Euronav NV — Annual Report 2020

Apr 15, 2021

Euronav NV - 2020 Annual Report

Shareholders diary

Financial calendar 2021

• Thursday 6 May 2021: Announcement of first quarter results 2021
• Thursday 20 May 2021: Annual General Meeting of Shareholders
• Thursday 05 August 2021: Announcement of second quarter results 2021
• Tuesday 10 August 2021: Half year report 2021 available on website
• Thursday 04 November 2021: Announcement of third quarter results 2021
• Thursday 03 February 2022: Announcement of fourth quarter results 2021

Representation by the persons responsible for the financial statements and for the management report

Mr Carl Steen, Chairman of the Supervisory Board, Mr Hugo De Stoop, CEO and Mrs Lieve Logghe, CFO, hereby certify that, to the best of their knowledge, (a) the consolidated financial statements as of and for the year ended 31 December 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and results of Euronav NV and the entities included in the consolidation. (b) the annual report includes a true and fair view of the evolution of the activities, results and situation of Euronav NV and the entities included in the consolidation, and contains a description of the main risks and uncertainties they may face.

Key figures

Consolidated statement of profit or loss 2012 - 2020 (in thousands of USD)

	2020	2019	2018	2017	2016	2015	2014	2013	2012
Revenues	1,230,750	932,377	600,024	513,368	684,265	846,507	473,985	304,622	410,701
EBITDAB	864,018	540,668	231,513	273,451	475,005	612,659	202,767	100,096	120,719
EBIT	544,268	202,966	(39,179)	43,579	247,241	402,453	41,814	(36,862)	(56,794)
Net profit	473,238	112,230	(110,070)	1,383	204,049	350,301	(45,797)	(89,683)	(118,596)

TCE C year average

	2020	2019	2018	2017	2016	2015	2014	2013	2012
VLCC	54,600	35,874	23,005	27,773	41,863	55,055	27,625	18,300	19,200
Suezmax	29,600	37,747	30,481	22,131	26,269	35,790	25,930	22,000	24,100
Spot Suezmax	39,100	24,119	15,784	18,002	27,498	41,686	23,382	16,600	16,300

In USD per share

	2020	2019	2018	2017	2016	2015	2014	2013	2012
Number of shares D	210,193,707	216,029,171	191,994,398	158,166,534	158,262,268	155,872,171	116,539,017	50,230,437	50,000,000
EBITDA	4.11	2.50	1.21	1.73	3.00	3.93	1.74	1.99	2.41
EBIT	2.59	0.94	(0.20)	0.28	1.56	2.58	0.36	(0.73)	(1.14)
Net profit	2.25	0.52	(0.57)	0.01	1.29	2.25	(0.39)	(1.79)	(2.37)

In EUR per share

	2020	2019	2018	2017	2016	2015	2014	2013	2012
Rate of exchange	1.2271	1.1234	1.1450	1.1993	1.0541	1.0887	1.2141	1.3791	1.3194
EBITDA	3.35	2.23	1.05	1.44	2.85	3.61	1.43	1.44	1.83
EBIT	2.11	0.84	(0.18)	0.23	1.48	2.37	0.30	(0.53)	(0.86)
Net profit	1.83	0.46	(0.50)	0.01	1.22	2.06	(0.32)	(1.29)	(1.80)

History of dividend per share

	2020	2019	2018	2017	2016	2015	2014	2013	2012
Dividend (USD per share)	1.40	0.35	0.12	0.12	0.77	1.69	0.00	0.00	0.00
Of which interim div. of	1.40	0.06	0.06	0.06	0.55	0.62	0.00	0.00	0.00

A The comparative figures for 2013 have been restated following the application of IFRS 10 & IFRS 11 on Joint Arrangements.
B EBITDA (a non-IFRS measure) represents operating earnings before interest expense, income taxes and depreciation expense attributable to us. EBITDA is presented to provide investors with meaningful additional information that management uses to monitor ongoing operating results and evaluate trends over comparative periods. We believe that EBITDA is useful to investors as the shipping industry is capital intensive which often brings significant cost of financing. EBITDA should not be considered a substitute for profit/(loss) attributable to us or cash flow from operating activities prepared in accordance with IFRS as adopted by the European Union or as a measure of profitability or liquidity. The definition of EBITDA used here may not be comparable to that used by other companies.
C Time Charter Equivalent.
D Excluding 18,346,732 shares held by the Company in 2020 (2019: 4,946,216 shares and 2018: 1,237,901 shares)
E The total gross dividend paid in relation to 2020 of USD 1.4 per share is the sum of the interim dividends paid in June 2020, August 2020, November 2020 and March 2021.
F Ratio is based on the actual exchange rate EUR/USD on the day of the dividend announcement if any.# Consolidated statement of financial position 2012 - 2020 (in thousands of USD)

	31.12.2020	31.12.2019	31.12.2018	31.12.2017	31.12.2016	31.12.2015	31.12.2014	31.12.2013	31.12.2012
ASSETS
Non-current assets	3,235,366	3,362,594	3,606,210	2,530,337	2,673,523	2,665,694	2,558,505	1,728,993	2,065,448
Current assets	451,873	802,249	521,141	280,636	373,388	375,052	537,855	191,768	297,431
TOTAL ASSETS	3,687,239	4,164,843	4,127,351	2,810,973	3,046,911	3,040,746	3,096,360	1,920,761	2,362,879
LIABILITIES
Equity	2,311,786	2,311,855	2,260,523	1,846,361	1,887,956	1,905,749	1,472,708	800,990	866,970
Non-current liabilities	1,171,859	1,536,938	1,579,706	805,872	969,860	955,490	1,328,257	874,979	1,186,139
Current liabilities	203,594	316,050	287,122	158,740	189,095	179,507	295,395	244,792	309,770
TOTAL LIABILITIES	3,687,239	4,164,843	4,127,351	2,810,973	3,046,911	3,040,746	3,096,360	1,920,761	2,362,879

A The comparative figures for 2013 have been restated following the application of IFRS 10 & IFRS 11 on Joint Arrangements.

Euronav’s shareholders structure

According to the information available to the Company at the time of preparing this annual report on 26 March 2021 and taking into account the latest transparency declarations or other officially filed information with supervising authorities, the shareholders’ structure is as shown in the table.

Share price evolution 2020 (in USD)

The Euronav share

Daily volume of traded shares 2020 (NYSE & EURONEXT)

Shareholder structure on 31 December 2020

Editor’s note: Shareholders’ structure as of 26 March 2021, date of closing for publishing:

Shareholder	Shares	Percentage
Euronav (treasury shares)	18,346,732	8.34%
M&G	11,279,552	5.13%
Other	190,398,429	86.53%
Total	220,024,713	100.00%

Shareholder	Shares	Percentage
Euronav (treasury shares)	18,346,732	8.34%
M&G	11,262,506	5.12%
Other	190,415,475	86.54%
Total	220,024,713	100.00%

Share price NYSE in USD

Share price Euronext Brussels in USD

1

Dear Shareholder,

Crude tanker markets have historically been known for their unpredictability. However, participants in the large crude tanker sector experienced a year of challenge and opportunity like no other in 2020. Towards the end of the first quarter, the tanker market benefited from the development of three key factors. Firstly, unilateral actions were taken by Saudi Arabia in simultaneously cutting their oil prices but also raising their crude oil exports. This prompted a large short-term increase in demand for tanker tonnage, primarily in the VLCC sector. Secondly, the restrictions taken by governments to curtail the COVID-19 virus, globally curbed economic activity and consequently crude consumption. This led to a steep and rapid disconnect between crude demand and supply alongside a wide contango. Thirdly, this pricing structure itself further incentivised the storage of crude oil for financial gain during April/May, thus increasing short-term the demand for tonnage to store this excess oil. The disruption to tanker markets from these factors combined to take between 7-9% of the global trading fleet for storage purposes (300 million barrels). These features combined to create a highly favourable tanker freight market from February until August reflected in strong earnings for Euronav. The OPEC plus nations agreed a 9.7 mbpd cut to production of global crude (out of 100 mbpd daily output) applicable from May. However, the impact of these cuts was not felt in tanker markets until the third quarter given the positive disruption from storage on fleet supply. The returning vessels from storage from August onwards combined with fewer available cargoes from the production cuts has led to a challenging freight market from August onwards.

During the first half of 2020, Euronav returned USD 237 million in value to its shareholders with 75% of this return via cash dividend. The increasing allocation of returns toward share repurchases reflects a strong belief that the value ascribed by capital markets to our equity value is below the intrinsic value of the Company’s shares. In this situation it is an attractive investment opportunity for our company to repurchase our own equity, and the board shall continue to adopt this approach if appropriate.

In November the Company announced a ten year extension of the contract to our joint venture FSO (floating storage and offloading) platform operating on the Al Shaheen field off Qatar, ensuring these two converted ULCCs are operational until 2032. This project illustrates our capability to diversify our activities beyond the traditional crude oil transportation sector.

Our commitment towards sustainability has been embedded in the company’s strategy since it was established 25 years ago. Euronav was awarded a B-score (compared to the average C rating given to other marine transport companies) for taking coordinated action on climate issues by the CDP (Carbon Disclosure Project) for the first time this year. The recognition from this well respected, independent environmental body was welcomed.

A diversified and dynamic set of funding sources to support our asset base is critical for our future development. In September, two existing loan facilities were merged into a single USD 713 million sustainability linked loan facility. Supported by a wide range of banks, the new facility has specific emissions targets integrated and covers a third of our funding requirements.

Mobility restrictions in many parts of the world, brought in to reduce COVID-19 outbreaks, impacted our shipping operations specifically in rotating our crew onboard our vessels. At the peak in August, Euronav had over 680 seafarers stranded onboard after their contracts expired. The company managed, in challenging circumstances, to reduce this to less than 50 within three months. During 2020, Euronav has constantly lobbied on multiple platforms to have seafarers recognised as “key workers” and shall continue to do so.

The Supervisory and Management Board of Euronav would like to take this opportunity to thank all seafarers and our operational staff for their dedicated service, in difficult circumstances, over the past 12 months.

Strategically, Euronav has throughout its history operated a strong capital structure in order to navigate financial cycles. A robust balance sheet allows the company the flexibility to manage our operations through challenging periods during a cycle but also remain opportunistic toward expansion. The board looks forward to further growing our platform to the benefit of all stakeholders.

Looking forward, short-term headwinds will at some point, we believe, give way to the more supportive fundamentals of a 20-year low orderbook, mature global fleet, incoming environmental regulations and the prospect of a return to more normalised levels of crude consumption.

Yours Sincerely

Carl E. Steen

Chairman

1

Annual report 2020 

2

Quick facts

Around 3,500 seafarers of many different nationalities work aboard Euronav vessels through the year. Their nationalities are marked by a dot on the map below. In addition, Euronav has approximately 220 employees (including contractors and temporary assignments) throughout its shore-based offices in Antwerp, Athens, London, Nantes, Singapore, Geneva, and Hong Kong. This geographical span reflects a deep-rooted maritime history and culture built up over generations.

different nationalities seafarers 3,500 of many

Highlights

*Proportionate EBITDA vessels $ 898,898 71 for the year 2020

Vessel Type	Number	Million Barrels	Average Age
suezmax	26	2	10.23 years
VLCC	41	2	7.36 years
Vplus	2	3	17.5 years
FSO	2	2.8	18 years (on 31 december 2020)

3

Quick facts

Annual report 2020 

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Highlights 2020

• 9 January 2020: Euronav published updated guidance on its return to shareholders policy to be applied to the 2019 results and the quarterly results as from 2020 onwards.
• 22 January 2020: For the third consecutive time, Euronav was included in the Bloomberg Gender-Equality Index (GEI).
• 27 January 2020: For the first time, all Euronav’s managed vessels are informed of the safety measures taken regarding the upcoming COVID-19 virus.
• 21 February 2020: The Suezmax M/T Finesse (2003 – 149,994 dwt) was sold for USD 21.8 million and delivered to her new owners.
• 26 February 2020: Euronav entered into an agreement for the acquisition through resale of three VLCC newbuilding contracts.
• 13 March 2020: Euronav shore staff started working from home to counter the rapidly spreading COVID-19 virus.
• 26 March 2020: Euronav entered into an agreement for the acquisition through resale of one more VLCC newbuilding contract.
• 9 April 2020: The Suezmax Cap Diamant (2001 - 160,044 dwt) was sold for USD 20.8 million and delivered to her new owners.
• 5 June 2020: The VLCC TI Hellas (2005 - 319,254 dwt) was sold for USD 38.1 million and delivered to her new owners.
• 25 June 2020: In an exceptional campaign, Euronav honoured ship’s crews on the ‘Day of the Seafarer’ and demanded the status of ‘key workers’. This would enable crew changes for the thousands of confined seafarers worldwide due to COVID-19 related restrictions.
• 30 June 2020: Euronav started a series of several share buybacks which continued throughout the rest of the year.
• 30 September 2020: The Suezmax Bastia (2005 – 159,155 dwt) was sold for USD 20.5 million and delivered to her new owners.

Dividend $m	Share buy back $m

• 15 October 2020: Euronav received the award for ‘Best Market & Competitive Information 2020’ from the Belgian Association of Financial Analysts (ABAF-BVFA).
• 4 November 2020: Euronav announced that the joint venture with International Seaways had signed an extension for ten years for the FSO Asia and the FSO Africa, in direct continuation of their current contractual service.
• 10 December 2020: Euronav obtained a ‘B’-score from the Carbon Disclosure Project (CDP) for our actions and leadership shown against climate change.

5

Dividend $m

Share buy back $m# Euronav Annual Report 2020

Capital Allocation at Euronav

We believe that our approach to target a net return of 80% of income to shareholders is prudent within the context of a strong balance sheet. Focusing on retaining a liquidity buffer to manage the company through at least two years of sustained challenging freight rates gives us the flexibility to manage the cycle and retain sufficient capital for fleet renewal. This approach has been the backbone of our capital allocation approach since 2010. (please read the full dividend and return to shareholders policy on our website)

During 2020 and for the first time in our history as a listed company, Euronav has had the flexibility to return value to shareholders on a quarterly instead of semi-annual basis. For Q1 the company focused on returning 100% in cash dividends, but for Q2 and Q3 we decided to allocate the capital that we wanted to return to our shareholders in the form of 50% share repurchases and 50% cash dividends. In total USD 473 million was returned via these two methods, which is the equivalent of USD 2.22 per share.

Source: Euronav Annual report 2020

Special Report: A Sustainable Pathway to Decarbonisation

Part A: Shipping - In a good place relative to other transportation methods

Part B: What is shipping’s emission issue and large crude tankers specifically?

Part C: How can and will shipping decarbonise outside of a new fuel?

A feasible, sustainable pathway to decarbonise large crude tanker shipping – A Conclusion

A sustainable pathway to decarbonisation

A feasible, sustainable pathway to decarbonise large crude tanker shipping

Introduction

Maritime transport emits 940 million tonnes of CO2 annually, accounting for circa 2.7% of the global CO2, an output of around 7% of SOx and 12.5% of NOx emissions (source: European Commission - ‘Reducing emissions from the shipping sector’). Large crude tanker shipping transports one fossil fuel only, crude oil, bringing more pressure into a capital-intensive space where financing is moving ever greener. The aim of this special paper for 2020 is to assess where shipping’s sustainability process is, the challenges it faces and how the large crude tanker sector and Euronav can deliver a roadmap to decarbonisation.

Part A: Shipping - In a good place relative to other transportation methods

Shipping finds itself in an odd juxtaposition between a perceived reluctance to take affirmative action on climate change and the actual planned reduction in GHG emissions. This reputation has been driven by the sector’s absence from the Paris Agreement on climate change, by the fact that only 21 out of 52 quoted shipping companies in the shipping corporate governance score card provide any disclosure on carbon emissions (source: Webber research) and the often-quoted fact that shipping as an industry emits the same amount of carbon as Germany in national terms.

However, a truer picture of the environmental attributes of shipping emerges when it is compared against the other major transportation methods. Figure 1 shows this.

Figure 1 - Shipping compared to other transportation methods

Transportation Method	CO2 emissions (gCO2/ton-km)	Efficiency relative to Shipping
Shipping	3 - 8	1
Rail	17 - 24	7x less efficient
Road	48 - 64	16x less efficient
Air	255 - 300	85x less efficient

Source: IMO GHG study 2009.

Notes:
1) Energy-efficient transport is much dependent on the load factor, vehicle efficiency and cargo type; heavier cargo and larger vehicles will improve the cargo/vehicle weight ratio, resulting in better CO2ton-km values;
2) Air = Boeing 747, Road = Truck > 40 ton, Rail = 3-4 hp / short-ton, Shipping = Average of very large container vessel (3 gCO2ton-km), oil tanker (6), bulk carrier (8);
3) Estimations assuming current energy mix

Shipping is seven times more efficient than rail, sixteen times more than road transportation and a massive eighty-five times more efficient than air transport. For a global industry to emit just 2.7% of the world’s carbon emissions, this is not only a very efficient process but the least impactful on the environment, particularly when taking into account the quantities and services it transports. For an economic region such as the European Union, shipping accounts for 80% of total exports and imports by volume, and some 50% by value. Shipping is the key transportation sector reflected in the International Chamber of Shipping’s website (source: https://www.ics-shipping.org/shipping-fact/shipping-and-world-trade-driving-prosperity/).

Figure 2 – Shipping & Tanker Shipping been developing track record in emissions and environmental improvement

Source: Euronav

Figure 2 shows that shipping has already gained credibility in its efforts to reduce emissions. The tanker sector specifically shows a track record on pollution and safety which has improved steadily over decades. The regulatory introduction of the global cap on fuel sulfur content, the so-called ‘IMO 2020’, was dominated with discussion over fuel spread prices and the merits of scrubbers, or harm that they can cause. What was lost in this noise was the fact that shipping was taking affirmative action and reducing its sulfur emissions by 85% in one fell swoop. Compliance with these regulations has been very high and the new laws have been deemed a universal success. The world may have not noticed because the sector suffers from being too fragmented into separate segments (dry bulk, tankers, containers, etc.) and so lacks a single voice. What counts are the results. Since 1 January 2020, our industry realised an 85% cut of sulfur oxide being emitted into the air. The IMO greenhouse gas reduction targets are the only example of a transportation sector committing to measurable reduction targets.

Figure 3 – No seat at the table – Shipping’s value to world economy is $14 trillion but all quoted shipping companies make less than $100 billion

Source: Bloomberg 1.1.21, International Chamber of Shipping

1.1.2 Shipping & Tanker Shipping

Since 2019, the total value of the annual world shipping trade had reached more than 14 trillion US Dollars. Shipping’s capacity to transfer goods and materials from where they are produced to where they are used or consumed underpins modern life (source: Bloomberg 1.1.21, International Chamber of Shipping).

However, the relative lack of visibility of companies listed on global stock markets means that to most, shipping is invisible. This lack of transparency may have suited shipping’s needs in the past, but the future requires a different approach, particularly with regard to decarbonisation. Shipping requires a key set of companies, open to the highest levels of scrutiny and prepared to lead this drive, preferably in the quoted space. Euronav intends to be part of this group.

The problem of divestment is at the heart of the challenge crude tanker companies face in driving sustainability. Euronav strongly believes cooperation will achieve better and sustainable goals as a global solution. Too often it is easier for investors to mandate tanker shipping out of their investment benchmark or simply divest. It is better to have a seat at the table to influence the direction and guide the development of crude tanker shipping over the next critical 3-5 years than to ignore it. If ignored, the critical industry of tanker shipping will become more privately operated and thus less influenced by public pressure.

It is an inconvenient truth that crude is and will remain part of the energy transition. Investors often ask Euronav for a view on peak oil demand and the impact on our business. Given that our assets have a finite life (based on our application) of 20 years, this subject is something we embrace rather than shun as crude consumption will still be an important, albeit shrinking, part of the energy mix in decades to come. There are three factors underpinning this view.

The first of these is scale. All of the major energy agencies recognise the need for transition but they also all see crude as remaining a key part of the overall energy mix. Every forecast predicts that overall energy demand will grow annually to at least 2040. The size of the energy pie will grow as energy sources do not replace old ones, they supplement them. So while the share of renewables may well grow, oil and gas will continue to participate in the global energy mix. As the IEA scenario shows below, oil as a percentage of the global energy mix to 2040 will reduce, but only modestly.

Figure 4 – IEA anticipated changes in global energy mix to 2040

Source: IEA 2020 World Energy Outlook, Stated Policies Scenario

Energy Source	2020 Share (%)	2040 Projected Share (%)
Oil	34.5	30.7
Gas	24.1	25.2
Coal	15.4	11.6
Renewables	13.4	25.7
Nuclear	4.2	4.9
Other	8.4	1.9

The second factor is necessity. Transition is defined as ‘the process or a period of change from one state or condition to another’. It makes sense for this process to be handled as smoothly as possible and the crude transportation sector can make real changes to its emissions profile that will make the transition easier.

Thirdly, there is the economic reality. Crude oil will still retain an important presence in the energy spectrum. The requirement for energy will continue to grow over the next 10-20 years but renewable and alternative sources of energy will not have the scale or likely to be cost effective in simply replacing oil within the spectrum AND meeting the worlds increased demand for energy. The production of crude oil cannot simply be wished away. The production of crude itself should be recognised as having a key role in the wider energy transition in making it not only feasible but at an affordable overall cost. The International Energy Agency’s Sustainable Development Scenario (SDS) most aggressive decarbonisation forecast predicts 70 million barrels per day of oil being consumed in 2040. It is important to remember how integral oil is to everyone’s everyday life.# Special report 11

One barrel of crude oil creates 19.4 gallons of gasoline and other products used for transport, energy and heating. The rest (over half) is used to make 6,000 other products we use in everyday life such as ink, tires, sweaters, vitamin capsules, toothpaste, deodorant, clothes, dishes, aspirin, and electric blankets (source: www.ranken-energy.com/index.php/products-made-from-petroleum).

2040 2030 2019

The developing world must have a voice and role in the energy transition. However, it should also have a pathway to improved and sustained economic improvement and development, a trend well established as Figure 5 illustrates.

Figure 5 – History of economic development and population growth suggest crude oil will continue to have a central role in energy transition

Source: World Bank, IEA

If the transportation of crude can be done in a more sustainable way, reducing its emissions footprint in the immediate and medium term, then this will simultaneously provide economic development to the developing world. It will also provide a transition pathway for other technologies to help replace crude over the longer term.

IEA oil consumption
Global population
Annual report 2020  12

Business as usual emissions
Emissions pathway in line with IMO GHG strategy

change than a whole nation. Can shipping do it however? So what does tanker shipping need to do from a regulatory perspective? The simple answer is: a lot. As Figure 7 makes clear, a wide emissions gap will open up between the pathway envisaged and set by the IMO and ‘business as usual’ emissions. This is an ambitious trajectory for shipping to deliver on. That is the difficult news.

Figure 7 – The decarbonisation route map for global shipping

Part B: What is shipping’s emission issue and large crude tankers specifically ?

As Figure 6 clearly shows, crude tankers make up around 5% of the world’s shipping fleet in terms of ship numbers, but represent 10% of the CO2 emissions produced by the total global shipping fleet. This makes sense as oil tankers are amongst the largest vessels in that global fleet, as the chart illustrates.

Figure 6 – Largest 30% vessels account for 75% of total shipping CO2 – tankers represent 10%

Source: Worldometers

This encapsulates the opportunity for crude tanker shipping in the emissions conundrum. Shipping produces 2.7% of global CO2 emissions and crude tankers account for 10% of this, or 0.27% of the total of global shipping (Source: European Commission - 'reducing emissions from the shipping sector). Put another way, this is equivalent to the CO2 emissions produced by Belgium (population 11 million). The crude tanker sector is on a trajectory to reduce the emissions’ intensity by 40% by 2030, with an absolute reduction target of 50% by 2050 (70% intensity target at this date). Belgium as a nation state targets to reduce emissions by 35% by 2030, but the EU believes current policies would only reduce emissions by 13%. (https://ec.europa.eu/energy/sites/ener/files/documents/be_swd_en.pdf)

Therefore, shipping has undertaken clear and ambitious commitments as nation states have, but it has a perception or marketing problem. It is more feasible for an industry to enact

Source: IMO, DNVGL, Euronav

The good news is that this is a feasible and real measurable change which can be monitored and regulated between now and 2030. Part of this increase in regulatory teeth for shipping will come from January 2023 for all ocean going vessels, with the expected ratification of the EEXI (Energy Efficiency Existing Ship Index) by the MEPC meeting in June 2021 at the IMO, the enhanced SEEMP (Ship Energy Efficiency Management Plan) and CII (Carbon Intensity Indicator) rating. In a nutshell, vessels will be required to operate within set emissions performance parameters both in relation to their design characteristics and to their actual annual emissions records. In this context the vessels will be categorised into 5 segments (A,B,C,D,E), reflecting their annual emissions performance. A vessel will need to submit verified corrective plans to the regulator and may be withheld from the trading fleet if it is in the bottom two categories (D or E). These regulations are bringing a simple message: cut emissions NOW and EVERY year going forward and not just with a future target. For the large crude tanker sector this focuses attention on the emissions opportunity that the sector has; namely it’s own age structure.

Bulker > 10,000 DWT
Liquid gas tankers
Cruise > 2,000 GT
Oil tanker > 5,000 DWT
Bulker > 10,000 DWT
General cargo ships > 5,000 DWT
Chemical tankers > 5,000 DWT
Remaining smaller fleet
Special report 13

From an emissions perspective, the large crude tanker fleet is arguably the wrong size and shape for the underlying market that it serves today and will have to serve tomorrow.

Figure 8 – VLCC fleet age structure has a quarter of its members aged over 15 years already

VLCC Fleet - Average Age
Suezmax Fleet - Average Age

Source: Clarksons
Annual report 2020  14

Source: Tankers International

On older tonnage, consumption is high, putting it at an economic disadvantage (see figure 10). On top of that, the production of emissions comes from the consumption of fuel and large crude tankers are large scale consumers of fuel. For a VLCC the equivalent to the ship’s dimensions and the sum of cargo and steel weight can be compared to 3.5 football pitches in length and 350,000 tonnes of displaced sea water.

As figure 9 shows, the composition of the global VLCC and Suezmax tanker fleet is split between ‘eco-vessels’ (built since 2013), mid-aged tankers (7-15 years) and those over 15 years of age. It is these so called ‘old ladies’ that are under increasing pressure from three sources:
(i) Regulatory: higher frequency of special survey (which moves to every 30 instead of 60 months post-15 years);
(ii) Economics: uncompetitive older tonnage both in terms of eligibility (see above) and consumption (see Figure 12); and
(iii) Environmental: focus on emissions by both the regulator and the ship financing industry.

VLCC ballast
VLCC laden

Figure 9 – Further breakdown of the global VLCC and Suezmax fleet

	VLCC	Suezmax
Eco vessels:	315	179
Mid-Age Vessels (7-15 years):	311	222
Over 15 years of age:	203	142

Tons of fuel consumed per day

Special report 15

Figure 10 – Illustration of different TCEs different vintage VLCCs earn from same freight rate

	Costs	OPEX	OPEX +DD (10 yr old)	OPEX +DD (15 yr old)
LSFO $300 p/ton	$9,800 p/d	$10,095 p/d	$11,740 p/d
DD costs inc BWTS (10 yr old) = $2.5m or $1095 p/d
DD costs inc BWTS (15 yr old) = $3m or $2740 p/d

Note: Market VLCC indicates average age VLCC at 10 years of age

Source: Euronav
Annual report 2020  16

Older tonnage, especially when underlying freight rates are low, will be earning substantially less than younger vintages. This is important as during low points of the freight rate cycle, older tonnage will come under real pressure from their owners as to whether they should remain operational given the scale of losses they produce (tanker shipping is in effect a fixed cost business), or be recycled. This scenario is as old as the shipping industry itself. What is new, is emissions. Older vessels also mean more emissions and this is now important to financiers, shareholders, regulators (and other stakeholders), which means an additional level of pressure on older tonnage. A quarter of the large tanker fleet is already over 15 years of age and is responsible for 30-35% of tanker’s emissions. If the world tanker fleet is downsized by removing 15 years- plus tonnage to meet a lower level of global oil consumption, it would be commercially attractive for the remaining ship owners, and allow the sector to make a substantial leap to meet the emissions reductions outlined in figure 7.

Part C: How can and will shipping decarbonise outside of a new fuel?

Self help - Case study – use of premium anti-fouling paint investment

Euronav has invested and will continue to invest heavily in relatively simple technology. The focus on early detection of a vessel’s hull fouling by analysing a vessel’s performance data, the use of monitoring systems and application of advanced anti-fouling paints when our vessels are undergoing remedial work, will generate cost savings in dollar terms and more importantly, measurable CO2 emission savings as figure 11 illustrates.

Figure 11 - Potential relative emission savings in CO2 for a five year period - measurement to tCO2

Source: Euronav

Carbon levy has potential to help reduce emissions but it needs to be applied properly

Many commentators often make sweeping statements and assume it is easy to introduce, apply and collect a carbon levy or tax. There is little doubt that there is a benefit of introducing an economic mechanism which incentivises affirmative action on emissions. Euronav agrees with this philosophy but believes that in a global industry, measures should be taken on an international level in order to protect the level playing field. Were global regulation to come into force later, we would recommend the EU to then follow this or be integrated into this. The EU should try to be as consistent as possible with existing international regulations. Revenues from any level should all flow back to the wider maritime industry as the scale of investments needed is considerable on both the vessel and infrastructure side.

Part D: What new fuel does shipping need to decarbonise?

The simple answer is that there is no magic bullet or category killer. It is likely to be a mix of different fuels over time with differing investment horizons and returns.

Speed

Shipping has already demonstrated a capability in delivering a global reduction in emissions with high compliance and little operational disruption via ‘IMO 2020’.# Decarbonisation: A Feasible, Sustainable Pathway for Large Crude Tanker Shipping

Since the implementation on 1 January 2020, and the control and enforcement by shipping’s global regulator IMO (International Maritime Organisation), sulfur emissions from the fuel used by the global shipping industry have been reduced by 85%. With a global regulator, shipping has shown it can introduce and maintain reductions in Greenhouse Gas emissions effectively and to substantial effect. A lot of work has already been done on vessel speed. Between 2008 and 2018 the fuel consumption on all shipping fell from 300 million tonnes to 268 million tonnes. This equals a reduction of 19% in CO2 emissions through the combination of speed reduction and improvement of vessel energy efficiency. This is particularly impressive when during the same period there was a 62% increase in the global capacity of shipping. Whilst further gains could be made it is difficult to achieve unless the primacy of a global regulator or oversight body like the IMO is retained. Slowing down or imposing speed limits on certain parts of a voyage or on certain sectors is (a) quick to yield emission gains (b) relatively easy to measure and (c) with a global regulator, simple to enforce.

Figure 12 - Average speed index changes since 2008
Source: Clarksons Research

Crude tanker Annual report 2020 18

Figure 13 - The most likely fuels of the future for tankers – the pro’s and con’s

	LNG	Hydrogen	Ammonia	Methanol	Biofuels
Temperature	liquid state -162 °C	-252.87 °C	-33.6 °C	25 °C	Depending on fuel
Positive	Bunkering capability Proven	Available now	Available now	Available now	Available now
	CO2 emission gains
Bunkering capability	Available now	Available now	Available now	Available now	Available now
Proven	CO2 emission gains	Potential as category killer	Production now as fertilizer	Similarity to HFO bunker	Combination of hydrogen with others
		Stability and low temperature	Stability and low temperature	Already used as dual fuel	Developed markets
		Similarity to HFO bunker	Similarity to distillate	Production rising	Similarity to distillate
		Already used as dual fuel	Renewable angle	Dollar investing in hydrogen globally	Renewable angle
		Combination of hydrogen with others	Production rising	Flexibility between Green/Brown	Production rising
		Developed markets	Dollar investing in hydrogen globally	Management of fuel	Dollar investing in hydrogen globally
			Flexibility between Green/Brown	Storage ease	Flexibility between Green/Brown
			Management of fuel	Clean fuel	Management of fuel
			Storage ease	Simpler handling than others	Storage ease
			Clean fuel	Applicability	Clean fuel
			Simpler handling than others		Simpler handling than others
			Applicability		Applicability
Negative	Methane leakage	Manageability at -253°C	Stability (difficulty to ignite)	Not carbon free	Scaleable
	Scaleable	Stability (difficulty to ignite)	Not carbon free	Scaleable	Bunkering infrastructure not ready
		Not carbon free	Scaleable	Bunkering infrastructure not ready	Unproven in large scale transport fuel
		Scaleable	Bunkering infrastructure not ready	Unproven in large scale transport fuel	Need for infrastructure (bunkering)
		Bunkering infrastructure not ready	Unproven in large scale transport fuel	Need for infrastructure (bunkering)	Limited quantity available
		Unproven in large scale transport fuel	Need for infrastructure (bunkering)	Limited quantity available	Feedstock competition
		Need for infrastructure (bunkering)	Limited quantity available	Feedstock competition	Space required on deck
		Limited quantity available	Feedstock competition	Space required on deck	Cost to develop as fuel
		Feedstock competition	Space required on deck	Cost to develop as fuel	Corrosive when water added
		Space required on deck	Cost to develop as fuel	Corrosive when water added	Limited history as fuel
		Cost to develop as fuel	Corrosive when water added	Limited history as fuel	Supply security
		Corrosive when water added	Limited history as fuel	Supply security	Need to keep at -160°C
		Limited history as fuel	Supply security	Need to keep at -160°C
		Supply security	Need to keep at -160°C
		Need to keep at -160°C
Challenges	Hydrogen challenges are not new	Large tank storage space needed	Political opposition (eg US)	Limited history in ships	Not carbon free
Timeline	LNG Currently viable	Hydrogen 2030? earliest	Ammonia Available in 2025	Methanol Partially available	Biofuels Available today
	Exact CO2 emissions cut? Infra?	Highest potential but viable?	LT better solution but $ costs	Scaleable?	Scale? Competing with other industries

Special report 19

The table on the left side attempts to give a summary of what attributes and drawbacks each of the technologies has. Development in this area is, however, expected to be quick which is a positive as the USD 90 billion shipping fuel market transitions. Shipowners and operators like Euronav will have to act decisively and with flexibility in selecting appropriate technologies, but also have to protect themselves against technological (and regulatory) obsolescence.

A feasible, sustainable pathway to decarbonise large crude tanker shipping – A Conclusion

Shipping is at a crossroads so far as its decarbonisation journey is concerned. Within shipping, the large crude tanker sector finds itself at a more acute or sensitive point as a single (fossil fuel) product carrier in a capital intensive and increasingly regulated space. However, the pathway to successful decarbonisation is both feasible and likely to lead to a more rationalised, focused and sustainable business model for tanker owners and operators – IF the transition is executed correctly. This requires several jigsaw pieces to fit together and is not easy, but achievable.

Source: Clarksons

Firstly, shipping needs to show itself in a more favourable light, simplify the message and junk the jargon. Shipping is the most efficient means of transportation available in terms of GHG emissions. Yet, that often remains a hidden secret. Secondly, shipping needs to be a better corporate citizen. The recent COVID-19 induced crew change crisis, which is still not over at the time of writing in March 2021 teaches shipping an inconvenient truth. Shipping’s historical lack of transparency and poor governance counted against the sector when it needed political support and engagement. Euronav plans to do more in this area but has already contributed to increases in disclosure (for example CDP), consistently scoring highly in corporate governance surveys (e.g. Webber research – https://www.euronav.com/media/66171/webber-corporate-governance-2020-report.pdf) and developing our sustainability platform. But standards across shipping and the large crude tankers sector need to rise. Thirdly, the shipping industry has a number of levers that it uses in driving carbon reduction. Examples such as voyage maximisation and the use of more efficient external paints will be important but relatively modest in the overall compliance with emission targets. Shipping fleets will need new fuels and possibly new power production technology to do the heavy lifting to support it. Development and transition of a USD 90 billion shipping fuel market is an attractive opportunity that shipping must not waste and will need if it aims to meet its decarbonisation objectives. Finally, shipping or large crude tanker shipping cannot do this alone. Coherent and integrated regulation is to be welcomed and respected but needs to be applied universally, not at differentiated regional levels. Incentivised access for capital investment from the banking and capital markets requires a regulated framework already established, but which shipping in all forms should engage with as an equal partner. A carbon levy, if applied correctly and with the proceeds recycled back into shipping equitably, can be an example of shipping in partnership, delivering on all its objectives with decarbonisation at the top of the list.

2 Directors’ report
Vision and mission
Company profile
Highlights 2020
Corporate governance statement
•Introduction
•Capital, shares & shareholders
•Supervisory Board
•Supervisory Board Committees
•Evaluation of the Supervisory Board and its committees
•Management Board
•Remuneration report
•Internal Control and Risk Management
•Information to be included in the annual report as per article 34 of the royal decree of 14 November 2007
•Appropriation of profits
•Code of Conduct
•Measures regarding insider dealing and market manipulation
•GUBERNA
•Gender diversity
•Appropriation accounts

The Euronav Group Vision and mission

Vision

• To lead the global crude oil tanker industry responsibly
• To seize every opportunity to reshape our industry in an era of unprecedented changes
• To promote and support sustainable programs in minimising the environmental impact of our industry

For our shareholders and capital providers
To create significant long-term value by strategically planning financial and investment decisions while efficiently, consistently and transparently acting as good stewards of capital.

For our employees
To attract, inspire and enable talented, hard-working people to develop themselves in order to contribute to our business and its vision in a challenging and rewarding environment.

Mission

For our society
To deliver an essential source of energy in ways that are economically, socially and environmentally viable now and in the future.

For our clients
To operate in a manner that contributes to the success of their business objectives by providing flexible, global, high-quality and reliable services.

Annual report 2020 22

Director's report 23

Euronav is a market leader in the transportation of crude oil. As the world’s largest, independent quoted crude tanker platform, on 15 March 2021, Euronav owns and manages a fleet of 74 vessels. The company, incorporated in Belgium, is headquartered in Antwerp. Worldwide Euronav employs approximately 220 people on shore and has offices throughout Europe and Asia. Around 3,500 people work on the vessels. Euronav has progressed from a family operation with 17 vessels, to a strong international player listed on Euronext Brussels and on the NYSE under the symbol ‘EURN’.

The need to operate a safe and reliable fleet has never been more crucial and it is the most important strategic objective for the Company. Euronav aims to be an efficient organisation and strives to deliver the highest quality and best possible service to its customers. Euronav has a long-term strategy through cycle profitability by adapting its balance sheet leverage and liquidity position in accordance with the sources of its revenues which can be fixed (long-term FSO Income and/or TC portfolio) or floating (pool and spot revenues). Sustainability is a core value at Euronav as it ensures the long-term health and success of our people, our business and the environment we work in. It involves a commitment to safety and environmental protection practices, as well as an innovative approach to the use of technology and information. By employing officers who graduated from the most reputable maritime academies in the world, on board a modern fleet, Euronav aims to operate in the top end of the market. The skills of its directly employed seagoing officers and shore based captains and engineers give a competitive edge in the maintenance, as well as in the operations and delivery of offshore projects.

Company profile# Annual report 2020

Overview of the market

2020 was perhaps the most volatile and unpredictable year for crude oil and tanker markets in history. Events had already proven to be both challenging and seismic in their impact, before the economic effects of restrictions to curb the spread of COVID-19 in March took hold. Geopolitical risk had driven both tanker freight rates and oil prices to higher levels during the early part of 2020, with a robust winter underpinning crude demand into the end of the first quarter. However, the tanker and crude markets were turned upside down in early March with a Saudi led move to simultaneously cut oil prices and rapidly increase production and exports onto the global markets. Tensions between the OPEC and OPEC+ countries, and in particular Russia, over maintaining production cuts had been building since February. This escalation into direct action or a ‘price war’ proved to be the catalyst for a rapid 40% reduction in the oil price from USD 55 per barrel in January to below USD 20 per barrel in April (source: Bloomberg). Whilst challenging for the global oil markets, freight rates for the tanker market rose to over USD 100,000 per day, reflecting a shortage of vessel capacity to manage the increase in number of cargoes being shipped.

