Alexander Saverys fires back at critics over Euronav strategy

The re-organisation of Euronav is now on a path to completion after a two-year saga, and Alexander Saverys, was the keynote speaker at the mid-day luncheon of the Capital Link International Shipping Forum in New York.

In his remarks, Saverys explained the history of the business, which evolved from being a shipbuilder in the nineteenth century, to the large Antwerp-based owner well known throughout the industry. The main focus of the luncheon speech was an effort to allay concerns about the prospects of the re-positioned and re-invented company. which will own 150+ vessels, and a producer of green fuels.

Following the conclusion of a bid, where CMB is tendering for all the outstanding shares of Euronav, in an effort to create a “future-proof” company. When the dust settles, the new entity, to be re-named CMB-Tech, an innovator in hydrogen and ammonia fueled vessels, will own tankers, bulk carriers, chemical tankers and numerous smaller crew transfer and service boats.

“The world of maritime Wall Street has been particularly critical of us,” Saverys said, noting that the previous management of Euronav, which worked towards the failed combination of Euronav and John Fredriksen’s Frontline did not share the same vision as Saverys. He hoped to “give our side of the story and clear some misconceptions”.

He explained: “The strategy of our group has been to diversify our cargo base, and invest in the energy transition of shipping.” After noting that the enterprise value (EV) of the new company will exceed $7.5 billion, he said, “We believe that our diversified shipping group, with a strong focus on decarbonisation, will create more value over the long run than a pure play tanker/ dry bulk owner.”

Saverys asserted that: “We believe that our customers need green ships due to a vast array of new regulations coming into place, and the pressure that they are feeling from their customers and stake-holders.”

“We see this as a huge opportunity for our industry and our company, and not a threat,” he said. In explaining the company’s transportation of cargo in fossil fueled tankers and bulk carriers, Saverys described the resultant cash flows as having the ability to feed investment in alternatively fueled vessels - ideally “hydrogen for small vessels and ammonia for larger ships”, with an eye on potential use of green methanol,.

After he complained that the community of shipping equity analysts has reacted negatively to the inchoate strategy soon to emerge, in contrast to the mega-tanker owner that would have resulted from a tie-up with Frontline, he said that “Bigger is not always better.” He also bashed the financial community, drawing laughter for his derision of, “technocratic Boards that know everything about Wall Street, but nothing about the Malacca Strait.”

We will find out soon enough; as the company of the future begins charting its course. The present offer, where CMB has tendered to buy shares of Euronav that it does not already own, could be settled as early as 9 April, one month out. If bidding is re-opened, and the price adjusted, settlement would be in early May.

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