencies Ltd

Tankers
International
LLC

Euronav
Tankers NV,
Belgium

100%

Euronav
MII II Inc

100%

Euronav
Hong Kong
Ltd.
Hong Kong

Euronav
Ship
Management
sas - France

Euronav
sas
France

100%

Euronav Ship
Management
(Antwerp)
Branch
Oﬃce
Belgium

100%

Tankers
International
Ltd

100%

Euronav
Singapore
Pte. Ltd
Singapore

Euronav
Ship
Management
(Hellas) Ltd.
Liberia

50%

TI Africa
Ltd.
Hong Kong

50%

TI Asia
Ltd.
Hong Kong

100%

50%

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

Bari
Shipholding
Ltd.
Hong Kong

Bastia
Shipholding
Ltd.
Hong Kong

100%

Euronav
Ship
Management
(Hellas)
Branch
Oﬃce
Greece

50% 50% Director's report

Activity
report

Products and services

In-House ship management

Euronav Ship Management Partners

Fleet of the Euronav Group
as of 31 December 2020

Human Resources

Products and services

Tanker Shipping
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 15 March
2021 the Euronav core fleet (owned and operated) has a
weighted average age of 9.3 years. Euronav operates its fleet
both on the spot and the period market.

VLCC Fleet

The Tanker 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. 41 Euronav VLCCs
participated in the pool on 15 March 2021. 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 utilisation (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.

Suezmax Fleet
Euronav’s 100% owned Suezmax fleet flies Belgian, Greek and
Liberian Flag. Its vessel in 50%-50% joint venture is 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 15 March 2021 Euronav owns 28 (including
two newbuildings that will be delivered in 2022) and currently
employs 26 Suezmax vessels, of which 21 are traded on the
spot market.

Euronav's VLCC fleet

Euronav's Suezmax fleet

Average age profile of Euronav owned VLCC and V-Plus (and
TC-in)

Average age profile of Euronav owned Suezmax (and TC-in)

0-5 years old: 33%

10 - 15 years old: 26%

0-5 years old: 24%

10 - 15 jaar oud: 48%

5 - 10 years old: 37%

>15 years old: 4%

5 - 10 years old: 12%

>15 years old: 16%

Annual report 2020 FSO and FPSO market
FSO’s are floating storage and offloading units for areas where
the offshore production platforms have no or insufficient
storage capabilities (fixed platform, MOPU, SPARr, TLP, semi-
sub), and no pipeline infrastructure to the shore or another
terminal. They are ideal because of their very large storage
capacity and ability to be moored in almost any water depth.
With no process topsides (as with FPSO’s), they are relatively
simple to convert.

An FPSO is a floating production system that receives fluids
(crude oil, water,…) from a subsea reservoir through risers,
which then separate 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 tankers to go to market or for further refining onshore.

FSO’s 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
commercialise remote or marginal fields. The offshore 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.

Euronav started engaging in the Maersk Oil Qatar (MOQ)
project because of the specific assets that it owned in joint
venture with International Seaways Inc. (INSW): 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, but now
to INSW). In 2017 the field operations of Al-Shaheen (Qatar)
were transferred from MOQ to NOC (North Oil Company – see
below) and the FSO contracts were extended until 2022.

In November 2020, Euronav's joint venture with International
Seaways signed a ten year contract extension for the FSO Asia
and FSO Africa. This is a direct continuation of their current
contractual service with North Oil Company (NOC), the operator
of the Al-Shaheen oil field since 2017, whose shareholders are
Qatar Petroleum Oil & Gas Limited and Total E&P Golfe Limited.
The extended FSO contracts now run until 21 July 2032 and 21
September 2032 respectively.

The FSO Africa and FSO Asia 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.

Offshore units are unique because of
requirements and additional engineering of the designing,

their

logistical

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 exported from a Single Buoy Mooring
(SBM) system, which can be seen on the picture, and stored in
the FSO Africa and FSO Asia.

Source: Marine Insight - Image credits: riverlakesolutions.com

Buoy Mooring FSO AFRICA and FSO ASIA
Europe and Oceania (both fully owned by Euronav) are the only
two remaining unconverted V-Plus vessels worldwide.

Euronav strongly believes that the long-term employment of
this not yet converted units lies in the offshore market. Most
of the new oil field discoveries are made offshore and many of
them are gigantic oil fields (Brazil, West Africa, Australia) which
should require very large FSOs. Euronav therefore believes
that there will be a demand for these units by offshore field
operators.

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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 at Asian ports.

Euronav’s personnel includes seagoing officers, crew, shore-
based staff, skilled and experienced captains and marine
engineers, as well as maritime university and college graduates.
This gives the Company a competitive edge in high quality
maintenance and operation of the vessels, as well as project
development and execution.

Euronav manages the vast majority of its fleet of modern crude
oil carriers in-house, 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
are equipped with sophisticated management software
and communication systems that enhance the vessel and
shore team collaboration. The vessel’s crews are in constant
interaction with the shore staff through regular onboard
visits, briefing and debriefing discussions upon signing on
and off, conferences ashore and onboard, including 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 organisation, and the vessels, have successfully passed
numerous oil major Tanker Management and Self-Assessment
(TMSA) reviews and vetting assessments.

All our 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 to and aims for safety, environmental protection,
security and quality excellence of the Fleet’s operation. We are
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.

Annual report 2020

Euronav utilises a set of clearly defined Key Performance
Indicators (KPIs) for its ship management services as well
as standardised 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 well-being;
• Vessel energy efficiency;
• Vetting and port state controls;
• Planned and condition-based maintenance;
• Dry-docking planning and repairs ;
• Procurement, efficiency

Quarterly management review meetings, bi-monthly table
top exercises, monthly safety and environmental protection
meetings, bi-weekly management coordination meetings and
weekly fleet management coordination meetings monitor the
trends and set the course of action.

Euronav practices genuine performance planning and appraisal,
training and development, encouraging
the promotion
from within, whilst also offering opportunities to competent
professionals to join the Company. Its policies aim to enhance
and reward performance, to engage its people; and to attract
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 merit 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 emphasising people working

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.

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Euronav ship
management
partners

In addition to the in-house managed fleet, Euronav maintains
close relations and cooperation with high quality ship
managers that manage part of the fleet. A dedicated Euronav
team is managing the relationship and ensures that the
services rendered to Euronav vessels 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 2020

Fleet of the Euronav Group
as of 31 December 2020

Owned VLCCs and V-Plus

Name

Owned

Built

Dwt

Draft

Flag

Length (m)

Shipyard

Aegean

100%

2016

299,999

21.62

Belgian

332.97

Hyundai H.I.

Alboran

100%

2016

298,991

21.62

Liberian

332.97

Hyundai H.I.

Alex

Alice

Alsace

100%

2016

299,445

21.6

Belgian

100%

2016

299,320

21.6

Belgian

100%

2012

320,350

22.5

French

333

330

Hyundai H.I.

Samsung H.I.

Amundsen

100%

2017

298,991

21.62

Liberian

332.97

Hyundai H.I.

Andaman

100%

2016

299,392

21.62

Liberian

332.97

Hyundai H.I.

Anne

100%

2016

299,533

21.6

French

Antigone

100%

2015

299,421

21.6

Greek

Aquitaine

100%

2017

298,767

21.62

Belgian

333

Hyundai H.I.

Arafura

100%

2016

298,991

21.62

Belgian

332.97

Hyundai H.I.

Aral

100%

2016

299,999

21.62

Belgian

Ardeche

100%

2017

298,642

21.62

Belgian

Daishan

Dalma

Desirade

Dia

100%

2007

306,005

22.49

Liberian

100%

2007

306,543

22.49

Liberian

100%

2016

299,999

21.53

Liberian

100%

2015

299,999

21.52

Liberian

333

332

336

Hyundai H.I.

Daewoo H.I.

Activity report86

Name

Owned

Built

Dwt

Draft

Flag

Length (m)

Shipyard

Heron

Hirado

Hojo

Ilma

Ingrid

Iris

Dominica

Donoussa

Drenec

Europe

Hakata

100%

2015

299,999

21.54

Liberian

100%

2016

299,999

21.54

Liberian

100%

2016

299,999

21.53

Liberian

100%

2002

441,561

24.53

French

100%

2010

302,550

21.03

French

Hakone

100%

2010

302,624

21.03

Greek

Hatteras

100%

2017

297,363

21.62

Liberian

100%

2017

297,363

21.62

Liberian

100%

2011

302,550

21.03

Greek

100%

2013

302,965

21.64

Belgian

336

380

333

330

Daewoo H.I.

Universal

Hanjin Subic

Universal

Japan Marine United

100%

2012

314,000

22.37

Belgian

319.03

Hyundai H.I.

100%

2012

314,000

22.38

Belgian

319.03

Hyundai H.I.

100%

2012

314,000

22.37

Belgian

333.14

Hyundai H.I.

Newton

100%

2009

307,284

22.3

Belgian

321.66

Dalian S.I.

Oceania

100%

2003

441,561

24.53

Belgian

380

DSME

Sandra

100%

2011

323,527

21.32

French

319.57

STX O&S

Sara

100%

2011

323,183

22.62

French

319.57

STX O&S

100%

2012

313,988

22.1

Belgian

319.57

STX O&S

100%

2012

314,000

22.1

French

319.57

STX O&S

Simone

Sonia

Newbuildings*

Name

Owned

Built

Dwt

Draft

Flag

Length (m)

Shipyard

Delos

Diodorus

Doris

Dickens

100%

2021

300,200

21.6

Belgian

100%

2021

300,200

21.6

Belgian

100%

2021

300,200

21.6

Belgian

100%

2021

299,550

21.6

Belgian

336

Daewoo H.I.

*These vessels were delivered to Euronav during the first quarter of 2021.

Annual report 2020 87

VLCCs Bareboat

Name

Owned

Built

Dwt

Draft

Flag

Length (m)

Shipyard

Nautica

100%

2008

307,284

22.723

Liberian

321.7

Dalian S.I.

Nautilus

100%

2006

307,284

22.72

Marsh I

321.7

Dalian S.I.

Navarin

100%

2007

307,284

22.72

Marsh I

321.65

Dalian S.I.

Nectar

100%

2008

307,284

22,72

Liberian

321.6

Dalian S.I.

Neptun

100%

2007

307,284

22.72

Marsh I

321.7

Dalian S.I.

Noble

100%

2008

307,284

22.72

Liberian

321.7

Dalian S.I.

Nucleus

100%

2007

307,284

22.72

Marsh I

321.64

Dalian S.I.

Activity report88

Owned Suezmax vessels

Name

Owned

Built

Dwt

Draft

Flag

Length (m)

Shipyard

Bari

50%

2005

159 186

17.07

Marsh I

274.47

Hyundai H.I.