Directors’ report: Highlights 2020

Chart 1 - Crude oil exports mbpd per month from Persian Gulf OPEC nations

Source: Bloomberg

Director's report 25

The oil price movement was exacerbated by simultaneous events in the global economy, which were impacted by the spread of COVID-19 and the accompanying and increasingly onerous restrictions on economic activity. In effect a disconnect grew from late March until early May, with global crude production largely unchanged at approximately 100 mbpd, but underlying consumption falling to around 80 mbpd. Crude production was now in surplus, further driving demand for tankers as a flexible and immediate source of storing this excess supply. Tanker freight rates continued to rise into mid-May, driven by a requirement for storage, with any spare capacity being seized, and the structure of the oil price itself. The ‘paper’ market for crude oil is around 50 times bigger than the market that trades the physical crude products. During April and May, the disconnect between spot and future prices was so big that the contango or spread between future oil prices in six months time and the spot price was USD 14. This was a record ‘spread’ and incentivised additional demand for tanker services. Traders could buy oil at the spot price, forward sell this oil for delivery in the future, and even with freight rates in excess of USD 100,000 per day, still make an economic return. The disconnect was further evidenced in April with the WTI oil price (US oil) traded at a negative value due to specific technical (and local) considerations.

Chart 2 - Contango oil price structure during 2020 (based in spot oil price versus 6 months forward)

Source: Bloomberg

Affirmative action between OPEC and OPEC+ in a deal in April saw large scale crude production and export cuts, effective from early May, of 9.7m barrels per day. Such measures helped to drive the oil price from a low of USD 33 per barrel to USD 48 per barrel in August, and also substantially reduced the requirement for storage of crude and the economic incentive for storage. However, there was a legacy to the tanker markets from the rapid and deep disconnect between global crude oil production and underlying consumption in the global economy. Floating storage, whereby oil is stored on tankers, stood at 96 million barrels in early January, occupying 61 tankers; mainly VLCCs. Yet, this peaked in May, at 293 million barrels requiring 241 crude tankers; a mix of VLCCs and unusually both Suezmax and Aframax vessels. This dislocation in tanker markets ensured a temporary but significant reduction in tanker supply and capacity. This impact during the summer months occupied 10% of the VLCC fleet and 15% of the Suezmax fleet and supported freight rates at elevated levels, despite underlying demand and consumption of oil at approximately 85 million barrels per day compared to a more normalised level of consumption at 100 million barrels per day. This market structure also drove a higher level of short time charter activity, primarily during the second quarter, as both traders and oil companies looked to capture capacity. The unwinding of this tanker market and oil price structure during the second quarter has been the key feature during the second half of 2020. While oil prices stayed volatile, they remained largely bound between 40-50 USD until late in the fourth quarter, as primarily in the OECD nations COVID-19 restrictions continued to flare up, reducing oil consumption and further delaying the expected recovery. Along with an associated expansion of onshore inventory due to the disconnect between production and consumption of oil during the second quarter of 2020, floating storage has unwound steadily through the year. The number of vessels being used as floating storage had largely reduced by the end of 2020, with 46 million additional barrels of crude being stored at sea compared to a year earlier, correlating with 20 VLCCs and just five Suezmaxes. Based on EIA estimates onshore inventory is expected to return to five year average levels by the second quarter of 2021. Tanker freight rates becalmed below break-even territory during most of the fourth quarter of 2020 as the anticipated recovery from a vaccine was postponed due to continued COVID lockdown restrictions. However, vessel supply has begun to respond to higher steel prices, and to increased economical and environmental regulations coming in over the next three years. These are causing a number of vessels to be recycled. With the inventory picture normalising in the second quarter of 2021, and an economic recovery at some point in the next 12 months, tanker markets will be operationally leveraged into such an expansion.

26 Annual report 2020

Tanker markets

The average Time Charter Equivalent (TCE) generated by the company’s owned VLCC fleet trading in the Tankers International pool (TI) was USD 54,600 per day for 2020, compared to USD 35,900 per day for 2019. The average earnings of Euronav’s VLCC time charter fleet was USD 39,700 per day in 2020, compared to USD 32,400 per day for 2019. The average TCE obtained by the Company’s Suezmax spot fleet, traded by Euronav directly, was USD 39,100 in 2020, compared to USD 26,000 per day in 2019. The average earnings of Euronav’s Suezmax time charter fleet was USD 29,600 in 2020, compared to USD 29,400 per day in 2019.

Fleet growth

In comparison to recent years, the VLCC and Suezmax fleets grew modestly during 2020 with 37 new VLCCs being delivered to the global fleet, alongside 30 Suezmaxes. This corresponds to a 3.8% growth for the VLCC fleet (compared to a 10 year average of 4.5%) and a 4.5% growth for the Suezmax sector (compared to a 4.7% 10 year average). These vessels were delivered steadily throughout the year, except for a spike in new Suezmax deliveries in the third quarter. Exits of vessels from the global fleet in both the Suezmax and VLCC segments were unsurprisingly limited given the elevated freight structure through much of calendar 2020, alongside opportunities for storage contracts driven by a contango oil price structure which persisted for most of 2020. As a consequence, only three Suezmax and six VLCCs left the global tanker fleet during 2020. This left the VLCC global fleet standing at 802 VLCCs and 584 Suezmax vessels at the end of 2020. All data figures are supplied by Clarksons. The contracting of new vessels has been restrained by increasingly limited financing from shipping banks and the uncertainty over future propulsion systems for the large tanker sector. 41 new VLCC and 28 Suezmax vessels were ordered during 2020. Order books as a percentage of the overall fleet remain below 10% for both segments, which remains at a 20 year low. The age profile of the two largest categories of tanker has continued to rise with a quarter of each fleet already aged over 15 years. This is a significant milestone for tankers, as once older then 15 years, the survey cycle for such a tanker moves from every five years to every 30 months. The average age of VLCC and Suezmax is at 9.94 years and 10.34 years respectively (source: Clarksons). For a tanker fleet that is, on average, as old as this at the end of 2020, industry analysts have to go back to 2001. Owners of older vintages will increasingly find trading more challenging given a reduced addressable market in terms of cargo owners willing to use such vessels, along with increasing regulatory pressures driven by higher emissions coming from older vessels. Logically, this should lead to an increase in vessels exiting the fleet, especially if freight rates are simultaneously challenged.

Chart 3 - Global oil consumption over 2020 mbpd

Source: EIA

Annual report 2020

Director's report 27

Additions	Additions	Removals	Removals
Forecast	Additions	Forecast	Removals
Scenario	Removals	Scenario

FSO and FPSO market

By 14 January 2021 there were 403 floating production systems in service or available worldwide, among which were 166 FPSOs and 107 FSOs. This does not include the 31 FPSOs that are available for reuse. In addition, there are two FPSOs that are out of service for extended repairs. Currently, there are 42 production floaters, eight FSOs and three MOPUs on order. New orders are unlikely to keep up with the 14 deliveries scheduled in 2021, so the backlog is expected to decline into the low thirties by year end. Currently, there are 202 floater projects in the appraisal, planning, bidding or final design stage, that may require a floating production or storage system. 65 of these projects are in the bidding or final stage, and another 92 are in the planning phase.The major hardware contracts for these projects are planned between 2023 and 2024. Studies are still ongoing to assess the economic viability of the projects, particularly those in deep water and harsh environments. Furthermore, there are 45 projects in the appraisal stage. Africa remains the most active region for future projects, with 41 potential floater projects in the planning cycle, followed by Southeast Asia with 34 projects planned. 30 projects are planned for Brazil, which may demand 44 floaters, as fields like Buzios and Mero will require multiple units. The next large regions are Northern Europe with 22 projects, Gulf of Mexico with 21 projects, Australia with 15 projects, and Southwest Asia/Middle East with 10 projects. The remaining regions have far fewer potential projects: the Mediterranean with 9 projects, South America with 8 projects, China with 6 projects, and Canada and the Caribbean, each with 3 projects planned. Over 67% of the facilities responsible for production floater fabrication and conversion are based in Asia. Sembcorp, Keppel, and Daewoo are the busiest yards, with each minimum five projects scheduled. Floating storage and offloading / floating production storage and offloading market. VLCC Fleet Development Source: Clarksons Planning Appraisal Bidding / Final design Source: Clarksons Suezmax Fleet Development Source: Clarksons

28 Annual report 2020 Euronav fleet

On 15 March 2021, Euronav’s owned and operated fleet consists of 74 vessels being two V-Plus vessels, two FSO vessels (both owned in 50%-50% joint venture), 44 VLCCs and 26 Suezmaxes (whereof one owned in 50%-50% joint venture). As at 15 March 2021, Euronav’s tonnage profile is as follows:

Overview of the year 2020

The first quarter

For the first quarter of 2020, the Company realised a net profit of USD 225.6 million or USD 1.05 per share. In comparison, in the first quarter of 2019 the Company’s realised net profit was USD 19.5 million or USD 0.09 per share. Proportionate EBITDA (a non-IFRS measure) for the same period was USD 335.2 million, where in the first quarter of 2019 this was USD 131.4 million. The average daily TCE obtained by the Company’s fleet in the TI Pool was approximately USD 72,750 per day, whereas in the first quarter of 2019 this was USD 35,195 per day. The TCE of the Euronav VLCC fleet fixed on long-term charters, including profit shares when applicable, was USD 37,000 per day (in the first quarter of 2019: USD 27,630 per day). The average daily TCE obtained by the Suezmax spot fleet was approximately USD 59,250 per day. In the first quarter of 2019 this was USD 27,380 per day. The TCE of the Euronav Suezmax fleet fixed on long-term time charters, including profit shares when applicable, was USD 30,250 per day (first quarter 2019: USD 32,680 per day).

January

Euronav
Euronav entered into a sale and leaseback agreement with Taiping & Sinopec Financial Leasing Ltd Co. regarding three Euronav’s vessels have an aggregate carrying capacity of approximately 19.2 million dwt. On 15 March 2021 the weighted average age of the company’s trading fleet was approximately 9.59 years. The majority of Euronav’s VLCC fleet is operated in the Tankers International Pool (the ‘TI Pool’) in the voyage freight market. The TI Pool is one of the largest modern fleets worldwide and comprises 59 vessels on 15 March 2021, of which 40 are owned by Euronav. The average age of Euronav’s owned and operated VLCC fleet on 15 March 2021 is 7.79 years. Part of Euronav’s Suezmax fleet is chartered out on long-term contracts. On 15 March 2021 the average age of the Suezmax fleet is approximately 11.23 years. The vast majority of Euronav’s vessels are managed in-house, which positions its fleet at the top of the market for tanker assets and services. The benefits that are derived from in-house management lie in asset maintenance, enhanced customer service and risk management. Charterers are more than ever seeking to do business exclusively with superior quality operators, whether through fixed rate long-term business or principally in the spot market.

*Our VLCC newbuilding Dickens and two newbuilding Suezmaxes are not included in the above calculations as they weren’t delivered at the time of writing. Dickens joined our fleet on the 19th of March and both Suezmaxes will join our fleet in 2022.

VLCC and V-PLUS	14,288,491 dwt	44 VLCcs
FSO	864,046 dwt	2 FSO
Suezmax	4,082,594 dwt	26 SUEZMAX
total owned and tonnage:	19,235,129 dwt	2 V-Plus
vessels	74 (on 15 march 2021)

VLCCs: Nautica (2008 - 307,284 dwt), Nectar (2008 - 307,284 dwt) and Noble (2008 - 307,284 dwt). The vessels were sold and were leased back under a 54-months bareboat contract at an average rate of USD 20,681 per day per vessel. Euronav was included for the third consecutive year in the Bloomberg Gender-Equality Index, an area which is very important within the company. Throughout its organisation, Euronav continues to strive to progress and provide an inclusive environment for all its employees. The Bloomberg GEI continues to gain traction, with a record of 325 companies included in this year’s Index, up from 230 companies last year. Euronav embraces the initiative wholeheartedly. On 29 January 2020, the first internal communication was sent to the entire Euronav fleet regarding the COVID-19 virus. This update comprised general information about the virus, the measures to be taken onboard, and the materials supplied to ensure the safety of all seafarers.

In the market
* Libia (Suezmax, 2007) chartered by Navig8 for 9-13 months at USD 35,000 per day;
* Nobleway (Suezmax, 2010) chartered by Koch for 30 months at USD 35,000 per day;
* Ridgebury John Zipser (Suezmax, 2009) chartered by Vitol for 12 months at USD 40,000 per day;
* Katsuragisan (VLCC, 2005) chartered by Pertamina for 12 months at USD 40,000 per day;
* X 3 Newbuilding SK Shipping (VLCC, 2022) chartered by HOB for 8 years at USD 35,000 per day.

February

Euronav
On 21 February 2020, Euronav sold the Suezmax vessel M/T Finesse (2003 – 149,994 dwt) for USD 21.8 million. A capital gain on the sale of approximately USD 8.3 million was recorded during the same quarter. The vessel has been delivered to her new owners. On 26 February 2020, Euronav entered into an agreement for the acquisition of three VLCCs under construction at the DSME shipyard in South Korea. The vessels were acquired for an aggregate purchase price of USD 280.5 million or USD 93.5 million per unit. All three vessels are fitted with Exhaust Gas Scrubber technology and a Ballast Water Treatment System.

In the market
* Cascade Spirit (Suezmax, 2009) chartered by ST Shipping for 12 months at USD 36,000 per day;
* Cosdignity Lake (VLCC, 2017) chartered by Core Petroleum for 6 months at USD 20,000 per day;
* Good News (VLCC, 2002) chartered by IOC for 12 months at USD 31,500 per day.

March

Euronav
From 13 March 2020 until the beginning of June 2020, all of Euronav’s shore staff were requested to work from home in order to slow down the spreading of the COVID-19 virus. On 26 March 2020, Euronav entered into an agreement for the acquisition through resale of a VLCC newbuilding contract. The vessel was at that time under construction at the DSME shipyard in South Korea and due for delivery in the first quarter of 2021. It is an identical sister ship of the 3 VLCCs acquired in February and was contracted at a similar pricing.

In the market
* Densa Whale (Suezmax, 2012) chartered by Stena at 25,000 USD per day, plus a profit share element;
* 17 February (Suezmax, 2008) chartered by Mjolner for 12 months with an optional 12 months at respectively USD 39,000 and USD 45,000 per day;
* Aura M (Suezmax, 2011) chartered by Mercuria for 24 months at USD 29,000 per day;
* DHT Raven (VLCC, 2004) chartered by Litasco for 12 months at USD 55,000 per day;
* Olympic Lion (VLCC, 2010) chartered by Core Petroleum for 24 months at USD 47,000 per day;
* Maran Carina (VLCC, 2003) chartered by Shell for 6 months at USD 72,500 per day.

The second quarter

For the first half of 2020 the Company had a net gain of USD 485.2 million or USD 2.26 per share. In comparison, the Company had a net loss of USD 19 million or USD 0.09 per share during the first half of 2019. Proportionate EBITDA (a non-IFRS measure) for the same period was USD 697.3 million, whereas in the first half of 2019 this was USD 203.7 million. For the second quarter of 2020 the average daily TCE obtained by the Company’s fleet in the TI pool was approximately USD 81,500 per day (second quarter 2019: USD 23,250 per day). The TCE of Euronav VLCC fleet fixed on long-term charters, including profit shares when applicable, was USD 39,250 per day. During the second quarter of 2019 this was USD 27,250 per day. The average daily TCE obtained by the Suezmax spot fleet was approximately USD 60,750 per day (second quarter 2019: USD 17,250 per day). The TCE of the Euronav Suezmax fleet fixed on long-term time charters, including profit shares when applicable, was USD 29,750 per day (second quarter 2019: USD 30,500 per day).

30 Annual report 2020

In the market
* Eco West Coast (Suezmax, 2021) chartered by Clearlake for 36 months at USD 33,500 per day;
* Eco Malibu (Suezmax, 2021) chartered by Clearlake for 36 months at USD 33,500 per day;
* DHT Stallion (VLCC, 2018) chartered by Petrobras for 24 months at USD 41,800 per day.

The third quarter

For the third quarter of 2020, the Company had a net gain of USD 46.2 million or USD 0.22 per share. In comparison, in the third quarter of 2019 there was a net loss of USD 22.9 million or USD 0.11 per share. Proportionate EBITDA (a non-IFRS measure) for the same period was USD 151.8 million (third quarter of 2019: USD 96.8 million). The TCE obtained by the Company’s VLCC fleet in the TI Pool was approximately USD 42,000 per day, whereas in the third quarter of 2019 this was USD 25,035 per day.The TCE of the Euronav VLCC fleet fixed on long-term charters, including profit shares when applicable, was USD 48,750 per day. In the third quarter of 2019, the amount was 32,790 per day. The average daily TCE obtained by the Suezmax spot fleet was approximately USD 23,500 per day (third quarter 2019: USD 17,121 per day). The TCE of the Suezmax fleet fixed on long-term time charters, including profit shares when applicable, was USD 29,500 per day (third quarter 2019: USD 30,000 per day).

July

In the market

• Nissos Sifnos (Suezmax, 2020) chartered by UML for 36 months at USD 30,000 per day;
• Nissos Sikinos (Suezmax, 2020) chartered by UML for 36 months at USD 30,000 per day;
• Nave Galactic (VLCC, 2009) chartered by Shell for 12 months at a floor rate of USD 18,000 per day, with a profit share element of maximum USD 38,000 per day
• Nave Universe (VLCC, 2011) chartered by Shell for 12 months at a floor rate of USD 18,000 per day, with a profit share element of maximum USD 38,000 per day.

August

In the market

• SKS Sinni (Suezmax, 2003) chartered by Trafigura for 6 months at USD 20,000 per day;
• Bunga Kasturi Tiga (VLCC, 2006) chartered by Chemchina for 6 months at USD 32,000 per day;
• Hunter Frigg (VLCC, 2020) chartered by Koch for 6-8 months at USD 40,000 per day;
• Eco Queen (VLCC, 2016) chartered by Trafigura for 6 months at USD 30,000 per day.

April

Euronav

On 9 April 2020, Euronav sold the Suezmax Cap Diamant (2001 - 160,044 dwt) for USD 20.8 million. A capital gain on the sale of approximately USD 13 million was recorded during the same quarter.

In the market

• Sea Garnet (Suezmax, 2017) chartered by Vitol for 6 months at USD 55,000 per day;
• Bonny (Suezmax, 2005) chartered by Trafigura for 6 months at USD 52,500 per day;
• Pinnacle Spirit (Suezmax, 2008) chartered by Chevron for 12 months at USD 44,000 per day;
• Eco Seas (VLCC, 2016) chartered by Equinor for 36 months at USD 49,000 per day;
• Wasit (VLCC, 2017) chartered by Shell for 6 months at USD 85,000 per day;
• Dealta Aigaion (VLCC, 2014) chartered by Litasco for 6 months at USD 85,000 per day;
• Sea Ruby (VLCC, 2017) chartered by Occidental for 12 months at USD 85,000 per day.

May

In the market

• Crimson (Suezmax, 1998) chartered by IOC for 6 months at USD 43,000 per day;
• Jag Lateef (Suezmax, 2000) chartered by IOC for 6 months at USD 41,900 per day;
• Aragona (VLCC, 2012) chartered by Petrobras for 24 months at USD 47,500 per day;
• FPMC C Melody (VLCC, 2012) chartered by Cepsa for 6 months at USD 100,000 per day.

June

Euronav

On 5 June 2020, Euronav sold the VLCC TI Hellas (2005 - 319,254 dwt) for USD 38.1 million. A capital gain on the sale of approximately USD 1.6 million was recorded during the same quarter. On 25 June 2020, the ‘Day of the Seafarer’, Euronav saluted the thousands of seafarers for their efforts while ensuring trade flows and global commerce since restrictions regarding COVID-19 began impacting their life at sea. On 30 June 2020, the company started a series of share buybacks.

30 Annual report 2020 Director's report 31

September

Euronav

On 30 September 2020, Euronav sold the Suezmax Bastia (2005 – 159,155 dwt) for USD 20.5 million. This vessel was acquired in November 2019 in a 50/50 joint venture with affiliates of Ridgebury Tankers and clients of Tufton Oceanic. A capital gain on the sale of approximately USD 0.4 million was recorded in the joint venture company.

In the market

• Almi Horizon (Suezmax, 2011) chartered by Stena for 12 months at USD 25,000 per day;
• Atina (Suezmax, 2015) chartered by Stena for 12 months at USD 25,000 per day;
• Sea Gem (VLCC, 2013) chartered by Trafigura for 6 months at USD 31,000 per day;
• Yuan Hua Yang (VLCC, 2020) chartered by Unipec for 6 months at USD 40,000 per day;
• Nissos Donoussa (VLCC, 2019) chartered by Unipec for 12 months at USD 34,000 per day.

The fourth quarter

For the fourth quarter of 2020, the Company had a net loss of USD 58.671 million or USD 0.29 per share. In comparison, in the fourth quarter of 2019 Euronav had a net gain of USD 154.2 million or USD 0.72 per share. Proportionate EBITDA (a non-IFRS measure) for the same period was USD 49.8 million. In the fourth quarter of 2019 this was USD 267.5 million. The TCE obtained by the Company’s fleet in the TI pool was for the fourth quarter approximately USD 20,500 per day, whereas in the fourth quarter of 2019 this was USD 61,700 per day. The TCE of the Euronav VLCC fleet fixed on long-term charters, including profit share when applicable, was USD 44,700 per day (fourth quarter 2019: USD 35,700 per day). The TCE obtained by the Suezmax spot fleet, including profit shares when applicable, was approximately USD 12,300 per day for the fourth quarter (fourth quarter 2019: USD 41,800 per day). The earnings of the Euronav Suezmax fleet fixed on long-term charters, were USD 29,300 per day. In the fourth quarter of 2019, this was 29,300 per day.

October

Euronav

On 15 October 2020 Euronav received the award for ‘Best Market & Competitive Information 2020’ from the Belgian Association of Financial Analysts (ABAF-BVFA). For over 60 years the organisation has been rewarding companies that stand out in terms of communication, with this specific award running since 2017. Besides winning this award, Euronav was selected top 3 in two other categories: 'Best Non-Financial Information' and 'Best Mid & Small Cap'.

In the market

• Psara I (Suezmax, 2017) chartered by Nayara for 24 months at USD 26,500 per day;
• Sea Pearl (VLCC, 2017) chartered by Occidental for 12 months at USD 30,500 per day.

November

Euronav

Euronav announced that the joint venture with International Seaways had signed an extension for ten years for the FSO Asia and the FSO Africa, in direct continuation of their current contractual service, or until 21 July 2032 and 21 September 2032 respectively. The additional ten years are expected to generate revenues for the joint venture in excess of USD 645 million, as from the respective extension dates. Based on Euronav’s ownership in the joint venture, this generates more than USD 322 million in contract revenues for the company.

In the market

• SKS Skeena (Suezmax, 2006) chartered by Stena for 12 months at USD 18,000 per day;
• Goldway (Suezmax, 2016) chartered by Trafigura for 6 months at USD 18,000 per day;
• Hunter (VLCC, 2021) chartered by Trafigura for 12 months at USD 30,000 per day;
• Nissos Kythnos (VLCC, 2019) chartered by Occidental for 11 months at USD 30,000 per day.

32 Annual report 2020

December

Euronav

On 10 December 2020 Euronav received a ‘B’-score from the Carbon Disclosure Project (CDP) for its actions against climate change. Euronav has submitted its sustainability credentials to the CDP platform for the first time this year, as part of an ongoing commitment to increase the company's transparency in this area. Euronav’s score is higher than the marine transport sector ‘C’ average. On 16 December 2020 Euronav held its first ever virtual naming ceremony to welcome Delos and Diodorus.

In the market

• Concord (Suezmax, 2005) chartered by IOC for 12 months with an optional 12 months at respectively USD 20,000 and USD 22,000 per day;
• Densa Orca (Suezmax, 2012) chartered by Vitol for 6-12 months at USD 14,000 per day;
• Nissos Ios (Suezmax, 2021) chartered by Vitol for 6-12 months at USD 23,000 per day;
• Olympic Leopard (VLCC, 2011) chartered by Repsol for 6 months with an optional 6 months at respectively USD 24,500 and USD 29,500 per day;
• Legio X Equestris (VLCC, 2022) chartered by Trafigura for 3 years with two optional 12 months at respectively USD 36,000, USD 37,500 and USD 41,000 per day;
• Newbuilding Pan Ocean (VLCC, 2021) chartered by Koch for 2 years with an optional 12 months at respectively USD 36,500 and USD 38,500 per day;
• Serendipity (VLCC, 2021) chartered by Trafigura for 18 months at USD 34,000 per day.

Director's report 33

Prospects for 2021

The outlook for any commodity market is uncertain but the impact from a volatile 2020 and continued uncertainty around the effects of COVID-19 on short-term economic activity and on the timing of economic recovery, make forecasting prospects for 2021 especially challenging. In terms of the tanker market, the inventory situation looks clear and supportive for a tanker market freight rate recovery in the second half of 2021. Onshore global inventory should be at five-year averages by the second quarter of 2021 as further drawdowns are taken. Floating storage is more or less back to the levels seen in early 2020, and economic recovery will accelerate the demand for crude oil. Despite the OPEC+ production cuts, and voluntary additional cuts from Saudi on several occasions since May, oil supply is scheduled to increase in order to meet anticipated recovery in demand in 2022. According to softer demand forecasts it could take until summer before inventories are back to the five-year average. But after that, it is expected that OPEC+ will open its production taps. An oil production delta of 5 mbpd could have a positive impact on the tanker market and earnings towards the end of the year, taking an average forecast for the full year to USD 35,000 (source: Fearnleys). Economic recovery post COVID-19 and the application of a vaccine are, however, the key factors in driving a return to profitable tanker market activity. The US Energy Information Administration (EIA) expects the oil demand to grow 5.6 mbpd in 2021 and a further 3.3 mbpd in 2022. The forecast implies global oil consumption to be back above 100 mbpd by 2022. OPEC production is expected to expand 3.4 mbpd by the third quarter of 2021. This would of course underpin a recovery in demand for tankers, potentially adding demand for 80 VLCCs on the MEG-China route alone in the above scenario. The fundamentals of the tanker market remain constructive. Orderbook-to-fleet ratios are at twenty year lows.Yet the average age of the VLCC and Suezmax fleet was last at these levels in 2001, with the average age at over 10 years for both segments. Around a quarter of both global fleets are already over the important age of 15 years, which is key in terms of regulatory cycles. Financial pressure on tanker owners is being added with adherence to emission standards and regulations. In the absence of a very strong freight market, and as contracting remains restricted over concerns for future fuel propulsion systems, all of these forces will drive the pressure on owners and will limit global fleet growth going forward.

Events occurred after the end of the financial year ending 31 December, 2020

January 2021

Euronav was a signatory of the ‘Neptune Declaration on Seafarer Wellbeing and Crew Change’. The declaration addresses the ongoing crew change crisis caused by the COVID-19 pandemic. It contains a list of concrete actions to facilitate crew changes and keep vital global supply chains functioning. The maritime stakeholder initiative was officially launched during the World Economic Forum’s Davos Agenda Week, in the week of January 25th.

Euronav has improved the Company’s score in its fourth consecutive inclusion in the Bloomberg Gender-Equality Index (GEI). The GEI provides transparency in gender-based practices and policies at publicly listed companies, increasing the breadth of environmental, social, governance (ESG) data available to investors.

On 15 January 2021, Unicredit Bank lodged a claim against Euronav for an alleged misdelivery of a cargo by Euronav’s Suezmax vessel the Sienna. Euronav believes that it has followed well established standard working practices. Based on an external legal advice, Euronav believes that it has valid, strong arguments that the risk of an outflow is less than probable and therefore no provision is recognized. For further information please see note 21 to the consolidated financial statements.

February 2021

On 3 February 2021 Euronav announced it has entered into an agreement for the acquisition through resale of two eco-Suezmax newbuilding contracts. The vessels are the latest generation of Suezmax Eco-type tankers. They will be fitted with Exhaust Gas Scrubber technology and Ballast Water Treatment systems. The vessels have the structural notation to be ’LNG Ready’ and Euronav is working closely with the shipyard to also have the structural notation to be ‘Ammonia Ready’. This provides the option to switch to other fuels at a later stage.

On 22 February 2021 Euronav has entered into a sale and leaseback agreement for one VLCC with Taiping & Sinopec Financial Leasing Ltd Co. The vessel concerned is the Newton ( 2009 – 307,284 dwt). The vessel was sold for a purchase price of USD 36 million.

34 Annual report 2020

Introduction

Reference Code

During 2020 Euronav adopted the Belgian Code on Corporate Governance of 2020 as its reference code within the meaning of Article 3:6(2)(4) of the Belgian Code of Companies and Associations (the ‘CCA’) and updated its Corporate Governance Charter accordingly. The full text of the Corporate Governance Charter can be consulted on the Company’s website www.euronav.com under the Corporate Governance section.

New York Stock Exchange Listing

Following the dual listing of the Company’s shares on the New York Stock Exchange on 23 January 2015, the New York Stock Exchange Corporate Governance rules for Foreign Private Issuers became applicable to the Company. The Company therefore registered and began to be a reporting company under the U.S. Securities and Exchange Act of 1934, as amended. As a further result of this listing, the Company is subject to the U.S. Sarbanes-Oxley Act of 2002 and to certain U.S. Securities laws and regulations relating to corporate governance applicable to reporting companies that are foreign private issuers and are subject to SEC reporting obligations.

Changes of Belgian company law and Corporate Governance rules

The CCA entered into force on 1 May 2019. The mandatory provisions of the CCA apply to Euronav as of 1 January 2020. The non-mandatory provisions also apply as of 1 January 2020, in as far as they were not in contradiction with the articles of association of Euronav. In compliance with the new legislation, Euronav amended its articles of association on 20 February 2020 and, as of the same date, adopted a two-tier governance model including a Supervisory Board and a Management Board as set out in Article 7:104 and following the CCA. With regard to the period until 20 February 2020, any reference in this Corporate Governance Statement to the Supervisory Board shall be deemed to refer to the former Board of Directors and any reference to the Management Board shall be deemed to refer to the former Executive Committee.

Corporate Governance Statement Director's report 35

Capital, shares and shareholders

1.1. Capital and shares

On 31 December 2020 the registered share capital of Euronav amounted to USD 239,147,505.82 and was represented by 220,024,713 shares without par value. The shares are in registered or dematerialised form and may be traded on the New York Stock Exchange or Euronext Brussels, depending on which component of the share register the shares are registered in. Shares may be transferred from one component to the other after completion of a procedure for repositioning.

1.2. Senior unsecured bonds

On 23 October 2017 the Company announced that the USD 150 million senior unsecured bonds issued by Euronav Luxembourg S.A. and guaranteed by Euronav NV are listed on the Oslo Stock Exchange as of that day. On 14 June 2019 the Company announced that it had completed a tap issue of USD 50 million under its existing senior unsecured bond loan. The amount outstanding after the tap issue is USD 200 million. The bonds have been allocated the following ISIN code NO 0010793888.

1.3. Treasury shares

On 31 December 2020 Euronav held 18,346,732 own shares. Besides the stock option plans for the members of the Management Board and potentially senior employees (please refer to section 6.1 Remuneration policy for the Management Board and the employees further on in this Corporate Governance Statement), there are no other share plans, stock options or other rights to acquire Euronav shares in place.

Shareholder	Number of shares	Percentage
Euronav (treasury shares)	18,346,732	8.34%
M&G	11,279,552	5.13%
Other	190,398,429	86.53%
Total	220,024,713	100.0%

Shareholder	Number of shares	Percentage
Euronav (treasury shares)	18,346,732	8.34%
M&G	11.262.506	5.12%
Other	190,415,475	86.54%
Total	220,024,713	100.0%

1.4. Shareholders and shareholders’ structure

According to the information available to the Company on 31 December 2020, and taking into account the transparency declarations available on that date, the shareholders’ structure is as shown in the table:

Editor’s note: Shareholders’ structure as of 26 March 2021, date of closing for publishing:

36 Annual report 2020

Hereunder follows a list of biographies of the members of the Supervisory Board in the composition as of 31 December 2020.

Carl Steen - Independent Member - Chairman

Carl Steen was co-opted Director and appointed Chairman of the Supervisory Board with immediate effect after the Board meeting on 3 December 2015. Mr Steen is also a member of the Audit and Risk Committee and a member of the Corporate Governance and Nomination Committee. He graduated from Eidgenössische Technische Hochschule in Zurich, Switzerland in 1975, with an M.Sc. in Industrial and Management Engineering. After working as a consultant in a logistical research and consultancy company, he joined a Norwegian shipping company in 1978 with primary focus on business development. Five years later, in 1983, he joined Christiania Bank and moved to Luxembourg, where he was responsible for Germany, and later for the Corporate Division. In 1987, Mr Steen became Senior Vice President within the Shipping Division in Oslo and in 1992, he took charge of the Shipping/Offshore and Transport Division. When Christiania Bank merged with Nordea in 2001 he was made Executive Vice President within the newly formed organisation while adding the International Division to his responsibilities. Mr Steen remained Head of Shipping, Offshore and Oil Services and the International Division until 2011. Since leaving Nordea, Mr Steen has become a non-executive Director for the following listed companies in the finance, shipping and logistics sectors: Golar LNG and Golar MLP, both part of the same group and where he also sits on the Audit Committee, Wilh Wilhelmsen and Belships. Mr Steen is also a member of the Board of Directors of CMB.

Anne-Hélène Monsellato - Independent Member

Anne-Hélène Monsellato serves on the Supervisory Board since her appointment at the Annual General Meeting (AGM) of May 2015, and is the Chairman of the Audit and Risk Committee. She can be considered as the Audit and Risk Committee financial expert for purposes applicable for corporate governance regulations and Article 3:6 paragraph 1, 9° of the Belgian Code of Companies and Associations. Since June 2017, Mrs Monsellato serves on the Board of Directors of Genfit, a biopharmaceutical company listed on Euronext and the Nasdaq, and is the Chairman of the Audit Committee. Mrs Monsellato is an active member of IFA (the French Association of Directors) as part of the Audit Chair Group and of the ESG reporting Taskforce, of ECODA, the European confederation of directors' associations, and participates in the consultative working group of ESMA Corporate Reporting Standing Committee. In addition, she is serving as Vice President and Treasurer of the American Center for Art and Culture, a U.S. private foundation based in New York. From 2005 until 2013, Mrs Monsellato served as a Partner with Ernst & Young (now EY), Paris, after having served as Auditor/ Senior, Manager and Senior Manager for the firm starting in 1990.## 2. Supervisory Board

Name	Type of mandate	First appointed	End term of office
Carl Steen	Chairman - Independent Member	2015 AGM	2022
Anne-Hélène Monsellato	Independent Member	2015 AGM	2022
Ludovic Saverys	Member	2015 AGM	2021
Grace Reksten Skaugen	Independent Member	2016 AGM	2022
Anita Odedra	Independent Member	2019 AGM	2021
Carl Trowell	Independent Member	2019 AGM	2021

During her time at EY, she gained extensive experience in cross border listing transactions, in particular with the U.S. She is a Certified Public Accountant in France since 2008 and graduated from EM Lyon in 1990 with a degree in Business Management.

Ludovic Saverys - Member

Ludovic Saverys has served on the Supervisory Board since 2015 and is a member of the Remuneration Committee as well as of the Sustainability Committee. Mr Saverys currently serves as Chief Financial Officer of CMB NV and as General Manager of Saverco NV. During the time he lived in New York, Mr Saverys served as Chief Financial Officer of MiNeeds Inc. from 2011 until 2013, and as Chief Executive Officer of SURFACExchange LLC from 2009 until 2013. He started his career as Managing Director of European Petroleum Exchange (EPX) in 2008. From 2001 until 2007 he followed several educational programs at universities in Leuven, Barcelona and London from which he graduated with M.Sc. degrees in International Business and Finance.

Grace Reksten Skaugen - Independent Member

Grace Reksten Skaugen serves on the Supervisory Board since the AGM of 12 May 2016 as an Independent Member. She is Chair of the Remuneration Committee and a member of the Corporate Governance and Nomination Committee, as well as of the Sustainability Committee. Grace Reksten Skaugen is a Trustee member of The International Institute of Strategic Studies in London. From 2002 till 2015, she was a member of the Board of Directors of Statoil ASA. She is presently a Board member of Investor AB, Lundin Petroleum AB, and PJT Partners, a US boutique investment bank. In 2009 she was one of the founders of the Norwegian Institute of Directors, of which she continues to be a member of the Board. From 1994 till 2002 she was a Director in Corporate Finance in SEB Enskilda Securities in Oslo. She has previously worked in the fields of venture capital and shipping in Oslo and London and carried out research in microelectronics at Columbia University in New York. She has a doctorate in Laser Physics from Imperial College of Science and Technology, University of London. In 1993 she obtained an MBA from the BI Norwegian School of Management.

Anita Odedra - Independent Member

Anita Odedra has served on the Supervisory Board since her appointment at the AGM of May 2019 and is a member of the Audit and Risk Committee, as well as of the Sustainability Committee since 1 October 2020. Mrs Odedra has over 25 years of experience in the energy industry. Prior roles include Chief Commercial Officer at Tellurian Inc., Executive Vice President at the Angelicoussis Shipping Group Ltd. (ASGL), where she led the LNG and oil freight trading businesses and Vice President, Shipping & Commercial Operations for Cheniere. Anita spent 19 years at BG Group, where she worked across all aspects of BG’s business including exploration, production, trading, marketing, business development, commercial operations and shipping; latterly holding the position of VP Global Shipping. She began her career at ExxonMobil in 1993 as a Geoscience analyst. Anita was on the Board for the Society of International Gas Tanker and Terminal Operators (SIGGTO) from 2013 to 2016 and was Chair of GIIGNL’s Commercial Study Group from 2010 to 2015. She completed her PhD in Rock Physics at the University College London and the University of Tokyo, and has a BSc in Geology from Imperial College, University of London.

Carl Trowell - Independent Member

Carl Trowell serves on the Supervisory Board since his appointment at the AGM of May 2019, and is Chairman of the Corporate Governance and Nomination Committee and a member of the Remuneration Committee. Since June 2020, Carl Trowell is the Chief Executive Officer of Acteon Group Ltd., a marine energy and infrastructure services company serving the renewables, near-shore construction and oil and gas sectors. Prior to join Acteon, Carl served as Chief Executive Officer of Ensco PLC, a NYSE listed London-based offshore drilling company, since 2014, where he was also a member of the Board of Directors and took up the position of Executive Chairman in April 2019 upon closing of the merger with Rowan PLC (subsequently becoming Valaris PLC) until April 2020. Prior to this Carl had an international executive career with Schlumberger Ltd., holding the roles of President of the Integrated Project Management, the Production Management and the WesternGeco Seismic divisions of the company. Prior to these roles, he held a variety of international management positions within Schlumberger including corporate VP for Marketing and Sales and Managing Director North-Sea/Europe region. Mr Trowell began his career as a petroleum engineer with Royal Dutch Shell before joining Schlumberger. Carl has been a member of several energy industry advisory boards, he was formally a supervisory board member for EV Private Equity and served as a non-executive director on the board of Ophir Energy PLC from 2016 to 2019. Mr Trowell has a PhD in Earth Sciences from the University of Cambridge, a Master of Business Administration form the Open University (UK), and a Bachelor of Science degree in Geology from Imperial College London.

Composition

The Supervisory Board currently consists of six members. Five members are Independent Members under the Belgian Corporate Governance rules as well as under Rule 10A-3 promulgated under the U.S. Securities Exchange Act of 1934, and under the rules of the NYSE. The articles of association provide that the members of the Supervisory Board can be appointed for a period not exceeding four years per mandate. The Supervisory Board members are eligible for re-election. The articles of association of the Company do not provide an age limit for the members of the Supervisory Board.

Functioning of the Supervisory Board

In 2020 the Supervisory Board formally met eight times for a Board meeting. Due to COVID-19 measures and related travel restrictions, all meetings took place via video conferences. The attendance rate of the members was the following:

Name	Type of mandate	Meetings attended
Carl Steen	Chairman - Independent Member	8 out of 8
Anne-Hélène Monsellato	Independent Member	8 out of 8
Ludovic Saverys	Member	8 out of 8
Grace Reksten Skaugen	Independent Member	8 out of 8
Anita Odedra	Independent Member	7 out of 8
Carl Trowell	Independent Member	8 out of 8

Besides the formal meetings, the Board members of Euronav are regularly in contact with each other, by conference call or via e-mail. Due to social distancing restrictions, the written decision-making process was used regularly in 2020 when urgent decisions were required.

