Outstanding Third quarter results 2008 for Euronav

The executive committee of Euronav NV (EURONEXT BRUSSELS: EURN) today reported its financial results for the three months ended 30th September 2008.
The company had a net income of USD 158 million (third quarter 2007: USD -23.3 million)
or USD 3.05 (third quarter 2007: USD -0.44) per share, for the third quarter 2008. EBITDA
for the same period was USD 216.6 million (third quarter 2007: USD 43.8 million). The
average daily time charter equivalent rates (TCE) obtained by the company’s fleet in the
Tankers International pool was approximately USD 116,000 per day (third quarter 2007:
USD 36,500 per day). The time charter equivalent earnings of the Euronav Suezmax fleet
which is fixed on long term time charters, including profit shares when applicable, was USD
46,000 per day (third quarter 2007: USD 28,900 per day) for the third quarter 2008.
The result is affected by the revaluation at marked-to-market levels of non cash items
(unrealized) such as: hedge instruments on interest rates for a total of USD -8 million, rate
of exchange difference for a total of USD 1.8 million, FFA portfolio USD 4.8 million and USD
–11.5 million on the company’s short term investments portfolio.

The double-hull VLCC Bourgogne (1996-296,230 dwt) was delivered to its new owner in
July and a capital gain of 49.5 million was recorded in the third quarter.
VLCC rates in the third quarter have been exceptional and by far the highest ever seen for
a third quarter. The high rate environment that the tanker market enjoys since the start of
the year underlines a very tight balance between supply and demand for double hull quality
ships. It is already clear that the growth of the VLCC world fleet will be negative this year
thanks to a flurry of conversions of VLCC, mostly single hulls, into VLOC (dry bulk ships)
and FSO/FPSO. This will lead Euronav to its best yearly results ever.
Euronav will have approximately USD 590 million of capital expenditure over the next two
years (to the end of 2010) to support its ongoing fleet renewal program and the FSO
conversion. Euronav also has currently over USD 650 million of undrawn credit facilities.
The company has 8 vessels unfinanced and may seek to finance these depending on the
terms available in the market.
The tanker market for 2008 has been characterized by supply shortage rather than demand
growth. This trend is expected to continue into 2009 where significant growth in supply is
anticipated due to large tanker deliveries from shipyards but nevertheless an equally
significant number of single hull ships are expected to become commercially obsolete.
Furthermore Euronav’s fleet is young with an average age of 6 years. The fleet has a mix
employment of spot and time charter contracts. At the start of 2009, 18 out of 29 owned
vessels will be or continue to be on period charter.