Cap Charles

100%

2006

158,881

Greek

Cap Corpus
Christi

100%

2018

156,600

17.15

Greek

Cap Felix

100%

2008

158,765

17.02

Belgian

Cap Guillaume

100%

2006

158,889

Cap Lara

100%

2007

158,826

Greek

274

277

274

Samsung H.I.

Hyundai H.I.

Samsung H.I.

Cap Leon

100%

2003

159,049

17.02

Liberian

274.29

Samsung H.I.

Cap Pembroke

100%

2018

156,600

17.15

Greek

Cap Philippe

100%

2006

158,920

Greek

277

274

Hyundai H.I.

Samsung H.I.

Cap Pierre

100%

2004

159,083

17.02

Liberian

274.29

Samsung H.I.

Cap Port
Arthur

100%

2018

156,600

17.15

Greek

Cap Quebec

100%

2018

156,600

17.15

Greek

Cap Theodora

100%

2008

158,819

Cap Victor

100%

2007

158,853

Capt. Michael

100%

2012

157,648

Greek

277

274

Hyundai H.I.

Samsung H.I.

Greek

274.82

Samsung H.I.

Filikon

100%

2002

149,989

15.95

Liberian

274.2

Universal

Fraternity

100%

2009

157,714

17.02

Belgian

274.2

Samsung H.I.

Maria

100%

2012

157,523

Greek

274.82

Samsung H.I.

Sapphira

100%

2008

150,205

16.02

Belgian

274.20

Universal

Selena

100%

2007

150,205

16.02

Belgian

274.20

Universal

Sienna

100%

2007

150,205

16.02

Belgian

274.2

Universal

Sofia

Statia

Stella

100%

2010

165,000

17.17

Greek

274.19

Hyundai H.I.

100%

2006

150,205

16.02

Belgian

274.20

Universal

100%

2011

165 000

17,17

Greek

274.19

Hyundai H.I.

Annual report 2020 89

Owned FSO’s (Floating, Storage and Offloading)

Name

Owned

Built

Dwt

Draft

Flag

Length (m)

Shipyard

FSO Africa

FSO Asia

50%

2002

442,000

24.53

Marsh I

2002

442,000

24.53

Marsh I

380

Daewoo H.I.

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Human 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 220 employees (including
contractors and temporary assignments). This geographic span
across Europe reflects a deep-rooted maritime history and
culture built up over generations. Over 3,500 seafarers of many
different nationalities work onboard Euronav vessels. In an
environment where there is a shortening supply of competent
seafarers, Euronav has qualified and experienced masters
officers and crew to recruit all the vessels. Senior officers 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 nautical, engineering, finance,
business administration, legal and humanities backgrounds,
who specialised 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.

Annual report 2020

TOTAL

Officers

on board

704

34 French
50 Indian
68 Panamanian
80 Bulgarian
56 Croatian
110 Filipino
139 Greek

2 Colombian
1 Dutch
1 Slovenian
1 Polish
1 Honduran
1 Jamaican
6 Pakistani
72 Ukrainian
22 Belgian
25 Romanian
34 Russian

TOTAL

678

1 Guatemalan
1 Panamanian
1 Chilean
5 Indian
15 Indonesian
37 El Salvador
85 Honduran
514 Filipino

Crew retention rate:
97.41%

LTIF: 0.67
TRCF: 1.43
Safety Related Fatalities or Partial Permanent disabilities : 0

TOTAL CREWMEMBERS
ON BOARD = 1382

Apprentices&Ratingson boardActivity report92

Annual report 2020 93

Our culture
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 characterised 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 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.

Accomplishments in 2020
In 2020 the Human Resources department has invested a great
deal of work in the following areas:

• Implementation of the Flexible Income Plan in EURB;
• Optimisation and review of company policies;
• Further

implementation of a new Human Resources

Information application;

• Development of a succession planning for Management

Board;

• Improvement of the performance appraisal procedure;
• Exceptional HR workloads due to management of the

pandemic situation;

• Introduction of the Barrett methodology for Company’s

values assessment;

• Digital roadshows explaining the results of the Barrett
survey, organising workshops to understand the meaning
behind the chosen values;

• Completion of function mapping to enable benchmarking

of compensation.

Values
Undeniably, great company cultures need a common language
that allows their employees to actually understand each other.
At Euronav we believe that if culture is to be strategic, it needs
more input, collaboration, and co-creation from our employees.

That is why in 2020 we held a Cultural Value Assessment within
the Company. The purpose of this assessment was to realign
our core VALUES. The following six were defined:

SUSTAINABILITY

EXCELLENCE

ADAPTABILITY

COOPERATION

INSPIRING

INTEGRITY

In the course of 2021, we will assign concrete behaviours to
each of them. These will describe the way we do business, how
we interact and how we work together at Euronav, to grow as a
company and as individuals.

The ultimate goal of our core VALUES is to align our
organisation’s actions and attitudes towards internal as well as
external stakeholders in such a way that we can successfully
execute our corporate strategy and realise our corporate
objectives.

Activity report4

Sustainability
report

Letter from the CEO

Sustainability highlights

Our approach to sustainability

Stakeholder engagement

Active engagement with financial institutions on sustainability

Environment

- Approach to environment
- Greenhouse Gas Emissions
- Overview initiatives and collaborations

Social and human capital

- People approach
- CASE: Bloomberg Gender Equality
- COVID19
- Health and Safety

Corporate Governance

Initiatives and Contributions to Society

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Values:

Letter from the CEO

The year of 2020 has been an extraordinary experience for
everyone. The challenges we all faced in our daily lives have
been difficult and it was no different in the tanker shipping
market. COVID-19 has had a deep impact on our business
and on our key resource, our people! From the start of the
pandemic, Euronav has been focused on actively protecting
and supporting our staff and customers across the globe.
Over the course of a year we have made numerous financial
and practical contributions of medical equipment to a range
of companies, charities and individuals. The status of seafarers
remains a current and active topic and Euronav will continue
to lobby all national, political and regulatory bodies for
seafarers to be recognised as ‘key workers’, both now and in
the future. Shipping needs to do more in this area. Recognising
that transparency is a two-way street when looking for wider
political support is key to such initiatives.

At Euronav we acknowledge the magnitude of the climate
change challenge and the role that Euronav can take by
embracing it. From a sustainability perspective COVID-19 has
brought a step change in the commitment across society
towards this important challenge. We welcome this step
change! The world is uniting in bringing increased awareness
and finding solutions to the pressing needs we are facing. This
underlines what sustainability is. It is dynamic. It is not static.
Whilst sustainability has always been at the top of our agenda
since the very foundation of the company 25 years ago, I am
pleased to say Euronav has made further real progress during
2020 on sustainability.

Euronav celebrated 25 years as a corporate body in 2020. Take
the time to go back through our old annual reports and you will
notice that safety has always been our number one concern in
delivering our cargoes in a safe manner but also sustainably.

From 2005 our logo and strapline is the same today as it was
then: ‘Euronav - the ocean is our environment’. Sustainability
has been central to our business model from the start. But
what does sustainability mean at Euronav?

We believe that environmental actions, addressing climate
change, and operating our business to the highest safety
standards cannot be done without strong governance, which
includes the highest ethical standards and oversight from
an independent board and management. Environment and
governance can’t do without the input of social or human
capital with respect for the individual, gender and other social
qualities.

As reflected in the application of many of the United Nations’
17 Sustainable Development Goals (SDG), sustainability at
Euronav is about much more than emissions, climate change
and other environmental challenges. It is also about delivering
a supportive environment to our employees, respect, safety at
all levels of our business, and ensuring accountability on these
objectives.

Euronav, as the largest quoted crude tanker company in the
world, is uniquely placed to develop a sustainable business
within the energy transition. Crude oil demand and consumption
will peak, or may have already, as the energy transition gains
momentum. However, this ‘transition’ will take many years (cfr.
Rystad Energy estimate peak oil demand in 2030). Assuming
we follow the 1.5 °C Paris agreement pathway, crude oil will
continue to be essential for economic development, human
movement and industrial processes and production. Shipping
is the most efficient method of transportation (87 times
more efficient than aviation for example) in terms of CO2
emissions per tonne-km. Continuing to build a responsible,

Sustainability reportmaritime, energy, infrastructure and finance sectors, supported
by key governments and IGOs.

A solid sustainability agenda by itself is simply not sufficient
anymore. Sustainability is expected by our customers and
stakeholders to be part of our everyday business and rooted in
our business model. We are very pleased to take the next steps
in further embedding sustainability into our company in 2021,
and securing these activities in the business with direct sector
leader accountability.

Euronav has recently added personnel to its sustainability
capability to oversee and construct the next stage of our
sustainability architecture both internally, and externally. This
critical role will report directly to the Management Board
and reflects our commitment to improve our sustainability
position. Our ambitions will not be restricted to targets and we
anticipate substantial investment in new technologies, fuels,
and emissions initiatives.

This report illustrates the progress we have made and is
an opportunity to reiterate our aim to take a leading role in
driving sustainability in the large crude tanker sector. However,
Euronav recognises that we have a long way to go on our
sustainability journey on all fronts, from climate change to
increased transparency, to technological solutions for green
house gas emissions reduction.

We can only do this by maintaining sustainability as the key to
how we operate as a crude tanker business. I am privileged to
lead Euronav and proud of the advancement we have made so
far on our sustainability goals.

Hugo

sustainable large crude tanker platform will generate benefits
not just for our stakeholders, but for the wider society and
environment. We are eager to demonstrate our sustainable
role in the global energy transition.

As we look forward shipping is in many ways one of the
strongest platforms to achieve decarbonisation. Euronav looks
forward to delivering on that challenge.

Euronav achieved on a number of sustainability goals during
2020. We were pleased to receive a ‘B’-score on our first
submission to the Carbon Disclosure Project (CDP), reflecting
our commitment and action so far on climate change.
Disclosure and transparency are key building blocks in driving
sustainability, and the evolution of our ESG and Climate
Committee at board level to a Sustainability Committee
provided invaluable oversight and direction. We remain the
only listed tanker company with a committee focused on
sustainability composed of Executive and Supervisory Board
representation.

Euronav was a key partner in deriving the Poseidon Principles;
a global framework for responsible ship finance for integrating
climate considerations into lending decisions to promote
international shipping’s decarbonisation. Adoption of these
principles includes active reduction of carbon emissions as
part of the IMO guidelines. This is important, as Euronav is
committed to reduce its carbon emissions intensity EVERY year
going forward, and not as an aspiration over ten years’ time.

Moreover, one of our commitments for 2021 will be to formally
set challenging, but attainable GHG emissions targets by which
stakeholders can measure our performance going forward.