Working procedures

On 20 February 2020 the extraordinary shareholders meeting implemented the CCA and adopted new articles of association including a two-tier governance model. The powers and responsibilities of the Supervisory Board are those outlined in article 7:109 of the CCA and section III.1 of the Corporate Governance Charter. All decisions of the Supervisory Board are taken in accordance with article 19 of the articles of association. A copy of the articles of association and the new Corporate Governance Charter can be consulted at https://www.euronav.com/investors/corporate-governance. The Supervisory Board is the ultimate supervisory body of the Company. It is responsible for the general policy and strategy of the Company and has the power to perform all acts that are exclusively reserved to it by the Code of Companies and Associations. The Supervisory Board drafts all reports and proposals in accordance with books 12 and 14 of the Code of Companies and Associations. It supervises the Management Board. The Supervisory Board pursues the success of the Company in terms of shareholder value while giving consideration to the corporate, social, economic and environmental responsibility, gender diversity and diversity in general. In doing so, members of the Supervisory Board shall act honestly and in good faith with a view to the best interests of the Company.

Activity report 2020

In 2020 Euronav’s Supervisory Board deliberated on a variety of topics, including but not limited to:
* The impact of the COVID-19 pandemic on the Company’s operations and its financial results;
* Mid- and long-term strategic perspectives for the Company;
* IMO 2020 implementation, fuel procurement and inventory strategy;
* Capital allocation strategy and implementation, including quarterly return to shareholders by way of dividend and/or share buybacks;

3. Supervisory Board Committees

3.1. Audit and Risk Committee

Composition

In accordance with Article 7:119 of the CCA and provision 4.3 of the Belgian Corporate Governance Code 2020, the Audit and Risk Committee must count at least three Supervisory Board Members, of which at least one is an Independent Member. The Audit and Risk Committee of Euronav currently counts three Supervisory Board members, which are all Independent Members.# 3.1. Audit and Risk Committee

As of 31 December 2020, the composition of the Audit and Risk Committee was as follows:

Name	End term of office	Independent	Member
Anne-Hélène Monsellato	2022	x	(Chair) 1
Carl Steen	2022	x
Anita Odedra	2021	x

Name	Type of mandate	Meetings attended
Anne-Hélène Monsellato	Independent Member	9 out of 9
Carl Steen	Independent Member	9 out of 9
Anita Odedra	Independent Member	9 out of 9

1 Independent Supervisory Board Member and expert in accounting and audit related matters (see biography) in accordance with Article 3:6 paragraph 1, °9 of the Belgian Code of Companies and Associations

Powers

The Audit and Risk Committee handles a wide range of financial reporting, controlling and risk management matters and is responsible for the appointment, the compensation and the oversight of the independent auditor. Its main responsibilities and functions are described in the Corporate Governance Charter. The Audit and Risk Committee reviews its terms of reference periodically and where changes are useful or required, makes recommendations to the Supervisory Board with the aim of ensuring the composition, responsibilities and powers of the Committee comply with applicable laws and regulations.

Activity report 2020

In 2020 the Audit and Risk Committee convened nine times. Due to COVID-19 measures and related travel restrictions, the Committee held all meetings via video conference or conference calls. The attendance rate of the members was as follows:

• ESG and Sustainability matters, including conversion of the ESG & Climate Committee into the Sustainability Committee, developments regarding alternative fuels, propulsion methods and ESG related regulatory developments;
• Fleet management strategy and implementation, including sales and purchases of vessels;
• Overseeing the purchase of four VLCC resale contracts and a ten year extension to existing FSO contract;
• (Re-)financing of existing as well as newly acquired vessels;
• Corporate governance matters, including adoption and implementation of the new Corporate Governance Code 2020 and a general review of company policies;
• Risk management, including third party risk management policy and processes;
• Health, Safety, Quality and Environment (HSQE) matters, with particular focus on safety and wellbeing of seafarers in spite of crew rotation complexities due to the COVID-19 pandemic.

Procedure for conflicts of interest

The procedure for conflicts of interest within the Supervisory Board is set out in the CCA and in the Company’s Corporate Governance Charter. In the course of 2020, no decision taken by the Supervisory Board required the application of the conflict of interest procedure as set out in provision 7:115 of the CCA (former Art. 523 BCC).

40 Annual report 2020

During these meetings, the key elements discussed within the Audit and Risk Committee included financial statements, impairment methodology, assumptions and depreciations, fuel inventory valuation, external and internal audit reports, quality of the external audit process, external audit approach and independence and external auditor renewal, the internal audit function, old and new financing, LIBOR transition, ESEF XBRL implementation, accounting policies, matters related to section 302 and 404 of the Sarbanes-Oxley Act and the effectiveness of the internal control over financial reporting, third party risk management policy and procedures, the Belgian annual report, the annual report on Form 20-F, certain company policies, GDPR implementation and monitoring, cybersecurity, tax matters, risk management process and framework and the risk register, whistleblowing and debt covenants.

3.2. Remuneration Committee

Composition

As of 31 December 2020, the Remuneration Committee of Euronav counted three Supervisory Board members, two of which are Independent Members. In this respect, Euronav is in compliance with Article 7:120 of the CCA and Article 4.3 of the Belgian Corporate Governance Code 2020, pursuant to which a Remuneration Committee should comprise at least three members, a majority being Independent Members.

As of 31 December 2020, the Remuneration Committee was composed as follows:

Name	End term of office	Independent	members
Grace Reksten Skaugen	2022	x	(Chair)
Ludovic Saverys	2021
Carl Trowell	2021	x

Name	Type of mandate	Meetings attended
Grace Reksten Skaugen	Independent member	4 out of 4
Ludovic Saverys	Member	4 out of 4
Carl Trowell	Independent member	4 out of 4

Powers

The Remuneration Committee has various advisory responsibilities related to the remuneration policy of members of the Supervisory Board, members of the Management Board and employees in general. The Corporate Governance Charter contains a detailed list of the powers and responsibilities of the Remuneration Committee. The Remuneration Committee makes recommendations to the Supervisory Board related to the remuneration of the Supervisory Board members and Management Board members, including variable remuneration, incentives, bonuses etc. in line with suitable industry benchmarks. The Remuneration Committee reviews its terms of reference periodically and where changes are useful or required, makes recommendations to the Supervisory Board with the aim of ensuring the composition, responsibilities and the powers of the Committee comply with applicable laws and regulations.

Activity report 2020

In 2020 the Remuneration Committee met four times. The attendance rate of the members was as listed hereafter:

During these meetings the key elements discussed within the Remuneration Committee included the remuneration report in the annual report, the remuneration of the Supervisory Board Members and members of the Management Board, the set-up of a long-term incentive plan, the KPIs for the members of the Management Board, implementation of the Shareholders Rights Directive II and the annual bonus for the members of the Management Board and employees.

3.3. Corporate Governance and Nomination Committee

Composition

On 31 December 2020, the Corporate Governance and Nomination Committee of Euronav counted three Supervisory Board members, all of which are Independent Members. In this respect, Euronav is in compliance with provision 4.19 of the Belgian Corporate Governance Code of 2020, pursuant to which a Nomination Committee should comprise a majority of Independent Members. The composition of the Committee was further determined taking into account members’ expertise in this area and their availability, given other Committee memberships.

As of 31 December 2020, the Corporate Governance and Nomination Committee was composed as follows:

Name	End term of office	Independent	Member
Carl Trowell	2021	x	(Chair)
Carl Steen	2022	x
Grace Reksten Skaugen	2022	x

Name	Type of mandate	Meetings attended
Carl Trowell	Independent member	4 out of 4
Grace Reksten Skaugen	Independent member	4 out of 4
Carl Steen	Independent member	4 out of 4

Powers

The Corporate Governance and Nomination Committee’s role is to assist and advise the Supervisory Board on all matters related to the composition of the Supervisory Board and its Committees as well as the composition of the Company’s Management Board, the methods and criteria for appointing and recruiting members of the Supervisory Board or the Management Board, evaluation of the performance of the Supervisory Board, its Committees and the Management Board, and in any other matters relating to corporate governance. The Corporate Governance Charter contains a detailed list of the powers and responsibilities of the Corporate Governance and Nomination Committee.

Activity report 2020

In 2020 the Corporate Governance and Nomination Committee met four times. Due to COVID-19 measures and related travel restrictions, the Committee held all meetings via video conference. The attendance rate of the members was as follows:

During these meetings the key elements discussed within the Corporate Governance and Nomination Committee included the composition of the Supervisory Board and its Committees, including gender diversity considerations, U.S. and Belgian law and Corporate Governance requirements, the adoption of the new Corporate Governance Code 2020 and alignment of the Corporate Governance Charter, the assessment of the Supervisory Board and its Committees, succession planning, the Supervisory Board education and leadership development as well as governance structure.

Director's report 41

3.4. Sustainability Committee

Composition

As of 31 December 2020, the Sustainability Committee of Euronav counted 7 members: three Supervisory Board members, two of which are Independent, and four members of the Management Board, including the CEO as Chairman of the Committee. The composition of the Committee is determined taking into account members’ expertise given other Committee memberships.

As of 31 December 2020, the Sustainability Committee is composed as follows:

Name	End term of office	Independent	Member
Hugo De Stoop	n/a		2 (Chairman)
Ludovic Saverys	2021
Anita Odedra¹	2021	x
Grace Reksten Skaugen	2022	x
Egied Verbeeck	n/a
Brian Gallagher	n/a
Stamatis Bourboulis	n/a

¹ Ms. Anita Odedra was appointed as a Member of the Sustainability Committee on 1 October 2020.
² Mr. Hugo De Stoop was appointed as a Member of the Sustainability Committee on 1 October 2020, and succeeded Mr. Egied Verbeeck as Chairman of the Committee.

Powers

The Committee (which until November 2020 was named ESG & Climate Committee) is an advisory body to the Supervisory Board. The main role of the Committee consists of assisting and advising the Supervisory Board to monitor the performance, as well as to determine the key risks and opportunities that the Company faces in relation to environmental, social and climate matters. In this respect, the Committee oversees the Company’s conduct and performance on sustainability matters as well as its reporting thereon.# Annual Report 2020

4. Evaluation of the Supervisory Board and its committees

The main features of the process for the evaluation of the Supervisory Board, its Committees and the Individual Members are described in Euronav’s Corporate Governance Charter. In 2020 an in-house self-assessment evaluation of the Supervisory Board and its committees was conducted by the Chairman of the Corporate Governance and Nomination Committee by means of questionnaires. The members were asked to reflect on the performance of individual Supervisory Board members, the fulfilment of the Supervisory Board’s key responsibilities, quality of the relationship between the Supervisory Board and Management Board, the effectiveness of the Supervisory Board processes, meetings and the Supervisory Board structure. The outcome was overall satisfactory.

5. Management Board Composition

During 2020, and in application of Article 7:104 of the Belgian Code of Companies and Associations, the operational management of the Company was entrusted to the Management Board, chaired by the CEO. The members of the Management Board are appointed by the Supervisory Board upon recommendation of the the Corporate Governance and Nomination Committee and in consultation with the CEO, taking into account the need for a balanced Management Board.

As of 31 December 2020, the Management Board was composed as follows:

Name	Title
Hugo De Stoop¹	Chief Executive Officer
Lieve Logghe²	Chief Financial Officer
Alex Staring³	Chief Operating Officer
Egied Verbeeck⁴	General Counsel
Stamatis Bourboulis	General Manager Euronav Ship Management (Hellas) Ltd.
Brian Gallagher	Head of Investor Relations, Research & Communications

¹ As permanent representative of Hecho BV.
² As permanent representative of TINCC BV.
³ As permanent representative of AST Projects BV.
⁴ As permanent representative of Echinus BV.

Activity report 2020

In 2020, the Sustainability Committee met four times. Due to COVID measures and related travel restrictions, the Committee held one physical meeting and three meetings through video conference. The attendance rate of the members was as follows:

Name	Type of mandate	Meetings attended
Ludovic Saverys	Supervisory Board Member	4 out of 4
Anita Odedra¹	Supervisory Board Member	2 out of 2
Grace Reksten Skaugen	Supervisory Board Member	4 out of 4
Hugo De Stoop²	Management Board Member	2 out of 2
Egied Verbeeck	Management Board member	4 out of 4
Stamatis Bourboulis	Management Board member	4 out of 4
Brian Gallagher	Management Board member	4 out of 4

¹ Ms. Anita Odedra was appointed as a Member of the Sustainability Committee on 1 October 2020.
² Mr. Hugo De Stoop was appointed as a Member of the Sustainability Committee on 1 October 2020, and succeeded Mr. Egied Verbeeck as Chairman of the Committee.

During the meetings, the Committee took stock of existing ESG initiatives within Euronav and discussed the Sustainability Chapter in the Annual report 2019 and the ESG focus for 2020, monitored ESG developments at the level of the IMO and the European Union, oversaw the CDP scoring obtained by Euronav during 2020 and discussed ESG and climate change risks as well as technical developments with regard to decarbonisation and alternative fuels and methods of propulsion.

Powers

The Management Board has the power to carry out all acts necessary or useful to the realisation of the Company's objectives, with the exception of those reserved by law to the Supervisory Board or the general shareholders’ meeting. Accordingly, the Management Board is exclusively empowered for the operational functioning of the Company and has all residual powers. The powers of the Management Board are outlined in article 7:110 of the CCA.

Procedure for conflicts of interest

The procedure for conflicts of interest within the Management Board is set out in article 7:117, §1 of the CCA and in the Company’s Corporate Governance Charter. In the course of 2020, no decision taken by the Management Board required the application of the conflict of interest procedure.

Director's report 43

6. Remuneration report

The remuneration report describes the remuneration of the Euronav Management Board members and how executive compensation levels are set. The Remuneration Committee (hereinafter “RemCo”) oversees the executive compensation policies and plans.

6.1. Euronav remuneration policy

6.1.1. Objectives

The purpose of the Euronav remuneration policy (hereinafter referred to as ‘this Policy’) is to define, implement and monitor an overall group remuneration philosophy and framework, in line with group and local regulatory requirements. More specifically, the Policy is intended to:

• Reward fairly and competitively, ensuring the organisation’s ability to attract, motivate and retain highly skilled talent in an international marketplace by providing them with a balanced and competitive remuneration package;
• Promote accountability through the achievement of demanding performance targets and long-term sustainable growth, coherent with Euronav’s values, identity and culture;
• Differentiate reward by performance and recognise sustained (over)achievement of performance against pre-agreed, objective goals at the corporate, operating, company and individual level;
• Pursue long-term value creation and alignment with the strategy, purpose and core values of Euronav, taking into consideration the interests of all stakeholders;
• Align remuneration practices while respecting local (country) market practice and regulation;
• Follow sound principles of corporate governance, of responsible business conduct and comply with all legal requirements;
• Observe principles of balanced remuneration practice that contribute to sound risk management and avoid risk-taking that exceeds the risk tolerance limits of Euronav.

6.1.2. Legal framework

The Policy is drafted in compliance with the requirements for listed companies such as:

• The Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement (so-called Shareholders’ Rights Directive II, or Say on pay Directive);
• The Belgian Companies and Associations Code (the Act of 23 March 2019 introducing the Companies and Associations Code);
• The Belgian Corporate Governance Code of 2020 (within the meaning of Article 3:6(2) of the Companies and Associations Code by the Royal Decree of 12 May 2019).

6.1.3. Scope

This Policy is established, implemented, and maintained in line with the Euronav business and risk management strategy, with the company objectives and the long-term interests and performance of Euronav. It aims to encourage responsible business conduct, fair treatment, and to avoid conflict of interest in the relationships with internal and external stakeholders. This Policy consists of an overall framework applicable to all staff members of Euronav NV (further referred to as Euronav) and its subsidiaries. It contains specific arrangements for the Members of the Supervisory Board and the Members of the Management Board.

6.1.4. Governance

1. General
   The general principles set out in this Policy are drawn up by the Supervisory Board, which assumes the ultimate responsibility for this Policy and shall ensure that it is applied properly. The Supervisory Board submits this Policy to the General Shareholders’ meeting to enable the Shareholders to vote on it for approval. Euronav shall take the necessary steps to address concerns in case of non- approval, and consider adapting it. The remuneration policy shall be submitted to a vote by the General Meeting at every material change, and in any case at least every four years. The Policy is reviewed annually to ensure that the internal control systems and mechanisms and other arrangements are effective and that its principles are appropriate and consistent with the objectives defined in article 1 of this Policy. This assessment will be carried out, under the supervision of the Supervisory Board, upon recommendation of the Remuneration Committee and Human Resources. At the advice of the Remuneration Committee the Supervisory Board may deviate from any items of this policy under exceptional circumstances (i.e. circumstances in which it is necessary to deviate from the remuneration policy to protect the long-term interests and sustainability of the company as a whole or to guarantee its viability) on the understanding that 44 Annual report 2020 any such deviation shall be temporary and shall only last until a new remuneration policy has been established. Any deviation from this policy will be reported on in the remuneration report.

2. Bodies and functions implied regarding the remuneration
   The following bodies or functions are involved in the definition, implementation and monitoring:

   (a) The Supervisory Board
   The Supervisory Board determines the general principles of the remuneration policy and the specific principles, upon recommendation of the Remuneration Committee and Human Resources. It decides on the remuneration of the members of the Management Board based on input and recommendations provided by the Remuneration Committee.

   (b) The Remuneration Committee
   The RemCo advises the Supervisory Board on the development, the implementation and the continuous assessment of the remuneration policy to be in alignment with the objectives defined in Article 1 of this Policy. It advises in all matters relating to the remuneration of the Supervisory Board members, the Management Board members and other identified staff, ensuring that all legal and regulatory disclosure requirements are fulfilled.# Director's report 45

3. General principles of the Euronav remuneration policy

1. General Principles

This Policy will be applied fairly, ensuring that equal opportunities are given to all employees regardless of age, gender, race, beliefs, (dis)ability or any other difference.

Euronav has a Performance Management system which provides for:

• The setting of annual business targets;
• The setting of annual individual targets agreed upon between the individual and her/his line manager;
• An annual appraisal of job fulfilment, targets and values.

Severance payments are based on contractual terms and conditions and cannot reward failure. Any substantive structural changes of the remuneration structure shall be subject to a formal assessment by the Chief People Officer, prior to being presented to the Management Board, RemCo or Supervisory Board.

2. Euronav Remuneration Structure

Remuneration shall include an adequate fixed (base salary + benefits) component and a Short-Term Incentive (STI). The fixed component of the remuneration has to represent a sufficiently high proportion of the total remuneration to avoid the staff member being overly dependent on the variable components and to allow the company to operate a fully flexible STI policy, including the possibility of paying no variable component.

a. Fixed remuneration

Fixed remuneration consists of a base compensation and fringe benefits and is set on an individual basis with regards to the market salary of the position, the relevant professional experience and organisational responsibility, as set out in the job description. The determination and evolution of the base remuneration is based on an objective categorising of the function according to a validated framework of an external provider, defined at country level in accordance with local market practice. The target salary will be positioned on the median of the chosen and predefined market benchmark. Exceptions to the median positioning can be made for specific functions or in specific market conditions ( e.g. shortage of profiles, retention of key members). Fringe benefits include health insurance plans, death and disability coverage and other benefits. These benefits are developed according local regulation and local market practice.

b. Variable remuneration

Variable remuneration consists of a one-year variable remuneration, a Short-Term Incentive (STI). The STI is based on the achievement of relevant, predefined and clearly defined SMART Key Performance Indicators (KPI’s) fixed on different business levels, observing the following principles:

• The choice of the KPI’s and the determination of the targets has to be in line with the overall business strategy, values and long-term interests of Euronav;
• The calculated variable income is based on the individual performance compared with up-front set objectives and the business performance;
• The assessment of the achievement of the business and individual targets should be clear, transparent and fair, and contribute to the overall achievement of the strategic and sustainability ambitions of the company.

The grant of an STI, even during a certain period or multiple periods, consecutive or not, shall not create any acquired rights to an equivalent amount of STI for the future. Variable remuneration shall be based on the beneficiary’s actual working hours. Hence, if the employee has been absent from work or worked part-time during the relevant performance year, the variable remuneration will be adapted accordingly (pro-rata). The variable remuneration can be partly deferred. As a general principle, the variable remuneration will only be due and paid if the beneficiary is still actively in service of the Company on the payment date and has not resigned or been fired. In case of termination prior to the end of the performance year, the variable remuneration is forfeited.

Annual report 2020 46

6.1.5. The remuneration of the Board members

1. Members of the Supervisory Board

The amount and structure of the remuneration of Supervisory Board members is submitted to approval at the General Meeting of Shareholders by the Supervisory Board, based on recommendations of the RemCo and taking into account the Members’ general and specific responsibilities and per general market principle. Supervisory Board members receive a fixed fee and an attendance fee per Board and Committee meeting attended. The table below gives an overview of the fixed fees and attendance fees applicable as per decision of the AGM of May 2020:

	Fixed fee	Attendance fee
	Chair	Member
Cap
Supervisory Board meeting	€ 160,000	€ 60,000
€ 40,000 per year
Audit and Risk Committee	€ 40,000	€ 20,000
€ 20,000 per year
Remuneration Committee	€ 7,500	€ 5,000
€ 20,000 per year
Corporate Governance and Nomination Committee	€ 7,500	€ 5,000
€ 20,000 per year
Sustainability Committee	€ 7,500	€ 5,000
€ 20,000 per year
	Chair	Member
Supervisory Board meeting	€ 10,000	€ 10,000
Audit and Risk Committee	€ 5,000	€ 5,000
Remuneration Committee	€ 5,000	€ 5,000
Corporate Governance and Nomination Committee	€ 5,000	€ 5,000
Sustainability Committee	€ 5,000	€ 5,000

Supervisory Board members do not receive performance related remuneration, such as bonuses or remuneration related shares or share options, nor fringe benefits or pension plan benefits.

2. Members of the Management Board

The remuneration of the Management Board members is subject to the principles laid down in this Policy, following the same framework as the wider employees population with specific stipulations for the following parts:

Fixed remuneration

• Management Board members working under a consultancy agreement do not participate in Euronav’s collective pension scheme, nor are they entitled to customary fringe benefits as this has been taken into account and integrated in the fixed salary;
• The size of the total remuneration is reviewed every three years, based on an objective predefined market benchmark done by an external provider. After reference to the detailed benchmark data, the remuneration awarded is
• then based on the experience of the post holders, required competencies and responsibilities of the position;
• No fixed annual remuneration or attendance fees of any kind will be due to Management Board members for attending Board or Committee meetings.

Variable remuneration

Variable remuneration consist of a Short-Term Incentive Plan (STIP) and a Long-Term Incentive Plan (LTIP). As a general principle, variable remuneration will only be due and paid if the Management Board member is still actively in service of the Company on the payment date and has not resigned. In relation to variable remuneration for all members of the Management Board, the Company has the right to claim the variable remuneration back in case of incorrect financial statements or fraud, as provided under civil and Company law provisions.

Director's report 47

The Short-Term Incentive Plan (STIP)

The objective of the STIP is to ensure that the members of the Management Board prioritise defined short-term operational objectives leading to long-term value creation. The short-term incentive consists of a (potential) cash bonus payment and is determined by the actual performance in relation to pre-set targets. The financial criteria for the STIP include financial targets for:

• Company profits, representing 40% of the STIP;
• Opex and Overhead performance, corresponding to 30% of the STIP.

The performance between pre-defined thresholds will be measured and awarded on the basis of a linear scale. The non-financial criteria on which each Management Board member is evaluated includes:

• The achievement of the 6 predefined HSQE KPI’s, worth 15% of the STIP;
• The achievement of individual objectives, representing 15% of the STIP.

The system of measurement depends on the KPI and is either binary or on target deviation. If the 4 targets are reached, this will potentially result in a bonus payment ranging from 30% to 100% of the base salary. At year-end all members of the Management Board need to present a self-assessment of their performance. This self-assessment will be reviewed by and discussed with the CEO. The results of this self-assessment are submitted to the RemCo for recommendations to the Supervisory Board, as part of the bonus consideration. The Supervisory Board retains discretion over and above the set criteria to adjust upwards or downwards the STIP award, if the calculated STIP does not adequately reflect the Company’s results or the individual performance. The discretionary add-on that maty be exercised is capped to never exceed 100% of the gross annual earnings of the Management Board member. Consequently, the total STIP awarded can never exceed 200% of the gross annual earnings of the Management Board member.# The Long-Term Incentive Plan (LTIP)

The LTIP is designed to drive long-term performance by realising the Company's long-term operational objectives, to support retention, to further strengthen the alignment with shareholders’ interests and the focus on sustainability and long-term value creation, in accordance with the overall Euronav strategy.

Under the LTIP the Management Board members are eligible to annual awards of performance shares to be awarded upon meeting a certain performance threshold as described here-below. The measurement is done over a three year period, the vesting occurs at the end of the 3-year cycle. The Supervisory Board will confirm annually the implementation of a new LTIP. The maximum value at grant is set at 100% of the fixed base salary for the CEO and ranging from 75 to 30% of absolute base salary for the other Management Board members.

The vesting is subject for:

• 75% to a relative Total Shareholder Return (TSR) performance measurement compared to a peer group over a three year period. Each yearly measurement to be worth 1/3rd of 75% of the award;
• 25% to an absolute TSR of the Company’s Shares measured each year for 1/3rd of 25% of the award.

The shares vested will be finally acquired by the beneficiary as of the third anniversary.

The following companies were selected to constitute the peer group:

• Frontline US (NYSE: FRO);
• Teekay Tankers (NYSE: TNK);
• DHT (NYSE: DHT);
• International Seaways (NYSE: INSW);
• Nordic American Tankers (NYSE: NAT).

The combined use of absolute and relative TSR ensures a solid contribution to the company’s long-term interests and sustainability. The absolute TSR as criteria reinforces the importance of earnings, which are expected to have a direct relationship to the Company's share price. The relative TSR as criteria encourages delivery of a total shareholder return in a cyclical industry that is superior to the Company’s market peers.

Holding and share ownership requirements

Members of the Management Board are subject to a shareholding requirement of 2 years of gross base salary for the CEO, and 1 year of gross base salary for the CFO. For other members this requirement applies with a value of 6 months annual base salary. The required shareholding may be build up in five years’ time. The valuation of the requirement will happen yearly on 31 December.

Contractual terms

The members of the Management Board have entered into consultancy agreements with Euronav, and the terms and conditions are aligned with the provisions of The Corporate Governance Code of 2020. One exception applies for the General Manager ESMH who remained under an employee contract, taking into account his retirement in 2023.

48 Annual report 2020 

6.2. Remuneration report

6.2.1. Introduction

The remuneration of the Management Board members is subject to the principles laid down in the remuneration policy. (see above)

The executive remuneration consists of a fixed and variable (short-term incentive plan) remuneration as well as long-term incentive plans. The fixed and variable remuneration in 2020 of the Management Board members is reflected in the table below.

6.2.2. Total remuneration

The remuneration in 2020 of the members of the Supervisory Board is reflected in the table below:

Duration and notice period

The consultancy agreements are contracts with an open end and can be terminated by both parties at a notice period of:

Executive Member	Notice period	Change of control
CEO	12 months	18 months
CFO	12 months	12 months
COO	12 months	18 months
General Counsel	12 months	18 months
Head of Investor Relations, Research and Communications	6 months	12 months

Change of control arrangements are based on a ‘double -trigger’ structure. This means that both a specified change of control event and a termination of the Management Board member’s employment must take place for any change of control based severance payment to materialise.

Compensatory Awards

The RemCo has the flexibility to make compensatory awards to new Management Board members, to compensate the Management Board member for benefits lost as a result of joining Euronav. These awards will consider the value of the forfeited awards at the time of resignation and will be in a similar form as the awards which are being lost.

Name	Fixed fee	Attendance fee	Board Audit and Risk Committee	Attendance fee Remuneration Committee	Attendance fee Corporate Governance and Nomination Committee	Attendance fee Sustainability Committee	Total
Carl Steen	€ 160,000	€ 40,000	€ 20,000	€ 20,000	€ 20,000	€ 20,000	€ 280,000
Anne-Hélène monsellato	€ 60,000	€ 40,000	€ 40,000	€ 5,000	€ 20,000	€ 5,000	€ 170,000
Ludovic Saverys	€ 60,000	€ 40,000	€ 0	€ 20,000	€ 20,000	€ 5,000	€ 145,000
Grace Reksten Skaugen	€ 60,000	€ 40,000	€ 0	€ 20,000	€ 20,000	€ 5,000	€ 145,000
Anita Odedra	€ 60,000	€ 30,000	€ 20,000	€ 17,500	€ 17,500	€ 2,500	€ 147,500
Carl Trowell	€ 60,000	€ 40,000	€ 0	€ 17,500	€ 17,500	€ 5,000	€ 150,000
Total	€ 460,000	€ 230,000	€ 80,000	€ 152,500	€ 152,500	€ 37,500	€ 1,047,500

Director's report 49

Attendance fee Remuneration Committee	Attendance fee Corporate Governance and Nomination Committee	Attendance fee Sustainability Committee	Total
€ 5,000	€ 20,000	€ 5,000	€ 280,000
€ 5,000	€ 20,000	€ 5,000	€ 170,000
€ 5,000	€ 20,000	€ 5,000	€ 145,000
€ 5,000	€ 20,000	€ 5,000	€ 145,000
€ 7,500	€ 20,000	€ 5,000	€ 147,500
€ 7,500	€ 20,000	€ 5,000	€ 150,000
€ 17,500	€ 60,000	€ 17,500	€ 1,047,500

50 Annual report 2020 

The Supervisory Board, following a recommendation by the Corporate Governance and Nomination Committee, decided at this stage not to comply with Clause 7.6 of the Belgian Corporate Governance Code 2020 with regard to share remuneration for Supervisory Board members, taking into account several factors including the cyclicality of the company’s business and share price which does not match well with the relevant holding requirements, the risk of debate as to potential conflicts of interest, adversely impacting swift decision making, logical consistencies with Euronav’s development to strong independent board composition and complicated tax ramifications and practicalities related to the international composition of the Supervisory Board.

The fixed and variable remuneration in 2020 of the Management Board members is reflected in the table below.

Table 1a: Remuneration of Management Board Members for the previous financial year

Taking into account the fact that the Management Board Members below have entered into a consultancy agreement as of the reported financial year, the below remuneration of 2019 has been used to calculate their actual consultancy remuneration.

Name	Position	Fixed remuneration	One-year variable remuneration (1)	Base Salary	Director Fees (2)	Fringe benefits
De Stoop Hugo	CEO	€ 211,813	€ 292,000	€ 44,437	€ 325,000
Verbeeck Egied	General Counsel	€ 146,800	€ 180,000	€ 39,146	€ 188,500
Gallagher Brian	Investor Relations Manager	£ 190,000	£ 57,238
Alex Staring	COO	€ 201,096	€ 295,000	€ 22,131	€ 227,950

(1) only takes into account the STIP, for the LTIP please refer to table 3
(2) Director fees related to wholly owned subsidiaries of Euronav NV

Table 1b: Remuneration of Management Board Members for the reported financial year

Name	Position	Fixed remuneration	One-year variable remuneration (1)	Base Remuneration	Director Fees	Fringe benefits
Hugo De Stoop, as permanent representative of Hecho BV	CEO	€ 314,496	€ 292,000	€ 17,082	€ 370.000
Alex Staring, as permanent representative of AST Projects BV	COO	€ 255,732	€ 295,000	€ 0	€ € 260.000
Egied Verbeeck, as permanent representative of Echinus BV	General Counsel	€ 219,960	€ 180.000	€ 17,082	€ 250.000
Lieve Logghe, as permanent representative of TINCC BV	CFO	€ 335,000	€ 90.000	€ 0	€ 280.000
Brian Gallagher, as permanent representative of BG-IR Ltd.	Investor Relations Manager	£ 209,000	€ 0	€ 0	£ 80.000
Bourboulis Stamatis	General Manager Hellas	€ 365,147	€ 0	€ 9,690	€ 80.000

(1) only takes into account the STIP, for the LTIP please refer to table 3

Director's report 51

Extra ordinary items	Pension	Total Remuneration	Proportion of fixed remuneration	Proportion of variable remuneration
€ 22,374		€ 895,624	63,71%	36,29%
€ 14,433		€ 568,879	66,86%	33,14%
£ 19,000		£ 266,238	78,50%	21,50%
€ 32,507		€ 778,684	70,73%	29,27%

Extra ordinary items	Pension	Total Remuneration	Proportion of fixed remuneration	Proportion of variable remuneration
		€ 993,578	62,76%	37,24%
		€ 810,732	67,93%	32,07%
		€ 667,042	62,52%	37,48%
€142,800		€ 847,800	50,13%	49,87%
		£ 289,000	72,32%	27,68%
€ 18,257		€ 473,094	83,09%	16,91%

52 Annual report 2020 

6.2.3. Short-Term Incentive Plan

The short-term incentive plan contributes to long-term value creation of the company, information on how the performance criteria are applied are described hereafter.

Name of Director	Position	Description of the performance criteria and type of the applicable remuneration	Relative weighting of the performance criteria	Information on Performance targets
				a) Measured performance and b) actual award/remuneration outcome	a) Minimum target/treshold permance and b) corresponding award	a)Maximum target/treshold permance and b)corresponding award
Hugo De Stoop, as permanent representative of Hecho BV	CEO	w Net profit achievement	40%	a) US $ 50m a) k$ 472.771 b) 10%	a) US $ 200m b) 40%	a) € 200.000 b) 40%
		Opex and Overhead performance	30%	a) 5% overspent on budget a) 7.5% overspent on OPEX budget, on budget for G&A b) 7.5%	a) 5% better than budget b) 30%	a) € 45.000 b) 30%
		Health, safety, quality and environmental control	15%	a) achievement of 1 KPI a) 7.5% b) depending on achievement of KPI	a) achievement of all KPI's b) 15%	a) € 37.500 b) 15%
		Achievement of personal KPI's	15%	a) achievement of 1 KPI a) 75/100 b)depending on achievement of KPI	a) achievement of all KPI's b) 15%	a) € 56.250 b) 15%
Alex Staring, as permanent representative of AST Projects BV	COO	Net profit achievement	40%	a) US $ 50m a) k$ 472.771 b) 10%	a) US $ 200m b) 40%	a) € 155.200 b) 40%
		Opex and Overhead performance	30%	a) 5% overspent on budget a) 7.5% overspent on OPEX budget, on budget for G&A b) 7.5%	a) 5% better than budget b) 30%	a) € 34.920 b) 30%
		Health, safety, quality and environmental control	15%	a) achievement of 1 KPI a)
Name of Director	Position	Description of the performance criteria and type of the applicable remuneration	Relative weighting of the performance criteria	Information on Performance targets a) Measured performance and b) actual award/remuneration outcome	a) Minimum target/treshold permance and b) corresponding award	a)Maximum target/treshold permance and b)corresponding award
-------	--------	--------	--------	--------	--------	--------
Egied Verbeeck, as permanent representative of Echinus BV	General Counsel	Net profit achievement	40%	a)US $ 50m a) US $ 200m a) k$ 472.771 b) 10%	a) 5% better than budget b) € 130.000
		Opex and Overhead performance	30%	a) 5% overspent on budget b) 30%	a) 7.5% overspent on OPEX budget, on budget for G&A b) 7.5%	a) achievement of all KPI's b) € 29.250
		Health, safety, quality and environmental control	15%	a) achievement of 1 KPI b) 15%	a) 7.5% b) depending on achievement of KPI	a) achievement of all KPI's b) € 24.375
		Achievement of personal KPI's	15%	a) achievement of 1 KPI a) 81/100 b)depending on achievement of KPI b) 15%	b) € 39.487,50
Lieve Logghe, as permenant representative of TINCC BV	CFO	Net profit achievement	40%	a) US $ 50m a) US $ 200m a) k$ 472.771 b) 10%	b) 40% b) € 130.000
		Opex and Overhead performance	30%	a) 5% overspent on budget a) 5% better than budget	a) 7.5% overspent on OPEX budget, on budget for G&A b) 7.5%	b) 30% b) € 29.250
		Health, safety, quality and environmental control	15%	a) achievement of 1 KPI a) achievement of all KPI's	a) 7.5% b) depending on achievement of KPI	b) 15% b) € 24.375
		Achievement of personal KPI's	15%	a) achievement of 1 KPI a) achievement of all KPI's a) 81/100 b)depending on achievement of KPI b) 15%	b) € 39.487,50

54
Annual report 2020 
Name of Director | Position | Description of the performance criteria and type of the applicable remuneration | Relative weighting of the performance criteria | Information on Performance targets a) Measured performance and b) actual award/remuneration outcome | a) Minimum target/treshold permance and b) corresponding award | a)Maximum target/treshold permance and b)corresponding award
------- | -------- | -------- | -------- | -------- | -------- | --------
Brian Gallagher, as permanent representative of BG-IR Ltd. | Head of IR and Communications | Net profit achievement | 40% | a) US $ 50m a) US $ 200m a) k$ 472.771 b) 10% | b) 40% b) £ 38.000 |
| | | Opex and Overhead performance | 30% | a) 5% overspent on budget a) 5% better than budget | a) 7.5% overspent on OPEX budget, on budget for G&A b) 7.5% | b) 30% b) £ 8.550
| | | Health, safety, quality and environmental control | 15% | a) achievement of 1 KPI a) achievement of all KPI's | a) 7.5% b) depending on achievement of KPI | b) 15% b) £ 7.125
| | | Achievement of personal KPI's | 15% | a) achievement of 1 KPI a) achievement of all KPI's a) 77/100 b)depending on achievement of KPI b) 15% | b) £ 10.972,50 |
Bourboulis Stamatis | General Manager | Net profit achievement | 40% | a)US$50m a) US$200m a) k$ 472.771 b) 10% | b) 40% b) € 44.040 |
| | | Opex and Overhead performance | 30% | a) 5% overspent on budget a) 5% better than budget | a) 7.5% overspent on OPEX budget, on budget for G&A b) 7.5% | b) 30% b) € 9.909
| | | Health, safety, quality and environmental control | 15% | a) achievement of 1 KPI a) achievement of all KPI's | a) 7.5% b) depending on achievement of KPI | b) 15% b) E 8.257,50
| | | Achievement of personal KPI's | 15% | a) achievement of 1 KPI a) achievement of all KPI's a) 80/100 b)depending on achievement of KPI b) 15% | b) € 13.212

55
56
Annual report 2020 
6.2.4. Share based remuneration
The outstanding long-term incentive plans are summarized in table below. The main conditions of the above mentioned plans are as follows:

Name of Director	Position	The main conditions of share plans	Specification of plan	Performance period (1)	Award date	Vesting date	End of retention period
Hugo De Stoop, as permanent representative of Hecho BV	CEO		LTIP 2016	02/02/2016- 03/02/2020	02/02/2016	03/02/2020	N/A
				LTIP 2017	09/02/2017-10/02/2021	09/02/2017	10/02/2021
				LTIP 2018	16/02/2018-17/02/2022	16/02/2018	17/02/2022
				TBIP	12/01/2019-12/01/2024	12/01/2019	12/01/2024
				LTIP 2019	01/04/2019 - 01/04/2022	01/04/2019	01/04/2022
				LTIP 2020	01/04/2020 - 01/04/2023	01/04/2020	01/04/2023
Alex Staring, as permanent representative of AST Projects BV	COO		LTIP 2016	02/02/2016- 03/02/2020	02/02/2016	03/02/2020	N/A
				LTIP 2017	09/02/2017-10/02/2021	09/02/2017	10/02/2021
				LTIP 2018	16/02/2018-17/02/2022	16/02/2018	17/02/2022
				TBIP	12/01/2019-12/01/2024	12/01/2019	12/01/2024
				LTIP 2019	01/04/2019 - 01/04/2022	01/04/2019	01/04/2022
				LTIP 2020	01/04/2020 - 01/04/2023	01/04/2020	01/04/2023

Information regarding the reported financial year	Opening balance	During the year	Closing balance
Shares held at the beginning of the year	Shares awarded a) total number granted b) value @ grant date	Shares vested a) total number vested b) value @ vest date	Shares subject to a performance condition
02/02/2016- 03/02/2020	6,909 a) 6,909 0 N/A b) € 80,308
09/02/2017-10/02/2021	13,486 a) 6,743 6,743 N/A b) € 69,559
16/02/2018-17/02/2022	37,620 a) 12,540 25,080 N/A b) € 129,965
12/01/2019-12/01/2024	300,000 a) 36,000 264,000 264,000 N/A b) $ 430,200
01/04/2019 - 01/04/2022	67,069 67,069 67,069 N/A
01/04/2020 - 01/04/2023	a) 48,856 48,856 48,856 N/A b) € 500,000
02/02/2016- 03/02/2020	2,670 a) 2,670 0 N/A b) € 31,035
09/02/2017-10/02/2021	8,372 a) 4,186 4,186 N/A b) € 43,181
16/02/2018-17/02/2022	36,480 a) 12,160 24,320 N/A b) € 126,026
12/01/2019-12/01/2024	150,000 a) 18,000 132,000 132,000 N/A b) $ 215,100
01/04/2019 - 01/04/2022	39,034 39,034 39,034 N/A
01/04/2020 - 01/04/2023	a) 28,434 28,434 28,434 N/A b) € 291,000

57
58
Annual report 2020 
Name of Director | Position | The main conditions of share plans | Specification of plan | Performance period (1) | Award date | Vesting date | End of retention period
------- | -------- | -------- | -------- | -------- | -------- | -------- | --------
Egied Verbeeck, as permanent representative of Echinus BV | General Counsel | | LTIP 2016 | 02/02/2016- 03/02/2020 | 02/02/2016 | 03/02/2020 | N/A
| | | | LTIP 2017 | 09/02/2017-10/02/2021 | 09/02/2017 | 10/02/2021 | N/A
| | | | LTIP 2018 | 16/02/2018-17/02/2022 | 16/02/2018 | 17/02/2022 | N/A
| | | | TBIP | 12/01/2019-12/01/2024 | 12/01/2019 | 12/01/2024 | N/A
| | | | LTIP 2019 | 01/04/2019 - 01/04/2022 | 01/04/2019 | 01/04/2022 | N/A
| | | | LTIP 2020 | 01/04/2020 - 01/04/2023 | 01/04/2020 | 01/04/2023 | N/A
Lieve Logghe, as permenant representative of TINCC BV | CFO | | LTIP 2020 | 01/04/2020 - 01/04/2023 | 01/04/2020 | 01/04/2023 | N/A
Brian Gallagher, as permanent representative of BG-IR Ltd. | Investor Relations Manager | | LTIP 2017 | 09/02/2017-10/02/2021 | 09/02/2017 | 10/02/2021 | N/A
| | | | LTIP 2018 | 16/02/2018-17/02/2022 | 16/02/2018 | 17/02/2022 | N/A
| | | | TBIP | 12/01/2019-12/01/2024 | 12/01/2019 | 12/01/2024 | N/A
| | | | LTIP 2019 | 01/04/2019 - 01/04/2022 | 01/04/2019 | 01/04/2022 | N/A
| | | | LTIP 2020 | 01/04/2020 - 01/04/2023 | 01/04/2020 | 01/04/2023 | N/A
Bourboulis Stamatis | General Manager Hellas | | TBIP | 12/01/2019-12/01/2024 | 12/01/2019 | 12/01/2024 | N/A
| | | | LTIP 2019 | 01/04/2019 - 01/04/2022 | 01/04/2019 | 01/04/2022 | N/A
| | | | LTIP 2020 | 01/04/2020 - 01/04/2023 | 01/04/2020 | 01/04/2023 | N/A

59
Information regarding the reported financial year | Opening balance | During the year | Closing balance |
------- | -------- | -------- | -------- |
| Shares held at the beginning of the year | Shares awarded a) total number granted b) value @ grant date | Shares vested a) total number vested b) value @ vest date | Shares subject to a performance condition | Shares awarded and unvested | Shares subject to a retention period |
| 02/02/2016- 03/02/2020 | 2,922 a) 2,922 0 N/A b) € 33,964 | | | | |
| 09/02/2017-10/02/2021 | 6,538 a) 3,269 3,269 N/A b) € 33,722 | | | | |
| 16/02/2018-17/02/2022 | 27,360 a) 9,120 18,240 N/A b) € 94,520 | | | | |
| 12/01/2019-12/01/2024 | 170,000 a) 20,400 149,600 149,600 N/A b) $ 243,780 | | | | |
| 01/04/2019 - 01/04/2022 | 21,797 21,797 21,797 N/A | | | | |
| 01/04/2020 - 01/04/2023 | a) 15,878 15,878 15,878 N/A b) € 162,500 | | | | |
| 01/04/2020 - 01/04/2023 | a) 34,199 N/A b) € 350,000 | | | | |
| 09/02/2017-10/02/2021 | 4,024 a) 2,012 2,012 N/A b) € 20,755 | | | | |
| 16/02/2018-17/02/2022 | 6,319 a) 2,106 4,213 N/A b) € 21,826 | | | | |
| 12/01/2019-12/01/2024 | 80,000 a) 9,600 70,400 70,400 N/A b) $ 114,720 | | | | |
| 01/04/2019 - 01/04/2022 | 9,677 9,677 9,677 N/A | | | | |
| 01/04/2020 - 01/04/2023 | a) 6,267 6,267 6,267 N/A b) £ 57000 | | | | |
| 09/02/2017-10/02/2021 | 50,000 a) 6,000 44,000 44,000 N/A b) $71,700 | | | | |
| 01/04/2019 - 01/04/2022 | 14,769 14,769 14,769 N/A | | | | |
| 01/04/2020 - 01/04/2023 | a) 10,758 10,758 10,758 N/A b) € 110,100 | | | | |

60
Annual report 2020 
LTIP 2015
On 20 February 2015 within the framework of a management incentive plan, the Board of Directors granted 65,433 RestrictedStock Units (RSUs) and 236,590 stock options. The exercise price of the options is EUR 10.0475.

