Euronav Minor model adjustments
We have updated our estimates ahead of the Q2 results (due before market open on 8 August), owing to minor changes in our modelling and inclusion of the recent bond tap issue. We are 6% above Bloomberg consensus for Q2 by adjusted net profit. We believe H2 will see an improving market for crude tankers and forecast VLCC rates for 2020 to average USD40.5k/day. Looking at both high and low consensus numbers shows a wide gap on implied rate expectations, from USD27k/day to USD70k/day, but all point upward from the current spot of USD21.3k/day. Euronav is currently trading at 0.8x P/NAV, and we reiterate our USD12.1 target price and BUY.Euronav is a provider of maritime shipping and offshore services engaged primarily in the transportation and storage of crude oil. As of Apr. 4, 2017, Co. owned and operated a modern fleet of 55 vessels (including four chartered-in vessels) with an aggregate carrying capacity of approximately 13.7 million deadweight tons, or dwt, consisting of 31 very large crude carriers, one ultra large crude carrier, 21 Suezmax vessels, and two floating, storage and offloading vessels. Co. has two operating segments: the operation of crude oil tankers on the international markets (tankers) and the floating production, storage and offloading operations.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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