Euronav strengthened its sustainability framework further in
September by merging two outstanding bank facilities into
a single USD 713 million sustainability loan with 14 banks,
which targets emission reductions at higher level than the
Poseidon Principles. Investors should expect more features of
sustainability oversight in our future funding. The cost of capital
for those engaged like ourselves in delivering sustainable
change in hard-to-abate areas like shipping, is critical. Euronav
continues to focus on an incentive frameworks with its
stakeholders to deliver our sustainable ambitions, which in turn
need to be matched and policed by those providing finance.
Another essential element to this requires bodies such as the
IMO and EU to apply a consistent and integrated application of
regulation, moving away from focusing on their own territorial
claims.

We regret that the shipping sector is often under-considered
in its efforts to abate all sorts of pollution. For example the
successful implementation by the sector of IMO 2020 and the
reduction of sulfur emissions by 85% has been overlooked this
year, given the disruption from the COVID-19 pandemic. Other
initiatives continue to develop. Euronav is a founding partner
of the Getting to Zero coalition that will serve as a vehicle to
accelerate the energy transition in shipping to find a way to put
a commercially viable net-zero emissions ship to sea by 2030.
There are currently 140 companies in the coalition within the

Annual report 2020 99

Sustainability
Highlights 2020

Reporting frameworks
The disclosures in this report provide investors and other
stakeholders with material sustainability or ESG information.
This report has been carefully prepared in accordance with
the Marine Transportation framework established by the
Sustainability Accounting Standards Board (SASB). The SASB
standard allows us to identify, manage and report on material
sustainability or ESG topics with industry specific performance

metrics, based on SASB’s internationally recognised indicators
and related definitions, scope and calculations. Additionally,
we have incorporated the principles of the UN Sustainability
Development Goals where applicable. The report and data
cover the period from 1 January to 31 December 2020 and
reflect the Euronext ESG reporting guidelines.

Key figures

TOPIC

METRIC

UNIT

DATA 2020

REFERENCE STANDARD

Scope 1 GHG emissions

Metric tonnes CO2-eq.

3,082,765

TR-MT-110a.1

Scope 2 GHG emissions
Gross global

Metric tonnes CO2-eq.

GHG emission intensity

Ratio e.g. g CO2 / t·n

232

3.34

GRI 305-2

GRI 305-4

GHG emission management

See page

p 108-113

TR-MT-110a.2

Climate risk
and climate
footprint

Scope 3 GHG emissions

Metric tonnes CO2-eq.

638,578

TR-MT-110a.2

Energy mix
(1) Total energy consumed,
(2) percentage heavy fuel oil,
(3) percentage renewable

Gigajoules,
Percentage (%)

1) 41,067,762
2) 87 %
3) 0%

TR-MT-110a.3

Annual Efficiency Ratio (AER)

gCO2/TNL

2,42

Non-SASB: optional

Air quality

Air emissions of the
following pollutants:
(1) NOx (excluding N2O),
(2) SOx

Metric tons (t)

1) 83,899.3
2) 8,558

TR-MT-120a.1

Ship recycling

Responsible ship recycling

Hong Kong Convention
EU Ship Recycling Regulation

Sustainability report100

TOPIC

ACCOUNTING METRIC

UNIT

DATA 2020

REFERENCE STANDARD

Ecological
Impacts

Percentage of fleet
implementing ballast water
(1) exchange and
(2) treatment

Number and aggregate
volume of spills and
releases to the environment

Lost time incident rate (LTIR)

Percentage

Number, Cubic
meters (m3) or Metric
tonnes

Rate (lost time
incidents) / (1,000,000
hours worked).

Accidents,
Safety and
Labour Rights

Diversity
Diversity of workforce,

Percentage

1) Exchange:
53.6%
2) Treatment:
46.4%

0.6

Shore: 55% male,
45% female
Sea: 97.6 % male,
2.4% female
Supervisory Board
50% female

TR-MT-160a.2

TR-MT-160a.3

TR-MT-320a.1

GRI 405-1

Labour rights

See page

103

GRI 102-41

Port state control
Number of
(1) deficiencies and
(2) detentions received from
regional port state control
(PSC) organisation

Corruption risk
Number of calls at ports or
net revenue in countries
that have the 20 lowest
rankings in Transparency
International’s Corruption
Perception Index

Business Ethics

1) Deficiencies:
18

Number

2) Detentions: 0

TR-MT-540a.3

Number

R-MT-510a.1

Facilitation payments

Number

Fines

Figure reporting
currency

SDG 16

GRI 419-1

ESG
Governance

Policies and targets
Description of main policies
and targets:

See page

p 101 - 107

GRI Disclosure of management
approach

ACTIVITY METRIC

Number of shipboard employees

UNIT

Number

2,780

DATA 2020

REFERENCE STANDARD

Total distance travelled by vessels

Nautical miles

4,731,775

Operating days

Deadweight tonnage

Days

25,313

Thousand deadweight
tons

17,806,234

TR-MT-000.D

Number of vessels in total shipping fleet

Number of vessel port calls

Number

1,881

TR-MT-000.E

TR-MT-000.F

TR-MT-000.A

TR-MT-000.B

TR-MT-000.C

Annual report 2020 101

Our approach to
sustainability

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. The Company
is committed to fully capture and embrace environment, social
and governance related measurements.

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.

Euronav not only wants to preserve the ocean, but also the
environment and society we operate in. Sustainability at
Euronav focuses on meeting the needs of the present without
compromising the ability of future generations to meet their
needs.

Our concept of sustainability is composed of three pillars
(Environment, Social and Governance) embedded within a
system of economic sustainability. We frame our decisions
in terms of environmental, social, and human impact for the
short-term, medium-term and long-term by considering more
factors than simply the immediate profit and loss result.

Sustainability report102

UN Development Goals Euronav
In 2015, the United Nations
launched 17 Sustainable
Development Goals (SDGs) to end poverty, fight inequality and
injustice, and tackle climate change by 2030. Euronav aligns
itself with the purpose of a ‘shared blueprint for peace and
prosperity for people and the planet, now and into the future’.
To that end, the Company is proud to be scrutinised on our
engagement with the UN Sustainable Development Goals and
we believe we can have influence over the delivery of nine of
the UN SDGs as illustrated below.

The COVID-19 crisis created a dual challenge for Euronav. Onshore staff were forced
to work from home and seafarers were displaced and often had to work extended
contracts. The mental health of our staff has always been a priority and our commitment
to this was brought into sharp focus during the pandemic.

In recent years, Euronav has managed multiple projects under the umbrella ‘Euronav on
the move’ to encourage staff across all our locations to live healthier lifestyles.

ESG Alignment:
• Human Capital
• Social Responsibility

Euronav has always provided opportunities for gender diversity throughout the company.
This has been recognised by the Bloomberg Gender-Equality Index, which we have been
part of since its inception in 2018. The company-wide survey assesses in depth how far
gender representation reaches in terms of remuneration, senior roles and key responsibility
functions. Euronav is the only transport company in this index in the world. This commitment
to equality is also reflected in the boardroom where Euronav has had substantial female
representation since 2012, with 50% of Supervisory Board members since 2018.

ESG Alignment:
• Human Capital
• Social Responsibility

Euronav is a member of the Getting to Zero Coalition, a powerful alliance of more than
140 companies within the maritime, energy, infrastructure 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.

Within the coalition Euronav is actively participating in the Getting to Zero strategy group
and the leadership group of the fuels and technologies work stream.

ESG Alignment:
Environmental Responsibility

Annual report 2020 103

Euronav maintains high retention rates, 95% for shore and 97% sea staff, reflecting our position
as a stable and premium employer in the large crude tanker market. Euronav employs 220
shore staff and 3,500 seafarers with the offshore remuneration on average 510% higher than
the respective country’s per capita GDP.

For the vessels sailing under French, Belgian and Greek flag we use the Collective Bargain
Agreement, signed between the shipowners and seafarers unions under the laws of each
country or the ITF (International Transport Federation) terms and conditions for seafarers of
non-national, EU or pool members.

ESG Alignment:
• Human Capital
• Social Responsibility

Euronav has a disciplined fleet management approach of our fleet by trying to maintain
a low average fleet age, which is good for fuel consumption and therefore for emissions.
Once vessels are over 15 years old, Euronav consistently seeks to position them in other
segments. Euronav has been leading emissions disclosure in our sector since 2017.
Innovations are the bedrock of our fleet management, with a recent USD 11 million
investment across 27 vessels on advanced hull paints and devices for energy efficiency
improvement in order to meet its ambitious emissions targets for the next five years.

ESG Alignment:

• Corporate Governance
• Environmental custodian

Euronav has been successful in recent years in reducing its year-on-year CO2 emissions
(2018, 6% reduction), and implementation of the IMO SO2 regulations. In 2020 we
reduced our sulfur emissions by 85% with a move to compliant fuel. Having undertaken
substantial engagement to bring our climate disclosure beyond industry average
standards (see CDP), Euronav has agreed to annual reductions in emissions as part
of our commitment to the Poseidon Principles and as agreed with lenders as part of a
recent 713 million USD sustainability loan. In addition to this commitment Euronav is
looking to roll out further emissions targets.

ESG Alignment:
Environmental custodian

‘The ocean is our environment’ has been the strapline motto of Euronav since 2005.
As the largest crude tanker company in the world we take our responsibilities in this
critical area seriously through a range of actions. These vary from targeting zero oil
spills via our ITOPF membership, which is related to an organisation that provides oil
spill response advice, to reducing waste on board vessels and rigorously applying
partnership initiatives.

ESG Alignment:
Environmental custodian

Sustainability report
104

Euronav is a strong believer that ESG means nothing unless its core components engage
with one another. Strong discipline on social issues or environmental engagement must
be supported by robust governance. Euronav has consistently scored in the top quartile
of shipping companies and has backed this up with other initiatives on gender equality,
a fully independent supervisory board, and focus on best in class management both
operationally and ethically (e.g. our Code of conduct and Whistleblower policy, which
you can find in the Governance section).

ESG Alignment:
Corporate Governance

Shipping, and large crude tanker shipping specifically, is a global business. It therefore
requires substantial cooperation amongst all its participants. Euronav is proud to be
engaged in multiple associations such as HELMEPA, NAMEPA and a range of initiatives
that are designed to protect, promote and enhance the ocean environment for today
and tomorrow. Euronav is a member of the Getting to Zero Coalition; a powerful alliance
of more than 140 companies within the maritime, energy, infrastructure 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.