LTIP 2016
On 2 February 2016 within the framework of a Phantom Stock Plan, the Board of Directors granted 54,616 phantom stock units. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. All of the beneficiaries have accepted the phantom stock units granted to them. The number of phantom stocks granted was calculated on the basis of a share price of EUR 10.6134 which equals the weighted average of the share price of the three days following the announcement of the preliminary full year results of 2015.

LTIP 2017
Within the framework of a Phantom Stock Plan, 66,449 phantom stock units were granted to the Executive Committee and the Investor Relations Manager on 9 February 2017. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. All of the beneficiaries have accepted the phantom stock units granted to them. The number of phantom stocks granted was calculated on the basis of a share price of EUR 7.2677 which equals the weighted average of the share price of the three days following the announcement of the preliminary full year results of 2016.# LTIP 2018
Within the framework of a Phantom Stock Plan 154,431 phantom stock units were granted to the Executive Committee and the Investor Relations Manager on 16 February 2018. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. All of the beneficiaries have accepted the phantom stock units granted to them. The number of phantom stocks granted was calculated on the basis of a share price of EUR 7.2368 which equals the weighted average of the share price of the three days following the announcement of the preliminary full year results of 2017.

Transaction Based Incentive Plan (TBIP)

The members of the Executive Committee have been granted a TBIP in the form of 1.2 million** phantom shares as per 12 January 2019. The TBIP has a duration of five years. The phantom stock awarded matures in four tranches as follows:

• First tranche of 12% vesting when the average 30 days share price reaches USD 12 (decreased with dividends paid, if any, since date of grant);
• Second tranche of 19% vesting when the average 30 days share price reaches USD 14 (decreased with dividends paid, if any, since date of grant)
• Third tranche of 25% vesting when the average 30 days share price reaches USD 16 (decreased with dividends paid, if any, since date of grant)
• Fourth tranche of 44% vesting when the average 30 days share price reaches USD 18 (decreased with dividends paid, if any, since date of grant)

** Not all of the amount is still applicable since it includes 2 participants to the plan that have left the company.

LTIP 2019

The Supervisory Board, upon recommendation of the Remuneration Committee, has determined a variable compensation structured as a LTIP Grant composed out of Restricted Share Units (RSUs). Each RSU grants the RSU Holder a conditional right to receive one (1) Share for free upon vesting of the RSU.

Maximum value at grant:
* 100% of absolute base salary for the CEO;
* Ranging from 75 to 30% of absolute base salary for the other Executive Officers;

The vesting is subject for 75% to a relative TSR (Total Shareholder Return) compared to a peer group over a three year period. Each yearly measurement to be worth 1/3rd of 75% of the award. The vesting is subject for 25% to an absolute TSR of the Company’s Shares measured each year for 1/3 of 25% of the award. The RSUs vested will be finally acquired by the beneficiary as of the third anniversary.

LTIP 2020

The Supervisory Board, upon recommendation of the Remuneration Committee, has determined a variable compensation structured as a LTIP Grant composed out of RSUs. Each RSU grants the RSU Holder a conditional right to receive one (1) Share for free upon vesting of the RSU.

Maximum value at grant:
* 100% of absolute base salary for the CEO;
* Ranging from 75 to 30% of absolute base salary for the other Executive Officers.

The vesting is subject for 75% to a relative TSR (Total Shareholder Return) compared to a peer group over a three year period. Each yearly measurement to be worth 1/3rd of 75% of the award. The vesting is subject for 25% to an absolute TSR of the Company’s Shares measured each year for 1/3 of 25% of the award. The RSUs vested will be finally acquired by the beneficiary as of the third anniversary.

6.2.5. Executive severance arrangements

No occurrence during the reported year.

Director's report

61 Annual change RFY

	Aggregate executive compensation (1)	Company's performance	Opex and Overhead performance G&A	Opex
Net profit achievement	€ 2,635,847	k$ 472,771
			M$ 52	M$ 189
Average remuneration on a full-time equivalent basis of employees (2)	€ 69,400
Ratio between highest remunerated Executive and least remunerated employee (3)	3%

(2) Situation as per December 2020, taken into account annual salaries, not including fringe benefits, not including variable remuneration.
(3) Situation as per December 2020, taken into account annual salaries, not including fringe benefits, not including STIP or LTIP

6.2.9. Information on shareholders vote

Pursuant to art. 7:149, 3rd of the Code of Companies requiring the Company to explain how the vote on the remuneration report of the most recent financial year was taken into account, we improved the transparency and the nature of our remuneration policy to make it easier for shareholders to understand how remuneration works at Euronav. Euronav strives to provide insight in the award levels, performance criteria and performance targets for the short-term incentive plan, enabling shareholders to assess the stringency of the plan and how pay-outs relate to performance. The explanations about short-term and long-term variable remuneration are more detailed than in the past. Clearly disclosing the applicable performance metrics of the STI and disclosing threshold, target and maximum award level. Regarding the LTI plans, the level of achievement of the different LTI plans as well as the companies selected to constitute the TSR peer group have also been integrated in the remuneration policy. It should be noted that a majority of shareholders voted against the Company's remuneration report at last year's annual general meeting. The biggest area of focus during last year’s vote, were the concerns with the significant increase in the former CEO's base salary, the substantial discretionary award granted to the former CEO outside the STI plan and the severance payment which was considered being in deviation of best market practices.

6.3. Remuneration of the auditor

KPMG Bedrijfsrevisoren-Réviseurs d’entreprises (KPMG) Permanent representative: Herwig Carmans For 2020, the worldwide audit and other fees in respect of services provided by the statutory auditor KPMG can be summarised as follows:

	In USD
	2020	2019
Audit services for the annual financial statements	932,112	904,965
Audit related services	74,838	70,552
Tax services	740	728
Other non-audit services	0	0
TOTAL	1,007,690	976,246

6.2.6. Use of claw-back rights

No occurrence during the reported year.

6.2.7. Derogations from the remuneration policy

No derogations from the policy have been applied during the reported year.

6.2.8. Evolution of the remuneration and of the Company’s performance

As there was no reporting obligation for previous financial years and taking into account the change of employment status of the members of the Management Board to self-employed, the information below will be submitted in the following format, showing the relevant evolution starting from next year.

Table 2: Comparative table on change of remuneration and company performance over the last 5 financial years(1)

(1) Only takes into account the STIP
The limits prescribed by Article 3:62 of the CCA were observed.

7. Internal Control & Risk Management

Internal control can be defined as a system developed and implemented by management and which contributes to managing the activities of the Company, its efficient functioning and the efficient use of its resources, appropriate to the objectives, the size and the complexity of its activities. Risk management can be defined as a structured, consistent and continuous process aimed at identifying, assessing, deciding on responses to and reporting on the opportunities and threats that may affect the achievement of the Company's objectives. Risks (as described in more detail in the ‘Risk Factors’ section in this annual report with reference also to the risk section of the US annual report on Form 20F that will be filed with the Securities and Exchange Commission by 30 April 2021 and at that time will become publicly available on the Company’s website www.euronav.com in the “Investors” section under “SEC filings”) are all compiled in the risk register and mainly relate to the following aspects:

• Strategic: capital allocation, strategic partnerships, risks relating to the TI Pool and VLCC Chartering, the joint ventures and associates, risks related to communication to stakeholders;
• Economic, including slowing economic growth, freight rate volatility, oil supply and demand, peak oil, instability of the Euro, inflation or fluctuations in interest and foreign currency exchange rates) and competitive risks (such as greater price competition);
• Operational: risks inherent in the operation of oceangoing vessels, including bunker supply and management of crew, the conversion of vessels, the operation of its FSO activities, the integration of acquired activities, the adequate protection of critical data and infrastructure from unauthorised use or theft, including cyber-criminality and the effective management of its international operations, sanctions and embargoes;
• Climate change: risks inherent with increased regulatory frameworks to reduce green house gas emissions may adversely impact our operations and markets;
• Regulations: if the Company fails to comply with laws, regulations or other requirements or is involved in legal proceedings in this regard, its operations and revenues may be adversely affected;
• Financing: the Company is subject to operational and financial restrictions in debt agreements; refinancing of loans may not always be possible;
• Counterparty creditworthiness;
• Geopolitical: terrorist attacks, political instability, piracy, civil disturbances, pandemic and regional conflicts in any particular country.

A Risk Management Charter has been created and approved by the Supervisory Board in furtherance of the Company's commitment to building a strong risk management culture. Clear roles and responsibilities have been drafted as well as risk management procedures. The risk register identifies an individual risk owner for each risk. Risk owners review and certify their risks on a quarterly basis. The results of this quarterly certification are being reported to the Audit and Risk Committee by the Chief Risk Officer who is responsible for the effective operation of the risk management framework.# Euronav

7.1. Hedging policy

Euronav may hedge part of its exposure to cover changes in interest rates on borrowings. All borrowings contracted for the financing of vessels are on the basis of a floating interest rate, increased by a margin. The Group does not hold or trade derivatives for speculative purposes. Euronav uses derivative financial instruments such as foreign exchange forward contracts, interest rate swaps, purchase of CAP options, sale of FLOOR options, currency swaps and other derivative instruments solely to manage its exposure to interest rates and foreign currency exchange rates and to achieve an appropriate mix of fixed and floating rate exposure as defined by the Group. For a more detailed position of Euronav’s financial instruments, we refer to note 19 of the Financial Statements.

7.2. Risk factors

7.2.1. Cyclical Business Risk

Due to the cyclical nature of its activities, Euronav’s operating results have experienced fluctuations on an annual or quarterly basis in the past. This will probably remain the case in the future. We are dependent on spot charters and any decrease in spot charter rates in the future may adversely affect our earnings. The fluctuations in Euronav’s operating results are due to various factors, a number of which lie outside Euronav’s control. The tanker market is historically a cyclical one. It is a market that experiences high volatility as a result of changes in supply and demand for seaborne transportation of crude oil. Firstly, the supply of tanker capacity is affected by the number of newly constructed vessels, the recycling percentage of existing tankers and the changes in applicable laws and regulations. Secondly, the demand for tankers is highly sensitive to global and regional market conditions and to crude oil production and consumption levels. The nature and timing of all these factors, some of which are of a geopolitical nature, are unpredictable, and may have a significant impact on Euronav’s activities and operating results. If we do not identify suitable tankers for acquisition or conversion, or successfully integrate any acquired tankers, we may not be able to grow or to effectively manage our growth. If we are unable to operate our vessels profitably, we may be unsuccessful in competing in the highly competitive international tanker market, which would negatively affect our financial condition and our ability to expand our business. An inability to effectively time investments in and divestment of vessels could prevent the implementation of our business strategy and negatively impact our results of operations and financial condition. A substantial portion of our revenue is derived from a limited number of customers and the loss of any of these customers could result in a significant loss of revenues and cash flow.

7.2.2. Tonnage Tax Regime

Shortly after its incorporation in 2003, Euronav applied for treatment under the Belgian tonnage tax regime. It was declared eligible for this regime by the Federal Finance Department on 23 October 2003 for a ten-year period. In line with the tonnage tax regulations, which is part of the normal corporate tax regime in Belgium, profits from the operation of seagoing vessels are determined on a lump sum basis on the 64 Annual report 2020 net registered tonnage of the particular vessels. After this first ten-year period had elapsed, the tonnage tax regime has been automatically renewed for another ten-year period. This tonnage tax replaces all factors that are normally taken into account in traditional tax calculations, such as profit or loss, operating costs, depreciation, gains and the offsetting of past losses of the revenues taxable in Belgium. Two of Euronav’s subsidiaries also applied for the Belgian tonnage tax regime as from 2016 and have obtained the authorisation for both subsidiaries in the beginning of 2016. In 2019 one of these entities has left the tonnage tax regime on a voluntary basis because it did not operate vessels anymore. In 2017 and early 2018 the Company took note of the correspondence between the Belgian authorities and the European Commission within the framework of a request for extension of the state aid to the maritime industry by Belgium. Belgium decided to adjust the tonnage tax Law which entered into force retroactively as from 1 January 2018 to comply with the recommendations from the European Commission. The changes to the tonnage tax regulations were reviewed but did or do not have any adverse effect to our existing tonnage tax regime or on the operations of the Company. Euronav is also operating vessels under Greek, French, Marshall Island and Liberian Flag for which the Company is paying the required tonnage tax in these jurisdictions.There is, however, no guarantee that the tonnage tax regime will not be reversed or that other forms of taxation will not be imposed such as, but not limited to, a carbon tax or emissions trading system in the context of the discouragement of the use of fossil fuels. To the extent such changes would be implemented on the EU level only, the global level playing field may be distorted and put the Company in a weaker competitive position compared to its non-EU peer companies.

7.2.3. Dependence on third party service providers

Euronav currently outsources to third party service providers certain management services of its fleet, including certain aspects of technical, commercial and crew management. The third-party service providers the Company has selected may not provide a standard of service comparable to that of the Company if it would directly provide such service. The Company relies on its third-party service providers to comply with applicable law, and a failure by such providers to comply with such laws may subject the Company to liability or damage its reputation and could have a material adverse effect on the Company’s reputation and business.

7.2.4. Euronav is subject to operational and financial restrictions in debt agreements

Euronav’s existing debt agreements impose operational and financial restrictions which have an impact on and in some respects limit or preclude, among other things, the possibility for Euronav and its subsidiaries of taking on additional debts, pledging securities, selling shares in subsidiaries, making certain investments, entering into mergers and acquisitions, buying and selling of vessels, or paying dividends without the lenders’ approval. Euronav’s loan agreements also stipulate a 64 Annual report 2020 Director's report 65 certain minimum ratio of market value for vessels and other securities. The financial institutions may reduce the term of the debt under such loan agreements, and seize the securities used to guarantee the loan in the event of bankruptcy, including Euronav’s failure to honour these agreements in full. Under any of these circumstances, there is no guarantee that Euronav will have enough funds or other resources to meet all its commitments.

7.2.5. Declines in charter rates, vessel values and other market deterioration could cause Euronav to incur impairment charges

In previous years Euronav carefully assessed through a detailed approach if the carrying amounts of the vessels would require an impairment. No impairment was booked so far. In 2019 we did not perform an impairment test because we concluded that there were no indicators of impairment. In 2020 however, the carrying values required a review based on changed events and circumstances, consistent with prior years. The annual impairment tests were performed for the cash-generating unit, defined consistently with prior year.The recoverable amount of those cash-generating units has been determined based on a value-in-use calculation using cash flow projections generated. This exercise is complex and requires various estimates to be made, relating to, among other things, vessel values, future freight rates, earnings from the vessels, discount rates and economic life of vessels. These assumptions are based on historical trends and/or on future expectations of expenses and potential investments pursuant to upcoming regulations, which can be difficult to predict. Specifically, in estimating future charter rates or service contract rates, management takes into consideration estimated daily rates for each asset over the estimated remaining lives. In the past, we have used a fixed cut of 10 years to define a shipping cycle. As management is assessing continuously the resilience of its projections to the business cycles that can be observed in the tanker market, it concluded that a business cycle approach provides a better long-term view of the dynamics at play in the industry. By defining a shipping cycle from peak to peak over the last 20 years and including management's expectation of the completion of the current cycle, management is better able to capture the full length of a business cycle while also giving more weight to recent and current market experience. The current cycle is forecasted based on management judgment, analyst reports, taking into considerations the length of recovery post COVID-19 and past experience. The assessment did not reveal the existence of events or conditions indicating that the carrying amounts of the cash generating units, including right of use assets, may be higher than its recoverable amount. Whilst no impairment is required this year, we cannot assure this will be also the case in the future. Any impairment charge incurred could negatively affect our financial condition, operating results and the value of our shares.

7.2.6. Euronav is subject to the risks inherent in the operation of ocean-going vessels

Euronav’s activities are subject to various risks, including extremes of weather, negligence by its employees, mechanical defects, collisions, severe damage to vessels, damage to or the loss of freight and the interruption of commercial activities due to (geo-)political circumstances and events, hostilities or strikes and pandemics. Moreover, the operation of ocean-going vessels is subject to the inherent possibility of maritime disasters such as oil spills and other environmental accidents and to the obligations arising from the ownership and management of vessels in international trade. Euronav believes that its current insurance policies are sufficient to protect it against possible accidents and that it is also adequately covered against environmental damage and pollution, as required by relevant legislation and standard practices in the sector. However, there is no guarantee that such insurance will remain available at rates which are regarded as reasonable by the Company, or that such insurance will remain sufficient to cover all losses incurred by Euronav or the cost of each compensation claim made against Euronav, or that its insurance policies will cover the loss of income resulting from a vessel becoming non-operational. Should compensation claims be made against Euronav, its vessels may be impounded or subject to other judicial procedures. Our international operations also expose us to additional costs and legal and regulatory risks, which could have a material adverse effect on our business, results of operations and financial conditions. If our vessels call at ports located in countries or territories that are subject to sanctions or embargoes imposed by the U.S. government, the European Union, the United Nations, or other governments, or carry cargo from a sanctioned origin, it could lead to monetary fines or penalties and adversely affect our reputation and the market for our ordinary shares.

7.2.7. Euronav’s activities are subject to important environmental legislation which may cause Euronav’s expenditure to increase abruptly

Euronav’s activities are subject to extensive, changing environmental legislation. In the past, Euronav has incurred significant expenses in order to comply with such legislation and regulations, including spending on changes to vessels and to operational procedures. It expects such expenditure to remain high. Additional laws and regulations could be introduced restricting Euronav’s ability to pursue its activities, or causing its costs to increase substantially. That could have a negative impact on Euronav’s activities, financial situation and operating results. Increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our Environmental, Social and Governance (‘ESG’) policies may impose additional costs on us or expose us to additional risks.

7.2.8. The prospects for a particular period may not be attained during that period as a result of unpredictable economic cycles

Although various analysts provide forecasts regarding the 66 Annual report 2020  development of the markets, these do not always precisely reflect future freight rates, which tend to be unpredictable. The forecasting of freight rates is difficult due to the uncertain prospects of the global economy. Euronav may need additional capital in the future and may prove unable to find suitable funds on acceptable terms. Euronav has made considerable investments in recent years. Although most of these projects are satisfactorily financed, the risk exists that the financial markets will be unable to provide sufficient funds to continue supporting such projects.

7.2.9. Euronav’s activities are subject to fluctuations in exchange rates and interest rates, causing pronounced variations in its net results

Euronav’s income is mainly expressed in USD although some operating costs are expressed in other currencies, in particular the Euro. This partial mismatch between operating income and expenses could lead to fluctuations in Euronav’s net results. We are exposed to volatility in the London Interbank Offered Rate or LIBOR, and we intend to selectively enter into derivative contracts, which can result in higher than market interest rates and charges against our income. If volatility in LIBOR occurs, it could affect our profitability, earnings and cash flow.

7.2.10. Euronav is subject to risks inherent in conversion of vessels into Floating, Storage and Offloading services operation (FSO) units and the operation of its FSO activities

Euronav’s FSO activities are subject to various risks, including delays, cost overruns, negligence of its employees, mechanical defects in its machinery, collisions, severe damage to vessels, damage to or loss of freight, piracy, war, regional conflicts or strikes. Delays in delivering an FSO vessel under service contract to its end-user, can cause contracts to be amended and/or cancelled. Moreover, the operation of FSO vessels is subject to the inherent possibility of maritime disasters such as oil spills and other environmental accidents and to the obligations arising from the ownership and management of vessels in international trade. Euronav has established sufficient current insurance against possible accidents and environmental damage and pollution as requested by relevant legislation and standard practices in the sector. However, there is no guarantee that such insurance will remain available at rates which are regarded as reasonable by Euronav or that such insurance will remain sufficient to cover all losses incurred or the cost of each compensation claim made against Euronav, or that its insurance policies will cover the loss of income resulting from a vessel becoming non-operational. Should compensation claims be made against Euronav, its vessels may be impounded or subject to other judicial procedures.

7.2.11. Refinancing of loans may not always be possible

There is no assurance that Euronav will be able to repay or refinance its facilities on acceptable terms or at all as they become due upon their respective maturity dates. Financial markets and debt markets are not always open, independently of the situation of Euronav, and the lack of debt finance may adversely affect Euronav’s operations business and results of operations.

7.2.12. Increased risk and the monitoring applied with regard to the counterparty risk

Euronav has established a detailed counterparty risk policy to set forth processes for avoiding, monitoring, mitigating and effectively managing this risk exposure:
* Euronav has implemented a credit limit system to mitigate the risk of default of its counterparties. The limits restrict the exposure Euronav may have on any single counterparty. Counterparty limits are calculated taking into account a range of factors that govern the approval of all counterparties. The factors include an assessment of the counterparty’s financial soundness and its ratings if existing, which must be of high quality. Counterparty limits are monitored on a periodic basis;
* Next to credit risk, the reputation of the third party is assessed, based on press & media exposure, market drift, competitor positioning, market losses and their sustainability approach;
* The compliance and regulatory/legal risk of the third party based on current and prospective risk to earnings or capital arising from violations by Euronav’s counterparties of or nonconformance with, international sanction lists (OFAC, UK Bribery Act, EU Sanction List, …), laws, rules, regulations, prescribed practices, internal policies and procedures, or ethical standards.# 7.2.13. Risks relating to the TI Pool, the joint ventures and associates may adversely affect Euronav’s operations, business and results of operations

Although efforts are made to identify and manage the various potential risks within Euronav in the same way, this is not always possible or enforceable. In the case of the TI Pool, joint ventures and associates, differing views from the other partner(s) may arise, as a result of which, according to Euronav, specific treatment of the risks may be limited or even prevented. The different approaches to these risks may lead to consequences other than those which Euronav would have incurred or would have wished to incur, which may adversely affect Euronav’s operations, business and results of operations.

7.2.14. Acts of piracy on ocean-going vessels could adversely affect Euronav’s business

Acts of piracy have historically affected ocean-going vessels trading in regions of the world such as the South China Sea, the Indian Ocean, the Gulf of Aden off the coast of Somalia and in particular the Gulf of Guinea region off Nigeria, which continues to experience increased incidents of piracy in 2020. Over the past few years, the frequency of piracy incidents in the Gulf of Aden and in the Indian Ocean has decreased significantly, whereas there has been an increase in the Southeast Asia, as well as in the Gulf of Guinea where the various active pirate groups have turned from mainly cargo theft to kidnapping of crew. If these piracy attacks occur in regions in which the Company’s vessels are deployed being characterised by insurers as ‘high risk’ areas, premiums payable for such coverage could increase significantly and in extreme circumstances, such insurance coverage may be more difficult to obtain. In addition, crew costs, as well as costs which may be incurred to the extent the Company employs on board security guards or hires in military patrol boats to escort the vessel, could increase in such circumstances. Detention as a result of an act of piracy against the Company’s vessels, or an increase in cost, or unavailability of insurance for the vessels, could have a material adverse impact on the Company’s business, results of operations, cash flows, financial condition and ability to pay dividends. In response to piracy incidents and following consultation with regulatory authorities, Euronav follows the latest version of BMP5 (Best Management Practices). This is a guide that has been produced and is updated regularly by BIMCO, ICS, IG P&I Clubs, Intertanko and OCIMF together with several other maritime industry organisations. Whilst use of armed guards has been proven to deter and prevent the hijacking of the Company’s vessels, it may also increase the risk of liability for death or injury to persons or damage to personal effects and third party property, which could adversely impact its business, results of operations, cash flows, financial condition and ability to pay dividends.

7.2.15. Euronav is subject to risks related to the adequate protection of critical data and infrastructure from unauthorised use or any other form of cybercriminality.

Euronav’s activities are subject to risk of discontinuity due to unauthorised use, theft, sabotage, viruses or any other disruptive activity (such as phishing and hacking) on the Company’s IT infrastructure which could impact the confidentiality, integrity and availability of data and/or IT systems, as well as impact on the financial result of the Company. We rely on industry accepted security and control frameworks and technology to securely maintain confidential and proprietary information and personal data held on our information systems. However, these measures and technology may not adequately prevent security breaches. In addition, the unavailability of the information systems or the failure of these systems to perform as anticipated for any reason, could disrupt our business and could result in decreased performance and increased operating costs, causing our business and results of operations to suffer. Any significant interruption or failure of our information systems or any significant breach of security could adversely affect our business, results of operations and financial condition, as well as our cash flows. Furthermore, as from May 25, 2018, data breaches on personal data as defined in the General Data Protection Regulation 2016/679 (EU), could lead to administrative fines up to EUR 20 million or up to 4% of the total worldwide annual turnover of the company, whichever is higher.

7.2.16. Climate change and greenhouse gas restrictions may adversely impact our operations and markets.

Due to concern over the risk of climate change, a number of countries and the IMO have adopted, or are considering the adoption of, regulatory frameworks to reduce greenhouse gas emissions. These regulatory measures may include, among others, adoption of cap and trade regimes, carbon taxes, increased efficiency standards and incentives or mandates for renewable energy. More specifically, on October 27, 2016, the International Maritime Organization’s Marine Environment Protection Committee (‘MEPC') announced its decision concerning the implementation of regulations mandating a reduction in sulfur emissions from 3.5% currently to 0.5% as of the beginning of January 1, 2020. Additionally, in April 2018, nations at the MEPC 72 adopted an initial strategy to reduce greenhouse gas emissions from ships. The initial strategy identifies levels of ambition to reducing greenhouse gas emissions, including:

(1) decreasing the carbon intensity from ships through implementation of further phases of the Energy Efficiency Design Index (‘EEDI’) for new ships;
(2) reducing carbon dioxide emissions per transport work, as an average across international shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008 emission levels; and
(3) reducing the total annual greenhouse emissions by at least 50% by 2050 compared to 2008 while pursuing efforts towards phasing them out entirely.

The European Union on the other hand has indicated that it intends to accelerate its plans to include shipping into the emissions trading scheme. Since 1 January 2020, vessels have to either remove sulfur from emissions or buy fuel with low sulfur content, which may lead to increased costs and supplementary investments for ship owners. The interpretation of ‘fuel oil used on board’ includes use in main engine, auxiliary engines and boilers. Shipowners may comply with this regulation by (i) using 0.5% sulfur fuels on board, which are available around the world but at a higher cost; (ii) installing scrubbers for cleaning of the exhaust gas; or (iii) by retrofitting vessels to be powered by liquefied natural gas, which may not be a viable option due to the lack of supply network and high costs involved in this process. Costs of compliance with these regulatory changes may be significant and may have a material adverse effect on our future performance, results of operations, cash flows and financial position. In addition, although the emissions of greenhouse gases from international shipping currently are not subject to the Kyoto Protocol to the United Nations Framework Convention on Climate Change, which required adopting countries to implement national programs to reduce emissions of certain gases, or the Paris Agreement, a new treaty may be adopted in the future that includes restrictions on shipping emissions. Compliance with changes in laws, regulations and obligations relating to climate change could increase our costs related to operating and maintaining our vessels and require us to install new emission controls, acquire allowances or pay taxes related to our greenhouse gas emissions or administer and manage a greenhouse gas emissions program. Revenue generation and strategic growth opportunities may also be adversely affected. Adverse effects upon the oil and gas industry relating to climate change, including growing public concern about the environmental impact of climate change, may also adversely affect demand for our services and/or the public interest for our shares. For example, increased regulation of greenhouse gases or other concerns relating to climate change may reduce the demand for oil and gas in the future or create greater incentives for use of alternative energy sources. In addition, the physical effects of climate change, including changes in weather patterns, extreme weather events, rising sea levels, scarcity of water resources, may negatively impact our operations or operations of service providers upon whom we depend, such as ports infrastructures. Any long-term material adverse effect on the oil and gas industry could have a significant financial and operational adverse impact on our business that we cannot predict with certainty at this time.

7.2.17. Political instability, terrorist attacks, international hostilities and global public health threats can affect the seaborne transportation industry, which could adversely affect our business.We conduct most of our operations outside of the United States, and our business, results of operations, cash flows, financial condition and ability to pay dividends, if any, in the future may be adversely affected by changing economic, political and government conditions in the countries and regions where our vessels are employed or registered. Moreover, we operate in a sector of the economy that is likely to be adversely impacted by the effects of political conflicts. The world economy currently faces a number of challenges, including the effects of volatile oil prices, trade tensions between the United States and China and between the United States and the European Union, continuing turmoil and hostilities in the Middle East, the Korean Peninsula, North Africa, Venezuela, Iran and other geographic areas and countries, continuing economic weakness in the European Union, geopolitical events such as the withdrawal of the U.K. from the European Union (‘Brexit’), the continuing threat of terrorist attacks around the world, continuing instability and conflicts and other recent occurrences in the Middle East and in other geographic areas and countries such as those between the United States and North Korea or Iran, or between the Houthi and Arab counties in Yemen, or internally in Libya, and stabilising growth in China, as well as the public health concerns stemming from the COVID-19 outbreak. The threat of future terrorist attacks around the world, continues to cause uncertainty in the world's financial markets Director's report 69 and international commerce and may affect our business, operating results and financial condition. Continuing conflicts and recent developments in the Middle East may lead to additional acts of terrorism and armed conflict around the world, which may contribute to further economic instability in the global financial markets and international commerce. Additionally, any escalations between the United States and Iran could result in retaliation from Iran that could potentially affect the shipping industry, through increased attacks on vessels in the Strait of Hormuz (which already experienced an increased number of attacks on and seizures of vessels in 2019 and 2020). These uncertainties could also adversely affect our ability to obtain additional financing or insurance on terms acceptable to us or not at all. Any of these occurrences could have a material adverse impact on our operating results, revenues and costs. Additionally, in Europe, large sovereign debts and fiscal deficits, low growth prospects and high unemployment rates in a number of countries have contributed to the rise of Eurosceptic parties, which would like their countries to leave the Euro. Brexit further increases the risk of additional trade protectionism. Brexit, or similar events in other jurisdictions, could impact global markets, including foreign exchange and securities markets; any resulting changes in currency exchange rates, tariffs, treaties and other regulatory matters could in turn adversely impact our business and operations. Furthermore, China and the US have implemented certain increasingly protective trade measures with continuing trade tensions, including significant tariff increases between these countries. These trade barriers to protect domestic industries against foreign imports, depress shipping demand. Protectionist developments, or the perception they may occur, may have a material adverse effect on global economic conditions, and may significantly reduce global trade. Moreover, increasing trade protectionism may cause an increase in (a) the cost of goods exported from regions globally, (b) the length of time required to transport goods and (c) the risks associated with exporting goods. Such increases may significantly affect the quantity of goods to be shipped, shipping time schedules, voyage costs and other associated costs, which could have an adverse impact on our charterers’ business, operating results and financial condition and could thereby affect their ability to make timely charter hire payments to us and to renew and increase the number of their time charters with us. This could have a material adverse effect on our business, results of operations, financial condition and our ability to pay any cash distributions to our stockholders. In addition, public health threats such as influenza and other highly communicable diseases or viruses, outbreaks of which have from time to time occurred in various parts of the world in which we operate, including China, Japan and South Korea, which may even become pandemics, such as the COVID-19 virus, could lead to a significant decrease of demand for the transportation of crude oil. Such events may also adversely impact our operations, including timely rotation of our crews, the timing of completion of any outstanding or future newbuilding projects or repair works in dry-dock as well as the operations of our customers and may increase the cost of obtaining supplies or restrict our ability to obtain needed supplies. Delayed rotation of crew may adversely affect the mental and physical health of our crew and the safe operation of our vessels as a consequence.

7.2.18. Outbreaks of epidemic and pandemic of diseases and governmental responses thereto could adversely affect our business.

Our operations are subject to risks related to outbreaks of infectious diseases. For example, the COVID-19 pandemic has negatively affected economic conditions, the supply chain, the labour market, the demand for oil and natural gas shipping regionally as well as globally, the rotation of our crew and the operations of our customers and suppliers, and may otherwise impact our operations. As of March 2020, the outbreak of COVID-19 has been declared a pandemic by the World Health Organisation (“WHO”). Governments in affected countries have imposed and still impose travel bans, quarantines and other emergency public health measures. Apart from serious humanitarian and crew welfare concerns, and issues of regulatory compliance, there is an increasing risk that fatigue will 70 Annual report 2020 lead to serious maritime accidents. Companies have taken and are taking precautions, such as requiring employees to work remotely, imposing travel restrictions and temporarily closing businesses. Those measures, though temporary in nature, may continue and increase depending on developments in the virus’ outbreak and successful roll-out of a vaccine. These restrictions, and future prevention and mitigation measures, are likely to have an adverse impact on global economic conditions, which could materially and adversely affect our future operations. As a result of these measures, our vessels may not be able to call at ports or may be restricted from disembarking from ports located in regions affected by COVID-19. The ultimate severity of the COVID-19 pandemic continues to be uncertain.

7.2.19. Rising fuel prices may adversely affect our profits.

While we do not directly bear the cost of fuel or bunkers under our time charters, fuel is a significant factor in negotiating charter rates. Fuel is also a significant, if not the largest, expense in our shipping operations when vessels are operated on the spot market under voyage charter. As a result, an increase in the price of fuel beyond our expectations may adversely affect our profitability at the time of charter negotiation. The price and supply of fuel is unpredictable and fluctuates based on events outside our control, including geopolitical developments, supply and demand for oil and gas, actions by the Organisation of Petroleum Exporting Countries, or OPEC, and other oil and gas producers, war and unrest in oil producing countries and regions, regional production patterns and environmental concerns. Furthermore, fuel has become much more expensive as a result of new regulations mandating a reduction in sulfur emissions to 0.5% as of January 2020, which may reduce the profitability and competitiveness of our business versus other forms of transportation, such as truck or rail. Other future regulations may have a similar impact.

7.2.20. The IMO 2020 regulations may cause us to incur substantial costs and to procure low-sulfur fuel oil directly on the wholesale market for storage at sea and onward consumption on our vessels.

