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1. Company Snapshot

1.a. Company Description

Euronav NV, together with its subsidiaries, engages in the transportation and storage of crude oil worldwide.The company also offers floating, storage, and offloading (FSO) services.As of April 1, 2022, it owned and operated a fleet of 72 vessels, including 6 chartered-in vessels with an aggregate carrying capacity of approximately 18.5 million deadweight tons consisting of 41 very large crude carriers, 2 V-plus, 27 Suezmax vessels, and 2 FSO vessels.


The company was incorporated in 2003 and is headquartered in Antwerp, Belgium.

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1.b. Last Insights on EURN

Euronav NV's remarkable 57.0% performance over the past three months can be attributed to the company's strong Q1 2024 earnings, driven by a significant increase in revenue and a favorable market environment. The acquisition of CMB.TECH and the CEO's optimistic outlook on the company's future prospects have also contributed to the stock's impressive growth.

1.c. Company Highlights

2. CMB.Tech Q1 2025 Earnings: A Mixed Bag with Strategic Progress

CMB.Tech reported a mixed Q1 2025 performance, with a $40 million profit excluding capital gains, resulting in a $6 million net loss. The company highlighted significant strategic progress, including the proposed merger with Golden Ocean, which would create a combined fleet of 250 vessels and a $3 billion backlog. The merger is expected to enhance the company’s financial flexibility, with pro forma free cash flow estimates ranging from $250 million to $750 million, heavily dependent on tanker and bulker performance. As Ludovic Saverys noted, "The merger represents a transformative step in our growth strategy, positioning us for long-term success in a competitive market."

Publication Date: Jun -03

📋 Highlights
  • Merger with Golden Ocean: Creates a combined fleet of 250 vessels and a $3 billion contract backlog, with an estimated NAV per share of $15.
  • Net Loss and Liquidity: Reported a $6 million net loss, with liquidity at $245 million and a contract backlog nearing $3 billion.
  • Fleet Expansion: Added two long-term contracts and took delivery of five newbuilds, selling three VLCCs for a $100 million profit.
  • Tanker and Bulk Earnings: Tankers earned $40k/day in Q1 and $43k/day in Q2, while bulk carriers improved from $18k/day to $24k/day.
  • Backlog and CapEx: Contract backlog nearing $3 billion, with $1 billion added in Q1, and CapEx remaining at $2.2 billion.

Merger and Growth Strategy

The merger with Golden Ocean is a cornerstone of CMB.Tech’s growth strategy, expected to unlock significant synergies and scale. The company consolidated Golden Ocean’s balance sheet from March 31, 2023, and 19 days of P&L, with liquidity at $245 million and a contract backlog nearing $3 billion, adding $1 billion in Q1. The fleet now stands at 113 vessels, with 46 newbuilds expected by 2026. The company also added two long-term contracts with Fortescue and MOL, took delivery of five newbuilds, and sold three VLCCs for a $100 million profit.

Market Outlook and Operational Performance

Tanker earnings improved to $40,000/day in Q1 and $43,000/day in Q2, while bulk carriers saw a significant increase from $18,000 to $24,000/day. The company remains optimistic about tankers due to aging fleets and low order books, while the dry bulk sector is expected to see muted growth in 2025 but improving Capesize demand. Containers face headwinds from U.S. tariffs and high order books, while chemical tankers see cautious rates despite strong earnings. Offshore wind continues to show growth, with CTV and CSOV demand outpacing supply.

Strategic Initiatives and Innovation

Joris Daman emphasized the importance of MEPC '83 regulations, focusing on fuel intensity reductions and penalties for non-compliance. The company is investing in ammonia-powered vessels, with tipping points expected in 2032 and 2038 for parity and superiority over traditional fuels. The hydrogen and ammonia projects in Namibia are progressing, with a small-scale ammonia plant and terminal in Walvis Bay nearing completion.

Valuation and Financial Health

Overall, CMB.Tech’s Q1 2025 earnings reflect a company navigating a complex maritime landscape while making strategic investments for long-term growth. The merger with Golden Ocean and progress in sustainable energy initiatives position the company well for future success.

3. NewsRoom

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Is the Options Market Predicting a Spike in Euronav (EURN) Stock?