ESG Alignment:
Corporate Governance

Annual report 2020 Materials topics

105

Sustainability report106106

0
2
0
2
t
r
o
p
e
r

a
u
n
n
A

Stakeholder engagement

Customers

Investors
& shareholders

Seafarers /
empolyees

Society

• Bond Investors
• Institutional
investers

• Retail Investors
• Industry Analysts

• Earnings call
each quarter

• Investor

conferences

• Website & Press

Releases

• Direct Meetings
• Roadshows

• Cargo owners
• Pools
• Vessel Owners
• Charterers
• Traders
• Refiners
• NOC & IOC

• Charter parties
• Strategic alignment
• Data sharing
• Operational
feedback

• Direct Meetings
• Pooling

engagements

• Quality of service
• Costs
• Vessel Age
• Efficiencies
• Future Fuels

• Seafarers
• Onshore Employees
• Brokers

• Local Communities
• Charities
• Academia
• Media

• Targeted conferences
• Training and Induction

• Social initiatives
• Disclosure of

programmes

• Safety Committees
• Engagement with
senior personnel

• Performance feedback

Safety
Information
• Local media
interactions
• Realising local

support

• Support initiatives
• Charitable
Donation

• Pastoral care for
Local Employees

• Operational
performance

• Strategic objectives
• Governance
• ESG compliance
• Operational
Efficiency

• Seafarer movement
• Mental Health issues
• Safety
• Equal opportunities
• Ethical Conduct
• Working conditions

NGO /
thought leader

• NGOs
• Political bodies
• Regulatory Bodies

eg IMO

• Industry groups eg

ITOPF

• Direct Meetings
• Conferences
• Panel Discussions

• Compliance
• Future regulation
• Authority over

legislation

• Shape and effects of
future regulation

107

Active engagement with
financial institutions on
ESG

Euronav has been proactive in positioning for the future. During
the third quarter of 2020, Euronav successfully converted two
existing facilities (a USD 750 million term loan and a USD 340
million revolving credit facility), into a single USD 713 million
sustainable linked loan (which consists out of a 244 M USD
term loan and a 469 M USD revolving credit facility) with specific
targets for emissions reduction.

This is the first major financing of our fleet with specific
emission requirements. The loan includes terms with clear
targets to reduce our GHG emissions over its entire duration.
These targets start immediately, with compliance over the first
12 months being rewarded with a reduced interest coupon
of five basis points. This will be independently measured and
verified. The Company welcomes this ‘means tested’ approach
to our financing structure and anticipates future funding of the
company to be similarly subject to such frameworks.

IR award from
BVFA
Euronav’s engagement with our
stakeholders was recognised
in 2020, when we received the
award for ‘Best Market and
Competitive
Information’ by
the ABAF/BVFA, the Belgian
investment professional and
analyst board.

Amount 713 M $

a.USD 244 Mio Term Loan to finance the newbuildings (65%)
b.USD 469 Mio revolver to :

1 Refinance the USD 340 Mio (maturity Nov 2021 – current outstanding commitment USD 148.5 Mio)
2 And refinance 5 vessels related to the USD 750 Mio ( June 2022 – current commitment USD 190 Mio)

Sustainability report108

Environment

Approach to environment
Euronav fully embraces objectives to IMO 2030 and IMO 2050.
IMO is aiming to reduce the carbon intensity of shipping by
implementing further phases of the Energy Efficiency Design
Index (EEDI) for new vessels. This has focused on two key policy
objectives. Firstly ‘IMO 2030’ to reduce CO2 emissions per
transport work, as an average across international shipping,
by at least 40% by 2030. With the intent to pursuing efforts
towards 70% by 2050, compared to a 2008 baseline.

Secondly ‘IMO 2050’ with the goal to 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. Euronav is fully supportive of both
policy objectives as reflected in our wholehearted commitment
to various initiatives (Getting 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.

2020 has been exceptional with the impact of the COVID-19
pandemic, but global trade and ship numbers have seen a
steady increase over recent years. In parallel, there have been
economies of scale with larger, more efficient vessels. On a
per-unit basis, emissions of harmful substances, pollutants and
greenhouse gases from vessels have been reduced. This allows
shipping to assert its position as the most environmentally
friendly and most energy efficient transport mode. Even if
shipping will never replace all the other transport modes,
more shipping is part of the solution to the challenges of air
emissions and global warming which the world faces today.

Shipping - low relative emissions

AIR

ROAD

80 g/CO2

RAIL

35 g/CO2

SHIPPING

5 g/CO2

2,7 % of global CO2 emissions

Euronav’s dedication to the reduction of emissions
demonstrated by:

• Active Fleet Energy Management i.e. the development of
a plan and the implementation of measures to reduce
emissions and fuel consumption;

• The development of an effective policy on reduction of

harmful emissions to air;

• The development of an advanced performance management

system including online reporting;

• Not burning plastics on board the vessels but delivering

them ashore.

Greenhouse Gas Emissions

Shipping’s position on emissions
Shipping is THE most efficient means of transportation in terms
of emissions, as the graphic clearly highlights. Shipping is 7
times more emissions efficient than rail, and 16 times more
than road. As such, the move to decarbonisation starts with
shipping in an advantageous position. But the industry, and
crude tanker shipping in particular, should lead investment in
highlighting environmental friendly initiatives and in tangible
additional
improvements to reduce our GHG emissions
footprint as an industrial sector.

Crude tanker shipping is one of the largest classifications of
vessels globally in terms of fuel consumption and therefore
control of emissions has a key role to play. The large crude
tanker sector is responsible for around a tenth of the global CO2

425 g/CO2

Annual report 2020 109

ROAD MAP FOR ZERO CARBON EMISSIONS IN SHIPPING

x
e
d
n

t
u
p
t
u
o
2

O
C

140

120

100

2008 CO2 output

Lower ton-mile growth

Reduce speed & other
eﬃciency methods eq
paints, technology

2050 CO2 output target

2008

2014

2020

2026

2032

2038

2044

2050

Global ﬂeet mix fuel change
towards lower emission fuels
such as LNG, ammonia &
potentially hydrogen but these
will take time

Senior Oﬃcer role
critical to achieve
these objectives

Steps to 2050

Slower trade growth

Reduced speed

“Fleet mix change”

Source: Clarksons

emissions that shipping’s 2.7% contributes. Decarbonisation
of shipping is perfectly feasible with self help, reduced speed
and other initiatives, as is covered in our special report for the
annual report 2020 (see section ‘Special report’). However, new
fuels are required as the critical driver in ensuring shipping
is compliant with a decarbonised future, and in retaining its
position as the most efficient transportation form available.

Detailed emissions fleet

GHG Emissions monitoring and reduction
Euronav pays particular attention to the energy management
of the vessels, starting with the design and specification of the
newbuildings, 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 anti-fouling paint of the highest standards to reduce
friction with the water, resulting in lower fuel consumption.
Enhanced energy consumption and the monitoring of
equipment and systems provide the capability for operational
measures to be taken. In this regard, Euronav launched its
FAST (Fleet Automated Statistics and Tracking) project, which
will convert the vessels into smart and connected objects using
the 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 by all levels
of shore and sea staff, in order to achieve the most energy
efficient vessel operation possible.

Euronav has led the way with disclosure in the large tanker
market, providing full scope 1, 2 and 3 disclosure of our carbon
emissions and footprint since 2017. Euronav is the only large
quoted crude tanker company to do so.

Sustainability report

110

Euronav Total Carbon Emissions

Type of Emissions

2017 tCO2e1

2018 tCO2e

2019 tCO2e

2020 tCO2e

% Change 2020
vs 2019

Scope 1 (Direct)

3,280,230

2,944,387

3,129,547

3,082,765

(1)%

Scope 2 (Indirect
Energy)

Scope 3 (Indirect
Other)

400

424

248

232

635,830

583,547

625,565

638,578

(48)%

Total

3,916,460

3,528,045

3,755,360

3,721,576

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 “annualised” 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.

Key operational data

EEOI gCO2/TNM

AER gCO2/TNM

OEI gCO2e/T.KM

2018

4.6

2.37

3.07

2019

4.96

2.36

3.36

2020

4.91

2.42

3.34

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

Source: all calculations by Ecoact

Annual report 2020 111

Modernisation fleet, newbuilding strategy

Modern fleet
A modern shipping fleet is essential to manage both the
customers’ requirements and to comply with increasingly
stringent environmental, financial and safety regulations. The
lower the fleet age, the lower the consumption of fuel will be.
This gives the fleet a competitive advantage over its peers but it
is also crucial from an environmental perspective as it reduces
the amount of CO2 emissions per ton-mile that the fleet will
produce. Younger fleet age and more advanced technology
favours emission reductions in shipping.

Newbuild and specifications
Euronav NV has entered into an agreement to acquire four
resale VLCC newbuilding contracts.

The newbuildings will join our fleet in the first quarter of 2021.
The constructions were completed at the DSME shipyard in
South Korea for an aggregate purchase price of USD 280.5
million, or USD 93.5 million per ship. The vessels are fitted
with Exhaust Gas Scrubber technology and a Ballast Water
Treatment system.

The four acquisitions push the Company’s investment in
fleet modernisation to around USD 374 million. All Euronav’s
newbuildings already have IHM (Inventory of Hazardous
Materials) and most relevant class notations. All vessels of the
Euronav fleet had IHM approval by the end of 2020.

In February 2021 we repurchased two Suezmax resales with
the intention to potentially equip the vessels with ammonia as
propulsion fuel. Such ‘future proofing’ of our fleet will continue
to be a key focus of our decarbonisation strategy going forward.

Fuel
The key element that will allow shipping in general, and the
large crude tanker segment specifically, to comply with the
set decarbonisation goals is the next generation fuel that will
power vessels. From a commercial perspective, the capital
intensity of our sector (new build VLCC costing USD 100 million)
and uncertainty over a new fuel is preventing many ship owners
from contracting new vessels. This is beneficial for our business
model but is driven by the absence of a clear ‘category killer’ i.e.
a universally accepted fuel that will solve all the decarbonisation
requirements.

As demonstrated in the chart, Euronav believes it is unlikely
that one single fuel will emerge in the short-term and that
multiple fuel types will be developed dynamically over the next
3-5 years.

Euronav will continue to invest across this spectrum, both
directly and with third parties, to ensure the Company is best
positioned to deliver on decarbonisation.

LNG

Hydrogen

Ammonia

Methanol

Biofuels

Currently viable

2030? earliest

Available in 2025

Partially available

Available today

Exact CO2
emissions cut?
Infra?

Highest potential
but viable?

LT better solution
but $ costs

Scaleable?

Scale? Competing
with other industries

CH2OHNH3H2Sustainability report112

CDP Carbon Disclosure Project
Euronav has led the tanker sector in publishing carbon
emissions data since 2017. Gaining an accredited score from
CDP in 2020 was another milestone in our emissions disclosure
and climate change strategy journey. CDP is a non-profit
organisation which runs the global environmental disclosure
system. It covers over 9,600 companies globally accounting for
over 50% of global market cap on the worlds capital markets.
CDP has the world’s largest, most comprehensive set of
companies’ environmental data, and is utilised by investors and
purchasing organisations to make informed decisions, reward
high-performing companies, and to drive action.