Effective 1 January 2020, the IMO implemented a new regulation for a 0.50% global sulfur cap on emissions from vessels. Under this new global cap, vessels must use marine fuels with a sulfur content of no more than 0.50% against the former regulations specifying a maximum of 3.50% sulfur in an effort to reduce the emission of sulfur oxide into the atmosphere. We incurred and may continue to incur costs to comply with these revised standards. Additional or new conventions, laws and regulations may be adopted that could require, among others, the installation of expensive emission control systems and could adversely affect our business, results of operations, cash flows and financial condition. The vast majority of our fleet is not equipped with scrubbers. Since 1 January 2020 we have transitioned to burning IMO compliant fuels. We continue to evaluate different options in complying with IMO and other rules and regulations. Low sulfur fuel is more expensive than standard marine fuel containing 3.5% sulfur content and may become more expensive or difficult to obtain as a result of increased demand. If the cost differential between low sulfur fuel and high sulfur fuel is significantly higher than anticipated, or if low sulfur fuel is not available at ports on certain trading routes, it may not be feasible or competitive to operate our vessels on certain trading routes without installing scrubbers or without incurring deviation time to obtain compliant fuel. Scrubbers may not be available to be installed on such vessels at a favourable cost or at all if we seek them at a later date.# 7.2.21. Developments in safety and environmental requirements relating to the recycling of vessels may result in escalated and unexpected costs.
The 2009 Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, or the Hong Kong Convention, aims to ensure that vessels, being recycled once they reach the end of their operational lives, do not pose any unnecessary risks to the environment or human health and safety. The Hong Kong Convention has yet to be ratified by the required number of countries to enter into force. Upon the Hong Kong Convention’s entry into force, each ship sent for recycling will have to carry an inventory of its hazardous materials. The hazardous materials, whose use or installation are prohibited in certain circumstances, are listed in an appendix to the Hong Kong Convention. Vessels will be required to have surveys to verify their inventory of hazardous materials initially, throughout their lives and prior to the ship being recycled. The Hong Kong Convention, which is currently open for accession by IMO Member States, will enter into force 24 months after the date on which 15 IMO Member States, representing at least 40% of world merchant shipping by gross tonnage, have ratified or approve accession. As of the date of this annual report, fifteen countries representing just over 30% of world merchant shipping tonnage have ratified or approved accession of the Hong Kong Convention. On 20 November 2013, the European Parliament and the Council of the EU adopted the Ship Recycling Regulation, which retains the requirements of the Hong Kong Convention and requires that certain commercial seagoing vessels flying the flag of an EU Member State may be recycled only in facilities Director's report 71 8. Information to be included in the annual report as per article 34 of the royal decree of 14 November 2007 8.1. Capital structure At the time of preparing this report, the registered share capital of Euronav amounts to USD 239,147,505.82 and is represented by 220,024,713 shares without par value. The shares are in registered or dematerialised form. Euronav currently holds 18,346,732 own shares. At the time of preparing this report, no convertible bonds or perpetual preferred equity instruments of the Company were outstanding. Besides the stock option plans referred to section 6.4 of this Corporate Governance Statement, there are no other share plans, stock options or other rights to acquire shares of the Company in place. 8.2. Restrictions on the exercise of voting rights or on the transfer of securities Each share entitles the holder to one vote. There are no securities issued by the Company which would entitle the holder to special voting rights or control. The articles of association contain no restrictions on the voting rights, and each shareholder can exercise his voting rights provided he is validly admitted to the Shareholders’ Meeting and his rights are not suspended. Pursuant to Article 12 of the articles of association, the Company is entitled to suspend the exercise of rights attached to shares belonging to several owners. No person can vote at the Shareholders’ Meeting using voting rights attached to shares for which the formalities to be admitted to the general meeting as laid down in Article 33 of the articles of association or the law have not been fulfilled in time or accurately. Likewise, there are no restrictions in the articles of association or by law on the transfer of shares. 8.3. General shareholders’ meeting The ordinary General Shareholders’ Meeting is held in Antwerp on the third Thursday of the month of May, at 10.30 a.m., at the registered office or any other place mentioned in the convening notices. If such date would be a bank holiday, the Annual Shareholders’ Meeting would take place on the preceding business day. included on the European list of permitted ship recycling facilities. We are required to comply with EU Ship Recycling Regulation by 31 December 2020, since our vessels trade in the EU region. These regulatory developments, when implemented, may lead to cost escalation by shipyards, repair yards and recycling yards. This may then result in a decrease in the residual scrap value of a vessel, and a vessel could potentially not cover the cost to comply with the latest requirements, which may have an adverse effect on our future performance, results of operations, cash flows and financial position.

7.2.22. Technological innovation to meet quality and efficiency requirements could reduce our charterhire income and the value of our vessels.

Our customers, in particular those in the oil industry, have a high and increasing focus on quality and compliance standards with their suppliers across the entire supply chain, including the shipping and transportation segment. Our continued compliance with these standards and quality requirements is vital for our operations. The charterhire rates and the value and operational life of a vessel are determined by a number of factors including the vessel’s efficiency, operational flexibility and physical life. Efficiency includes speed, fuel economy and the ability to load and discharge cargo quickly. Flexibility includes the ability to enter harbours, use different means of propulsion and fuels, utilise related docking facilities and pass through canals and straits. The length of a vessel’s physical life is related to its original design and construction, its maintenance and the impact of the stress of operations. If new tankers are built that are more efficient or more flexible or have longer physical lives than our vessels, competition from these more technologically advanced vessels could adversely affect the amount of charter hire payments we receive for our vessels and the resale value of our vessels could significantly decrease. This could have an adverse effect on our results of operations, cash flows, financial condition and ability to pay dividends.

72 Annual report 2020

8.4. Shareholders’ meeting

As of the date of this report, the Supervisory Board is not aware of any agreements among major shareholders or any other shareholders that may result in restrictions on the transfer of securities or the exercise of voting rights. The major shareholders have not entered into a shareholders’ agreement or a voting agreement, nor do they act in concert. There are no agreements between the Company and its employees or the members of its Supervisory Board providing for any compensation in case of resignation or dismissal on account of a public acquisition offer. However, if the agreement with a member of the Management Board is terminated for reasons of a Change of Control, the member of the Management Board shall be entitled to a compensation. Apart from the foregoing and from the customary change of control provision in the financing agreements, the bareboat charter parties in the framework of sale-and-lease-back transactions and the long-term incentive plans Euronav has entered into, there are no other important agreements to which the Company is a party and which enter into force, be amended or be terminated, in case of a change of control of the Company following a public offer.

8.5. Appointment and replacement of members of the Supervisory Board

The articles of association (Article 15 and following) and the Euronav Corporate Governance Charter contain specific rules concerning the (re)appointment, the replacement and the evaluation of members of the Supervisory Board. The General Shareholders’ Meeting appoints the Supervisory Board. The Supervisory Board submits the proposals for the appointment or re-election of members of the Supervisory Board, supported by a recommendation of the Corporate Governance and Nomination Committee, to the General Shareholders’ Meeting for approval. If a Supervisory Board member's mandate becomes vacant in the course of the term for which such member was appointed, the remaining Supervisory Board members may provisionally fill the vacancy until the following General Shareholders’ Meeting, which will decide on the final replacement. A Supervisory Board member nominated under such circumstances is only appointed for the time required to terminate the mandate of the member whose place he has taken. Appointments of Supervisory Board members are made for a maximum of four years. After the end of his/her term, each member is eligible for re-appointment.

8.6. Amendments to articles of association

The articles of association can be amended by the Extraordinary General Meeting in accordance with the Belgian Code of Company’s and Associations. Each amendment to the articles of association requires a qualified majority of votes.# Annual Report 2020

Director's report

8.8. Authorisation granted to the Supervisory Board to acquire or sell the Company’s own shares

Article 13 of the articles of association contains the principle that the Company and its direct and indirect subsidiaries may acquire and sell the Company’s own shares under the conditions laid down by law. With respect to the acquisition of the Company’s own shares, a prior resolution of the General Meeting is required to authorise the Company to acquire its own shares. Such an authorisation was granted by the Special General Meeting of 20 May 2020 and remains valid for a period of five years as from the publication in the Annexes to the Belgian Official Gazette of the decision taken by such General Meeting. Pursuant to this authorisation, the Company may acquire a maximum of ten percent (10%) of the existing shares of the Company where all shares already purchased by the Company and its direct subsidiaries need to be taken into account at a price per share not exceeding the maximum price allowed under applicable law and not to be less than EUR 0.01.

9. Appropriation of profits

The Supervisory Board may, from time to time, declare and pay cash dividends in accordance with the Articles of Association and applicable Belgian law. The declaration and payment of dividends, if any, will always be subject to the approval of either the Supervisory Board (in the case of ‘interim dividends’) or of the shareholders (in the case of ‘regular dividends’ or ‘intermediary dividends’).

The current dividend payment policy as adopted by the Board is the following: the Company intends to pay a minimum fixed dividend of at least USD 0.12 in total per share per year provided (a) the Company has in the view of the board, sufficient balance sheet strength and liquidity, combined (b) with sufficient earnings visibility from fixed income contracts.

In addition, if the results per share are positive and exceed the amount of the fixed dividend, that excess income will be allocated to either: additional cash dividends, share buy-back, accelerated amortisation of debt or the acquisition of vessels which the Board considers at that time to be accretive to shareholders’ value.

Additional guidance was provided by the Company by way of a press release dated 9 January 2020, as follows:

• Each quarter Euronav will target to return 80% of net income (including the fixed element of USD 3c per quarter) to shareholders
• This return to shareholders will primarily be in the form of a cash dividend and the Company will always look at stock repurchase as an alternative if it believes more value can be created for shareholders
• The Company retains the right to return more than 80% should the circumstances allow it.

Excess income is adjusted for certain items such as capital losses and capital gains. As part of its distribution policy Euronav will continue to include exceptional capital losses when assessing additional dividends but also continue to exclude exceptional capital gains when assessing additional dividend payments. Deferred Tax Assets (DTA) and Deferred Tax Liabilities (DTL). As part of its distribution policy Euronav will not include non-cash items affecting the results such as DTA or DTL.

In general, under the terms of the debt agreements, Euronav is not permitted to pay dividends if there is or will be as a result of the dividend a default or a breach of a loan covenant. Belgian law generally prohibits the payment of dividends unless net assets on the closing date of the last financial year do not fall beneath the amount of the registered capital and, before the dividend is paid out, 5% of the net profit is allocated to the legal reserve until this legal reserve amounts to 10% of the share capital. No distributions may occur if, as a result of such distribution, the net assets would fall below the sum of (i) the amount of the registered capital, (ii) the amount of such aforementioned legal reserves, and (iii) other reserves which may be required by the Articles of Association or by law, such as the reserves not available for distribution in the event Euronav holds treasury shares.

Euronav may not have sufficient surplus in the future to pay dividends and the subsidiaries may not have sufficient funds or surplus to make distributions to the Company. Euronav can give no assurance that dividends will be paid at all. In addition, the corporate law of jurisdictions in which the subsidiaries are organised may impose restrictions on the payment or source of dividends or additional taxation for cash repatriation, under certain circumstances.

10. Code of Conduct

Euronav has adopted and applies a Code of Business Conduct and Ethics. The purpose of the Code of Business Conduct and Ethics is to assist all the Euronav employees to enhance and protect the good reputation of Euronav. The Code of Business Conduct and Ethics articulates the policies and guidelines that highlight the values of Euronav, more particularly in its relation to customers, suppliers, shareholders and other stakeholders, as well as society in general. The full text of the Code of Business Conduct and Ethics can be consulted on the Company’s website www.euronav.com, under the section Corporate Governance.

11. Measures regarding insider dealing and market manipulation

In view of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (the ‘Market Abuse Regulation’ or ‘MAR’), the Supervisory Board approved the current version of the Company’s Dealing Code. The Dealing Code includes restrictions on trading in Euronav shares during so called ‘closed periods’, which have been in application for the first time in 2006, as well as other procedures and safeguards the Company has implemented in compliance with the Market Abuse Regulation.

The members of the Supervisory and Management Boards and the employees of the Euronav Group who intend to deal in Euronav shares must first request clearance from the Compliance Officer. Transactions that are to be disclosed in accordance with the Market Abuse Regulation are being disclosed at the appropriate time.

12. GUBERNA

As Euronav strongly believes in the merits of corporate governance principles and is keen on further developing its corporate governance structure, Euronav joined Guberna as institutional member at the end of 2006. Guberna (www.guberna.be) is a knowledge centre promoting corporate governance in all its forms and offers a platform for the exchange of experiences, knowledge and best practices.

13. Gender diversity

In accordance with the Corporate Governance Code, the Supervisory Board must be composed in a manner compliant with the principles of gender diversity, as well as of diversity in general. The Supervisory Board of Euronav currently consists of three men and three women with varying yet complementary expertise. The Supervisory Board has been made aware of the law of 28 July 2011 on gender diversity and the recommendations issued by the Corporate Governance and Nomination Committee following the enacting of the law with regard to the representation of women on Supervisory Boards of listed companies.

In January 2020 Euronav was selected for the third consecutive time as one of over 325 companies from ten sectors, headquartered in 42 countries, to join the Bloomberg Gender-Equality Index (GEI). This comprehensive index measures gender equality across internal company statistics, employee policies, external community support and engagement, and gender-conscious product offerings. This Bloomberg GEI continues to gain important traction resulting in 325 companies included in the index of 2020 (up to 230 companies in 2019). Inclusion in this index recognises efforts made by Euronav to create a work environment that supports gender equality and the growing demand for diverse and inclusive workplaces.

In order to become a participant in this Index, Euronav submitted a survey created by Bloomberg in partnership with third-party experts Catalyst, Women’s World Banking, Working Mother Media, National Women’s Law Center and National Partnership for Women & Families. Those included on this year’s index scored at or above a global threshold established by Bloomberg to reflect disclosure and the achievement or adoption of best-in-class statistics and policies.

As of 15 March 2021, the Management Board consists of one women and five men: four of the board are based in Belgium, one in Greece and one in the U.K. They all hold academic degrees in various disciplines such as law, finance, shipping, engineering and science. Before they started working with Euronav, they were employed in the financial, legal and shipping sector. Their ages vary between 47 and 63 years old, and include their average experience of 7 years in their current executive position.# Director's report

The Senior Management (Chief People Officer, Secretary General, General Manager Nantes office, HSQE Manager) consists of three men and one woman (two in Belgium, one in France and one in Greece). They all have an academic degree in various disciplines (economics, law, history, and shipping). They started their careers in the financial, legal and shipping sector and have been working in their current Euronav role for an average of four years. Their ages vary between 38 and 51 years old.

Appropriation accounts

The result to be allocated for the financial year amounts to USD 452,656,962.98. Together with the transfer of USD 167,584,926.73 from the previous financial year, this gives a profit balance to be appropriated of: USD 620,241,889.71. The USD 1.40 / share paid to the shareholders represent USD 295,729,618.71. Further return to the shareholders was realized through share buy back for a total amount of USD 118,487,742.56. The Supervisory Board shall propose the Annual Shareholders’ Meeting of 20 May 2021 to acknowledge a full year gross dividend in the amount of USD 1.40 per share. Taking into account the interim dividends totalling USD 1.40 per share, and subject to shareholders’ approval, no final dividend will be paid after the Annual General Meeting of Shareholders. If this proposal is agreed upon, the allocation of profits will be as follows:

	Q1	Q2	Q3	Q4
Ex dividend	15 June 2020	18 August 2020	19 November 2020	24 February 2021
Payment date	26 June 2020	28 August 2020	30 November 2020	5 March 2021
USD per share	0.81	0.47	0.09	0.03
Capital and reserves	USD 118,487,742.56
Dividends	USD 295,729,618.71
Carried forward	USD 206,024,528.44

Annual report 2020

Euronav Ship Management SAS

Euronav Ship Management SAS, with head office in Nantes, in the South of Brittany, France and branch office in Antwerp, Belgium, is, besides the traditional shipping activities, responsible for Euronav’s offshore projects and the management of vessels for the offshore industry. That includes tender projects, conversion works, as well as performing the management of these vessels including crewing, technical procurement, accounting and quality. The Nantes office and the Antwerp office also provide crew management for Euronav’s trading oil tankers.

The Euronav Group

Euronav Ship Management Hellas Ltd.

Euronav Ship Management (Hellas) Ltd., was established in 2005 in Piraeus, Greece, and moved to offices in the centre of Athens in 2017. It is as a branch office of a fully owned subsidiary of Euronav NV that engages in the ship management of the ocean-going oil tankers of Euronav and the supervision of the construction of newbuildings. Ship management includes crewing, technical, procurement, accounting, health, safety, environmental protection and quality assurance, legal advice, claims handling support, as well as fleet IT support.

Euronav (UK) Agencies Ltd & Euronav NV, London branch

Located in the heart of London, Euronav (UK) Agencies Ltd used to host the commercial agency of the Euronav Group. Having a London presence enables Euronav to work closely with the major London-based clients and international brokering houses. Since 2020, most commercial activities are organised through a newly established London-based branch office of Euronav NV.

Euronav Hong Kong Ltd.

Euronav Hong Kong Ltd. is the holding company of three wholly owned subsidiaries and four 50% joint venture companies (one of which is in process of winding up). The wholly owned subsidiaries that fall under Euronav Hong Kong Ltd. are Euronav Ship Management (Hellas) Ltd. (see short summary above), Euronav Singapore Pte. Ltd. and E.S.M.C. Euro-Ocean Ship Management (Cyprus) Ltd., a ship management company that handles the crew management of the FSOs. Since 30 June 2020, Euronav Luxembourg SA is no longer a subsidiary of Euronav Hong Kong Ltd. but wholly owned by Euronav NV.

TI Asia Ltd. and TI Africa Ltd., 50% joint venture companies with a company which belongs to the International Seaways (INSW) group, are the owners of respectively the FSO Asia and FSO Africa, both currently employed at the Al Shaheen field offshore Qatar. The 50% joint venture company Kingswood Co. Ltd. with a company which belonged to the Oak Maritime Group, fully owned Seven Seas Shipping Ltd., which following the termination of the relevant joint venture sold the VLCC to Euronav NV in 2018. Meanwhile both Kingswood Co. Ltd. and Seven Seas Shipping Ltd. are dissolved as of 15 May 2020. In November 2019 two joint venture agreements were signed with Ridgetuf LLC resulting in the two 50% joint venture companies Bari Shipholding Limited (owner of the Suezmax Bari) and Bastia Shipholding Limited (owner of Suezmax Bastia). On 30 September 2020 the Suezmax Bastia was successfully sold and delivered to the third party Buyers, Messrs. Seven Island Shipping Limited.

Euronav Shipping NV and Euronav Tankers NV

Following the acquisition of 15 VLCCs in January 2014, Euronav Shipping NV and Euronav Tankers NV were incorporated as subsidiaries of Euronav NV, in January and February 2014 respectively. Going forward, the Euronav Group gradually centralised its ship management activities within Euronav Shipping NV. In that regard, in the course of 2019, the two French subsidiaries Euronav SAS and Euronav Ship Management SAS (including its Antwerp Branch), as well as the Hong Kong subsidiary Euronav Hong Kong Ltd were transferred to Euronav Shipping NV.

Euronav MI II Inc.

In the fourth quarter of 2017, Euronav NV incorporated a new wholly-owned subsidiary, Euronav MI Inc., a company incorporated and existing under the laws of the Republic of the Marshall Islands, for the purposes of the upcoming merger (the ‘Merger’) with Gener8 Maritime Inc. (‘Gener8’). Pursuant to the merger agreement entered into between Euronav and Gener8 on 20 December 2017, Euronav MI Inc. merged with and into Gener8 upon closing of the Merger on 12 June 2018, with Gener8 being the surviving corporation wholly owned by Euronav NV. At the same time, the name of the surviving corporation was changed into Euronav MI II Inc. As the ultimate parent company of the Gener8 group prior to closing of the Merger, Euronav MI II Inc. still owns certain direct and indirect subsidiaries, most of which served as special purpose ship-owning companies within the Gener8 group. Following the sale of the assets held by them (to Euronav NV or, in case of non-core assets, to third party buyers) Euronav is in the process of simplifying the group’s corporate structure by liquidating the said subsidiaries.

Director's report

Tankers UK Agencies (TI Pool)

In 2017, the corporate structure of ‘Tankers International Pool’ (TI Pool) was rationalised. Under the new structure, the shares of Tankers UK Agencies Ltd. (TUKA), fully held at the time by Tankers International LLC (TI LLC), an entity incorporated under the laws of the Marshall Islands, have been distributed to the two remaining founding members of the TI Pool, (namely Euronav NV and International Seaways INC), to form a 50-50 joint venture. Additionally, a new company, Tankers International Ltd. (TIL), was incorporated under the laws of the United Kingdom, and is now fully owned by TUKA. TIL became the disponent owner of all of the vessels in the TI Pool, as all the vessels are now time chartered to TIL at a floating rate equivalent to the average spot rate achieved by the pool multiplied by the pool point assigned to each vessel. This new structure allowed the TI Pool to arrange for a credit line financing in order to lower the working capital requirement for the Pool participants which potentially can attract additional pool participants.

Euronav NV, Antwerp, Geneva Branch

In April 2019 Euronav NV established a branch office in Geneva (Switzerland), Euronav NV, Antwerp, Geneva Branch. This new branch office was set up in anticipation of the coming into force of IMO 2020 and focuses on procurement of compliant fuel and related services.

Activity report

Products and services

In-House ship management

Euronav Ship Management Partners

Fleet of the Euronav Group as of 31 December 2020

Human Resources

Euronav's VLCC fleet

Age Category	Percentage
0-5 years old	33%
5 - 10 years old	37%
10 - 15 years old	26%
>15 years old	4%

Euronav's Suezmax fleet

Age Category	Percentage
0-5 years old	24%
5 - 10 years old	12%
10 - 15 jaar oud	48%
>15 years old	16%

Products and services

Tanker Shipping

Euronav is a vertically integrated owner, operator and manager, able to provide complete shipping services in addition to the carriage of crude oil on its fleet of modern large tankers. The crude oil seaborne transportation market is cyclical and highly volatile, requiring flexible and proactive management of assets in terms of fleet composition and employment. On 15 March 2021 the Euronav core fleet (owned and operated) has a weighted average age of 9.3 years. Euronav operates its fleet both on the spot and the period market.

VLCC Fleet

The Tanker International (TI) Pool

Euronav is a founding member of the TI Pool, which commenced operation in January 2000. The TI Pool was established by Euronav and other leading tanker companies to meet the global transportation requirements of international oil companies and other major charterers. The TI Pool operates one of the largest modern fleets available in the world. 41 Euronav VLCCs participated in the pool on 15 March 2021. Euronav’s entire owned VLCC fleet flies Belgian, Greek, French, Liberian and Marshall Islands flag. By participating in a pool, Euronav and its customers benefit from the economies of scale inherent to such an arrangement. Furthermore, the TI Pool has been able to enhance vessel earnings by improved utilisation (increased proportion of laden days versus ballast days) through use of combination voyages, contracts of affreightment and other efficiencies facilitated by the size and quality of its modern VLCC fleet.# Activity report

By operating together, the TI Pool always aims to have a modern high quality VLCC available in the right place at the right time.

Suezmax Fleet

Euronav’s 100% owned Suezmax fleet flies Belgian, Greek and Liberian Flag. Its vessel in 50%-50% joint venture is registered under the flag of Marshall Islands. The use of a national flag, together with operational and maintenance standards in terms of age and performance, which are higher than the industry norm, enables Euronav to employ part of its fleet on time charter.

Euronav chooses to employ a part of its Suezmax fleet on long-term time charter. This strategy allows the Company to benefit from a source of secure, steady and visible flow of income. Another part of the Suezmax fleet is traded on the spot market.

On 15 March 2021 Euronav owns 28 (including two newbuildings that will be delivered in 2022) and currently employs 26 Suezmax vessels, of which 21 are traded on the spot market.

Average age profile of Euronav owned VLCC and V-Plus (and TC-in)

Average age profile of Euronav owned Suezmax (and TC-in)

VLCC	V-Plus	TC-in
15	7	3
20	4	14
5

Activity report 81

FSO and FPSO market

FSO’s are floating storage and offloading units for areas where the offshore production platforms have no or insufficient storage capabilities (fixed platform, MOPU, SPARr, TLP, semi-sub), and no pipeline infrastructure to the shore or another terminal. They are ideal because of their very large storage capacity and ability to be moored in almost any water depth. With no process topsides (as with FPSO’s), they are relatively simple to convert.

An FPSO is a floating production system that receives fluids (crude oil, water,…) from a subsea reservoir through risers, which then separate fluids into crude oil, natural gas, water and impurities within the topsides production facilities onboard. Crude oil stored in the storage tanks of the F(P)SO is offloaded onto tankers to go to market or for further refining onshore. FSO’s provide field storage (ranging from 60,000 to 3 million barrels) and offloading in a variety of situations. Most of them store oil although there are a few LPG or LNG FSOs.

The cost of a converted FSO ranges from USD 30 million to USD 200 million, depending on the size, field location, mooring and design life. A newbuild FSO can range from USD 100 million to USD 300 million. There is an established market for leasing FSOs, which can help commercialise remote or marginal fields. The offshore industry is a highly technical one with many risk factors but with an equally high reward.

Euronav’s initial exposure to the FSO market was with VLCC deployments in the Gulf and in West Africa back in 1998. Euronav started engaging in the Maersk Oil Qatar (MOQ) project because of the specific assets that it owned in joint venture with International Seaways Inc. (INSW): two of the only four V-Plus vessels (also known as ULCCs - Ultra Large Crude Carriers) that exist in the world, the TI Asia (which belonged to Euronav) and the TI Africa (which belonged to OSG, but now to INSW).

In 2017 the field operations of Al-Shaheen (Qatar) were transferred from MOQ to NOC (North Oil Company – see below) and the FSO contracts were extended until 2022. In November 2020, Euronav's joint venture with International Seaways signed a ten year contract extension for the FSO Asia and FSO Africa. This is a direct continuation of their current contractual service with North Oil Company (NOC), the operator of the Al-Shaheen oil field since 2017, whose shareholders are Qatar Petroleum Oil & Gas Limited and Total E&P Golfe Limited. The extended FSO contracts now run until 21 July 2032 and 21 September 2032 respectively.

The FSO Africa and FSO Asia are both high specification and long duration assets. Both units started service at the Al-Shaheen field in 2010 with a potential service life (without major modifications) to 2042. Offshore units are unique because of their logistical requirements and additional engineering of the designing, transporting, installing and operating facilities in the remote offshore environment as opposed to onshore production or storage plants. Each unit is specifically designed for the field's environmental and geological characteristics. Al Shaheen crude oil is exported from a Single Buoy Mooring (SBM) system, which can be seen on the picture, and stored in the FSO Africa and FSO Asia.

Source: Marine Insight - Image credits: riverlakesolutions.com

Buoy Mooring

FSO AFRICA and FSO ASIA

Europe and Oceania (both fully owned by Euronav) are the only two remaining unconverted V-Plus vessels worldwide. Euronav strongly believes that the long-term employment of this not yet converted units lies in the offshore market. Most of the new oil field discoveries are made offshore and many of them are gigantic oil fields (Brazil, West Africa, Australia) which should require very large FSOs. Euronav therefore believes that there will be a demand for these units by offshore field operators.

Annual report 2020  82

In-House ship management

The majority of the fleet is managed by three wholly-owned subsidiaries: Euronav Ship Management SAS, Euronav SAS and Euronav Ship Management (Hellas) Ltd.. Euronav has also established an office in Singapore, Euronav Singapore Pte Ltd., to enhance the support of services offered to the vessels that frequently call at Asian ports. Euronav’s personnel includes seagoing officers, crew, shore-based staff, skilled and experienced captains and marine engineers, as well as maritime university and college graduates. This gives the Company a competitive edge in high quality maintenance and operation of the vessels, as well as project development and execution.

Euronav manages the vast majority of its fleet of modern crude oil carriers in-house, ranging from Suezmax to Very Large and V-Plus (also known as Ultra Large Crude Oil Carriers) and FSO (Floating Storage and Offloading). Euronav’s fleet trades worldwide in some of the most difficult weather conditions and sea states, such as the North Atlantic and East Canada, and for charterers with the strictest requirements. The vessels are equipped with sophisticated management software and communication systems that enhance the vessel and shore team collaboration. The vessel’s crews are in constant interaction with the shore staff through regular onboard visits, briefing and debriefing discussions upon signing on and off, conferences ashore and onboard, including training sessions.

The Management Team, superintendents, internal and external shipping auditors, customers, as well as national and international regulatory bodies assess vessel and crew performance. Euronav has excellent relations with all oil majors. The organisation, and the vessels, have successfully passed numerous oil major Tanker Management and Self-Assessment (TMSA) reviews and vetting assessments. All our services are provided with the ultimate regard for the health, safety, security, environmental and quality standards applicable to the maritime transportation industry. Euronav is committed to and aims for safety, environmental protection, security and quality excellence of the Fleet’s operation. We are devoted to a culture of teamwork where people work together along defined duties and responsibilities for the overall success of the Company, on shore and at sea.

82 Annual report 2020  Activity report 83

Euronav practices genuine performance planning and appraisal, training and development, encouraging the promotion from within, whilst also offering opportunities to competent professionals to join the Company. Its policies aim to enhance and reward performance, to engage its people; and to attract and retain key talent.

Euronav maintains an integrated ship management approach with the following qualities:

• Proven experience in managing oil tankers;
• Experienced officers and crews with professional credentials;
• Professional relations based on merit and trust;
• Commitment to improving the quality of life at sea and crew wellbeing;
• Safety and quality assurance including training, auditing and vetting;
• Design and maintenance standards for increased safety and operational performance as well as asset value;
• Modern and effective computer-based management and training systems;
• Human resources policies emphasising people working together for common goals;
• Hands-on technical management backed by the latest software platforms and communication systems;
• Commitment to long-term asset protection and upgrade;
• Open communication and transparency in reporting.

Full range of services

The Euronav Group provides a full range of ship management services:

• Full technical services;
• Fleet personnel comprising experienced motivated officers and crew;
• Comprehensive integrated health, safety, quality and environmental protection management system; certified for ISO 9001, 14001, 45001, 50001;
• Insurance claims handling;
• Global sourcing of bunkering, equipment and services for optimum synergies, pricing and quality;
• Financial, information technology, human resources and legal services to support the Group’s assets’ values;
• Project management for:
  • Newbuilding supervision, including pre- and post contract consultancy and technical support;
  • FSO conversions;
  • Retrofits and upgrade of assets for compliance with new Rules and Regulations and/or ;
  • Improved operational efficiency;
• Commercial management;
• Operational management.Euronav utilises a set of clearly defined Key Performance Indicators (KPIs) for its ship management services as well as standardised inspection reports which are thoroughly evaluated to facilitate the measurement of: • Health & Safety performance; • Environmental performance; • Security (including Cybersecurity) performance; • Navigation performance; • Vessel reliability; • Crew and shore staff retention and well-being; • Vessel energy efficiency; • Vetting and port state controls; • Planned and condition-based maintenance; • Dry-docking planning and repairs ; • Procurement, efficiency Quarterly management review meetings, bi-monthly table top exercises, monthly safety and environmental protection meetings, bi-weekly management coordination meetings and weekly fleet management coordination meetings monitor the trends and set the course of action.

Annual report 2020  84

Euronav ship management partners

In addition to the in-house managed fleet, Euronav maintains close relations and cooperation with high quality ship managers that manage part of the fleet. A dedicated Euronav team is managing the relationship and ensures that the services rendered to Euronav vessels are in accordance with Euronav standards. The relationship is offering opportunities for interaction and sharing of experience between the Euronav Ship Management and Ship Management partners, while at the same time providing flexibility for potential expansion.

84 Annual report 2020 

Activity report 85

Fleet of the Euronav Group as of 31 December 2020

Owned VLCCs and V-Plus

Name	Owned	Built	Dwt	Draft	Flag	Length (m)	Shipyard
Aegean	100%	2016	299,999	21.62	Belgian	332.97	Hyundai H.I.
Alboran	100%	2016	298,991	21.62	Liberian	332.97	Hyundai H.I.
Alex	100%	2016	299,445	21.6	Belgian	333	Hyundai H.I.
Alice	100%	2016	299,320	21.6	Belgian	333	Hyundai H.I.
Alsace	100%	2012	320,350	22.5	French	330	Samsung H.I.
Amundsen	100%	2017	298,991	21.62	Liberian	332.97	Hyundai H.I.
Andaman	100%	2016	299,392	21.62	Liberian	332.97	Hyundai H.I.
Anne	100%	2016	299,533	21.6	French	333	Hyundai H.I.
Antigone	100%	2015	299,421	21.6	Greek	333	Hyundai H.I.
Aquitaine	100%	2017	298,767	21.62	Belgian	333	Hyundai H.I.
Arafura	100%	2016	298,991	21.62	Belgian	332.97	Hyundai H.I.
Aral	100%	2016	299,999	21.62	Belgian	333	Hyundai H.I.
Ardeche	100%	2017	298,642	21.62	Belgian	333	Hyundai H.I.
Daishan	100%	2007	306,005	22.49	Liberian	332	Daewoo H.I.
Dalma	100%	2007	306,543	22.49	Liberian	332	Daewoo H.I.
Desirade	100%	2016	299,999	21.53	Liberian	336	Daewoo H.I.
Dia	100%	2015	299,999	21.52	Liberian	336	Daewoo H.I.

Annual report 2020  86

Name	Owned	Built	Dwt	Draft	Flag	Length (m)	Shipyard
Dominica	100%	2015	299,999	21.54	Liberian	336	Daewoo H.I.
Donoussa	100%	2016	299,999	21.54	Liberian	336	Daewoo H.I.
Drenec	100%	2016	299,999	21.53	Liberian	336	Daewoo H.I.
Europe	100%	2002	441,561	24.53	French	380	Daewoo H.I.
Hakata	100%	2010	302,550	21.03	French	333	Universal
Hakone	100%	2010	302,624	21.03	Greek	333	Universal
Hatteras	100%	2017	297,363	21.62	Liberian	333	Hanjin Subic
Heron	100%	2017	297,363	21.62	Liberian	333	Hanjin Subic
Hirado	100%	2011	302,550	21.03	Greek	333	Universal
Hojo	100%	2013	302,965	21.64	Belgian	330	Japan Marine United
Ilma	100%	2012	314,000	22.37	Belgian	319.03	Hyundai H.I.
Ingrid	100%	2012	314,000	22.38	Belgian	319.03	Hyundai H.I.
Iris	100%	2012	314,000	22.37	Belgian	333.14	Hyundai H.I.
Newton	100%	2009	307,284	22.3	Belgian	321.66	Dalian S.I.
Oceania	100%	2003	441,561	24.53	Belgian	380	DSME
Sandra	100%	2011	323,527	21.32	French	319.57	STX O&S
Sara	100%	2011	323,183	22.62	French	319.57	STX O&S
Simone	100%	2012	313,988	22.1	Belgian	319.57	STX O&S
Sonia	100%	2012	314,000	22.1	French	319.57	STX O&S

Newbuildings*

Name	Owned	Built	Dwt	Draft	Flag	Length (m)	Shipyard
Delos	100%	2021	300,200	21.6	Belgian	336	Daewoo H.I.
Diodorus	100%	2021	300,200	21.6	Belgian	336	Daewoo H.I.
Doris	100%	2021	300,200	21.6	Belgian	336	Daewoo H.I.
Dickens	100%	2021	299,550	21.6	Belgian	336	Daewoo H.I.

*These vessels were delivered to Euronav during the first quarter of 2021.

Activity report 87

VLCCs Bareboat

Name	Owned	Built	Dwt	Draft	Flag	Length (m)	Shipyard
Nautica	100%	2008	307,284	22.723	Liberian	321.7	Dalian S.I.
Nautilus	100%	2006	307,284	22.72	Marsh I	321.7	Dalian S.I.
Navarin	100%	2007	307,284	22.72	Marsh I	321.65	Dalian S.I.
Nectar	100%	2008	307,284	22,72	Liberian	321.6	Dalian S.I.
Neptun	100%	2007	307,284	22.72	Marsh I	321.7	Dalian S.I.
Noble	100%	2008	307,284	22.72	Liberian	321.7	Dalian S.I.
Nucleus	100%	2007	307,284	22.72	Marsh I	321.64	Dalian S.I.

Annual report 2020  88

Owned Suezmax vessels

Name	Owned	Built	Dwt	Draft	Flag	Length (m)	Shipyard
Bari	50%	2005	159	186	Marsh I	274.47	Hyundai H.I.
Cap Charles	100%	2006	158,881	17	Greek	274	Samsung H.I.
Cap Corpus Christi	100%	2018	156,600	17.15	Greek	277	Hyundai H.I.
Cap Felix	100%	2008	158,765	17.02	Belgian	274	Samsung H.I.
Cap Guillaume	100%	2006	158,889	17	Greek	274	Samsung H.I.
Cap Lara	100%	2007	158,826	17	Greek	274	Samsung H.I.
Cap Leon	100%	2003	159,049	17.02	Liberian	274.29	Samsung H.I.
Cap Pembroke	100%	2018	156,600	17.15	Greek	277	Hyundai H.I.
Cap Philippe	100%	2006	158,920	17	Greek	274	Samsung H.I.
Cap Pierre	100%	2004	159,083	17.02	Liberian	274.29	Samsung H.I.
Cap Port Arthur	100%	2018	156,600	17.15	Greek	277	Hyundai H.I.
Cap Quebec	100%	2018	156,600	17.15	Greek	277	Hyundai H.I.
Cap Theodora	100%	2008	158,819	17	Greek	274	Samsung H.I.
Cap Victor	100%	2007	158,853	17	Greek	274	Samsung H.I.
Capt. Michael	100%	2012	157,648	17	Greek	274.82	Samsung H.I.
Filikon	100%	2002	149,989	15.95	Liberian	274.2	Universal
Fraternity	100%	2009	157,714	17.02	Belgian	274.2	Samsung H.I.
Maria	100%	2012	157,523	17	Greek	274.82	Samsung H.I.
Sapphira	100%	2008	150,205	16.02	Belgian	274.20	Universal
Selena	100%	2007	150,205	16.02	Belgian	274.20	Universal
Sienna	100%	2007	150,205	16.02	Belgian	274.2	Universal
Sofia	100%	2010	165,000	17.17	Greek	274.19	Hyundai H.I.
Statia	100%	2006	150,205	16.02	Belgian	274.20	Universal
Stella	100%	2011	165 000	17,17	Greek	274.19	Hyundai H.I.

Activity report 89

Owned FSO’s (Floating, Storage and Offloading)

Name	Owned	Built	Dwt	Draft	Flag	Length (m)	Shipyard
FSO Africa	50%	2002	442,000	24.53	Marsh I	380	Daewoo H.I.
FSO Asia	50%	2002	442,000	24.53	Marsh I	380	Daewoo H.I.

Annual report 2020  90

Human resources

One cornerstone of the Euronav mission is dedicated to our people: to inspire and enable talented, hard-working people to achieve their career goals in a healthy, challenging and rewarding environment. Throughout its shore-based offices in Antwerp, Athens, London, Nantes, Geneva, Singapore, and Hong Kong, Euronav has approximately 220 employees (including contractors and temporary assignments). This geographic span across Europe reflects a deep-rooted maritime history and culture built up over generations. Over 3,500 seafarers of many different nationalities work onboard Euronav vessels. In an environment where there is a shortening supply of competent seafarers, Euronav has qualified and experienced masters officers and crew to recruit all the vessels. Senior officers and crew conferences are held regularly. Euronav is devoted to a teamwork culture and an environment where people work together for the overall success of the Company, on shore and at sea. Euronav practices genuine performance planning and appraisal, training and development and promotion from within. Our policies aim to enhance and reward performance, engage our people and retain key talent. We celebrate the diversity in our workforce. Many of our employees and officers have a wealth of long service and experience in the business while others are new entrants with fresh perspectives. This commitment and stability enriched with diversity has enabled us to achieve excellent results in an extremely competitive industry. Euronav people bring to the job a rich diversity of educational and professional qualifications, including professionals with nautical, engineering, finance, business administration, legal and humanities backgrounds, who specialised in tanker operations, crewing, marine and technical areas and shipping corporate services. Virtually everyone speaks at least two languages fluently and half the staff speaks three or more languages.

90 Annual report 2020 

Activity report 91

• LTIF: 0.67
• TRCF: 1.43
• Safety Related Fatalities or Partial Permanent disabilities : 0

Officers
| Nationality | Count |
|-------------|-------|
| Colombian | 2 |
| Dutch | 1 |
| Slovenian | 1 |
| Polish | 1 |
| Honduran | 1 |
| Jamaican | 6 |
| Pakistani | 72 |
| Ukrainian | 22 |
| Belgian | 25 |
| Romanian | 34 |
| Russian | 34 |
| French | 50 |
| Indian | 68 |
| Panamanian | 80 |
| Bulgarian | 56 |
| Croatian | 110 |
| Filipino | 139 |
| Greek | 704 |
| Total | 1382 |

Apprentices & on board
| Nationality | Count |
|-------------|-------|
| Guatemalan | 1 |
| Panamanian | 1 |
| Chilean | 1 |
| Indian | 5 |
| Indonesian | 15 |
| El Salvador | 37 |
| Honduran | 85 |
| Filipino | 514 |
| Total | 678 |

Ratings on board
Crew retention rate: 97.41%
Total crewmembers on board = 1382

Annual report 2020  92

Activity report 93

Our culture

Euronav is an integrated shipping services provider with high quality standards and ambitious goals. To empower its people to meet these challenges, Euronav’s identity is characterised by:

• Common values with local authority to act;
• High involvement and flexibility in which much of the work is carried out by cross-functional, cross-branch, self-directed teams;
• Clarity in roles, expectations and authorities;
• Professional growth and development opportunities aligned with business needs;
• Quality and professionalism in matters large and small;
• Communication and culture cultivated by example.

