Antwerp, Belgium - April 8, 2022
Euronav NV (NYSE: EURN & Euronext: EURN) (“Euronav” or the “Company”) has noted the communication from CMB indicating that it does not support the announced combination of Euronav and Frontline, a transaction that has received a positive response from the market and from our other shareholders. Our Supervisory Board has carefully assessed all available options in the interest of all shareholders, not of one specific shareholder, and has unanimously approved the combination.
We have taken the decision to combine with Frontline because we believe it is the most value creating strategy available, through maximizing service levels and realizing significant synergies, in terms of business and sustainability. This combination would construct a leading global independent tanker operator, bringing together two complementary platforms in a highly competitive environment and creating a single best-in-class, highly competent and experienced leadership team.
Euronav welcomes all discussion related to the decarbonisation of the marine transportation industry and has been a leading player in this process. We have carefully established a decarbonisation strategy, of which the foundations have already been laid years ago. Euronav looks forward to updating all stakeholders on our sustainability strategy, including specific decarbonisation targets, on May 5, 2022. The combined business would provide a platform that would extend Euronav’s leading position in sustainable shipping and would allow the combined company to further advance Euronav’s industry leading sustainability practices.
Some of Euronav’s sustainability achievements:
• As a founding partner of the Poseidon Principles, which leads bank financing of the global shipping industry, we are on track to reduce our CO2 emissions by 40% by 2030.
• 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.
• In 2020, Euronav was a pioneer in the tanker market by entering into a USD 713 million sustainability loan, placing Euronav at the forefront of corporate sustainable financing efforts.
• 41% of our current funding is sustainability linked with further progression anticipated in the next 12 months.
• Euronav is the only listed tanker company with a committee focused on sustainability composed of Executive and Supervisory Board representation.
• We appointed a dedicated Sustainability Manager who joined the group in May 2021.
• Euronav has earned best-in-class sustainability ratings across major ESG rating agencies such as CDP, S&P, Sustainalytics, MSCI, Webber Research and Bloomberg.
On a practical level, the global economy will still require crude oil for many years to come as the global energy transition advances. The proposed combination with Frontline will be a profitable and sustainable custodian in this process.
The combination would create a global independent oil tanker operator with leading operational break-even levels for the combined fleet, improved overall utilization and cost synergies, unparalleled leadership and expertise in the shipping industry, and the ability to attract and retain future world-class talent. The enlarged fleet would enable the combined group to provide better service to customers on a global basis and maximize value creation throughout the tanker market cycle.
We are convinced that the plan we will present offers the best value, in the short and longer term, to our shareholders.
Euronav is an independent tanker company engaged in the ocean transportation and storage of crude oil. The Company is headquartered in Antwerp, Belgium, and has offices throughout Europe and Asia. Euronav is listed on Euronext Brussels and on the NYSE under the symbol EURN. Euronav employs its fleet both on the spot and period market. VLCCs on the spot market are traded in the Tankers International pool of which Euronav is one of the major partners. Euronav’s owned and operated fleet consists of 2 V-Plus vessels, 41 VLCCs (three to be delivered), 27 Suezmaxes (of which one is in a joint venture, two vessels that are time chartered in and three vessels to be delivered) and 2 FSO vessels (both owned in 50%-50% joint venture). Regulated information within the meaning of the Royal Decree of 14 November 2007.
Euronav NV press release