Our 2020 CDP score
Euronav obtained a ‘B’ rating in our first submission to CDP.
This is graded ‘management’, indicating the Company is taking
coordinated action on climate issues.

LEADERSHIP
Implementing
current best
practices

MANAGEMENT

EURONAV

Taking action
on climate
issues

AWARENESS

Knowledge of
climate issue
impacts

DISCLOSURE

Transparent
about climate
issues

C-

D-

A-

B-

Annual report 2020 Our initial score on CDP compares very favourably against our
marine transport peers, and also on a wider level relative to
both European and Global corporates generally.

113

Drilling deeper into our CDP score, this shows where Euronav
has made real sustained progress in managing the risks from
climate change. More critically, it underlines the areas of
development needs that the Company will have to address
moving forward. The full submission is available: www.euronav.
com/media/66155/200817-euronav-cdp-climate-response.
pdf.

The framework we have constructed in emission reduction
initiatives, combined with the risk management processes we
operate, were recognised as leadership standard by CDP.

Similarly, our disclosure and strategic planning is rated very
highly. However, it is recognised that there is progress to be
made in Governance and setting attainable, yet challenging
emissions targets. This is something we look forward to
addressing in more detail during 2021. Euronav also has an
opportunity to develop a more fully sustainable value chain
management and energy mix. Attaining a ‘B' rating is an
important milestone for the Company, but no more than that.
The board and management recognise Euronav has more
progress to make on our sustainability voyage.

A-

Euronav

Activity Group Average

Emissions reductions initiatives

Risk management processes

Risk disclosure

Opportunity disclosure

Business Strategy & Financial
planning

Scope 3 emissions

Scope 1 & 2 emissions

Targets

Value chain management

Energy

Governance

C
C

Sustainability report114

The Annual Efficiency Ratio divides the annual carbon dioxide
emissions of a ship by the product of the distance sailed, and
the deadweight of the ship. The Poseidon Principles framework
requires shipping companies to reduce their AER YEAR ON YEAR
as the chart below illustrates. For the VLCCs the framework is
seeking AER to fall from 2.37 g CO2/ton-miles to 2.07 by 2025,
as the blue bars show. Euronav’s planned trajectory is ahead of
this schedule, represented by the green bars.

VLCC Trajectory Values to 2025

Poseidon Principles

Euronav

2,37

2,33

2,31

2,27

2,25

2,21

2,19

2,15

2,13

2,08

2,07

2,02

s
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2,50

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2,00

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1,80

2020

2021

2022

2023

2024

2025

TARGETS
Measurable & understandable

Whilst these are “guidelines”, they come with strong discipline
backed by one third of the global shipping finance portfolio.
Falling foul of such guidelines will have commercial and cost-
of-capital implications for Euronav. For more information, visit
www.poseidonprinciples.org.

Sea Cargo Charter
Euronav is pleased to have been a key member of the Sea Cargo
Charter drafting group as part of our wider efforts to actively
and immediately reduce our GHG emissions. The Sea Cargo
Charter initiative is a partnership between some of the world’s
largest energy and commodity trading companies and the
shipping sector. This global framework favours climate-aligned
maritime transport for the integration of climate considerations
into chartering decisions. The Sea Cargo Charter establishes a
common baseline to quantitatively assess and disclose whether
shipping activities are aligned with adopted climate goals and
are consistent with the policies and ambitions adopted by the
IMO. For more information https://www.seacargocharter.org

ITOPF
Euronav is an active Member of International Tanker Owner
Pollution Federation (ITOPF). Established in 1968, ITOPF is
maintained by the world’s shipowners and their insurers on a
non-profit 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

Overview initiatives and
collaborations

Global Maritime Forum
Euronav is a founding partner of the Global Maritime Forum, an
international non-profit organisation committed to shaping the
future of global seaborne trade to increase sustainable long-
term economic development and human well-being. For more
info visit https://www.globalmaritimeforum.org/

Getting to Zero Coalition
The Getting to Zero Coalition (GtZ) is a powerful alliance of more
than 140 companies within the maritime, energy, infrastructure
and finance sector, 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.

Poseidon Principles
The Poseidon Principles provide a framework for the integration
of climate considerations into investment decisions in order
to promote international shipping’s decarbonisation. Euronav
assisted with the drafting of the Poseidon Principles in 2019, as
one of only two shipping companies in the drafting committee,
and applies them to our funding structure.

The Poseidon Principles establish a common, global baseline to
quantitatively assess and disclose whether financial institutions’
investment portfolios are in line with adopted climate goals.
The Poseidon Principles are consistent with the policies and
ambitions of the International Maritime Organisation. The IMO
is 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 22 financial institutions are signatories to the
Poseidon Principles, representing a bank loan portfolio to
global shipping of approximately USD 165 billion, around 30%
of the global ship finance portfolio. The Poseidon Principles
apply a maximum level of a AER or Annual Efficiency Ratio every
year for a company's shipping fleet.

Annual report 2020

115

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 Captain Alex Staring is a member of
the Board of ITOPF. For more information https://www.itopf.org

CDP
The Carbon Disclosure Project (CDP) is a global non-profit
organisation that has run the world’s leading environmental
disclosure platform for over 20 years. In 2020, 9,600 companies
worldwide shared data on their environmental impact in relation
to climate change, forests, and water with the CDP. Euronav
has submitted its sustainability credentials to the CDP platform
for the first time in 2020 gaining a ‘B’ rating which is covered in
more detail in the ‘Greenhouse gas emissions’ section in this
report. For more information: https://www.cdp.net/en

Ocean Cleanup
Rather than sending a traditional ‘Season’s Greetings’ card,
Euronav sent an electronic card to all sea and shore staff
and associates. The funding otherwise allocated to cards and
postage was donated to the Ocean Cleanup. The Ocean
Cleanup’s mission is to develop advanced technologies to rid
the world’s oceans of plastic. Last year we made a substantial
financial aid to The Ocean Cleanup. We challenged our
employees to exercise in collaboration with AtlasGo, an app
that tracks all activities performed by our employees. For more
information visit https://theoceancleanup.com

HELMEPA
The Hellenic Marine Environment Protection Association is the
pioneering voluntary commitment of Greek seafarers and ship
owners to safeguard the seas from ship-generated pollution,
undertaken in Piraeus, on June 4, 1982. The association aims
to acquire an environmental consciousness under the motto
‘To Save the Seas’. Euronav is an active member and we
participated in the development of the training programs and
provide trainers for these programs. For more information visit:
https://www.helmepa.gr/en/

INTERTANKO
The International Association of Independent Tanker Owners is
a trade association. It has served as the voice for independent
tanker owners since 1970 on regional, national, and
international levels. The association actively works on a range
of technical, legal, commercial and operational issues that
have an influence on tanker owners and operators around the
world. For more information visit https://www.intertanko.com

Sustainability report116

Social and
human
capital

People approach

Employee engagement
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. Euronav has approximately 220
employees (including contractors and temporary assignments)
across shore-based offices in Antwerp, Athens, London, Nantes,
Geneva, Singapore and Hong Kong. This global geographic
span reflects a deep-rooted maritime history and culture built
up over generations. About 3,500 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, officers and
crew to manage all the vessels. Senior Officers 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.

Training and development
Euronav practices 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.

Euronav has built a comprehensive system of continuous
training programs and seminars both aboard and ashore. This
ensures a continued awareness among all personnel of their
day-to-day operational duties. The training needs are identified
during the appraisal process and the training plan is prepared
based on these needs. Training activities are carried out in a
training room or online through a computer-based program.

Talent attraction and retention
Euronav is always looking for new talent to join our company.
On our website we display all career opportunities within the
company. There is a separate page for crew applications. The
shore vacancies are displayed on the website and on our
LinkedIn page.

Crew management
Euronav Ship Management employs and offers career
opportunities to officers and crew of various nationalities from
Europe, Asia and America. Euronav also has a portion of its
fleet under third party managers which allows the Company to
accurately monitor sector best practice and cost optimisation.

A common crew software platform is used by all crewing
departments to propose job opportunities at any time to
Euronav seafarers, allowing them to develop and retain
competencies within the Euronav Group.

To ensure that all vessels are staffed with qualified and
competent crew, a detailed training matrix has been developed
and is evaluated on a quarterly basis. The training includes
external and in-house training above minimum statutory
requirements, as well as computer-based training, Conducted
training is being recorded and assessed, and training needs
are further evaluated during quarterly management review
meetings.

Additionally, sea staff are provided with the opportunity
for shore-based training such as attending office activities,
seminars and conferences and are kept in contact with the
Company through newsletters and regular communication.

Working from home
Euronav cares greatly about its employees and actively
supports their wellbeing. It strives to create 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.
Euronav has expanded its home working policy in response to
the extreme impact of COVID-19 restrictions.

Diversity
We celebrate the diversity in our workforce. Many of our
employees and officers have a wealth of long service and
experience at Euronav, while others are new entrants with fresh
perspectives. Fostering long-term commitment and stability,
combined with a conscious effort to introduce new talent to
the company, has enabled us to achieve excellent results in an
extremely competitive industry.

Euronav people bring a rich diversity of educational and
professional qualifications to their jobs. The company attracts
professionals with finance, business administration, legal and
humanities backgrounds, as well as those who have specialised
in nautical, engineering, tanker operations, crewing, marine

Annual report 2020 117

misconduct, Euronav strongly encourages them to report it
to Euronav through our regular channels of communication,
including the ‘On Board Complaint (or Grievance) Procedure’ for
seagoing personnel. If an individual does not feel comfortable
talking to any of these persons about such matters, he or she
is encouraged to use Euronav’s SpeakUp Hotline platform
that enables he or she to report a concern in complete
confidentiality. Euronav encourages individuals to identify
themselves when making a report to facilitate the investigation.
However, any person who does not want to be identified is
entitled to register a complaint confidentially and anonymously.
The Company will treat all complaints in a confidential manner.
The Company will not in any manner discriminate against any
individual who has made a complaint in good faith.

Index

CASE - Bloomberg Gender-
Equality Index
The Bloomberg Gender-Equality
(GEI) provides
transparency in gender-based practices and policies at publicly
listed companies, increasing the breadth of environmental,
social, governance (ESG) data available to investors. The
reference index measures gender equality across five pillars:
female leadership and talent pipeline, equal pay and gender
pay parity, inclusive culture, sexual harassment policies, and
pro-women brand. This index is updated every January and
Euronav has once again been included for 2021, as it has been
since the index’s inception in 2018.

and technical areas and shipping corporate services. Virtually
everyone speaks at least two languages fluently and half
the staff speak three or more languages. You can find more
information on the gender equality in our company in the
Corporate Governance Statement, section 13.