We encourage social responsibility and have values of fairness and responsibility embedded in our operating ethos. We are an equal opportunity employer. People are selected, rewarded and advanced based on performance and merit. We act to fully comply with all applicable laws and regulations in the markets in which we operate. Euronav strives to be an exemplary employer among its peers and participates in forums for an open exchange of best practices.# Accomplishments in 2020

In 2020 the Human Resources department has invested a great deal of work in the following areas:

• Implementation of the Flexible Income Plan in EURB;
• Optimisation and review of company policies;
• Further implementation of a new Human Resources Information application;
• Development of a succession planning for Management Board;
• Improvement of the performance appraisal procedure;
• Exceptional HR workloads due to management of the pandemic situation;
• Introduction of the Barrett methodology for Company’s values assessment;
• Digital roadshows explaining the results of the Barrett survey, organising workshops to understand the meaning behind the chosen values;
• Completion of function mapping to enable benchmarking of compensation.

Values

Undeniably, great company cultures need a common language that allows their employees to actually understand each other. At Euronav we believe that if culture is to be strategic, it needs more input, collaboration, and co-creation from our employees. That is why in 2020 we held a Cultural Value Assessment within the Company. The purpose of this assessment was to realign our core values. The following six were defined:

• Sustainability
• Inspiring excellence
• Adaptability
• Cooperation
• Integrity

In the course of 2021, we will assign concrete behaviours to each of them. These will describe the way we do business, how we interact and how we work together at Euronav, to grow as a company and as individuals. The ultimate goal of our core VALUES is to align our organisation’s actions and attitudes towards internal as well as external stakeholders in such a way that we can successfully execute our corporate strategy and realise our corporate objectives.

Sustainability report

Letter from the CEO

The year of 2020 has been an extraordinary experience for everyone. The challenges we all faced in our daily lives have been difficult and it was no different in the tanker shipping market. COVID-19 has had a deep impact on our business and on our key resource, our people! From the start of the pandemic, Euronav has been focused on actively protecting and supporting our staff and customers across the globe. Over the course of a year we have made numerous financial and practical contributions of medical equipment to a range of companies, charities and individuals. The status of seafarers remains a current and active topic and Euronav will continue to lobby all national, political and regulatory bodies for seafarers to be recognised as ‘key workers’, both now and in the future. Shipping needs to do more in this area. Recognising that transparency is a two-way street when looking for wider political support is key to such initiatives.

At Euronav we acknowledge the magnitude of the climate change challenge and the role that Euronav can take by embracing it. From a sustainability perspective COVID-19 has brought a step change in the commitment across society towards this important challenge. We welcome this step change! The world is uniting in bringing increased awareness and finding solutions to the pressing needs we are facing. This underlines what sustainability is. It is dynamic. It is not static. Whilst sustainability has always been at the top of our agenda since the very foundation of the company 25 years ago, I am pleased to say Euronav has made further real progress during 2020 on sustainability.

Euronav celebrated 25 years as a corporate body in 2020. Take the time to go back through our old annual reports and you will notice that safety has always been our number one concern in delivering our cargoes in a safe manner but also sustainably. From 2005 our logo and strapline is the same today as it was then: ‘Euronav - the ocean is our environment’. Sustainability has been central to our business model from the start. But what does sustainability mean at Euronav? We believe that environmental actions, addressing climate change, and operating our business to the highest safety standards cannot be done without strong governance, which includes the highest ethical standards and oversight from an independent board and management. Environment and governance can’t do without the input of social or human capital with respect for the individual, gender and other social qualities. As reflected in the application of many of the United Nations’ 17 Sustainable Development Goals (SDG), sustainability at Euronav is about much more than emissions, climate change and other environmental challenges. It is also about delivering a supportive environment to our employees, respect, safety at all levels of our business, and ensuring accountability on these objectives.

Euronav, as the largest quoted crude tanker company in the world, is uniquely placed to develop a sustainable business within the energy transition. Crude oil demand and consumption will peak, or may have already, as the energy transition gains momentum. However, this ‘transition’ will take many years (cfr. Rystad Energy estimate peak oil demand in 2030). Assuming we follow the 1.5 °C Paris agreement pathway, crude oil will continue to be essential for economic development, human movement and industrial processes and production. Shipping is the most efficient method of transportation (87 times more efficient than aviation for example) in terms of CO2 emissions per tonne-km. Continuing to build a responsible, sustainable large crude tanker platform will generate benefits not just for our stakeholders, but for the wider society and environment. We are eager to demonstrate our sustainable role in the global energy transition. As we look forward shipping is in many ways one of the strongest platforms to achieve decarbonisation. Euronav looks forward to delivering on that challenge.

Euronav achieved on a number of sustainability goals during 2020. We were pleased to receive a ‘B’-score on our first submission to the Carbon Disclosure Project (CDP), reflecting our commitment and action so far on climate change. Disclosure and transparency are key building blocks in driving sustainability, and the evolution of our ESG and Climate Committee at board level to a Sustainability Committee provided invaluable oversight and direction. We remain the only listed tanker company with a committee focused on sustainability composed of Executive and Supervisory Board representation.

Euronav was a key partner in deriving the Poseidon Principles; a global framework for responsible ship finance for integrating climate considerations into lending decisions to promote international shipping’s decarbonisation. Adoption of these principles includes active reduction of carbon emissions as part of the IMO guidelines. This is important, as Euronav is committed to reduce its carbon emissions intensity EVERY year going forward, and not as an aspiration over ten years’ time. Moreover, one of our commitments for 2021 will be to formally set challenging, but attainable GHG emissions targets by which stakeholders can measure our performance going forward.

Euronav strengthened its sustainability framework further in September by merging two outstanding bank facilities into a single USD 713 million sustainability loan with 14 banks, which targets emission reductions at higher level than the Poseidon Principles. Investors should expect more features of sustainability oversight in our future funding. The cost of capital for those engaged like ourselves in delivering sustainable change in hard-to-abate areas like shipping, is critical. Euronav continues to focus on an incentive frameworks with its stakeholders to deliver our sustainable ambitions, which in turn need to be matched and policed by those providing finance. Another essential element to this requires bodies such as the IMO and EU to apply a consistent and integrated application of regulation, moving away from focusing on their own territorial claims. We regret that the shipping sector is often under-considered in its efforts to abate all sorts of pollution. For example the successful implementation by the sector of IMO 2020 and the reduction of sulfur emissions by 85% has been overlooked this year, given the disruption from the COVID-19 pandemic.

Other initiatives continue to develop. 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. There are currently 140 companies in the coalition within the maritime, energy, infrastructure and finance sectors, supported by key governments and IGOs. A solid sustainability agenda by itself is simply not sufficient anymore. Sustainability is expected by our customers and stakeholders to be part of our everyday business and rooted in our business model. We are very pleased to take the next steps in further embedding sustainability into our company in 2021, and securing these activities in the business with direct sector leader accountability. Euronav has recently added personnel to its sustainability capability to oversee and construct the next stage of our sustainability architecture both internally, and externally. This critical role will report directly to the Management Board and reflects our commitment to improve our sustainability position.

Sustainability highlights

Our approach to sustainability

Stakeholder engagement

Active engagement with financial institutions on sustainability

Environment

Approach to environment

Greenhouse Gas Emissions

Overview initiatives and collaborations

Social and human capital

People approach

CASE: Bloomberg Gender Equality

COVID-19

Health and Safety

Corporate Governance

Initiatives and Contributions to Society

Values: Annual report 2020  96

Sustainability report 97# Sustainability report 99

Reporting frameworks

The disclosures in this report provide investors and other stakeholders with material sustainability or ESG information. This report has been carefully prepared in accordance with the Marine Transportation framework established by the Sustainability Accounting Standards Board (SASB). The SASB standard allows us to identify, manage and report on material sustainability or ESG topics with industry specific performance metrics, based on SASB’s internationally recognised indicators and related definitions, scope and calculations. Additionally, we have incorporated the principles of the UN Sustainability Development Goals where applicable. The report and data cover the period from 1 January to 31 December 2020 and reflect the Euronext ESG reporting guidelines.

Key figures

TOPIC	METRIC	UNIT	DATA 2020	REFERENCE STANDARD
Climate risk and climate footprint	Scope 1 GHG emissions	Metric tonnes CO2-eq.	3,082,765	TR-MT-110a.1
	Scope 2 GHG emissions Gross global	Metric tonnes CO2-eq.	232	GRI 305-2
	GHG emission intensity	Ratio e.g. g CO2 / t·n	3.34	GRI 305-4
	GHG emission management		See page p 108-113	TR-MT-110a.2
	Scope 3 GHG emissions	Metric tonnes CO2-eq.	638,578	TR-MT-110a.2
Energy mix	(1) Total energy consumed, (2) percentage heavy fuel oil, (3) percentage renewable	Gigajoules, Percentage (%)	1) 41,067,762	TR-MT-110a.3
			2) 87 %
			3) 0%
Annual Efficiency Ratio (AER)		gCO2/TNL	2,42	Non-SASB: optional
Air quality	Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx	Metric tons (t)	1) 83,899.3	TR-MT-120a.1
			2) 85.3
Ship recycling	Responsible ship recycling		0	Hong Kong Convention EU Ship Recycling Regulation

Sustainability Highlights 2020

Annual report 2020  100

TOPIC	ACCOUNTING METRIC	UNIT	DATA 2020	REFERENCE STANDARD
Ecological Impacts	Percentage of fleet implementing ballast water (1) exchange and (2) treatment	Percentage	1) Exchange: 53.6%	TR-MT-160a.2
			2) Treatment: 46.4%
	Number and aggregate volume of spills and releases to the environment	Number, Cubic meters (m3) or Metric tonnes	0	TR-MT-160a.3
Accidents, Safety and Labour Rights	Lost time incident rate (LTIR)	Rate (lost time incidents) / (1,000,000 hours worked).	0.6	TR-MT-320a.1
Diversity	Diversity of workforce, Percentage		Shore: 55% male, 45% female	GRI 405-1
			Sea: 97.6 % male, 2.4% female
			Supervisory Board 50% female
Labour rights			See page 103	GRI 102-41
Business Ethics	Port state control Number of (1) deficiencies and (2) detentions received from regional port state control (PSC) organisation	Number	1) Deficiencies: 18	TR-MT-540a.3
			2) Detentions: 0
	Corruption risk Number of calls at ports or net revenue in countries that have the 20 lowest rankings in Transparency International’s Corruption Perception Index	Number	24	R-MT-510a.1
	Facilitation payments	Number	0	SDG 16
Fines	Figure reporting currency		0	GRI 419-1
ESG Governance	Policies and targets Description of main policies and targets:		See page p 101 - 107	GRI
Disclosure of management approach

ACTIVITY	METRIC	UNIT	DATA 2020	REFERENCE STANDARD
Number of shipboard employees		Number	2,780	TR-MT-000.A
Total distance travelled by vessels		Nautical miles	4,731,775	TR-MT-000.B
Operating days		Days	25,313	TR-MT-000.C
Deadweight tonnage		Thousand deadweight tons	17,806,234	TR-MT-000.D
Number of vessels in total shipping fleet		Number	77	TR-MT-000.E
Number of vessel port calls		Number	1,881	TR-MT-000.F

Sustainability report 101

Our approach to sustainability

Long before financiers of businesses and regulators began doing so, Euronav has been embracing ESG as a set of principles that the Company wants to operate by. The Company is committed to fully capture and embrace environment, social and governance related measurements. Sustainability is a core value at Euronav as it ensures the long-term health and success of our people, our business, and the environment we work in. It involves a commitment to safety and environmental practices, as well as an innovative approach to the use of technology and information. Euronav not only wants to preserve the ocean, but also the environment and society we operate in. Sustainability at Euronav focuses on meeting the needs of the present without compromising the ability of future generations to meet their needs. Our concept of sustainability is composed of three pillars (Environment, Social and Governance) embedded within a system of economic sustainability. We frame our decisions in terms of environmental, social, and human impact for the short-term, medium-term and long-term by considering more factors than simply the immediate profit and loss result.

Annual report 2020  102

UN Development Goals

Euronav In 2015, the United Nations launched 17 Sustainable Development Goals (SDGs) to end poverty, fight inequality and injustice, and tackle climate change by 2030. Euronav aligns itself with the purpose of a ‘shared blueprint for peace and prosperity for people and the planet, now and into the future’. To that end, the Company is proud to be scrutinised on our engagement with the UN Sustainable Development Goals and we believe we can have influence over the delivery of nine of the UN SDGs as illustrated below.

The COVID-19 crisis created a dual challenge for Euronav. Onshore staff were forced to work from home and seafarers were displaced and often had to work extended contracts. The mental health of our staff has always been a priority and our commitment to this was brought into sharp focus during the pandemic. In recent years, Euronav has managed multiple projects under the umbrella ‘Euronav on the move’ to encourage staff across all our locations to live healthier lifestyles.

ESG Alignment:
• Human Capital
• Social Responsibility

Euronav has always provided opportunities for gender diversity throughout the company. This has been recognised by the Bloomberg Gender-Equality Index, which we have been part of since its inception in 2018. The company-wide survey assesses in depth how far gender representation reaches in terms of remuneration, senior roles and key responsibility functions. Euronav is the only transport company in this index in the world. This commitment to equality is also reflected in the boardroom where Euronav has had substantial female representation since 2012, with 50% of Supervisory Board members since 2018.

ESG Alignment:
• Human Capital
• Social Responsibility

Euronav is a member of the Getting to Zero Coalition, a powerful alliance of more than 140 companies within the maritime, energy, infrastructure and finance sectors, supported by key governments and IGOs. The Coalition is committed to getting commercially viable deep sea zero emission vessels powered by zero emission fuels into operation by 2030. Within the coalition Euronav is actively participating in the Getting to Zero strategy group and the leadership group of the fuels and technologies work stream.

ESG Alignment:
Environmental Responsibility

Sustainability report 103

Euronav maintains high retention rates, 95% for shore and 97% sea staff, reflecting our position as a stable and premium employer in the large crude tanker market. Euronav employs 220 shore staff and 3,500 seafarers with the offshore remuneration on average 510% higher than the respective country’s per capita GDP. For the vessels sailing under French, Belgian and Greek flag we use the Collective Bargain Agreement, signed between the shipowners and seafarers unions under the laws of each country or the ITF (International Transport Federation) terms and conditions for seafarers of non-national, EU or pool members.

ESG Alignment:
• -Human Capital
• Social Responsibility

Euronav has a disciplined fleet management approach of our fleet by trying to maintain a low average fleet age, which is good for fuel consumption and therefore for emissions. Once vessels are over 15 years old, Euronav consistently seeks to position them in other segments. Euronav has been leading emissions disclosure in our sector since 2017. Innovations are the bedrock of our fleet management, with a recent USD 11 million investment across 27 vessels on advanced hull paints and devices for energy efficiency improvement in order to meet its ambitious emissions targets for the next five years.

ESG Alignment:
• Corporate Governance
• Environmental custodian

Euronav has been successful in recent years in reducing its year-on-year CO2 emissions (2018, 6% reduction), and implementation of the IMO SO2 regulations. In 2020 we reduced our sulfur emissions by 85% with a move to compliant fuel. Having undertaken substantial engagement to bring our climate disclosure beyond industry average standards (see CDP), Euronav has agreed to annual reductions in emissions as part of our commitment to the Poseidon Principles and as agreed with lenders as part of a recent 713 million USD sustainability loan. In addition to this commitment Euronav is looking to roll out further emissions targets.

ESG Alignment:
Environmental custodian

‘The ocean is our environment’ has been the strapline motto of Euronav since 2005. As the largest crude tanker company in the world we take our responsibilities in this critical area seriously through a range of actions.# ESG Alignment

Environmental custodian

Annual report 2020  104

Euronav is a strong believer that ESG means nothing unless its core components engage with one another. Strong discipline on social issues or environmental engagement must be supported by robust governance. Euronav has consistently scored in the top quartile of shipping companies and has backed this up with other initiatives on gender equality, a fully independent supervisory board, and focus on best in class management both operationally and ethically (e.g. our Code of conduct and Whistleblower policy, which you can find in the Governance section).

ESG Alignment: Corporate Governance

Shipping, and large crude tanker shipping specifically, is a global business. It therefore requires substantial cooperation amongst all its participants. Euronav is proud to be engaged in multiple associations such as HELMEPA, NAMEPA and a range of initiatives that are designed to protect, promote and enhance the ocean environment for today and tomorrow. Euronav is a member of the Getting to Zero Coalition; a powerful alliance of more than 140 companies within the maritime, energy, infrastructure and finance sectors, supported by key governments and IGOs. The Coalition is committed to getting commercially viable deep sea zero emission vessels powered by zero emission fuels into operation by 2030.

ESG Alignment: Corporate Governance

Sustainability report 105

Materials topics

106

Stakeholder engagement

| | Customers | Investors & shareholders | Seafarers / empolyees | Society However, new fuels are required as the critical driver in ensuring shipping is compliant with a decarbonised future, and in retaining its position as the most efficient transportation form available. Source: Clarksons Annual report 2020 110 Euronav Total Carbon Emissions EEOI/Energy Efficiency Operational Index: Sea going fleet emissions (gCO2) per unit of transport work (cargo ton miles) AER/Annual Efficiency Ratio: Sea going fleet emissions (gCO2) per ton of ships deadweight times total miles run in the period OEI/Organisational Emissions Intensity: All Euronav emissions (scope 1, 2, 3) per unit of transportation work (cargo ton kilometers) Source: all calculations by Ecoact

	2018	2019	2020
EEOI gCO2/TNM	4.6	4.96	4.91
AER gCO2/TNM	2.37	2.36	2.42
OEI gCO2e/T.KM	3.07	3.36	3.34

Type of Emissions	2017 tCO2e¹	2018 tCO2e	2019 tCO2e	2020 tCO2e	% Change 2020 vs 2019
Scope 1 (Direct)	3,280,230	2,944,387	3,129,547	3,082,765	(1)%
Scope 2 (Indirect Energy)	400	424	248	232	(48)%
Scope 3 (Indirect Other)	635,830	583,547	625,565	638,578	2%
Total	3,916,460	3,528,045	3,755,360	3,721,576

1. Certain aspects of the organisation’s operations have been excluded, due to a lack of data availability. These account for less than 0.3% of total emissions so are not considered material. This includes electricity from two one-person offices and business travel from Anglo-Eastern Ship Management. Values have been rounded so may not tally completely in Table 1. The reported figures for CO2 and other GHG emissions for 2018 in relation to the 21 ships purchased as part of the “Gener8 merger” are not the actual ones but they are “annualised” for comparison purposes.The reported figures for 2017 have been “rebaselined” for year- on- year comparison purposes with the 2018 figures.

Scope 1: Emissions from Euronav’s sources that are controlled directly by the company, including the combustion of fuel from vehicles and vessels, and building operations.
Scope 2: Emissions from imported energy, such as purchased electricity, heat or steam
Scope 3: Emissions from non-owned sources that are related to the company’s activities. This includes business travel, the well-to-tank emissions related to the processing of fuels, and the transmission and distribution of electricity.

Key operational data

Sustainability report 111

Modernisation fleet, newbuilding strategy

Modern fleet

A modern shipping fleet is essential to manage both the customers’ requirements and to comply with increasingly stringent environmental, financial and safety regulations. The lower the fleet age, the lower the consumption of fuel will be. This gives the fleet a competitive advantage over its peers but it is also crucial from an environmental perspective as it reduces the amount of CO2 emissions per ton-mile that the fleet will produce. Younger fleet age and more advanced technology favours emission reductions in shipping.

Newbuild and specifications

Euronav NV has entered into an agreement to acquire four resale VLCC newbuilding contracts. The newbuildings will join our fleet in the first quarter of 2021. The constructions were completed at the DSME shipyard in South Korea for an aggregate purchase price of USD 280.5 million, or USD 93.5 million per ship. The vessels are fitted with Exhaust Gas Scrubber technology and a Ballast Water Treatment system. The four acquisitions push the Company’s investment in fleet modernisation to around USD 374 million. All Euronav’s newbuildings already have IHM (Inventory of Hazardous Materials) and most relevant class notations. All vessels of the Euronav fleet had IHM approval by the end of 2020. In February 2021 we repurchased two Suezmax resales with the intention to potentially equip the vessels with ammonia as propulsion fuel. Such ‘future proofing’ of our fleet will continue to be a key focus of our decarbonisation strategy going forward.

Fuel

The key element that will allow shipping in general, and the large crude tanker segment specifically, to comply with the set decarbonisation goals is the next generation fuel that will power vessels. From a commercial perspective, the capital intensity of our sector (new build VLCC costing USD 100 million) and uncertainty over a new fuel is preventing many ship owners from contracting new vessels. This is beneficial for our business model but is driven by the absence of a clear ‘category killer’ i.e. a universally accepted fuel that will solve all the decarbonisation requirements. As demonstrated in the chart, Euronav believes it is unlikely that one single fuel will emerge in the short-term and that multiple fuel types will be developed dynamically over the next 3-5 years. Euronav will continue to invest across this spectrum, both directly and with third parties, to ensure the Company is best positioned to deliver on decarbonisation.

• LNG: Currently viable, Exact CO2 emissions cut? Infra?
• Methanol: Partially available, Scaleable?
• Ammonia: Available in 2025, LT better solution but $ costs
• Hydrogen: 2030? earliest, Highest potential but viable?
• Biofuels: Available today, Scale? Competing with other industries

Annual report 2020 112

CDP Carbon Disclosure Project

Euronav has led the tanker sector in publishing carbon emissions data since 2017. Gaining an accredited score from CDP in 2020 was another milestone in our emissions disclosure and climate change strategy journey. CDP is a non-profit organisation which runs the global environmental disclosure system. It covers over 9,600 companies globally accounting for over 50% of global market cap on the worlds capital markets. CDP has the world’s largest, most comprehensive set of companies’ environmental data, and is utilised by investors and purchasing organisations to make informed decisions, reward high-performing companies, and to drive action.

Our 2020 CDP score

Euronav obtained a ‘B’ rating in our first submission to CDP. This is graded ‘management’, indicating the Company is taking coordinated action on climate issues.

Sustainability report 113

Euronav Activity	Group Average

Our initial score on CDP compares very favourably against our marine transport peers, and also on a wider level relative to both European and Global corporates generally. Drilling deeper into our CDP score, this shows where Euronav has made real sustained progress in managing the risks from climate change. More critically, it underlines the areas of development needs that the Company will have to address moving forward. The full submission is available: www.euronav.com/media/66155/200817-euronav-cdp-climate-response.pdf. The framework we have constructed in emission reduction initiatives, combined with the risk management processes we operate, were recognised as leadership standard by CDP. Similarly, our disclosure and strategic planning is rated very highly. However, it is recognised that there is progress to be made in Governance and setting attainable, yet challenging emissions targets. This is something we look forward to addressing in more detail during 2021. Euronav also has an opportunity to develop a more fully sustainable value chain management and energy mix. Attaining a ‘B' rating is an important milestone for the Company, but no more than that. The board and management recognise Euronav has more progress to make on our sustainability voyage.

Annual report 2020 114

Overview initiatives and collaborations

Global Maritime Forum

Euronav is a founding partner of the Global Maritime Forum, an international non-profit organisation committed to shaping the future of global seaborne trade to increase sustainable long-term economic development and human well-being. For more info visit https://www.globalmaritimeforum.org/

Getting to Zero Coalition

The Getting to Zero Coalition (GtZ) is a powerful alliance of more than 140 companies within the maritime, energy, infrastructure and finance sector, supported by key governments and IGOs. The Coalition is committed to getting commercially viable deep sea zero emission vessels powered by zero emission fuels into operation by 2030, maritime shipping’s ‘moon-shot’ ambition.

Poseidon Principles

The Poseidon Principles provide a framework for the integration of climate considerations into investment decisions in order to promote international shipping’s decarbonisation. Euronav assisted with the drafting of the Poseidon Principles in 2019, as one of only two shipping companies in the drafting committee, and applies them to our funding structure. The Poseidon Principles establish a common, global baseline to quantitatively assess and disclose whether financial institutions’ investment portfolios are in line with adopted climate goals. The Poseidon Principles are consistent with the policies and ambitions of the International Maritime Organisation. The IMO is a UN agency responsible for regulating shipping globally, including its ambition for GHG emissions to peak as soon as possible, and to reduce the total annual GHG emissions by at least 50% by 2050 compared to 2008. Currently 22 financial institutions are signatories to the Poseidon Principles, representing a bank loan portfolio to global shipping of approximately USD 165 billion, around 30% of the global ship finance portfolio. The Poseidon Principles apply a maximum level of a AER or Annual Efficiency Ratio every year for a company's shipping fleet. The Annual Efficiency Ratio divides the annual carbon dioxide emissions of a ship by the product of the distance sailed, and the deadweight of the ship. The Poseidon Principles framework requires shipping companies to reduce their AER YEAR ON YEAR as the chart below illustrates. For the VLCCs the framework is seeking AER to fall from 2.37 g CO2/ton-miles to 2.07 by 2025, as the blue bars show. Euronav’s planned trajectory is ahead of this schedule, represented by the green bars. Whilst these are “guidelines”, they come with strong discipline backed by one third of the global shipping finance portfolio.# Poseidon Principles

Falling foul of such guidelines will have commercial and cost-of-capital implications for Euronav. For more information, visit www.poseidonprinciples.org.

Sea Cargo Charter

Euronav is pleased to have been a key member of the Sea Cargo Charter drafting group as part of our wider efforts to actively and immediately reduce our GHG emissions. The Sea Cargo Charter initiative is a partnership between some of the world’s largest energy and commodity trading companies and the shipping sector. This global framework favours climate-aligned maritime transport for the integration of climate considerations into chartering decisions. The Sea Cargo Charter establishes a common baseline to quantitatively assess and disclose whether shipping activities are aligned with adopted climate goals and are consistent with the policies and ambitions adopted by the IMO. For more information https://www.seacargocharter.org

ITOPF

Euronav is an active Member of International Tanker Owner Pollution Federation (ITOPF). Established in 1968, ITOPF is maintained by the world’s shipowners and their insurers on a non-profit basis, to promote effective response to spills of oil, chemicals and other substances in the marine environment. ITOPF’s membership currently comprises around 8,000 owners and bareboat charterers of approximately 13,600 tanker vessels with a total gross tonnage of over 430 million GT. The organisation also benefits from the participation of over 810 million GT of non-tanker tonnage owned and operated by its Associates. Euronav’s COO Captain Alex Staring is a member of the Board of ITOPF. For more information https://www.itopf.org

CDP

The Carbon Disclosure Project (CDP) is a global non-profit organisation that has run the world’s leading environmental disclosure platform for over 20 years. In 2020, 9,600 companies worldwide shared data on their environmental impact in relation to climate change, forests, and water with the CDP. Euronav has submitted its sustainability credentials to the CDP platform for the first time in 2020 gaining a ‘B’ rating which is covered in more detail in the ‘Greenhouse gas emissions’ section in this report. For more information: https://www.cdp.net/en

Ocean Cleanup

Rather than sending a traditional ‘Season’s Greetings’ card, Euronav sent an electronic card to all sea and shore staff and associates. The funding otherwise allocated to cards and postage was donated to the Ocean Cleanup. The Ocean Cleanup’s mission is to develop advanced technologies to rid the world’s oceans of plastic. Last year we made a substantial financial aid to The Ocean Cleanup. We challenged our employees to exercise in collaboration with AtlasGo, an app that tracks all activities performed by our employees. For more information visit https://theoceancleanup.com

HELMEPA

The Hellenic Marine Environment Protection Association is the pioneering voluntary commitment of Greek seafarers and ship owners to safeguard the seas from ship-generated pollution, undertaken in Piraeus, on June 4, 1982. The association aims to acquire an environmental consciousness under the motto ‘To Save the Seas’. Euronav is an active member and we participated in the development of the training programs and provide trainers for these programs. For more information visit: https://www.helmepa.gr/en/

INTERTANKO

The International Association of Independent Tanker Owners is a trade association. It has served as the voice for independent tanker owners since 1970 on regional, national, and international levels. The association actively works on a range of technical, legal, commercial and operational issues that have an influence on tanker owners and operators around the world. For more information visit https://www.intertanko.com

People approach

Employee engagement

One cornerstone of the Euronav mission is dedicated to our people: to inspire and enable talented, hard-working people to achieve their career goals in a healthy, challenging and rewarding environment. Euronav has approximately 220 employees (including contractors and temporary assignments) across shore-based offices in Antwerp, Athens, London, Nantes, Geneva, Singapore and Hong Kong. This global geographic span reflects a deep-rooted maritime history and culture built up over generations. About 3,500 seafarers of many different nationalities work aboard Euronav vessels. In an environment where there is a shortening supply of competent seafarers, Euronav has qualified and experienced masters, officers and crew to manage all the vessels. Senior Officers conferences and crew conferences are held regularly. Euronav is devoted to a teamwork culture and an environment where people work together for the overall success of the Company, on shore and at sea.

Training and development

Euronav practices performance planning and appraisal, training and development and promotion from within. Our policies aim to enhance and reward performance, engage our people and retain key talent. Euronav has built a comprehensive system of continuous training programs and seminars both aboard and ashore. This ensures a continued awareness among all personnel of their day-to-day operational duties. The training needs are identified during the appraisal process and the training plan is prepared based on these needs. Training activities are carried out in a training room or online through a computer-based program.

Talent attraction and retention

Euronav is always looking for new talent to join our company. On our website we display all career opportunities within the company. There is a separate page for crew applications. The shore vacancies are displayed on the website and on our LinkedIn page.

Crew management

Euronav Ship Management employs and offers career opportunities to officers and crew of various nationalities from Europe, Asia and America. Euronav also has a portion of its fleet under third party managers which allows the Company to accurately monitor sector best practice and cost optimisation.

Social and human capital

A common crew software platform is used by all crewing departments to propose job opportunities at any time to Euronav seafarers, allowing them to develop and retain competencies within the Euronav Group. To ensure that all vessels are staffed with qualified and competent crew, a detailed training matrix has been developed and is evaluated on a quarterly basis. The training includes external and in-house training above minimum statutory requirements, as well as computer-based training. Conducted training is being recorded and assessed, and training needs are further evaluated during quarterly management review meetings. Additionally, sea staff are provided with the opportunity for shore-based training such as attending office activities, seminars and conferences and are kept in contact with the Company through newsletters and regular communication.

Working from home

Euronav cares greatly about its employees and actively supports their wellbeing. It strives to create a collaborative and stimulating work environment which caters to the different staff needs, and encourages a healthy work-life balance by offering flexible working arrangements, such as teleworking. Euronav has expanded its home working policy in response to the extreme impact of COVID-19 restrictions.

Diversity

We celebrate the diversity in our workforce. Many of our employees and officers have a wealth of long service and experience at Euronav, while others are new entrants with fresh perspectives. Fostering long-term commitment and stability, combined with a conscious effort to introduce new talent to the company, has enabled us to achieve excellent results in an extremely competitive industry. Euronav people bring a rich diversity of educational and professional qualifications to their jobs. The company attracts professionals with finance, business administration, legal and humanities backgrounds, as well as those who have specialised in nautical, engineering, tanker operations, crewing, marine and technical areas and shipping corporate services. Virtually everyone speaks at least two languages fluently and half the staff speak three or more languages. You can find more information on the gender equality in our company in the Corporate Governance Statement, section 13.

CASE - Bloomberg Gender-Equality Index

The Bloomberg Gender-Equality Index (GEI) provides transparency in gender-based practices and policies at publicly listed companies, increasing the breadth of environmental, social, governance (ESG) data available to investors. The reference index measures gender equality across five pillars: female leadership and talent pipeline, equal pay and gender pay parity, inclusive culture, sexual harassment policies, and pro-women brand. This index is updated every January and Euronav has once again been included for 2021, as it has been since the index’s inception in 2018.

Transparency and ethical behaviour

Code of conduct

Euronav adopted a Code of Conduct in order to assist all Euronav employees in enhancing and protecting the good reputation of the Company, more particularly in its relationship with customers, shareholders and other stakeholders, as well as with society in general. The Code of Conduct therefore intends to ensure that all persons acting on behalf of Euronav do so in an ethical way and with respect of the applicable laws and regulations.

Staff Handbook

The Staff Handbook sets out guidelines for ensuring high standards of ethical practices that need to be applied throughout the Euronav community. These include policies, amongst others, relating to working culture, employee retention and turnover rates, remuneration and workforce diversity, regulated working hours, regulation of labour supply and protection of the worker against sickness, disease and injury.# Whistleblower policy

Euronav has adopted a Whistleblower Protection Policy in order to protect individuals who want to lawfully raise a legitimate concern. If an individual does not feel comfortable reporting concerns to a supervisor, manager or any other appropriate person within the Company, he or she can use a free telephone service or web-based platform that enables him or her to report a concern in complete confidentiality. Euronav’s ‘SpeakUp’ service is hosted by an independent third party, People InTouch, to ensure a straightforward, confidential, secure, and convenient way of reporting. If an employee becomes aware of illegal or unethical misconduct, Euronav strongly encourages them to report it to Euronav through our regular channels of communication, including the ‘On Board Complaint (or Grievance) Procedure’ for seagoing personnel. If an individual does not feel comfortable talking to any of these persons about such matters, he or she is encouraged to use Euronav’s SpeakUp Hotline platform that enables he or she to report a concern in complete confidentiality. Euronav encourages individuals to identify themselves when making a report to facilitate the investigation. However, any person who does not want to be identified is entitled to register a complaint confidentially and anonymously. The Company will treat all complaints in a confidential manner. The Company will not in any manner discriminate against any individual who has made a complaint in good faith.

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COVID-19

The wellbeing and health of our staff, seafarers, their families and the broader community is Euronav’s priority. We applied several precautionary measures across our offices and fleet in order to protect our employees and seafarers in response to COVID-19. We have restricted access to our offices around the world and most of the staff are working from home. There is also restricted access to our vessels when they call at terminals. Euronav decided not to put any of its employees under temporary or permanent unemployment benefits, as we believe that every single employee at Euronav plays a critical role in our operations in the short- and the long-term. As this unprecedented and challenging year made it harder to maintain the work-life balance, we have focused on the mental health of our employees via experience surveys with our shore staff. Euronav has made tangible, practical efforts to support the Belgian community during the pandemic. For example, we donated a batch of 200,000 mouth masks (100,000 surgical and 100,000 FFP 2) to the hospitals and senior care centres in Belgium which are linked to the communities of Euronav employees.

Crew change crisis – a global maritime issue

The COVID-19 crisis brought many challenges in 2020, but the Company’s main concern and challenge was the rotation of all Euronav seafarers with expired contracts stranded at sea. This is not a crude tanker company issue, but a global maritime industry issue. It is the largest ever humanitarian and logistical crisis facing the maritime sector, with the disruption affecting the lives and livelihoods of nearly 40% of the world’s estimated 2 million crew; including those seafarers that are unemployed and unable to join their vessels. Euronav has supported its employees from the beginning by trying to communicate consistently with its crew members. The will of any seafarer to be repatriated and return to his or her family and loved ones is a right that Euronav undeniably respects and supports. Key workers in other industries received special permission to travel. This lead to lobbying on behalf of seafarers to be afforded the same status and support during the pandemic. Euronav lobbied different ports to either help lift restrictions, or to have the port communicate when restrictions may be lifted. Throughout the crew change crisis, our CEO Hugo De Stoop was our leading voice. He actively supported the stranded seafarers and looked for a solution together with everyone in the company and local authorities.

Crew change crisis – proactive response from Euronav

The regular performance of crew changes was affected by the COVID-19 regulations around the world, with crew change clearance dependent on complex multi-regional regulations of many countries. These complexities grew with the lockdown restrictions associated with combating COVID-19. This placed additional pressures on our capability to repatriate crew and make necessary crew changes. Through the tireless efforts of our operational staff, professionalism of our crew, and lobbying efforts, Euronav made sustained progress in managing our displaced crew from August onwards as the chart shows.

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Health and Safety

Health, Safety, Quality and Environmental protection (HSQE) Management System

Euronav’s HSQE management system aims to define the context for Safety, Environmental and Operational excellence. The core value of this system is distilled in our general policy statement wherein excellence is defined as "No harm to person, or the ship and no damage to the environment or property, providing quality services to our clients".

The crew change crisis peaked in July, leaving over 600 seafarers stranded at sea after the completion of their employment contracts. One example of our efforts to alleviate the situation was the use of the French Island of La Réunion, east of Madagascar in the Indian Ocean. Together with the French Maritime Administration, Euronav declared La Reunion a hub spot for crew reliefs, along with other French metropolitan ports such as La Martinique. Euronav has performed 18 crew changes on La Réunion. Between June and September, around 170 seafarers of many nationalities managed to join 15 different vessels from all flags, or were able to return home to their loved ones.

Internal voice (Captain Michaël Barbaix, Euronav, speaking at Diodorus & Delos Naming Ceremony, 16th December 2020)

“It takes a crisis to distinguish the true spirit of your leaders. And if 2020 showed us anything, it is the real commitment Euronav takes towards their crew members. When we got stranded on our vessels due to the COVID travel restrictions, Euronav stepped up as a leading voice in the maritime sector: deviating their vessels for the single purpose of crew change, incurred extra costs to get seafarers back home safely and Euronav stood firm against charterers trying to sneak in anti-crew change clauses in their contracts. Our CEO, Hugo de Stoop, spoke out in the media, advocating for a solution to the problem every shipping company was facing.”

Crew change crisis – further initiatives

Euronav is working closely with many organisations and countries to facilitate the movement of seafarers to and from their vessels. In January 2021, the Company became a signatory of the ‘Neptune Declaration Seafarer Wellbeing and Crew Change’. The declaration is a global call to action to address the ongoing crew change crisis caused by the COVID-19 pandemic. It focuses on concrete actions that can facilitate crew changes and keep vital global supply chains functioning.

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Safety is paramount at Euronav

Approach

Euronav is committed to operating in accordance with the highest standards of safety in the marine transportation industry and employs competent and experienced crew to ensure that its vessels are operated in a safe and environmentally sound manner. By promoting an active safety culture among its personnel, both ashore and aboard, Euronav is committed not only to providing a quality service to their clients, but especially to ensuring consistent protection of the environment and working conditions. Focusing on safety also means making sure the crew is qualified, regularly trained, informed of current issues and looked after as far as their health and wellbeing is concerned.

Yard selection in terms of HSQE assessment

Euronav is selecting reputable shipyards when performing the vessels’ regular repairs. The selection is based on the shipyard reliability, adherence to health, safety and environmental protection standards and of course their competitiveness. Shipyards are evaluated regularly for being eligible for potential business. Although our fleet is young, vessel recycling is an important matter on which Euronav is actively working. Euronav fully supports the principles of the Hong Kong convention (IMO) as well as the EU regulation on ship recycling. The Inventory of Hazardous Materials (IHM) as well as relevant class notations are significant elements of the recycling policy and are documents that follow the entire life of a vessel, beginning with its construction, and are updated on a regular basis during the life cycle of a vessel (the so called Green Passport). All Euronav’s newbuildings already have IHM and most relevant class notations. All vessels of Euronav Fleet will have an approved IHM by the end of June 2021

Approach to armed guards and piracy

The safety and security of the Euronav sea and shore staff is a primary concern for the Company. To that end, the Company’s management team takes every necessary precaution to ensure our shore and onboard staff are protected and able to perform their duties safely and responsibly. The engagement of armed guards, which is a measure of last resort, is based on specific

The system has been consciously designed under the highest standards, within the framework of ISM, MLC, ISO 9001 (Quality Management Systems), ISO 14001 (Environmental Management Systems), ISO 45001 (Occupational Health & Safety Management Systems) and ISO 50001 (Energy Management Systems). Ship and shore management is seen as a single and undivided organism endeavouring to achieve common goals and continual improvement. Our working environment is continuously monitored for proper health conditions.# Sustainability report

Health

The health of Euronav personnel both onboard and ashore is a very important aspect of Euronav's Company Management system. Our working environment is continuously monitored for proper health conditions. Our health standards and guidelines pay specific attention to important issues such as general living conditions, crew well-being, physical exercise, storage of food and nutrition practices. Medical advice and assistance is available 24/7.