Jul -11

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2 ‘Strong Buy’ Dividend Stocks With up to 11% Dividend Yield

Jun -07

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Q1 2024 Frontline Plc Earnings Call

May -31

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Euronav NV (NYSE:EURN) Q1 2024 Earnings Call Transcript

May -09

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REMINDER - Leading LNG, LPG, Crude & Product Tanker Shipping Companies Participating at Capital Link’s 18th Annual International Shipping Forum Monday, March 11, 2024 in New York City

Mar -06

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REMINDER - Leading Dry Bulk & Container Shipping Companies Participating at Capital Link’s 18th Annual International Shipping Forum Monday, March 11, 2024 in New York City

Mar -06

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Leading LNG, LPG, Crude & Product Tanker Shipping Companies Participating at Capital Link’s 18th Annual International Shipping Forum

Feb -13

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Euronav NV (NYSE:EURN) Q4 2023 Earnings Call Transcript

Feb -03

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.96%)

6. Segments

Tankers

Expected Growth: 4.83%

Euronav NV's tanker segment growth of 4.83% is driven by increasing global oil demand, improved fleet utilization, and higher charter rates. Additionally, the company's strategic expansion into the US Gulf Coast and Middle East markets, as well as its focus on energy-efficient vessels, contribute to its growth momentum.

Floating, Storage and Offloading

Expected Growth: 7.47%

Euronav NV's 7.47% growth is driven by increasing demand for floating storage and offloading (FSO) units, particularly in the Middle East and Asia. Rising oil production and exports, coupled with a growing need for offshore oil storage, are key growth catalysts. Additionally, the company's strategic fleet expansion and modernization efforts have improved operational efficiency, contributing to the strong growth momentum.

Reconciling Items

Expected Growth: 4.0%

Euronav NV's 4.0% growth is driven by increasing global oil demand, rising tanker rates, and a strong balance sheet. The company's modern fleet and operational efficiency also contribute to its growth. Additionally, Euronav's strategic partnerships and cost-saving initiatives further support its expansion.

7. Detailed Products

VLCC (Very Large Crude Carriers)

Euronav NV operates a fleet of VLCCs, which are designed to transport large quantities of crude oil across the globe.

Suezmax

Euronav NV operates a fleet of Suezmax tankers, which are designed to transport crude oil through the Suez Canal.

Aframax

Euronav NV operates a fleet of Aframax tankers, which are designed to transport crude oil and petroleum products.

Ice-class vessels

Euronav NV operates a fleet of ice-class vessels, which are designed to operate in icy waters and transport crude oil and petroleum products.

Floating Storage and Offloading (FSO) units

Euronav NV operates FSO units, which are designed to store and offload crude oil and petroleum products.

8. Euronav NV's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Euronav NV is medium due to the availability of alternative transportation methods, such as pipelines and railways, which can substitute for tanker shipping.

Bargaining Power Of Customers

The bargaining power of customers for Euronav NV is low due to the fragmented nature of the customer base, which reduces their negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Euronav NV is medium due to the presence of a few large suppliers of tanker vessels and equipment, which can exert some pressure on prices.

Threat Of New Entrants

The threat of new entrants for Euronav NV is low due to the high barriers to entry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry for Euronav NV is high due to the competitive nature of the tanker shipping industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.31%
Debt Cost 3.95%
Equity Weight 71.69%
Equity Cost 3.19%
WACC 3.40%
Leverage 39.48%

11. Quality Control: Euronav NV passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Teekay Tankers

A-Score: 6.9/10

Value: 7.3

Growth: 8.2

Quality: 7.5

Yield: 7.0

Momentum: 6.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
International Seaways

A-Score: 6.7/10

Value: 7.2

Growth: 8.2

Quality: 7.4

Yield: 10.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
TORM

A-Score: 6.4/10

Value: 7.7

Growth: 6.9

Quality: 6.6

Yield: 10.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Scorpio Tankers

A-Score: 6.2/10

Value: 7.3

Growth: 8.3

Quality: 7.5

Yield: 5.6

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Vopak

A-Score: 6.0/10

Value: 5.7

Growth: 4.6

Quality: 6.3

Yield: 7.5

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Euronav

A-Score: 4.7/10

Value: 5.2

Growth: 6.9

Quality: 5.4

Yield: 5.0

Momentum: 4.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

15.2$

Current Price

15.2$

Potential

-0.00%

Expected Cash-Flows