Transparency and ethical behaviour

Code of conduct
Euronav adopted a Code of Conduct in order to assist all
Euronav employees in enhancing and protecting the good
reputation of the Company, more particularly in its relationship
with customers, shareholders and other stakeholders, as well
as with 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.

Staff Handbook
The Staff Handbook sets out guidelines for ensuring high
standards of ethical practices that need 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
and protection of the worker against sickness, disease and
injury.

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.
Euronav’s ‘SpeakUp’ service is hosted by an independent third
party, People InTouch, to ensure a straightforward, confidential,
secure, and convenient way of reporting.

If an employee becomes aware of illegal or unethical

Sustainability report118

COVID-19
The wellbeing and health of our staff, seafarers, their families
and the broader community is Euronav’s priority. We applied
several precautionary measures across our offices and fleet in
order to protect our employees and seafarers in response to
COVID-19. We have restricted access to our offices around the
world and most of the staff are working from home. There is
also restricted access to our vessels when they call at terminals.

Euronav decided not to put any of its employees under
temporary or permanent unemployment benefits, as we
believe that every single employee at Euronav plays a critical
role in our operations in the short- and the long-term. As
this unprecedented and challenging year made it harder to
maintain the work-life balance, we have focused on the mental
health of our employees via experience surveys with our shore
staff.

Euronav has made tangible, practical efforts to support the
Belgian community during the pandemic. For example, we
donated a batch of 200,000 mouth masks (100,000 surgical
and 100,000 FFP 2) to the hospitals and senior care centres
in Belgium which are linked to the communities of Euronav
employees.

Crew change crisis – a global maritime
issue
The COVID-19 crisis brought many challenges in 2020, but the
Company’s main concern and challenge was the rotation of
all Euronav seafarers with expired contracts stranded at sea.
This is not a crude tanker company issue, but a global maritime
industry issue. It is the largest ever humanitarian and logistical
crisis facing the maritime sector, with the disruption affecting
the lives and livelihoods of nearly 40% of the world’s estimated
2 million crew; including those seafarers that are unemployed
and unable to join their vessels.

Euronav has supported its employees from the beginning by
trying to communicate consistently with its crew members. The
will of any seafarer to be repatriated and return to his or

her family and loved ones is a right that Euronav undeniably
respects and supports.

Key workers in other industries received special permission
to travel. This lead to lobbying on behalf of seafarers to be
afforded the same status and support during the pandemic.
Euronav lobbied different ports to either help lift restrictions, or
to have the port communicate when restrictions may be lifted.
Throughout the crew change crisis, our CEO Hugo De Stoop
was our leading voice. He actively supported the stranded
seafarers and looked for a solution together with everyone in
the company and local authorities.

Crew change crisis – proactive response
from Euronav
The regular performance of crew changes was affected by the
COVID-19 regulations around the world, with crew change
clearance dependent on complex multi-regional regulations
of many countries. These complexities grew with the lockdown
restrictions associated with combating COVID-19. This placed
additional pressures on our capability to repatriate crew and
make necessary crew changes. Through the tireless efforts of
our operational staff, professionalism of our crew, and lobbying
efforts, Euronav made sustained progress in managing our
displaced crew from August onwards as the chart shows.

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Annual report 2020

119

The crew change crisis peaked in July, leaving over 600 seafarers
stranded at sea after the completion of their employment
contracts. One example of our efforts to alleviate the situation
was the use of the French Island of La Réunion, east of
Madagascar in the Indian Ocean. Together with the French
Maritime Administration, Euronav declared La Reunion a hub
spot for crew reliefs, along with other French metropolitan
ports such as La Martinique. Euronav has performed 18
crew changes on La Réunion. Between June and September,
around 170 seafarers of many nationalities managed to join 15
different vessels from all flags, or were able to return home to
their loved ones.

Internal voice (Captain Michaël
Barbaix, Euronav, speaking
at Diodorus & Delos Naming
Ceremony, 16th December 2020)
“It takes a crisis to distinguish the true spirit of your
leaders. And if 2020 showed us anything, it is the
real commitment Euronav takes towards their crew
members. When we got stranded on our vessels
due to the COVID travel restrictions, Euronav
stepped up as a leading voice in the maritime
sector: deviating their vessels for the single
purpose of crew change, incurred extra costs to
get seafarers back home safely and Euronav stood
firm against charterers trying to sneak in anti-crew
change clauses in their contracts. Our CEO, Hugo
de Stoop, spoke out in the media, advocating for a
solution to the problem every shipping company
was facing.”

Crew change crisis – further initiatives
Euronav is working closely with many organisations and
countries to facilitate the movement of seafarers to and from
their vessels. In January 2021, the Company became a signatory
of the ‘Neptune Declaration Seafarer Wellbeing and Crew
Change’. The declaration is a global call to action to address the
ongoing crew change crisis caused by the COVID-19 pandemic.
It focuses on concrete actions that can facilitate crew changes
and keep vital global supply chains functioning.

Health and Safety

Health, Safety, Quality and Environmental
protection (HSQE) Management System
Euronav’s HSQE management system aims to define the context
for Safety, Environmental and Operational excellence. The core
value of this system is distilled in our general policy statement
wherein excellence is defined as "No harm to person, or the
ship and no damage to the environment or property, providing
quality services to our clients".

Sustainability report
security risk assessment and often imposed by the charterers
of our vessels. If and when we engage armed guards, we give
very specific guidelines to protect all human lives (seafarers and
pirates), whilst acting to prevent any attacks.

Safety on board - ‘Come Home Safely’
campaign
Early 2019 Euronav launched the ‘Come Home Safely’ safety
campaign. The campaign was designed to:

• Recognise and value safety performance (on individual,

team and organisational level)

• Care for each other and keep an eye on safety
• Be engaged and responsible
• Have visible leadership
• Build a mature safety culture (drivers to elevate safety

behaviour, WHO, HOW?)

To highlight the importance of safety, and in the framework of a
new Euronav ‘Safety on Board’ campaign, Euronav came up with
the idea to distribute posters on board the in-house managed
Euronav vessels using the tagline ‘Come Home Safely’.

As a token of appreciation for the seafarers’ individual
commitment to safety on board the Euronav vessels, they
were asked to play a leading role in the campaign. The plan
was to display duo portraits of seafarers with a family member
of choice, during their stay at home. For better recognition
purposes, the seafarer needed to wear a complete safety outfit
as provided on board. You can find some examples below.

120

The system has been consciously designed under the highest
standards, within the framework of ISM, MLC, ISO 9001
(Quality Management Systems), ISO 14001 (Environmental
Management Systems),
(Occupational Health
ISO 45001
& Safety Management Systems) and ISO 50001 (Energy
Management Systems).

Ship and shore management is seen as a single and undivided
organism endeavouring to achieve common goals and
continual improvement.

Our working environment is continuously monitored for proper
health conditions. Our health standards and guidelines pay
specific attention to important issues such as general living
conditions, crew well-being, physical exercise, storage of food
and nutrition practices.

Safety is paramount at Euronav
Approach
Euronav is committed to operating in accordance with the
highest standards of safety in the marine transportation industry
and employs competent and experienced crew to ensure that
its vessels are operated in a safe and environmentally sound
manner. By promoting an active safety culture among its
personnel, both ashore and aboard, Euronav is committed not
only to providing a quality service to their clients, but especially
to ensuring consistent protection of the environment and
working conditions. Focusing on safety also means making
sure the crew is qualified, regularly trained, informed of current
issues and looked after as far as their health and wellbeing is
concerned.

Yard selection in terms of HSQE assessment
Euronav is selecting reputable shipyards when performing the
vessels’ 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 for 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 Inventory of Hazardous Materials (IHM) as well as relevant
class notations are significant elements of the recycling policy
and are documents that follow the entire life of a vessel,
beginning with its construction, and are 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 vessels of Euronav Fleet will
have an approved IHM by the end of June 2021

Approach to armed guards and piracy
The safety and security of the Euronav sea and shore staff is a
primary concern for the Company. To that end, the Company’s
management team takes 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, which is a measure of last resort, is based on specific

Annual report 2020 121

Besides being photographed with their loved ones during a
professional photo shoot close to their home, the seafarers
received a print of the poster to share with their family and
of course the digital files of the photo shoot. The campaign
proved so successful we plan to do another one!

The Company aims at health, hygiene and safety excellence
which is accomplished through the several objectives that
can be found on https://www.euronav.com/hsq/health-safety/
health-hygiene-and-safety-policy/

Stay Safe Magazine
It’s already been a year since the first issue of our in-house
safety-oriented magazine ‘Stay Safe’, and the fourth issue is in
progress. Tailor made to our needs, ‘Stay Safe’ magazine is the
herald of safety within Euronav, aiming to inform, productively
challenge and stimulate a safety-conscious culture.

Health
The health of Euronav personnel both onboard and ashore is
a very important aspect of Euronav's Company Management
system. Our working environment is continuously monitored
for proper health conditions. Our health standards and
guidelines pay specific attention to important issues such as
general living conditions, crew well-being, physical exercise,
storage of food and nutrition practices. Medical advice and
assistance is available 24/7.

ISM Compliance
Euronav has developed a Health, Safety, Quality and
Environmental Maritime Management System. This integrates
health, safety, environment and quality management into one
seamless system that fully complies with the ISM Code for the
‘Safe Operation of Ships and Pollution Prevention’.

Ship management
Euronav Ship Management is involved in the operation and
management of vessels providing worldwide transportation
of cargoes by sea. As such, it recognises the inherent impacts
on people and the environment, which can result from its
activities. The Company will therefore conduct its operations,
both ashore and onboard the vessels under its management,
in a manner that protects health and promotes safety.

The Company holds health, hygiene and safety as first priority
in its operations, while its utmost concern is to always ensure
that all employees execute their work under safe and hygienic
conditions.

Euronav is furthermore committed to take all reasonable
precautions and measures, during the operation of managed
vessels, in order to ensure safety at sea, prevention of human
injury or loss of life and avoidance of damage to property.

Mental health
During COVID-19, Euronav has put more focus on the mental
health of its employees. The department heads have been actively
informed on what to do when noticing certain symptoms of
COVID fatigue. The Masters on the vessels had received guidance
for dealing with signs of crew members under mental stress and
were provided with the contact details of professional experts
cooperating with the Company for possible assistance.

Euronav on the move
In 2019 Euronav launched ‘Euronav on the move’. This is an
internal program created to fight sedentary behaviour. The aim is
to encourage employees to incorporate sports into their workday.
Employees are encouraged to participate in several sporting
events, such as local running competitions. In the past we also
collaborated with AtlasGo, which is an application that allows
employees to register and track their activities.