ISM Compliance

Euronav has developed a Health, Safety, Quality and Environmental Maritime Management System. This integrates health, safety, environment and quality management into one seamless system that fully complies with the ISM Code for the ‘Safe Operation of Ships and Pollution Prevention’.

Ship management

Euronav Ship Management is involved in the operation and management of vessels providing worldwide transportation of cargoes by sea. As such, it recognises the inherent impacts on people and the environment, which can result from its activities. The Company will therefore conduct its operations, both ashore and onboard the vessels under its management, in a manner that protects health and promotes safety. The Company holds health, hygiene and safety as first priority in its operations, while its utmost concern is to always ensure that all employees execute their work under safe and hygienic conditions. Euronav is furthermore committed to take all reasonable precautions and measures, during the operation of managed vessels, in order to ensure safety at sea, prevention of human injury or loss of life and avoidance of damage to property.

Safety on board - ‘Come Home Safely’ campaign

Early 2019 Euronav launched the ‘Come Home Safely’ safety campaign. The campaign was designed to:
• Recognise and value safety performance (on individual, team and organisational level)
• Care for each other and keep an eye on safety
• Be engaged and responsible
• Have visible leadership
• Build a mature safety culture (drivers to elevate safety behaviour, WHO, HOW?)

To highlight the importance of safety, and in the framework of a new Euronav ‘Safety on Board’ campaign, Euronav came up with the idea to distribute posters on board the in-house managed Euronav vessels using the tagline ‘Come Home Safely’. As a token of appreciation for the seafarers’ individual commitment to safety on board the Euronav vessels, they were asked to play a leading role in the campaign. The plan was to display duo portraits of seafarers with a family member of choice, during their stay at home. For better recognition purposes, the seafarer needed to wear a complete safety outfit as provided on board. You can find some examples below.

Besides being photographed with their loved ones during a professional photo shoot close to their home, the seafarers received a print of the poster to share with their family and of course the digital files of the photo shoot. The campaign proved so successful we plan to do another one!

Stay Safe Magazine

It’s already been a year since the first issue of our in-house safety-oriented magazine ‘Stay Safe’, and the fourth issue is in progress. Tailor made to our needs, ‘Stay Safe’ magazine is the herald of safety within Euronav, aiming to inform, productively challenge and stimulate a safety-conscious culture. The Company aims at health, hygiene and safety excellence which is accomplished through the several objectives that can be found on https://www.euronav.com/hsq/health-safety/health-hygiene-and-safety-policy/

Mental health

During COVID-19, Euronav has put more focus on the mental health of its employees. The department heads have been actively informed on what to do when noticing certain symptoms of COVID fatigue. The Masters on the vessels had received guidance for dealing with signs of crew members under mental stress and were provided with the contact details of professional experts cooperating with the Company for possible assistance.

Euronav on the move

In 2019 Euronav launched ‘Euronav on the move’. This is an internal program created to fight sedentary behaviour. The aim is to encourage employees to incorporate sports into their workday. Employees are encouraged to participate in several sporting events, such as local running competitions. In the past we also collaborated with AtlasGo, which is an application that allows employees to register and track their activities.

Alcohol and drug policy

Euronav is fully committed to maintaining a safe and healthy working environment by implementing a strict drug and alcohol policy. Any violation of that policy, including illegal possession, consumption, distribution or sale of drugs or alcohol by any shipboard and shore personnel, shall lead to instant dismissal and will expose the person to legal proceedings.

Security

Cybersecurity and data protection

Euronav is fully aware of the importance of information security and data protection. The increase in security threats required the company to undertake appropriate measures to safeguard the confidentiality, integrity, and availability of (personal) data and resources, both on shore and onboard of its vessels. Cybersecurity is a top priority within an ambitious and innovative digitalisation project of Euronav: FAST or ‘Fleet Automatic Statistics and Tracking’. This includes initiatives such as a cybersecurity awareness campaign and a thorough cybersecurity roadmap and policy that is implemented throughout the Company. To ensure the protection of data Euronav installed a GDPR Compliance Strategy.

Corporate governance

Approach

The Code of Business Conduct and Ethics (the ‘Code’) has been adopted by the Supervisory Board (the ‘Board’) of Euronav NV (together with its subsidiaries, the ‘Company’) for all of the Company’s employees, directors and officers (‘Relevant Persons’). The conduct of individuals in these guidelines relate to the relationship with colleagues, customers, suppliers and government agencies with equal importance. As a starting point, Euronav should present itself as a professional and responsible organisation. This Code sets out a set of basic principles to guide Relevant Persons regarding the minimum requirements expected of them.

Anti-corruption policy

Euronav is committed to conduct all of its business operations around the world in an honest, fair, transparent and ethical manner. The Anti-Corruption Policy is applicable to employees and persons who act on behalf of Euronav in a long-term relationship. Euronav has also become a member of the Maritime Anti-Corruption Network (MACN). In general, any third parties who intend to trade with Euronav are subject to detailed scrutiny by the Internal Control department. This also considers the appropriateness of the business relationship in view of the Company’s Anti-Corruption Policy, in addition to the Third Party Risk Policy. Any concerns in relation to the Anti-Corruption Policy may be raised through the Company’s Whistleblower Hotline Platform via https://www.speakupfeedback.eu/web/euronav.

Third party risk policy

As mentioned before, any third parties who intend to trade with Euronav are subject to detailed scrutiny by the Internal Control Department.

Transparency and accountability

Capital markets have existing structures and controls. These provide a robust and sustainable framework for investors to have confidence that executive management teams and boards conduct themselves and execute strategy correctly and in a measurable way. Several agencies play a role when a company is listed as a publicly traded company. Stock exchanges require high standards of accounting discipline and regulatory compliance. Investors will also demand a consistent application of best practice in terms of presentation and detail of financial performance.

Assessment on non-financial risk factors

Within corporate governance, risk assessment, specifically on non-financial communication is part of our Risk Management Framework. More information can be found under section 7 ‘Internal control and risk management systems’ in the annual report.

Sustainability Committee

Euronav strongly believes that climate change and ESG matters are such important issues that we require a specialist and focused committee to oversee our response to the dynamic set of challenges it poses to all facets of our business. This committee, comprising both Supervisory and Management Board members, has already evolved considerably since it was established. Information about the composition of the Sustainability Committee can be found in our Corporate Governance Statement section under 3.4. The Sustainability Committee was established to assist the Board in monitoring the performance and key risks that the Company faces in relation to climate, environmental and governance matters. The Sustainability Committee oversees the processes and systems in relation to the Company’s Sustainability policy, and other corporate requirements as may be applicable. Additionally, the Sustainability Committee monitors the effectiveness of the organisation to meet stated goals and targets in relation to sustainability matters. You can find out more information on the responsibilities of the Sustainability Committee in our Corporate Governance Charter on our website: https://www.euronav.com/media/66233/20201211_coporate-governance-charter.pdf or the section 'Corporate governance' of the annual report).# Webber Research Ranking

If shipping were a student at a school for corporate governance, then its report card for the sector would be C minus, room for improvement. Standards applied in other sectors in capital markets are not always observed or applied in shipping as they could, or in some cases should be. The US investment bank Wells Fargo (and latterly taken on by the original author Michael Webber under Webber Research) has organised a corporate governance scorecard for quoted shipping companies since 2016. For further detail visit https://www.euronav.com/en/sustainability/publications.

Third party specialist agencies measuring outputs on governance, ethical standards and other non-financial items - such as CDP (the Carbon Disclosure Project) - are becoming increasingly important. The Poseidon Principles is a transparent body that brings together industry participants and practitioners directly, alongside the financiers of shipping in developing a core code of standards to comply with shipping’s decarbonisation. The self-regulatory mechanism behind this collective group will provide full transparency for all capital providers to the shipping sector.

Euronav, along with other responsible tanker operators, has an obligation and duty to defend and promote our business models and wider corporate reputation. Euronav believes that by joining bodies such as the Poseidon Principles and Global Maritime Forum along with initiatives such as Getting to Zero, the Company is contributing actively and positively to improving shipping and crude tanker shipping’s reputation by engaging with a diverse base of stakeholders. Providing a leadership role and undertaking (voluntarily) features such as the special report in our annual report are examples of how we, as a specific industry sector, can improve the transparency in the organisation of the industry.

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Initiatives and contributions to society

Charity policy

Euronav does not make any contributions to political parties of any persuasion. Euronav’s focus is on charitable donations where the Company believes it can make a tangible improvement to sections of society that we are engaged with or in proximity to. This is a dynamic area and we are constantly assessing the efficacy and focus of our charitable efforts.

Overview

Euronav wants to positively impact the communities where we live and work. We do this by building relationships and inspiring philanthropy and goodwill both inside and outside the Company. We actively encourage our staff to engage in community initiatives and support employee involvement, be it volunteering, fundraising or donations through options such as fund-matching or sponsoring specific events. A few of the charities to which Euronav contributes financially, in line with its policy, are described below.

Ocean Cleanup

For many years, Euronav has contributed funds to The Ocean Cleanup. The Ocean Cleanup’s mission is to develop advanced technologies to rid the world’s oceans of plastic. It began in 2018 with the development of the very first clean-up system for the Great Pacific Garbage Patch. The Ocean Cleanup estimates they will remove 50% of the Great Pacific Garbage Patch within 5 years of a full-scale deployment of 50 clean-up systems. Its aim is to help preserve our environment: the ocean.

Sailor’s Society

The Sailors’ Society is a charity which operates globally through a network of interdenominational Port Chaplains, who support all seafarers irrespective of their background, faith or nationality. The busy Port of Antwerp is vital to European and global trade, handling approximately 17,000 vessels every year. With so many seafarers visiting the port, there is a need for access to welfare services on a large scale. Euronav has donated funds which will help the Sailors’ Society work with the Antwerp port chaplain Marc Schippers. Marc visits vessels to offer his assistance to the crew onboard. He takes practical items such as phone cards to help seafarers to contact their families and international news printed from the internet to connect them with news from home. As well as practical assistance, Marc offers a listening ear to seafarers, providing emotional support when requested. Using his Sailors’ Society vehicle, the Antwerp Port Chaplain also offers seafarers free transport to wherever they need to go, such as the nearest phone and internet facilities, the shops or the doctors. This is a crucial service for visiting seafarers, as their time ashore is often limited to just a few hours.

Mitera - Centre for the Protection of the Child of Attica

The centre hosts 102 children in total, ranging from infants to children with six years of age. Roughly half the children who reside at the centre are orphans; others were abandoned by their biological parents. Some of the children cope with physical or mental disabilities such as Down’s syndrome. Single pregnant women also receive aid as the centre covers their birth expenses. The centre also offers social protection services to 40 children hosted at ‘Penteli Infirmary’ through a foster families program and social rehabilitation through adoption.

Valero Benefit for Children

The Valero Texas Open Benefit for Children Golf Classic, which has been running since 2002, is a project of the Valero Energy Corporation that raises money for children’s charities in the communities where Valero has major operations. The 2016 Valero Texas Open Benefit for Children Golf Classic and the Valero Texas Open contributed USD 10.5 million to children. As in previous years, Euronav specifically requested for its donation to be oriented towards children’s charities based in Quebec where a large number of our vessels trade.

The Care

The Association of Care is a Panhellenic Association which facilitates prevention, information and support for people with cerebral palsy, mental retardation and Down’s syndrome. Founded in 2008 in Piraeus, the organisation provides community service to families fleeing while seeking help for health problems. They adopt families, focusing on children with

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special abilities and help them in various ways by offering basic necessities and accommodating care thanks to collaboration with health specialists.

Doctors without Borders

Doctors without Borders is an international humanitarian NGO best known for its projects in war-torn regions and developing countries affected by endemic diseases. In 2018, over 40,000 personnel provided medical aid in over 70 countries. The organisation was founded in the aftermath of the Biafra secession in 1971 by a small group of French doctors and journalists who sought to expand accessibility to medical care across national boundaries, irrespective of race, religion, creed or political affiliation.

Hatzikyriakio

Hatzikyriakio Childcare Institution was built to support orphaned and homeless girls in Greece. Today, children from the age of 6, suffering social and financial problems, have more than a place to stay. The institution offers educational opportunities and emotional support in order to help these children grow and learn how to live as adults in a modern society.

SOS Children's Villages

SOS Children’s Villages is an independent non-governmental international development organisation which strives to meet the needs and protects the interests and rights of children since 1949. The organisation’s work focuses on abandoned, destitute and orphaned children requiring family-based child care.

The Ark of the World

The Ark of the World is a charitable non-profit organisation providing special care and protection to mothers and children. The organisation operates as an orphanage, as well as a daycare centre, for low-income families that need a safe place for their children during working hours. The Ark also started assisting low-income single mothers and provide a safe haven for mothers who need protection form abusive partners.

Argo Foundation

ARGO is dedicated to assisting families of Greek seamen of which the children battle with intellectual deprivation, autism or infirmities. The organisation offers education and care to those with special needs. The charity was founded in 1985 by seamen’s wives with disabled children. Nowadays, Piraeus based ARGO arranges services for 60 individuals from 17 to 45 years old, mainly children of seamen, with medium and severe learning disabilities.

Glossary 5

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Glossary

• Aframax - A medium-sized crude oil tanker of approximately 80,000 to 120,000 deadweight tons. Aframaxes can generally transport from 500,000 to 800,000 barrels of crude oil and are also used in lightering. A coated Aframax operating in the refined petroleum products trades may be referred to as an LR2.
• AER - Abbreviation of ‘Annual Efficiency Ratio’. This is the ratio of a ship’s carbon emissions per actual capacity distance (e.g. dwt x nm sailed). The AER uses the parameters of fuel consumption, distance travelled, and design deadweight tonnage. It reflects an index based on the tonnage supply.
• Backwardation - When the future or forward price of oil is lower than the current or ‘spot’ price.
• Ballast - Seawater taken into a vessel’s tanks to increase draft, to change trim or to improve stability. Ballast can be taken in segregated ballast tanks (SBT), located externally to the ship's cargo tanks (double hull arrangement), and in fore and aft peak tanks.
• Bareboat Charter - A Charter under which a customer pays a fixed daily or monthly rate for a fixed period of time for use of the vessel. The customer pays all costs of operating the vessel, including voyage and vessel expenses. Bareboat charters are usually long-term.
• Barrel - A volumetric unit of measurement equal to 42 U.S. gallons or 158.99 litre. There are 6.2898 barrels in one cubic metre. Note that while oil tankers do not carry oil in barrels (although vessels once did in the 19th century), the term is still used to define the volume.# BIMCO - Baltic and International Maritime Council

Organisation for shipowners, charterers, ship brokers and agents. In total, around 60% of the world’s merchant fleet is a BIMCO member, measured by tonnage (weight of the unloaded ships)

BITR - Baltic Index Tanker Routes

The Baltic Exchange is a source of independent, freight market data. Information collected from a number of major ship brokers around the world is collated and published daily. The Exchange publishes the following daily indices: the Baltic Panamax Index, the Baltic Capesize Index, the Baltic Handymax Index and the Baltic International Tanker Routes. The Exchange also publishes a daily fixture list.

BPD - Barrels Per Day

This is a measure of oil output, represented by the number of barrels of oil produced in a single day.

Bulk cargo

Bulk cargo is commodity cargo that is transported unpackaged in large quantities. The containment for this type of cargo is the tanks of the ship.

Bunkers

Bunkers includes all dutiable petroleum products loaded aboard a vessel for consumption by that vessel. International maritime bunkers describe the quantities of fuel oil delivered to ships of all flags that are engaged in international navigation. It is the fuel used to power these ships.

CBA - Collective Bargain Agreement

A Collective Bargain Agreement is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company (or with an employers' association) that regulates the terms and conditions of employees at work. This includes regulating the wages, benefits, and duties of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process.

CDP - The Carbon Disclosure Project

The Carbon Disclosure Project is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. The world’s economy looks to CDP as the gold standard of environmental reporting with the richest and most comprehensive dataset on corporate and city action

Charter

Contract entered into with a customer for the use of the vessel for a specific voyage at a specific rate per unit of cargo (Voyage Charter), or for a specific period of time at a specific rate per unit (day or month) of time (Time Charter).

Charterer

The company or person to whom the use of the vessel is granted for the transportation of cargo or passengers for a specified time.

CII - The Carbon Intensity Indicator

The Carbon Intensity Indicator is a response to the company's need to move towards a business model compatible with the Paris Agreement, achieving net zero emissions by 2050. This indicator is used to monitor progress and apply the most suitable and timely efficient levers.

Commercial Management or Commercially Managed

The management of the employment, or chartering, of a vessel and associated functions, including seeking and negotiating employment for vessels, billing and collecting revenues, issuing voyage instructions, purchasing fuel and appointing port agents.

Contango

A term used in the futures market to describe an upward sloping forward curve. Such a forward curve is said to be ‘in contango’. Formally, it is the situation where and the amount by which the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery. The opposite market condition to contango is known as backwardation.

COA - A Contract of Affreightment

A Contract of Affreightment is an agreement providing for the transportation between specified points for a specific quantity of cargo over a specific time period but without designating specific vessels or voyage schedules. This allows flexibility in scheduling since no vessel designation is required. COAs can either have a fixed rate or a market-related rate.

Crude oil

Oil in its natural state that has not been refined or altered.

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DTA - A deferred tax asset

A deferred tax asset is an item on the balance sheet that results from overpayment or advance payment of taxes.

DTL - A deferred tax liability

A deferred tax liability is a tax that is assessed or is due for the current period but has not yet been paid -- meaning that it will eventually come due. The deferral comes from the difference in timing between when the tax is accrued and when the tax is paid.

dwt - Deadweight Tonnage

Deadweight Tonnage is the lifting or carrying capacity of a ship when fully loaded. This measure is expressed in metric tons when the ship is in salt water and loaded to her marks. It includes cargo, bunkers, water, lubricants, stores, passengers and crew.

Demurrage

Additional revenue paid to the ship owner on its Voyage Charters for delays experienced in loading and/or unloading cargo that are not deemed to be the responsibility of the ship owner. The revenue is calculated in accordance with specific Charter terms.

Double hull

A design of tanker with double sides and a double bottom. The spaces created between the double sides and bottom are used for ballast and provide a protective distance between the cargo tanks and the outside world.

Draft

The vertical distance measured from the lowest point of a ship’s hull to the water surface. Draft marks are welded onto the surface of a ship’s plating. They are placed forward and aft on both sides of the hull, and also amidships. The Plimsoll lines which designate maximum drafts allowed for vessels under various conditions are also found amidships.

Dry-dock

An out-of-service period during which planned repairs and maintenance are carried out, including all underwater maintenance such as external hull painting. During the dry-docking, certain mandatory Classification Society inspections are carried out and relevant certifications issued. Modern vessels are designed to operate for five years between dry-dockings. Normally, as the age of a vessel increases, the cost and frequency of dry-docking increase. After the third Special Survey, dry-docks will be conducted every 2.5 years.

EBITDA

EBITDA Stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation and is a metric used to evaluate a company's operating performance. It can be seen as a proxy for cash flow. In finance, the term is used to describe the amount of cash (currency) that is generated or consumed in a given time period

EEDI - Energy Efficiency Design Index

The EEDI for new ships is the most important technical measure and aims at promoting the use of more energy efficient (less polluting) equipment and engines. The EEDI requires a minimum energy efficiency level per capacity mile (e.g. tonne mile) for different ship type and size segments. Since 1 January 2013 new ship design needs to meet the reference level for their ship type.

EEOI - The Energy Efficiency Operational Index

The Energy Efficiency Operational Index is the amount of CO2 emitted by the ship per ton-mile of work. It is the ratio of the CO2 emitted to the ton-mile (amount of cargo x nm sailed). The total operational emissions to satisfy transport work demanded is usually quantified over a period of time which encompasses multiple voyages. It measures the ratio of a ship’s carbon emissions per unit of transport work.

EEXI - Energy Efficiency Existing Ship Index

The Energy Efficiency Existing Ship Index describes, in principle, the CO2 emissions per cargo ton and mile. It determines the standardised CO2 emissions related to installed engine power, transport capacity and ship speed. The EEXI is a design index, not an operational index. The EEXI is applied to almost all oceangoing cargo and passenger vessels above 400 gross tonnage.

EIA - The US Energy Information Administration

The US Energy Information Administration is the statistical agency of the Department of Energy. It provides policy-independent data, forecasts, and analyses to promote sound policy making, efficient markets, and public understanding regarding energy, and its interaction with the economy and the environment.

FPSO - Stands for Floating Production, Storage and Offloading

FPSOs are designed to receive all of the hydrocarbon fluids pumped by nearby offshore platforms (oil and gas), to process it and to store it. FPSOs are typically moored offshore ship-shaped vessels, with processing equipment, or topsides, aboard the vessel’s deck and hydrocarbon storage below, in the hull of the vessel.

FSO - A Floating Storage and Offloading vessel

A Floating Storage and Offloading vessel is commonly used in oil fields where it is not possible or efficient to lay a pipeline to the shore. The production platform will transfer the oil to the FSO where it will be stored until a tanker arrives and connects to the FSO to offload it.

GHG - Green House Gas

Greenhouse gases are compound gases that trap heat or longwave radiation in the atmosphere. Their presence in the atmosphere makes the Earth's surface warmer. The principal GHGs, also known as heat trapping gases, are carbon dioxide, methane, nitrous oxide, and the fluorinated gases.

GEI - The Bloomberg Gender-Equality Index

The Bloomberg Gender-Equality Index tracks the performance of public companies committed to disclosing their efforts to support gender equality through policy development, representation and transparency.

Green Passport

The Green Passport contains details of all materials, especially which are harmful to human health, used in the construction of a vessel. The green passport will be delivered by the shipyard during the construction and it will be later updated with all the changes made to the ship during its lifetime.

HELMEPA - The Hellenic Marine Environment Protection Association

The Hellenic Marine Environment Protection Association; the pioneering voluntary commitment of Greek seafarers and ship owners to safeguard the seas from ship-generated pollution, undertaken in Piraeus, on June 4, 1982. Under the motto “To Save the Seas”, they have consistently supported their initiative to date.

Hull

The watertight body of a ship or boat. The hull may open at the top (such as a dinghy), or it may be fully or partially covered with a deck.# Glossary

IFRS - IFRS standards are International Financial Reporting Standards that consist of a set of accounting rules that determine how transactions and other accounting events are required to be reported in financial statements.

IGO - An intergovernmental organisation or international organisation is an organisation composed primarily of sovereign states (referred to as member states), or of other intergovernmental organisations.

IHM - The Inventory of Hazardous Materials is a list that provides ship-specific information on the actual hazardous materials present on board, their location and approximate quantities.

IMO - The International Maritime Organisation’s main task is to develop and maintain a comprehensive regulatory framework for shipping including safety, environmental concerns, legal matters, technical co-operation, maritime security and the efficiency of shipping. It was established by means of a Convention adopted under the auspices of the United Nations in 1948. https://www.imo.org/en

IoT - The Internet of Things describes the network of physical objects—“things”—that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. These devices range from ordinary household objects to sophisticated industrial tools.

Intertanko - The International Association of Independent Tanker Owners is a trade association. It has served as the voice for independent tanker owners since 1970 on regional, national, and international levels. The association actively works on a range of technical, legal, commercial, and operational issues that have an influence on tanker owners and operators around the world.

ISM Code - International Safety Management Code is a set of IMO regulations that ship operators and ships must comply with. The purpose of the ISM Code is to provide an international standard for the safe management and operation of ships and for pollution prevention.

ITF - The International Transport Workers’ Federation is a democratic, affiliate-led federation recognised as the world’s leading transport authority. The ITF has been helping seafarers since 1896 and today represents the interests of seafarers worldwide, of whom over 600,000 are members of ITF affiliated unions. The ITF is working to improve conditions for seafarers of all nationalities and to ensure adequate regulation of the shipping industry to protect the interests and rights of the workers. The ITF helps crews regardless of their nationality or the flag of their ship.

ITOPF - The International Tanker Owner Pollution Federation is a not-for-profit organisation established on behalf of the world's shipowners to promote an effective response to marine spills of oil, chemicals and other hazardous substances.

Knot - A unit of speed equal to one nautical mile (1.852 km) per hour, approximately 1.151 mph.

KPI - KA performance indicator or key performance indicator is a type of performance measurement. An organisation may use KPIs to evaluate its success, or to evaluate the success of a particular activity in which it is engaged.

LNG - Liquefied Natural Gas has been made over millions of years of transformation of organic materials, such as plankton and algae. Natural gas is 95% methane, which is actually the cleanest fossil fuel. The combustion of natural gas primarily emits water vapour and small amounts of carbon dioxide (CO2). This property means that associated CO2 emissions are 30 to 50% lower than those produced by other combustible fuels.

LR1/LR2 - Abbreviations for Long Range oil tankers. Tankers with approx. 50-80,000 dwt (LR1) and approx. 80-120,000 dwt. (LR2).

MACN - The Maritime Anti-Corruption Network is a global business network working towards its vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large.

mbpd - Million Barrels Per Day.

MLC - The Maritime Labour Convention, 2006 sets minimum requirements for nearly every aspect of working and living conditions for seafarers including recruitment and placement practices, conditions of employment, hours of work and rest, repatriation, annual leave, payment of wages, accommodation, recreational facilities, food and catering, health protection, occupational safety and health, medical care, onshore welfare services and social protection.

Mt - Metric Ton (or Tonne) of fuel – quantity in litres depends on fuel type.

MOPU - A Mobile Offshore Production Unit is any type of portable structure that can be reused when procuring oil and gas from the seabed. These are typically used when the depth of drilling is over 500m. If the water is any shallower, then fixed platforms are constructed.

NAMEPA - The North American Marine Environment Protection Association is a marine industry-led organisation of environmental stewards preserving the marine environment by promoting sustainable marine industry best practices and educating seafarers, students and the public about the need and strategies for protecting global ocean, lake and river resources.

NGO – a non-governmental organisation is a non-profit group that functions independently of any government. NGOs, sometimes called civil societies, are organised on community, national and international levels to serve a social or political goal such as humanitarian causes or the environment.

NOx - In atmospheric chemistry, NOx is a generic term for the nitrogen oxides that are most relevant for air pollution, namely nitric oxide (NO) and nitrogen dioxide (NO2). These gases contribute to the formation of smog and acid rain, as well as affecting tropospheric ozone.

OCIMF - The Oil Companies International Marine Forum is a voluntary association of oil companies with an interest in the shipment and terminalling of crude oil, oil products, petrochemicals and gas. OCIMF focuses exclusively on preventing harm to people and the environment by promoting best practice in the design, construction and operation of tankers, barges and offshore vessels and their interfaces with terminals.

OECD - The Organisation for Economic Co-operation and Development is an international organisation that works to build better policies for better lives. The goal is to shape policies that foster prosperity, equality, opportunity and well-being for all.

OPEC - The Organisation of Petroleum Exporting Countries is an organisation of 13 oil-producing countries. The mission of the organisation is to "coordinate and unify the petroleum policies of its member countries and ensure the stabilisation of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry."

OPEC+ - The Organisation of the Petroleum Exporting Countries Plus is a loosely affiliated entity consisting of the 13 OPEC members and 10 of the world's major non-OPEC oil-exporting nations.

P&I Insurance - Protection and indemnity insurance, commonly known as P&I insurance, is a form of marine insurance provided by a P&I club. A P&I club is a mutual (i.e. a co-operative) insurance association that provides cover for its members, who will typically be ship owners, ship operators or charterers.

Plimsoll line - A reference mark located on a ship's hull that indicates the maximum depth to which the vessel may be safely immersed when loaded with cargo. This depth varies with a ship's dimensions, type of cargo, time of year, and the water densities encountered in port and at sea.

Pool - A pool is a group of similar size and quality vessels with different ship owners that are placed under one administrator or manager. Pools allow for scheduling and other operating efficiencies such as multi-legged charters and Contracts of Affreightment.

Pool points - A system of pool points creates a model for a vessel with a performance equating to the average of those being pooled. This ship is awarded 100 pool points. All other ships in the pool are then given more or less pool points adjusted for the characteristics of each vessel. Pool points, by their nature, can only be used to address the differences between the vessels as described, and not the vessel as performed.

Profit share - A mechanism where, depending on the outcome of the negotiations and under certain Time Charter contracts it is being agreed that the owner of the vessel is entitled to an increase of the agreed base hire rate (minimum or floor) amounting to a certain percentage of the difference between that base rate and the average of rates applicable for a certain period on certain routes.

SBT - Segregated ballast tanks are dedicated tanks constructed for the sole purpose of carrying ballast water on oil tanker ships. They are completely separated from the cargo, and fuel tanks and only ballast pumps are used in the SBT.

Scrubbers - Shortened term for Exhaust Gas Cleaning Systems (EGCS), or SOx (sulfur dioxide) scrubbers. These are used to remove harmful elements (mainly Sulfur oxides) from exhaust gases from vessels by using wash water from the sea to neutralise the exhaust product. There are two key categories - open loop scrubbers which discharge wash water used into the ocean and closed loop which retain the waste product until it can be delivered to an appropriate location.

SEEMP - The Ship Energy Efficiency Management Plan is an operational measure that establishes a mechanism to improve the energy efficiency of a ship in a cost-effective manner. The SEEMP also provides an approach for shipping companies to manage ship and fleet efficiency performance over time using, for example, the Energy Efficiency Operational Indicator (EEOI) as a monitoring tool.

Shale oil - Crude oil that is extracted from oil shale (fine grained sedimentary rock containing kerogen) by using techniques other than the conventional (oil well) method, for example heating and distillation.SOx - The two main pollutants from the ship’s emission are Nitrogen oxides (NOx) and Sulphur oxides (SOx). These gases have adverse effects on the ozone layer in the troposphere area of the earth’s atmosphere which results in the green house effect and global warming.

Spar - A Single Point Mooring and Reservoir is a type of floating oil platform typically used in very deep waters and is named for logs used as buoys in shipping that are moored in place vertically. Spar production platforms have been developed as an alternative to conventional platforms.

Special Survey - The survey required by the Classification Society that usually takes place every five years and usually in a dry-dock. During the Special Survey all vital pieces of equipment and compartments and steel structures are opened up and inspected by the classification surveyor.

Spill - Oil getting into the sea, in any amount, for any reason.

Spot (Voyage) Charter - A charter for a particular vessel to transport a single cargo between specified loading port(s) and discharge port(s) in the immediate future. The contract rate (spot rate) covers total operating expenses such as port charges, bunkering, crew expenses, insurance, repairs and canal tolls. The charterer will generally pay all cargo-related costs and is liable for Demurrage, if incurred. The rate is usually quoted in terms of Worldscale.

Spot Market - The market for the immediate charter of a vessel.

Spot Price - Current market price for an asset or commodity

Suezmax - The maximum size vessel that can sail loaded through the Suez Canal. This is generally considered to be between 120,000 and 199,999 dwt and mostly about 150,000 dwt, depending on a ship’s dimensions and draft. These tankers can transport up to one million barrels of crude oil.

(Super) slow steaming - Reducing operating speeds in order to save fuel. Operating laden speeds are reduced from 15 knots to about 13 knots and operating ballast speeds from 15 knots to about 10 to 8 knots.

Sustainability-linked Loan - Sustainability-linked Loans or ESG Linked Loans are general corporate purpose loans used to incentivise borrowers' commitment to sustainability and to support environmentally and socially sustainable economic activity and growth. Under this lending model, borrowers pay higher interest rates when they fail to meet certain environmental, social and governance-linked goals. By the same token, they pay less when they exceed ESG targets.

SDG - The Sustainable Development Goals, also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030.

T&Cs - Terms and Conditions

Technical Management - The management of the operation of a vessel, including physically maintaining and repairing the vessel, maintaining necessary certifications and supplying necessary stores, spares and lubricating oils. Responsibilities also generally include selecting, engaging and training crew and could also include arranging necessary insurance coverage.

Time Charter (T/C) - A charter for a fixed period of time, usually between one and ten years, under which the owner hires out the vessel to the charterer fully manned, provisioned and insured. The charterer is usually responsible for bunkers, port charges, canal tolls and any extra cost related to the cargo. The charter rate (hire) is quoted in terms of a total cost per day. Subject to any restrictions in the charter, the customer decides the type and quantity of cargo to be carried and the ports of loading and unloading.

TCE - Time Charter Equivalent rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e. spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. A standard method to compute TCE is to divide voyage revenues (net of expenses) by available days for the relevant time period. Expenses primarily consist of port, canal and fuel costs.

TLP - A tension-leg platform or extended tension leg platform (ETLP) is a vertically moored floating structure normally used for the offshore production of oil or gas and is particularly suited for water depths greater than 300 meters (about 1,000 ft.) and less than 1,500 meters (about 4,900 ft.). Use of tension-leg platforms has also been proposed for wind turbines.

Tonnage Tax Regime - An alternative way of calculating taxable income of operating qualifying ships. Taxable profits are calculated by reference to the net tonnage of the qualifying vessels a company operates, independent of the actual earnings (profit or loss).

Ton-mile - A unit for freight transportation equivalent to a ton of freight moved one mile.

Ton-mile demand - A calculation that multiplies the average distance of each route a tanker travels by the volume of cargo moved. The greater the increase in long-haul movement compared with shorter haul movements, the higher the increase in ton-mile demand.

Tramp - As opposed to freight liners, tramp vessels trade on the spot market with no fixed schedule, itinerary or ports-of-call. Trampers go wherever the cargo is and carry it to wherever it wants to go, within reason, like taxi cabs.

Treasury shares - Treasury stock, also known as treasury shares or reacquired stock refers to previously outstanding stock that is bought back from stockholders by the issuing company.

ULCC - Ultra Large Crude Carriers are the largest shipping vessels in the world with a size ranging between 320,000 to 500,000 dwt. Due to their mammoth size, they need custom built terminals. As a result they serve a limited number of ports with adequate facilities to accommodate them. They are primarily used for very long distance crude oil transportation from the Persian Gulf to Europe, Asia and North America. ULCC are the largest shipping vessels being built in the world with standard dimensions of 415 meters length, 63 meters width and 35 meters draught.

Ultra Deep Water (UDW) - Water depth of more than 1500 meters

Vessel Expenses - Includes crew costs, vessel stores and supplies, lubricating oils, maintenance and repairs, insurance and communication costs associated with the operation of vessels.

Vetting - Ship Vetting is a risk assessment process carried out by charterers and terminal operators in order to avoid making use of deficient ships or barges when goods are being transported by sea or by inland waterways.

VLCC - The abbreviation for Very Large Crude Carrier. Tankers with a capacity between 200,000 and 320,000 dwt. These tankers can transport up to two million barrels of crude oil.

VLCC Equivalent - The capacity of 1 VLCC or 2 Suezmax vessels.

Voyage Expenses - Includes fuel, port charges, canal tolls, cargo handling operations and brokerage commissions paid by the ship owner under Voyage Charters. These expenses are subtracted from shipping revenues to calculate Time Charter Equivalent revenues for Voyage Charters.

V-Plus - A crude oil tanker (ULCC or Ultra Large Crude Carrier) of more than 350,000 dwt which makes it one of the biggest oil tankers in the world. These tankers can transport up to three million barrels or more of crude oil and are mainly used on the same long-haul routes as VLCCs. To differentiate them from smaller ULCCs, these ships are sometimes given the V-Plus size designation.

Worldscale - The New Worldwide Tanker Nominal Freight Scale is a catalogue of theoretical freight rates expressed as USD per ton for most of the conceivable spot voyages in the tanker trade. The final rate agreed will be determined as a percentage of the ‘Worldscale’ rate, based upon a guaranteed minimum quantity of cargo. That allows for charter parties to cover a wide range of possible voyage options without the need to calculate and negotiate each one separately.

WTI oil price - (US Oil) West Texas Intermediate, one of three main benchmarks for oil pricing.

This report can be downloaded on our website: www.euronav.com

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B-2000 Antwerp - Belgium

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Dit verslag is ook beschikbaar in het Nederlands.

2020 Financial report
Consolidated financial statements
Notes to the consolidated financial statements
Statutory financial statements
Euronav NV
Statutory auditor’s report to the general meeting of Euronav NV on the consolidated financial statements as of and for the year ended December 31, 2020

02
11
101
104

Financial report
Financial report 2020 2

Consolidated statement of financial position (in thousands of USD)

	Note	December 31, 2020	December 31, 2019
ASSETS
Non-current assets
Vessels	8	2,865,308	3,177,262
Assets under construction	8	207,069	—
Right-of-use assets	8	52,955	58,908
Other tangible assets	8	1,759	2,265
Intangible assets		-	161
Receivables	10	55,054	71,083
Investments in equity accounted investees	26	51,703	50,322
Deferred tax assets	9	1,357	2,715
Total non-current assets		3,235,366	3,362,594
Current assets
Bunker inventory	11	75,780	183,382
Non-current assets held for sale	3	—	12,705
Trade and other receivables	12	214,479	308,987
Current tax assets		-	136
Cash and cash equivalents	13	161,478	296,954
Total current assets		451,873	802,249
TOTAL ASSETS		3,687,239	4,164,843

Consolidated statement of financial position (in thousands of USD)

	Note	December 31, 2020	December 31, 2019
ASSETS
Non-current assets
Vessels	8	2,865,308	3,177,262
Assets under construction	8	207,069	—
Right-of-use assets	8	52,955	58,908
Other tangible assets	8	1,759	2,265
Intangible assets		-	161
Receivables	10	55,054	71,083
Investments in equity accounted
# Consolidated statement of financial position (in thousands of USD)

	Note	December 31, 2020	December 31, 2019
ASSETS
Non-current assets
Property, plant and equipment	8	2,819,824	2,811,406
Intangible assets	9	10,959	11,505
Investments in equity-accounted investees	26	51,703	50,322
Deferred tax assets	9	1,357	2,715
Total non-current assets		3,235,366	3,362,594
Current assets
Bunker inventory	11	75,780	183,382
Non-current assets held for sale	3	—	12,705
Trade and other receivables	12	214,479	308,987
Current tax assets		136	221
Cash and cash equivalents	13	161,478	296,954
Total current assets		451,873	802,249
TOTAL ASSETS		3,687,239	4,164,843

EQUITY and LIABILITIES

Equity

	Note	December 31, 2020	December 31, 2019
Share capital	14	239,148	239,148
Share premium	14	1,702,549	1,702,549
Translation reserve		935	299
Hedging reserve	14	(7,456)	(4,583)
Treasury shares	14	(164,104)	(45,616)
Retained earnings		540,714	420,058
Equity attributable to owners of the Company		2,311,786	2,311,855

Non-current liabilities

	Note	December 31, 2020	December 31, 2019
Bank loans	16	836,318	1,173,944
Other notes	16	198,279	198,571
Other borrowings	16	100,056	107,978
Lease liabilities	16	21,172	43,161
Other payables	18	6,893	3,809
Employee benefits	17	7,987	8,094
Provisions	21	1,154	1,381
Total non-current liabilities		1,171,859	1,536,938

Current liabilities

	Note	December 31, 2020	December 31, 2019
Trade and other payables	18	85,150	94,408
Current tax liabilities		629	49
Bank loans	16	20,542	49,507
Other borrowings	16	51,297	139,235
Lease liabilities	16	45,749	32,463
Provisions	21	227	388
Total current liabilities		203,594	316,050
TOTAL EQUITY and LIABILITIES		3,687,239	4,164,843

The accompanying notes on pages 11 to 100 are an integral part of these consolidated financial statements.

