Value Investor’s Edge Live #2: Euronav’s CEO On The Recent Saudi Disruption And IMO 2020

Hugo De Stoop, CEO of Euronav (EURN), and Brian Gallagher, Head of IR, join Value Investor's Edge Live to discuss the crude tanker shipping markets specifically following the major Saudi disruption and pending IMO 2020 regulations. We also discussed the potential for floating storage, Euronav's capital allocation priorities, the prospect of LNG dual-fuel vessels, and overall market thoughts regarding the increased focus on Atlantic-sourced cargoes. This interview and discussion is relevant for anyone with crude tanker exposure including other firms such as Diamond S (DSSI), Frontline (FRO), International Seaways (INSW), Navios Maritime Acquisition (NNA), Nordic American Tankers (NAT), Teekay Tankers (TNK), and Tsakos Energy Navigation (TNP). Topics covered1:30 - What are the effects of the attack on the Saudi oil fields?4:30 - What's the outlook for US exports?7:30 - Scrubbers and use of compliant fuel.16:30 - What's the plan for the second ULCC and has the been movement in the sulfur spread?21:00 - Have you hedged against oil price fluctuations? How does this impact P&L?24:00 - How will the Saudi disruption affect your Suezmax fleet?26:00 - Are Suezmaxes being used for storage?29:00 - Will storage be drawn down now that there's backwardation? 30:30 - Priorities with current cash balance.36:00 - Are you adding to the fleet and will you be looking into "dual fuel" technology?41:00 - Overall take on the market: Are you more bullish or bearish with Saudi disruption?