Alcohol and drug policy
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 and shore personnel, shall lead to instant dismissal and
will expose the person to legal proceedings.

Security

Cybersecurity and data protection
Euronav is fully aware of the importance of information security
and data protection. The increase in security threats required
the company to undertake appropriate measures to safeguard
the confidentiality, integrity, and availability of (personal) data
and resources, both on shore and onboard of its vessels.

Cybersecurity is a top priority within an ambitious and
innovative digitalisation project of Euronav: FAST or ‘Fleet
Automatic Statistics and Tracking’. This includes initiatives
such as a cybersecurity awareness campaign and a thorough
cybersecurity roadmap and policy that
implemented
throughout the Company. To ensure the protection of data
Euronav installed a GDPR Compliance Strategy.

Sustainability report122122

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Corporate
governance

Approach
The Code of Business Conduct and Ethics (the ‘Code’) has been
adopted by the Supervisory Board (the ‘Board’) of Euronav
NV (together with its subsidiaries, the ‘Company’) for all of
the Company’s employees, directors and officers (‘Relevant
Persons’).

The conduct of individuals in these guidelines relate to
the relationship with colleagues, customers, suppliers and
government agencies with equal importance. As a starting
point, Euronav should present itself as a professional and
responsible organisation. This Code sets out a set of basic
principles to guide Relevant Persons regarding the minimum
requirements expected of them.

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. Euronav has also become a member of the
Maritime Anti-Corruption Network (MACN).

In general, any third parties who intend to trade with Euronav
are subject to detailed scrutiny by the Internal Control
department. This also considers the appropriateness of the
business relationship 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 via https://www.
speakupfeedback.eu/web/euronav.

Third party risk policy
As mentioned before, any third parties who intend to trade with
Euronav are subject to detailed scrutiny by the Internal Control
Department.

Transparency and
accountability
Capital markets have existing structures and controls. These
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.

123

Webber Research Ranking
If shipping were a student at a school for corporate governance,
then its report card for the sector would be C minus, room for
improvement. Standards applied in other sectors in capital
markets are not always observed or applied in shipping as they
could, or in some cases should be. The US investment bank
Wells Fargo (and latterly taken on by the original author Michael
Webber under Webber Research) has organised a corporate
governance scorecard for quoted shipping companies since
2016. For further detail visit https://www.euronav.com/en/
sustainability/publications.

Third party specialist agencies measuring outputs on
governance, ethical standards and other non-financial
items - such as CDP (the Carbon Disclosure Project) - are
becoming increasingly important. The Poseidon Principles is a
transparent body that brings together industry participants and
practitioners directly, alongside the financiers of shipping in
developing a core code of standards 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.

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 in the organisation of the industry.

Assessment on non-financial
risk factors
Within corporate governance, risk assessment, specifically on
non-financial communication is part of our Risk Management
Framework. More information can be found under section 7
‘Internal control and risk management systems’ in the annual
report.

Sustainability Committee
Euronav strongly believes that climate change and ESG matters
are such important issues that we require a specialist and
focused committee to oversee our response to the dynamic
set of challenges it poses to all facets of our business. This
committee, comprising both Supervisory and Management
Board members, has already evolved considerably since it
was established. Information about the composition of the
Sustainability Committee can be found in our Corporate
Governance Statement section under 3.4.

The Sustainability Committee was established to assist the
Board in monitoring the performance and key risks that the
Company faces in relation to climate, environmental and
governance matters. The Sustainability Committee oversees
the processes and systems in relation to the Company’s
Sustainability policy, and other corporate requirements as
may be applicable. Additionally, the Sustainability Committee
monitors the effectiveness of the organisation to meet stated
goals and targets in relation to sustainability matters.

You can find out more information on the responsibilities of
the Sustainability Committee in our Corporate Governance
https://www.euronav.com/
Charter
media/66233/20201211_coporate-governance-charter.pdf or
the section 'Corporate governance' of the annual report).

our website:

Sustainability report124

Initiatives and
contributions to society

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.

Overview
Euronav wants to positively impact the communities where
we live and work. We do this by building relationships and
inspiring philanthropy and goodwill both inside and outside
the Company. We actively encourage our staff to engage in
community initiatives and support employee involvement, be
it volunteering, fundraising or donations through options such
as fund-matching or sponsoring specific events. A few of the
charities to which Euronav contributes financially, in line with its
policy, are described below.

The busy Port of Antwerp is vital to European and global trade,
handling approximately 17,000 vessels every 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 Sailors’ Society work with the Antwerp
port chaplain Marc Schippers. Marc visits vessels 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.

Ocean Cleanup
For many years, Euronav has contributed funds to The Ocean
Cleanup. The Ocean Cleanup’s mission is to develop advanced
technologies to rid the world’s oceans of plastic. It began in
2018 with the development of the very first clean-up system for
the Great Pacific Garbage Patch. The Ocean Cleanup estimates
they will remove 50% of the Great Pacific Garbage Patch within
5 years of a full-scale deployment of 50 clean-up systems. Its
aim is to help preserve our environment: the ocean.

Mitera - Centre for the Protection of the
Child of Attica
The centre hosts 102 children in total, ranging from infants to
children with six years of age. Roughly half the children who
reside at the centre are orphans; others were abandoned
by their biological parents. Some of the children cope with
physical or mental disabilities such as Down’s syndrome. Single
pregnant women also receive aid as the centre covers their
birth expenses.

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

The centre also offers social protection services to 40 children
hosted at ‘Penteli Infirmary’ through a foster families program
and social rehabilitation through adoption .

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 that raises 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
The Association of Care is a Panhellenic Association which
facilitates prevention, information and support for people
with cerebral palsy, mental retardation and Down’s syndrome.
in Piraeus, the organisation provides
Founded
community service to families fleeing while seeking help for
health problems. They adopt families, focusing on children with

in 2008

Annual report 2020 125

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
organisation 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, 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 organisation which strives to meet

the needs and protects the interests and rights of children
since 1949. The organisation’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 non-profit organisation
providing special care and protection to mothers and children.
The organisation operates as an orphanage, as well as a
daycare centre, for low-income families that need a safe place
for their children during working hours. The Ark also started
assisting low-income single mothers and provide a safe haven
for mothers who need protection form abusive partners.

Argo Foundation
ARGO is dedicated to assisting families of Greek seamen of
which the children battle with intellectual deprivation, autism
or infirmities. The organisation 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 severe
learning disabilities.

Sustainability report5

Glossary

128

Glossary

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.

AER - Abbreviation of ‘Annual Efficiency Ratio’. This is the ratio of
a ship’s carbon emissions per actual capacity distance (e.g. dwt
x nm sailed). The AER uses the parameters of fuel consumption,
distance travelled, and design deadweight tonnage. It reflects
an index based on the tonnage supply.

Backwardation - When the future or forward price of oil is
lower than the current or ‘spot’ price.

Ballast - Seawater taken into a vessel’s tanks to increase draft,
to change trim or to improve stability. Ballast can be taken in
segregated ballast tanks (SBT), located externally to the ship's cargo
tanks (double hull arrangement), and in fore and aft peak 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.

Bunkers – Bunkers includes all dutiable petroleum products
loaded aboard a vessel for consumption by that vessel.
International maritime bunkers describe the quantities of fuel
oil delivered to ships of all flags that are engaged in international
navigation. It is the fuel used to power these ships.

CBA - Collective Bargain Agreement is a written contract
negotiated through collective bargaining for employees by one
or more trade unions with the management of a company (or
with an employers' association) that regulates the terms and
conditions of employees at work. This includes regulating the
wages, benefits, and duties of the employees and the duties
and responsibilities of the employer or employers and often
includes rules for a dispute resolution process.

CDP - The Carbon Disclosure Project is a not-for-profit charity
that runs the global disclosure system for investors, companies,
cities, states and regions to manage their environmental
impacts. The world’s economy looks to CDP as the gold
standard of environmental reporting with the richest and most
comprehensive dataset on corporate and city action

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.

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

CII - The Carbon Intensity Indicator is a response to the
company's need to move towards a business model compatible
with the Paris Agreement, achieving net zero emissions by
2050. This indicator is used to monitor progress and apply the
most suitable and timely efficient levers.

- Baltic and

International Maritime Council
BIMCO
Organisation for shipowners, charterers, ship brokers and
agents. In total, around 60% of the world’s merchant fleet is a
BIMCO member, measured by tonnage (weight of the unloaded
ships)

BITR - Baltic Index Tanker Routes. The Baltic Exchange is
a source of independent, freight market data. Information
collected from a number of major ship brokers 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. The Exchange also publishes a
daily fixture list.

BPD - Barrels Per Day. This is a measure of oil output,
represented by the number of barrels of oil produced in a
single day.

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.

Commercial Management or Commercially
Managed - The management of the employment, or
chartering, of a vessel and associated functions, including
seeking and negotiating employment for vessels, billing and
collecting revenues, issuing voyage instructions, purchasing
fuel and appointing port agents.

Contango - 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.

COA - A Contract of Affreightment is 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. This allows
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.

Annual report 2020
129

DTA - A deferred tax asset is an item on the balance sheet
that results from overpayment or advance payment of taxes.

DTL - A deferred tax liability is a tax that is assessed or is due
for the current period but has not yet been paid -- meaning
that it will eventually come due. The deferral comes from the
difference in timing between when the tax is accrued and when
the tax is paid.

dwt - Deadweight Tonnage is 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, lubricants, 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. The revenue is 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 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.

Interest, Taxes,
EBITDA - Stands for Earnings Before
Depreciation, and Amortisation and is a metric used to evaluate
a company's operating performance. It can be seen as a proxy
for cash flow. In finance, the term is used to describe the
amount of cash (currency) that is generated or consumed in a
given time period

EEDI - Energy Efficiency Design Index. The EEDI for new ships is
the most important technical measure and aims at promoting
the use of more energy efficient (less polluting) equipment and
engines. The EEDI requires a minimum energy efficiency level
per capacity mile (e.g. tonne mile) for different ship type and
size segments. Since 1 January 2013 new ship design needs to
meet the reference level for their ship type.

EEOI - The Energy Efficiency Operational Index is the amount
of CO2 emitted by the ship per ton-mile of work. It is the ratio of
the CO2 emitted to the ton-mile (amount of cargo x nm sailed).
The total operational emissions to satisfy transport work
demanded is usually quantified over a period of time which
encompasses multiple voyages. It measures the ratio of a ship’s
carbon emissions per unit of transport work.

EEXI - Energy Efficiency Existing Ship
Index describes,
in principle, the CO2 emissions per cargo ton and mile. It
determines the standardised CO2 emissions related to installed
engine power, transport capacity and ship speed. The EEXI is a
design index, not an operational index. The EEXI is applied to
almost all oceangoing cargo and passenger vessels above 400
gross tonnage.

EIA - The US Energy Information Administration is the statistical
agency of the Department of Energy. It provides policy-
independent data, forecasts, and analyses to promote sound
policy making, efficient markets, and public understanding
regarding energy, and its interaction with the economy and the
environment.

FPSO - Stands for Floating Production, Storage and Offloading.
FPSOs 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,

Glossary130

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.

GHG - Green House Gas. Greenhouse gases are compound
gases that trap heat or longwave radiation in the atmosphere.
Their presence in the atmosphere makes the Earth's surface
warmer. The principal GHGs, also known as heat trapping
gases, are carbon dioxide, methane, nitrous oxide, and the
fluorinated gases.

GEI - The Bloomberg Gender-Equality Index tracks the
performance of public companies committed to disclosing their
efforts to support gender equality through policy development,
representation and transparency.

Green Passport - The Green Passport contains details of
all materials, especially which are harmful to human health,
used in the construction of a vessel. The green passport will
be delivered by the shipyard during the construction and it will
be later updated with all the changes made to the ship during
its lifetime.

HELMEPA - The Hellenic Marine Environment Protection
Association; the pioneering voluntary commitment of Greek
seafarers and ship owners to safeguard the seas from ship-
generated pollution, undertaken in Piraeus, on June 4, 1982.
Under the motto “To Save the Seas”, they have consistently
supported their initiative to date.

Hull - The watertight body of a ship or boat. The hull may
open at the top (such as a dinghy), or it may be fully or partially
covered with a deck.

IFRS - IFRS standards are International Financial Reporting
Standards that consist of a set of accounting rules that
determine how transactions and other accounting events are
required to be reported in financial statements.

IGO - An intergovernmental organisation or international
organisation
is an organisation composed primarily of
sovereign states (referred to as member states), or of other
intergovernmental organisations.

IoT - The Internet of Things describes the network of physical
objects—“things”—that are embedded with sensors, software,
and other technologies for the purpose of connecting and
exchanging data with other devices and systems over the
internet. These devices range from ordinary household objects
to sophisticated industrial tools.

Intertanko - The International Association of Independent
Tanker Owners is a trade association. It has served as the
voice for independent tanker owners since 1970 on regional,
national, and international levels. The association actively works
on a range of technical, legal, commercial, and operational
issues that have an influence on tanker owners and operators
around the world.

ISM Code - International Safety Management Code is a set
of IMO regulations that ship operators and ships must comply
with. The purpose of the ISM Code is to provide an international
standard for the safe management and operation of ships and
for pollution prevention.

ITF - The International Transport Workers’ Federation is a
democratic, affiliate-led federation recognised as the world’s
leading transport authority. The ITF has been helping seafarers
since 1896 and today represents the interests of seafarers
worldwide, of whom over 600,000 are members of ITF affiliated
unions. The ITF is working to improve conditions for seafarers
of all nationalities and to ensure adequate regulation of the
shipping industry to protect the interests and rights of the
workers. The ITF helps crews regardless of their nationality or
the flag of their ship.

IHM - The Inventory of Hazardous Materials is a list that
provides ship-specific information on the actual hazardous
materials present on board, their location and approximate
quantities

ITOPF - The International Tanker Owner Pollution Federation
is a not-for-profit organisation established on behalf of the
world's shipowners to promote an effective response to marine
spills of oil, chemicals and other hazardous substances

IMO - The International Maritime Organisation’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. It was established by means of a
Convention adopted under the auspices of the United Nations
in 1948. https://www.imo.org/en

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

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

Annual report 2020 131

LNG - Liquefied Natural Gas has been made over millions of
years of transformation of organic materials, such as plankton
and algae. Natural gas is 95% methane, which is actually the
cleanest fossil fuel. The combustion of natural gas primarily
emits water vapour and small amounts of carbon dioxide (CO2).
This property means that associated CO2 emissions are 30 to
50% lower than those produced by other combustible fuels.

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

MACN - The Maritime Anti-Corruption Network is a global
business network working towards its vision of a maritime
industry free of corruption that enables fair trade to the benefit
of society at large.

mbpd - Million Barrels Per Day

MLC - The Maritime Labour Convention, 2006 sets minimum
requirements for nearly every aspect of working and living
conditions for seafarers including recruitment and placement
practices, conditions of employment, hours of work and rest,
repatriation, annual leave, payment of wages, accommodation,
recreational facilities, food and catering, health protection,
occupational safety and health, medical care, onshore welfare
services and social protection.

Mt - Metric Ton (or Tonne) of fuel – quantity in litres depends
on fuel type

MOPU - A Mobile Offshore Production Unit is any type of
portable structure that can be reused when procuring oil and
gas from the seabed. These are typically used when the depth
of drilling is over 500m. If the water is any shallower, then fixed
platforms are constructed

NAMEPA - The North American Marine Environment
Protection Association is a marine industry-led organisation of
environmental stewards preserving the marine environment
by promoting sustainable marine industry best practices and
educating seafarers, students and the public about the need
and strategies for protecting global ocean, lake and river
resources.

NGO – a non-governmental organisation is a non-profit
group that functions independently of any government. NGOs,
sometimes called civil societies, are organised on community,
national and international levels to serve a social or political
goal such as humanitarian causes or the environment.

NOx - In atmospheric chemistry, NOx is a generic term for the
nitrogen oxides that are most relevant for air pollution, namely
nitric oxide (NO) and nitrogen dioxide (NO2). These gases
contribute to the formation of smog and acid rain, as well as
affecting tropospheric ozone.

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. OCIMF focuses exclusively on

preventing harm to people and the environment by promoting
best practice in the design, construction and operation of
tankers, barges and offshore vessels and their interfaces with
terminals

OECD - The Organisation for Economic Co-operation and
Development is an international organisation that works to
build better policies for better lives. The goal is to shape policies
that foster prosperity, equality, opportunity and well-being for
all.

OPEC - The Organisation of Petroleum Exporting Countries
is an organisation of 13 oil-producing countries. The mission
of the organisation is to "coordinate and unify the petroleum
policies of its member countries and ensure the stabilisation
of oil markets, in order to secure an efficient, economic and
regular supply of petroleum to consumers, a steady income to
producers, and a fair return on capital for those investing in the
petroleum industry.

OPEC+ - The Organisation of the Petroleum Exporting
Countries Plus is a loosely affiliated entity consisting of the 13
OPEC members and 10 of the world's major non-OPEC oil-
exporting nations.

P&I Insurance - Protection and indemnity 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.

Plimsoll line - A reference mark located on a ship's hull that
indicates the maximum depth to which the vessel may be safely
immersed when loaded with cargo. This depth varies with a
ship's dimensions, type of cargo, time of year, and the water
densities encountered in port and at sea.

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 vessel 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 vessels as described, and not the vessel 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.

Glossary132

SBT - Segregated ballast tanks are dedicated tanks constructed
for the sole purpose of carrying ballast water on oil tanker
ships. They are completely separated from the cargo, and fuel
tanks and only ballast pumps are used in the SBT.

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.

Scrubbers - Shortened term for Exhaust Gas Cleaning
Systems (EGCS), or SOx (sulfur dioxide) scrubbers. These are
used to remove harmful elements (mainly Sulfur oxides) from
exhaust gases from vessels by using wash water from the sea
to neutralise the exhaust product. There are two key categories
- open loop scrubbers which discharge wash water used into
the ocean and closed loop which retain the waste product until
it can be delivered to an appropriate location.

SEEMP - The Ship Energy Efficiency Management Plan is an
operational measure that establishes a mechanism to improve
the energy efficiency of a ship in a cost-effective manner. The
SEEMP also provides an approach for shipping companies to
manage ship and fleet efficiency performance over time using,
for example, the Energy Efficiency Operational Indicator (EEOI)
as a monitoring tool.

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.

SOx - The two main pollutants from the ship’s emission are
Nitrogen oxides (NOx) and Sulphur oxides (SOx). These gases
have adverse effects on the ozone layer in the troposphere
area of the earth’s atmosphere which results in the green
house effect and global warming.

Spar - A Single Point Mooring and Reservoir 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
if
incurred. The rate is usually quoted in terms of Worldscale.

liable for Demurrage,

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

Spot Price - Current market price for an asset or commodity

(Super) slow steaming - Reducing operating speeds in
order to save fuel. Operating laden speeds are reduced from
15 knots to about 13 knots and operating ballast speeds from
15 knots to about 10 to 8 knots.

Sustainability-linked Loan - Sustainability-linked Loans
or ESG Linked Loans are general corporate purpose loans
used to incentivise borrowers' commitment to sustainability
and to support environmentally and socially sustainable
economic activity and growth. Under this lending model,
borrowers pay higher interest rates when they fail to meet
certain environmental, social and governance-linked goals. By
the same token, they pay less when they exceed ESG targets.

SDG - The Sustainable Development Goals , also known as
the Global Goals, were adopted by all United Nations Member
States in 2015 as a universal call to action to end poverty,
protect the planet and ensure that all people enjoy peace and
prosperity by 2030.

T&Cs - Terms and Conditions

Technical Management - The management of the
operation of a vessel, including physically maintaining and
repairing 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.

TCE - Time Charter Equivalent rate is a standard shipping
industry performance measure used primarily to compare
period-to-period changes in a shipping company's performance
despite changes in the mix of charter types (i.e. spot charters,
time charters and bareboat charters) under which the vessels
may be employed between the periods.
A standard method to compute TCE is to divide voyage revenues
(net of expenses) by available days for the relevant time period.
Expenses primarily consist of port, canal and fuel costs.

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

Annual report 2020 133

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. To differentiate them from smaller ULCCs, these
ships are sometimes given the V-Plus size designation.

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.

WTI oil price - (US Oil) West Texas Intermediate, one of
three main benchmarks for oil pricing.

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.

- A calculation that multiplies
Ton-mile demand
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.

Tramp - As opposed to freight liners, tramp vessels 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.

Treasury shares - Treasury stock, also known as treasury
shares or reacquired stock refers to previously outstanding stock
that is bought back from stockholders by the issuing company.

ULCC - Ultra Large Crude Carriers are the largest shipping
vessels in the world with a size ranging between 320,000 to
500,000 dwt. Due to their mammoth size, they need custom
built terminals. As a result they serve a limited number of
ports with adequate facilities to accommodate them. They are
primarily used for very long distance crude oil transportation
from the Persian Gulf to Europe, Asia and North America. ULCC
are the largest shipping vessels being built in the world with
standard dimensions of 415 meters length, 63 meters width
and 35 meters draught.

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 - Ship Vetting is a risk assessment process carried out by
charterers and terminal operators in order to avoid making use
of deficient ships or barges when goods are being transported
by sea or by inland waterways.

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.

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