Consolidated statement of profit or loss (in thousands of USD except per share amounts)

	Note	Jan. 1 - Dec 31, 2020	Jan. 1 - Dec 31, 2019	Jan. 1 - Dec 31, 2018
Shipping income
Revenue	4	1,230,750	932,377	600,024
Gains on disposal of vessels/other tangible assets	8	22,728	14,879	19,138
Other operating income	4	10,112	10,094	4,775
Total shipping income		1,263,590	957,350	623,937
Operating expenses
Voyage expenses and commissions	5	(125,430)	(144,681)	(141,416)
Vessel operating expenses	5	(210,634)	(211,795)	(185,792)
Charter hire expenses	5	(7,954)	(604)	(31,114)
Loss on disposal of vessels/other tangible assets	8	(1)	(75)	(273)
Impairment on non-current assets held for sale	3	—	—	(2,995)
Depreciation tangible assets	8	(319,652)	(337,646)	(270,582)
Depreciation intangible assets		(99)	(56)	(111)
General and administrative expenses	5	(65,498)	(66,890)	(66,232)
Total operating expenses		(729,268)	(761,747)	(698,515)
RESULT FROM OPERATING ACTIVITIES		534,322	195,603	(74,578)
Finance income	6	21,496	20,572	15,023
Finance expenses	6	(91,553)	(119,803)	(89,412)
Net finance expenses		(70,057)	(99,231)	(74,389)
Gain on bargain purchase	25	—	—	23,059
Share of profit (loss) of equity accounted investees (net of income tax)	26	10,917	16,460	16,076
PROFIT (LOSS) BEFORE INCOME TAX		475,182	112,832	(109,832)
Income tax benefit (expense)	7	(1,944)	(602)	(238)
PROFIT (LOSS) FOR THE PERIOD		473,238	112,230	(110,070)
Attributable to:
Owners of the company		473,238	112,230	(110,070)
Basic earnings per share	15	2.25	0.52	(0.57)
Diluted earnings per share	15	2.25	0.52	(0.57)
Weighted average number of shares (basic)	15	210,193,707	216,029,171	191,994,398
Weighted average number of shares (diluted)	15	210,206,403	216,029,171	191,994,398

• The Group initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.

The accompanying notes on pages 11 to 100 are an integral part of these consolidated financial statements.

Consolidated statement of comprehensive income (in thousands of USD)

	Note	Jan. 1 - Dec 31, 2020	Jan. 1 - Dec 31, 2019	Jan. 1 - Dec 31, 2018
Profit (loss) for the period	4	473,238	112,230	(110,070)
Other comprehensive income (expense), net of tax
Items that will never be reclassified to profit or loss:
Remeasurements of the defined benefit liability (asset)	17	(97)	(1,223)	120
Items that are or may be reclassified to profit or loss:
Foreign currency translation differences	6	636	(112)	(157)
Cash flow hedges - effective portion of changes in fair value	14	(2,873)	(1,885)	(2,698)
Equity-accounted investees - share of other comprehensive income	26	(2)	(720)	(459)
Other comprehensive income (expense), net of tax		(2,336)	(3,940)	(3,194)
Total comprehensive income (expense) for the period		470,902	108,290	(113,264)
Attributable to:
Owners of the company		470,902	108,290	(113,264)

• The Group initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.

The accompanying notes on pages 11 to 100 are an integral part of these consolidated financial statements.

Consolidated statement of changes in equity (in thousands of USD)

	Note	Share capital	Share premium	Translation reserve	Hedging reserve	Treasury shares	Retained earnings	Total equity
Balance at January 1, 2018		173,046	1,215,227	568	—	(16,102)	473,622	1,846,361
Adjustment on initial application of IFRS 15 (net of tax)		—	—	—	—	—	(1,729)	(1,729)
Adjustment on initial application of IFRS 9 (net of tax)		—	—	—	—	—	(16)	(16)
Balance at January 1, 2018 adjusted*		173,046	1,215,227	568	—	(16,102)	471,877	1,844,616
Profit (loss) for the period		—	—	—	—	—	(110,070)	(110,070)
Total other comprehensive income (expense)		—	—	(157)	(2,698)	—	—	(3,194)
Total comprehensive income (expense)		—	—	(157)	(2,698)	—	—	(113,264)
Transactions with owners of the company
Issue of ordinary shares related to business combinations	14	66,102	487,322	—	—	—	—	553,424
Dividends to equity holders		—	—	—	—	(22,629)	(22,629)	(45,258)
Treasury shares acquired	14	—	—	—	—	(3,955)	—	(3,955)
Treasury shares sold	14	—	—	—	—	5,406	1,451	6,857
Equity-settled share-based payment	23	—	—	—	—	—	37	37
Total transactions with owners		66,102	487,322	—	—	(25,704)	(21,141)	459,707
Balance at December 31, 2018		239,148	1,702,549	411	(2,698)	(41,806)	450,736	2,348,338
Balance at January 1, 2019*		239,148	1,702,549	411	(2,698)	(41,806)	450,736	2,348,338
Profit (loss) for the period		—	—	—	—	—	112,230	112,230
Total other comprehensive income (expense)		—	—	(112)	(1,885)	—	—	(1,997)
Total comprehensive income (expense)		—	—	(112)	(1,885)	—	—	110,233
Transactions with owners of the company
Dividends to equity holders	14	—	—	—	—	(25,993)	(25,993)	(51,986)
Treasury shares acquired	14	—	—	—	—	(30,965)	—	(30,965)
Total transactions with owners		—	—	—	—	(56,958)	(25,993)	(82,951)
Balance at December 31, 2019		239,148	1,702,549	299	(4,583)	(98,764)	537,019	2,314,667
Balance at January 1, 2020		239,148	1,702,549	299	(4,583)	(98,764)	537,019	2,314,667
Profit (loss) for the period		—	—	—	—	—	473,238	473,238
Total other comprehensive income (expense)		—	—	636	(2,873)	—	—	(2,237)
Total comprehensive income (expense)		—	—	636	(2,873)	—	—	470,999
Transactions with owners of the company
Dividends to equity holders	14	—	—	—	—	(118,488)	(118,488)	(236,976)
Treasury shares acquired	14	—	—	—	—	(164,104)	—	(164,104)
Total transactions with owners		—	—	—	—	(282,592)	(118,488)	(401,080)
Balance at December 31, 2020		239,148	1,702,549	935	(7,456)	(381,356)	891,769	2,384,947

• The Group initially applied IFRS 15 and IFRS 9 at January 1, 2018. Under the transition methods chosen, comparative information is not restated but the opening balance of 2018 was adjusted following the application of IFRS 15 on Revenue Recognition and IFRS 9 on Financial Instruments.
  ** The Group initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.

The accompanying notes on pages 11 to 100 are an integral part of these consolidated financial statements.

Consolidated statement of cash flows (in thousands of USD)

	Note	Jan. 1 - Dec 31, 2020	Jan. 1 - Dec 31, 2019	Jan. 1 - Dec 31, 2018
Cash flows from operating activities
Profit (loss) for the period	4	473,238	112,230	(110,070)
Adjustments for:		357,720	405,823	289,311
Depreciation of tangible assets	8	319,652	337,646	270,582
Depreciation of intangible assets		99	56	111
Impairment on non-current assets held for sale	3	—	—	2,995
Provisions		(388)	(448)	(42)
Income tax (benefits)/expenses	7	1,944	602	239
Share of profit of equity-accounted investees, net of tax	26	(10,917)	(16,460)	(16,076)
Net finance expenses	6	70,057	99,231	74,389
(Gain)/loss on disposal of assets	8	(22,727)	(14,804)	(18,865)
Equity-settled share-based payment transactions	5	—	—	37
Amortization of deferred capital gain		—	—	(1,000)
Gain on bargain purchase	25	—	—	(23,059)
Changes in working capital requirements		180,576	(165,419)	(114,533)
Change in cash guarantees	10	(12,339)	(34)	33
Change in inventory	11	107,602	(161,121)	(22,261)
Change in receivables from contracts with customers	12	85,830	(41,001)	(23,589)
Change in accrued income	12	12,667	(3,051)	(6,393)
Change in deferred charges	12	(263)	(2,078)	18,848
Change in other receivables	10-12	(3,826)	22,393	(77,876)
Change in trade payables	18	4,490	6,471	(8,181)
Change in accrued payroll	18	2,536	(2,282)	(11,000)
Change in accrued expenses	18	(10,675)	3,473	18,839
Change in deferred income	18	(4,645)	10,028	(2,265)
Change in other payables	18	(148)	(806)	(1,304)
Change in provisions for employee benefits	17	(653)	2,589	616
Income taxes paid during the period		—	78	(993)
Interest paid	6-19	(56,084)	(98,852)	(67,209)
Interest received	6-12	6,723	6,602	3,409
Dividends received from equity-accounted investees	26	7,534	12,600	—
Net cash from (used in) operating activities		969,785	271,991	841

• The Group initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.

The accompanying notes on pages 11 to 100 are an integral part of these consolidated financial statements.
```# Financial Report 2020

Notes to the consolidated financial statements for the year ended 31 December 2020

Note 1 - Significant accounting policies

Note 2 - Segment reporting

Note 3 - Assets and liabilities held for sale and discontinued operations

Note 4 - Revenue and other operating income

Note 5 - Expenses for shipping activities and other expenses from operating activities

Note 6 - Net finance expense

Note 7 - Income tax benefit (expense)

Note 8 - Property, plant and equipment

Note 9 - Deferred tax assets and liabilities

Note 10 - Non-current receivables

Note 11 - Bunker inventory

Note 12 - Trade and other receivables - current

Note 13 - Cash and cash equivalents

Note 14 - Equity

Note 15 - Earnings per share

Note 16 - Interest-bearing loans and borrowings

Note 17 - Employee benefits

Note 18 - Trade and other payables

Note 19 - Financial instruments - market and other risks

Note 20 - Leases

Note 21 - Provisions and contingencies

Note 22 - Related parties

Note 23 - Share-based payment arrangements

Note 24 - Group entities

Note 25 - Business combinations

Note 26 - Equity-accounted investees

Note 27 - Major exchange rates

Note 28 - Audit fees

Note 29 - Subsequent events

Note 30 - Statement on the true and fair view of the consolidated financial statements and the fair overview of the management report

Note 1 - Significant accounting policies

Reporting Entity

Euronav NV (the “Company”) is a company domiciled in Belgium. The address of the Company’s registered office is De Gerlachekaai 20, 2000 Antwerpen, Belgium. The consolidated financial statements of the Company comprise the Company and its subsidiaries (together referred to as the “Group”) and the Group’s interests in associates and joint ventures.

Euronav NV is a fully-integrated provider of international maritime shipping and offshore services engaged in the transportation and storage of crude oil. The Company was incorporated under the laws of Belgium on June 26, 2003, and grew out of three companies that had a strong presence in the shipping industry; Compagnie Maritime Belge NV, or CMB, formed in 1895, Compagnie Nationale de Navigation SA, or CNN, formed in 1938, and Ceres Hellenic formed in 1950. The Company started doing business under the name “Euronav” in 1989 when it was initially formed as the international tanker subsidiary of CNN.

Euronav NV merged in 2018 with Gener8 Maritime, Inc, which became a wholly-owned subsidiary of Euronav NV. Through the merger Euronav NV has an operating fleet of more than 70 tankers and is a leading independent large crude tanker owner and operator in the world.

Euronav NV charters its vessels to leading international energy companies. The Company pursues a chartering strategy of primarily employing its vessels on the spot market, including through the Tankers International (TI) Pool and also under fixed-rate contracts and long-term time charters, which typically include a profit sharing component.

A spot market voyage charter is a contract to carry a specific cargo from a load port to a discharge port for an agreed freight per ton of cargo or a specified total amount. Under spot market voyage charters, the Company pays voyage expenses such as port, canal and bunker costs. Spot charter rates have historically been volatile and fluctuate due to seasonal changes, as well as general supply and demand dynamics in the crude oil marine transportation sector. Although the revenues generated by the Company in the spot market are less predictable, the Company believes their exposure to this market provides them with the opportunity to capture better profit margins during periods when vessel demand exceeds supply leading to improvements in tanker charter rates.

The Company principally employs and commercially manages their VLCCs through the TI Pool, a leading spot market-oriented VLCC pool in which other third-party shipowners with vessels of similar size and quality participate along with the Company. The Company participated in the formation of the TI Pool in 2000 to allow themselves and other TI Pool participants to gain economies of scale, obtain increased cargo flow of information, logistical efficiency and greater vessel utilization.

Time charters provide the Group with a fixed and stable cash flow for a known period of time. Time charters may help the Group mitigate, in part, its exposure to the spot market, which tends to be volatile in nature, being seasonal and generally weaker in the second and third quarters of the year due to refinery shutdowns and related maintenance during the warmer summer months. The Group may when the cycle matures or otherwise opportunistically employ more of its vessels under time charter contracts as the available rates for time charters improve. The Group may also enter into time charter contracts with profit sharing arrangements, which the Group believes will enable it to benefit if the spot market increases above a base charter rate as calculated either by sharing sub charter profits of the charterer or by reference to a market index and in accordance with a formula provided in the applicable charter contract.

The Group currently deploys its two FSOs as floating storage units under service contracts with North Oil Company, in the offshore services sector.

2. Basis of accounting

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and as adopted by the European Union as of December 31, 2020. Changes in significant accounting policies are described in policy 6. All accounting policies have been consistently applied for all periods presented in the consolidated financial statements unless disclosed otherwise. The consolidated financial statements were authorized for issue by the Supervisory Board on March 26, 2021.

3. Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position:

• Derivative financial instruments are measured at fair value
• Non-current assets held for sale are recognized at fair value less cost of disposal if it is lower than their carrying amount

4. Functional and presentation currency

The consolidated financial statements are presented in USD, which is the Company’s functional and presentation currency. All financial information presented in USD has been rounded to the nearest thousand except when otherwise indicated.

5. Use of judgements and estimates

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which are the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

A.

		2018		2019		2020
Acquisition of vessels	8	(224,904)		(7,024)		(237,476)
Proceeds from the sale of vessels	8	78,075		86,235		26,762
Acquisition of other tangible assets and prepayments	8	(285)		(1,015)		(588)
Acquisition of intangible assets		(221)		(14)		(1)
Proceeds from the sale of other (in)tangible assets	8	—		30		—
Loans from (to) related parties	26	26,443		(31,713)		134,097
Acquisition of subsidiaries or from business combinations, net of cash acquired	25	—		—		126,288
Proceeds from sale (Purchase of) shares in equity-accounted investees	26	2,000		(4,000)		—
Proceeds from sale of subsidiaries	25	—		—		140,960
Lease payments received from finance leases		1,786		1,251		—
Net cash from (used in) investing activities		(117,106)		43,750		190,042
(Purchase of) Proceeds from sale of treasury shares	14	(118,488)		(30,965)		(1,661)
Proceeds from new borrowings	16	893,827		1,099,701		983,882
Repayment of borrowings	16	(994,989)		(1,318,398)		(1,115,894)
Repayment of commercial paper	16	(359,295)		—		—
(Repayment of) Proceeds from sale and leaseback	16	(22,853)		124,425		—
Repayment of lease liabilities	16	(37,779)		(30,214)		—
Transaction costs related to issue of loans and borrowings	16	(8,083)		(9,721)		(3,849)
Dividends paid	14	(352,041)		(26,015)		(22,643)
Net cash from (used in) financing activities		(999,701)		(191,187)		(160,165)
Net increase (decrease) in cash and cash equivalents		(147,022)		124,554		30,718
Net cash and cash equivalents at the beginning of the period	13	296,954		173,133		143,648
Effect of changes in exchange rates		11,546		(733)		(1,233)
Net cash and cash equivalents at the end of the period	13	161,478		296,954		173,133

• The Group initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated. Due to the increased significance of inventory (see accounting policies), the Group has re-presented the comparative information related to bunker inventory to align with the current year presentation. The accompanying notes on pages 11 to 100 are an integral part of these consolidated financial statements.

Consolidated statement of cash flows (in thousands of USD)## Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statement is included in the following notes:
* Note 8 – Impairment
* Note 25 – Business Combination
* Note 20 – Lease term: whether the Group is reasonably certain to exercise renewal, termination, purchase options.

B. Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts in the next financial years is included in the following notes:
* Note 8 – Impairment test: key assumptions underlying the recoverable amount
* Note 9 – Measurement of deferred tax assets: availability of future taxable profit against which deductible temporary differences and tax losses carried forward can be utilized
* Note 20 - Leases: key assumptions underlying the lease liability and right-of-use asset, e.g. lease term, lease payments and estimate on residual value guarantee.

The significant assumptions and accounting estimates, to support the reported amounts of assets and liabilities, income and expenses, were regularly reviewed, and if needed updated, during 2020. The main judgements, estimates and assumptions, which might be impacted by COVID-19, are:
- Note 8 – Impairment test: The carrying amount of the vessels is reviewed to determine whether an indication of impairment exists. No impairment is required as the recoverable amount of each CGU continues to be in excess of the carrying amounts.
- Bunkers on the Oceania and the vessels are valued at lower of cost of net realizable value adjustments. Weighted average of the fuel stock on board of the Oceania and the vessels was lower than the market price at year-end.
* Allowance for expected credit losses: In accordance with IFRS 9, the group recognizes expected credit losses on trade receivables following the simplified approach. Lifetime expected losses are recognized for the trade receivables, excluding recoverable VAT amounts. However, based on customer’s payment behaviour, no significant additional allowances for expected credit losses were to be recognized as per December 31, 2020. As the COVID-19 pandemic further evolves, potential changes in these views might occur in 2021.

Measurement of Fair Values

A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the CFO. The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reported to the Group Audit and Risk Committee. When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
* Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
* Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
* Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair values is included in the following notes:
* Note 3 - Assets and liabilities held for sale and discontinued operations
* Note 19 - Financial instruments
* Note 23 - Share-based payment arrangements.

6. Changes in Significant Accounting Policies

Except for the changes below, the accounting policies adopted in the preparation of the consolidated financial statements for the year ended December 31, 2020 are consistent with those applied in the preparation of the consolidated financial statements for the year ended December 31, 2019. A number of new standards are effective from January 1, 2020 but they do not have a material effect on the Group's financial statements.
* Definition of a Business (Amendments to IFRS3), see accounting policy 7.1.
* Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7). The Group applies hedge accounting to certain Interest rate swaps that are used to hedge the risk related to the fluctuation of the LIBOR (see Note 14). The Group applied the interest rate benchmark reform phase 1 amendments retrospectively to the hedging relationships that existed at 1 January 2020 or were designated thereafter and that are directly affected by interest rate benchmark reform. These amendments also apply to the gain or loss accumulated in the cash flow hedging reserve that existed at 1 January 2020. For the related accounting policy, refer to 9.3.

7. Basis of Consolidation

7.1. Business Combinations

The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. For acquisitions the Group measures goodwill at the acquisition date as:
* the fair value of the consideration transferred; plus
* the recognized amount of any non-controlling interests in the acquiree; plus if the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less
* the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed.

When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts generally are recognized in profit or loss. Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognized in profit or loss.

7.2. Non-controlling interests (NCI)

NCI are measured at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

7.3. Subsidiaries

Subsidiaries are those entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which the control commences until the date on which control ceases.

7.4. Loss of Control

On the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognized in profit or loss. If the Group retains any interest in the former subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity-accounted investee or as a Fair Value through Other Comprehensive Income ("FVOCI") or Fair Value through Profit or Loss ("FVTPL") financial asset depending on the level of influence retained.

7.5. Interests in equity-accounted investees

The Group’s interests in equity-accounted investees comprise interests in associates and joint ventures. Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial and operating policies.# 7. Investment accounting

A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. Interests in associates and joint ventures are accounted for using the equity method. They are recognized initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income (“OCI”) of equity-accounted investees, until the date on which significant influence or joint control ceases. Interests in associates and joint ventures include any long-term interests that, in substance, form part of the Group’s investment in those associates or joint ventures and include unsecured shareholder loans for which settlement is neither planned nor likely to occur in the foreseeable future, which, therefore, are an extension of the Group’s investment in those associates and joint ventures. The Group’s share of losses that exceeds its investment is applied to the carrying amount of those loans. After the Group’s interest is reduced to zero, a liability is recognized to the extent that the Group has a legal or constructive obligation 15 Financial report 2020 to fund the associates’ or joint ventures’ operations or has made payments on their behalf.

7.6. Transactions eliminated on consolidation

Intragroup balances and transactions, and any unrealized gains arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with equity-accounted investees are eliminated against the underlying asset to the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.

8. Foreign currency

8.1. Foreign currency transactions

Transactions in foreign currencies are translated to USD at the foreign exchange rate applicable at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to USD at the foreign exchange rate applicable at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign exchange differences arising on translation are generally recognized in profit or loss. However, foreign currency differences arising from the translation of the following items are recognized in OCI:
* a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; and
* qualifying cash flow hedges to the extent that the hedges are effective.

8.2. Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to USD at exchange rates at the reporting date. The income and expenses of foreign operations are translated to USD at rates approximating the exchange rates at the dates of the transactions. Foreign currency differences are recognized directly in equity (Translation reserve). When a foreign operation is disposed of, in part or in full, the relevant amount in the translation reserve is transferred to profit or loss.

9. Financial Instruments

Recognition and initial measurement

Trade receivables, debt securities issued and subordinated liabilities are initially recognized when they are originated. All other financial assets and financial liabilities (including liabilities designated as at FVTPL) are initially recognized on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component which is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. Financial liabilities are recognized initially at fair value less any directly attributable transaction costs. The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer’s specific circumstances. Financial assets and liabilities are offset and the net amount is presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

9.1. Financial assets

Classification and subsequent measurement

On initial recognition, a financial asset is classified as measured at: amortized cost; FVOCI - debt investment; FVOCI - equity instrument; or FVTPL. The classification of financial assets under IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:
* it is held within a business model whose objectives is to hold assets to collect contractual cash flows; and
* its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
* it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
* its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment's fair value in OCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This Financial report 2020 16 includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, 'principal' is defined as the fair value of the financial asset on initial recognition. 'Interest' is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers:
* contingent events that would change the amount or timing of cash flows;
* terms that may adjust the contractual coupon rate, including variable-rate features;
* prepayment and extension features; and
* terms that limit the Group's claim to cash flows from specified assets (e.g. non-resource features).

A prepayment feature is consistent with the sole payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

Financial assets at amortized cost

These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses (see accounting policy 12 below). Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

Debt investments at FVOCI

These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss.# 9. Financial Instruments

9.1. Financial assets

Classification and subsequent measurement

Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.

Derecognition

The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases the transferred assets are not derecognized. Any interest in such transferred financial assets that is created or retained by the Group is recognized as a separate asset or liability.

9.2. Financial liabilities

Classification and subsequent measurement

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gains or loss on derecognition is also reccognized in profit or loss.

The financial liability related to the three VLCCs under the sale and leaseback agreement entered into on December 30, 2019 (see Note 16) is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the fair value of the assets transferred at the end of the lease term or if the Group changes its assessment of whether it will exercise the purchase option.

Derecognition

The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

Non-derivative financial liabilities comprise loans and borrowings, bank overdrafts, and trade and other payables. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

9.3. Derivative financial instruments

Derivative financial instruments and hedge accounting

The Group from time to time may enter into derivative financial instruments to hedge its exposure to market fluctuations, foreign exchange and interest rate risks arising from operational, financing and investment activities. Derivative are initially measured at fair value; attributable transaction costs are expensed as incurred. Subsequent to initial recognition, derivatives are remeasured at fair value, and changes therein are generally recognized in profit or loss.

The group designated certain derivatives as hedging instruments to hedge the variability in cash flows. The Group ensure that hedge accounting relationships are aligned with its risk management objectives and strategy and apply a more qualitative and forward looking approach in assessing hedge effectiveness.

On initial designation of the derivative as hedging instrument, the Group formally documents the economic relationship between the hedging instrument(s) and hedged item(s), including the risk management objective(s) and strategy for undertaking the hedge. The Group also documents the methods that will be used to assess the effectiveness of the hedging relationship and makes an assessment whether the hedging instruments are expected to be “highly effective” in offsetting the changes in the cash flows of the respective hedged items during the period for which the hedge is designated.

On an ongoing basis, the Group assesses whether the hedge relationship continues and is expected to continue to remain highly effective using retrospective and prospective quantitative and qualitative analysis.

Hedges directly affected by interest rate benchmark reform

For the purpose of evaluation whether there is an economic relationship between the hedged item(s) and the hedging instrument(s), the Group assumes that the benchmark interest rate is not altered as a result of interest rate benchmark reform. For a cash flow hedge of a forecast transaction, the Group assumes that the benchmark interest rate will not be altered as a result of interest rate benchmark reform for the purpose of assessing whether the forecast transaction is highly probable and presents an exposure to variations in cash flows that could ultimately affect profit or loss. In determining whether a previously designated forecast transaction in a discontinued cash flow hedge is still expected to occur, the Group assumes that the interest rate benchmark cash flows designated as a hedge will not be altered as a result of interest rate benchmark reform.

The Group will cease to apply the specific policy for assessing the economic relationship between the hedged item and the hedging instrument (i) to a hedged item or hedging instrument when the uncertainty arising from interest rate benchmark reform is no longer present with respect to the timing and the amount of the interest rate benchmark-based cash flows of the respective item or instrument or (ii) when the hedging relationship is discontinued. For its highly probable assessment of the hedged item, the Group will no longer apply the specific policy when the uncertainty arising from interest rate benchmark reform about the timing and the amount of the interest rate benchmark-based future cash flows of the hedged item is no longer present, or when the hedging relationship is discontinued. See Note 19 for related disclosures.

Cash flow hedges

When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of the derivative is recognized in OCI and presented in the hedging reserve in equity. The amount recognized in OCI is removed and included in profit or loss in the same period as the hedged cash flows affect profit or loss under the same line item in the statement of profit or loss as the hedged item. Any ineffective portion of changes in the fair value of the derivative is recognized immediately in profit or loss.

The Group designates only the change in fair value of the spot element of forward exchange contracts as the hedging instrument in cash flow hedging relationships. The change in fair value of the forward element of forward exchange contracts ('forward points') is separately accounted for as a cost of hedging and recognized in a costs of hedging reserve within equity.

If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated, exercised, or the designation is revoked, then hedge accounting is discontinued prospectively. When hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in the hedging reserve remains in equity until, for a hedge of a transaction resulting in the recognition of a non-financial item, it is included in the non-financial item's cost on its initial recognition or, for other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the hedged expected future cash flows affect profit or loss. If the hedged future cash flows are no longer expected to occur, then the balance in equity is reclassified to profit or loss.

9.4. Share capital

Ordinary share capital

Ordinary share capital is classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of any tax effects.

Repurchase of share capital

When share capital recognized as equity is repurchased, the amount of the consideration paid, including directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and presented in the reserve for own shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is presented in retained earnings.

9.5. Compound financial instruments

Compound financial instruments issued by the Group comprise Notes denominated in USD that can be converted to ordinary shares at the option of the holder, when the number of shares is fixed and does not vary with changes in fair value.# Accounting Policies

The liability component of compound financial instruments is initially recognized at the fair value of a similar liability that does not have an equity conversion option. The equity component is initially recognized as the difference between the fair value of the compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability and equity component in proportion to their initial carrying amounts. Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortized cost using the effective interest method. The equity component of a compound financial instrument is not remeasured. Interest related to the financial liability is recognized in profit and loss. On conversion, the financial liability is reclassified to equity and no gain or loss is recognized.

10. Goodwill and intangible assets

10.1. Goodwill

Goodwill that arises on the acquisition of subsidiaries is presented as an intangible asset. For the measurement of goodwill at initial recognition, refer to accounting policy 7.1. After initial recognition goodwill is measured at cost less accumulated impairment losses, refer to accounting policy 12. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment, and any impairment loss is allocated to the carrying amount of the equity accounted investee as a whole.

10.2. Intangible assets

Intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and impairment losses, refer to accounting policy 12. The cost of an intangible asset acquired in a separate acquisition is the cash paid or the fair value of any other consideration given. The cost of an internally generated intangible asset includes the directly attributable expenditure of preparing the asset for its intended use.

10.3. Subsequent expenditure

Subsequent expenditure on intangible assets is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates and its cost can be measured reliably. All other expenditure is expensed as incurred.

10.4. Amortization

Amortization is charged to the income statement on a straight-line basis over the estimated useful lives of the intangible assets from the date they are available for use. The estimated useful lives are as follows:

• Software: 3 - 5 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

11. Vessels, property, plant and equipment

11.1. Owned assets

Vessels and items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation (see below) and impairment losses, refer to accounting policy 12. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of assets includes the following:

• The cost of materials and direct labour;
• Any other costs directly attributable to bringing the assets to a working condition for their intended use;
• When the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located; and
• Capitalized borrowing costs.

Where an item of property, plant and equipment comprises major components having different useful lives, they are accounted for as separate items of property, plant and equipment, refer to accounting policy 11.6. Gains and losses on disposal of a vessel or of another item of property, plant and equipment are determined by comparing the net proceeds from disposal with the carrying amount of the vessel or the item of property, plant and equipment and are recognized in profit or loss. For the sale of vessels, transfer of risk and rewards usually occurs upon delivery of the vessel to the new owner.

11.2. Assets under construction

Assets under construction, especially newbuilding vessels, are accounted for in accordance with the stage of completion of the newbuilding contract. Typical stages of completion are the milestones that are usually part of a newbuilding contract: signing or receipt of refund guarantee, steel cutting, keel laying, launching and delivery. All stages of completion are guaranteed by a refund guarantee provided by the shipyard.

11.3. Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the item of property, plant and equipment and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. All other expenditure is recognized in the consolidated statement of profit or loss as an expense as incurred.

11.4. Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset.

11.5. Depreciation

Depreciation is charged to the consolidated statement of profit or loss on a straight-line basis over the estimated useful lives of vessels and items of property, plant and equipment. The right-of-use asset is depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the basis of those of property and equipment (refer to accounting policy 18). Land is not depreciated. Vessels and items of property, plant and equipment are depreciated from the date that they are available for use. Internally constructed assets are depreciated from the date that the assets are completed and ready for use. The estimated useful lives of significant items of property, plant and equipment are as follows:

• tankers 20 years
• FSO/FpSO/FPSO 30 years
• plant and equipment 5 - 20 years
• fixtures and fittings 5 - 10 years
• other tangible assets 3 - 20 years
• dry-docking 2.5 - 5 years

The useful life of the FSOs have been reassessed from 25 years to 30 years due to the extension for ten years of the timecharter contract in direct continuation of their current contractual service, or until July 21, 2032 and September 21, 2032 respectively. The end of the useful economic life of the FSO vessels was set equal to the contract end date or approximately 30 years since build date. The net book value and depreciations were reassessed and applied prospectively as from the moment the extension was signed. The impact in the consolidated statement of profit or loss statement was immaterial. Vessels are estimated to have a zero residual value except for the three VLCCs under the sale and leaseback agreement entered into on December 30, 2019 (see Note 16). In accordance with IFRS, this transaction was not accounted for as a sale but Euronav as seller-lessee will continue to recognize the transferred assets. The three vessels are subsequently depreciated over their useful lives (i.e. from the commencement date to the end of the lease term) as it is not reasonably certain that the Group will exercise the purchase option. Depreciation is calculated on the net carrying value of the three vessels as of December 30, 2019 less their estimate residual values using the straight-line method. The residual value, estimated at USD 21 million, is the amount that the Group could receive from disposal of the vessels at the reporting date if the vessels were already of the age and in the condition that they will be in at the end of the lease term. Depreciation methods, useful lives at the end of the lease term and residual values are reviewed at each reporting date and adjusted if appropriate.

11.6. Dry-docking – component approach

Where an item of property, plant and equipment comprises major components having different useful lives, they are accounted for as separate items of property, plant and equipment. Costs associated with routine repairs and maintenance are expensed as incurred including routine maintenance performed whilst the vessel is in dry-dock. Components installed during dry-dock with a useful life of more than 1 year are depreciated over their estimated useful-life.

12. Impairment

12.1. Non-derivative financial assets

Financial instruments and contract assets The impairment model applies to financial assets measured at amortized cost, contract assets and debt investments at FVOCI. The financial assets at amortized cost consist of trade and other receivables, cash and cash equivalents and non-current receivables. Under IFRS 9, loss allowances are measured on either of the following bases:

• 12-month 'expected credit loss' (ECL): these are ECLs that result from possible default events within the 12 months after the reporting date; and
• lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument.

The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured in accordance with the 12-months ECLs model:

• debt securities that are determined to have low credit risk at the reporting date; and
• other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables are measured at an amount equal to lifetime ECLs.# 12. Significant accounting policies (continued)

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group's historical experience and informed credit assessment and including forward-looking information. The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 180 days past due. The financial assets that are more than 180 days past due, which mainly relates to demurrage and TI pool outstandings, are followed up closely and as long as their collection is highly probable, they are not considered in default. The Group considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held). The cash and cash equivalents are held with bank and financial institution counterparties, which are rated A- to AA+, based on rating agency S&P. Derivatives are entered into with banks and financial institution counterparties, which are rated A- to AA+, based on rating agency S&P. The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

Measurement of ECLs

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between cash flows due to the entity in accordance with the contract and cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

Credit-impaired financial assets

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Presentation of allowance for ECL

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. The impairment loss on trade receivable is included in 'general and administrative expenses'. For debt securities at FVOCI, the loss allowance is recognized in OCI, instead of being recorded in the statement of profit or loss. Impairment losses on other financial assets are not presented separately in the statement of profit or loss and OCI, because the amount is not material. It is included in 'finance expenses'.

Write-off

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group calculates the ELC on trade and other receivables based on actual credit loss experience over the past 10 years taking into account reasonable and supportable forecast of future economic conditions.

Non-financial assets

The carrying amounts of the Group’s non-financial assets, other than deferred tax assets (refer to accounting policy 21), inventory and contract assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGU’s. Goodwill acquired in a business combination is allocated to groups of CGU’s that are expected to benefit from the synergies of the combination. The recoverable amount of an asset or CGU is the greater of its fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Future cash flows are based on current market conditions, historical trends as well as future expectations. An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. An impairment loss recognized for goodwill shall not be reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

Tankers

The Group analyzes the following internal and external indicators which are reviewed to assess whether tankers might be impaired:

• the obsolescence or physical damage of an asset;
• significant changes in the extent or manner in which vessels are (or are expected to be) used that have (or will have) an adverse effect on the entity;
• plans to dispose of assets before the previously expected date of disposal;
• indications that the performance of a CGU is, or will be, worse than expected;
• significant increases in cash flows for acquiring, operating or maintaining vessels that are significantly higher than originally budgeted;
• net cash flows or operating profits that are lower than originally budgeted;
• net cash outflows or operating losses;
• market capitalization below net asset value;
• a significant and unexpected decline in market value of vessels;
• significant adverse effects in the technological, market, economic, legal and regulatory environment;
• increases in market interest rates.

Euronav defines its cash generating unit as a single vessel, unless such vessel is operated in a profit-sharing pool, in which case such vessel, together with the other vessels in the pool, are collectively treated as a cash generating unit. When events and changes in circumstances indicate that the carrying amount of the asset or CGU might not be recovered, the Group performs an impairment test whereby the carrying amount of the asset or CGU is compared to its recoverable amount, which is the greater of its value in use and its fair value less cost to sell. In assessing value in use, assumptions are made regarding forecast charter rates, using the weighted average of past and ongoing shipping cycles including management judgement for the ongoing cycle and for the weighting factors applied, the weighted average cost of capital ('WACC'), the useful life of the vessels (20 years for tankers) and a residual value. After careful consideration of the trends in the shipping industry, the Group elected to retain residual values for its vessels equal to zero. Although management believes that its process to determine the assumptions used to evaluate the carrying amount of the assets or CGU, when required, are reasonable and appropriate, such assumptions are subject to judgement. Management is assessing continuously the resilience of its projections to the business cycles that can be observed in the tankers market, and concluded that a business cycle approach provides a better long-term view of the dynamics at play in the industry. By defining a shipping cycle from peak to peak over the last 20 years and including management's expectation of the completion of the current cycle, management is better able to capture the full length of a business cycle while also giving more weight to recent and current market experience. The current cycle is forecasted based on management judgement, analyst reports and past experience.

FSOs

In the context of the valuation of the Group's investments in the respective joint ventures, the Group also reviews internal and external indicators, similar to the ones used for tankers, to assess whether the FSOs might be impaired. When events and changes in circumstances indicate that the carrying amount of the assets might not be recovered, the Group performs an impairment test on the FSO vessels owned by TI Asia Ltd and TI Africa Ltd, based on a value in use calculation to estimate the recoverable amount from the vessel. This method is chosen as there is no efficient market for transactions of FSO vessels as each vessel is often purposely built for specific circumstances. In assessing value in use, assumptions are made regarding forecast charter rates, weighted average cost of capital ('WACC'), the useful life of the FSOs (30 years) and a residual value. After careful consideration of the trends in the shipping industry, the Group elected to retain residual values for its FSO vessels equal to zero. The value in use calculation for FSOs, when required, is based on the remaining useful life of the vessels as of the reporting date, and forecast charter rates are determined using the fixed daily contract rates. The FSO Asia and the FSO Africa are on a five years timecharter contract to North Oil Company, the operator of the Al-Shaheen oil field, whose shareholders are Qatar Petroleum Oil & gas Limited and Total E&P Golfe Limited, until July 22, 2022 and September 22, 2022, respectively. In November 2020, the two joint ventures (TI Asia Ltd and TI Africa Ltd.) signed an extension for ten years in direct continuation of their current contractual service, or until July 21, 2032 and September 21, 2032 respectively. Following this extension of the contract with North Oil Qatar until 2032, the end of the useful economic life was set equal to the contract end date or approximately 30 years since build date.

13. Assets held for sale

Non-current assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale.# 14. Bunker inventory

The Group has been purchasing compliant bunker fuel for future use by its vessels. Bunkers on board of the ULCC Oceania and our vessels are presented as inventory and are accounted for on a weighted average basis. The cost of inventories comprises of the purchase price, fuel inspection costs and transport and handling costs. The effective portion of the change in fair value Financial report 2020  22 of derivatives designated as cash flow hedges of the underlying price index between the date of purchase and the date of delivery is also recognized as an inventory cost. The ineffective portion of the change in fair value of these derivatives is recognized directly in profit or loss. The inventory is accounted for at the lower of cost and net realizable value with cost being determined on a weighted average basis. No write down is needed as long as the freight market remains robust offsetting potential higher weighted average consumption costs of the bunker oil consumed from that inventory. Bunker expenses are recognized in profit or loss upon consumption.

15. Employee benefits

15.1. Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in profit or loss in the periods during which related services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan that are due more than 12 months after the end of the period in which the employees render the services are discounted to their present value. The calculation of defined contribution obligations is performed annually by a qualified actuary using the projected unit credit method.

15.2. Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return of plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in OCI. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in profit and loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined plan when the settlement occurs.

15.3. Other long term employee benefits

The Group’s net obligation in respect of long-term employee benefits, other than pension plans, is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on AA credit rated bonds that have maturity dates approximating the terms of the Group’s obligations and that are denominated in the currency in which the benefits are expected to be paid. Remeasurements are recognized in profit or loss in the period in which they arise.

15.4. Termination benefits

Termination benefits are recognized as an expense when the Group is demonstrably committed, without realistic possibility or withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value.

15.5. Short-term employee benefit

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

15.6. Share-based payment transactions

The grant-date fair value of equity-settled share-based payment awards granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. The fair value of the amount payable to beneficiaries in respect of “phantom stock unit” grants, which are settled in cash, is recognized as an expense with a corresponding increase in 23 Financial report 2020  liabilities, over the period during which the beneficiaries become unconditionally entitled to payment. The fair value of the Transaction Based Incentive Plan (TBIP) is being determined by using a binominal model with cost being spread of the expected vesting period over the various tranches. The fair value of the Long Term Incentive Plan (LTIP) is remeasured at each reporting date and at settlement based on the fair value of the phantom stock units. Any changes in the liability are recognized in profit or loss.

16. Provisions

A provision is recognized when the Group has a legal or constructive obligation that can be estimated reliably, as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation. The provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

Restructuring

A provision for restructuring is recognized when the Group has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been announced publicly. Future operating costs are not provided for.

Onerous contracts

A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognizes any impairment loss on the assets associated with that contract.

17. Revenue

17.1. Pool Revenues

Aggregated revenue recognized on a daily basis from vessels operating on voyage charters in the spot market and on contract of affreightment (“COA”) within the pool is converted into an aggregated net revenue amount by subtracting aggregated voyage expenses (such as fuel and port charges) from gross voyage revenue.# 17. REVENUE AND OTHER INCOME

17.2. Time- and Bareboat charters

As a lessor, the Group leases out some of its vessels under time charters and bareboat charters, refer to accounting policy 19. Lessors shall classify each lease as an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Otherwise a lease is classified as an operating lease. Revenues from time charters and bareboat charters are accounted for as operating leases and are recognized on a straight line basis over the periods of such charters, as service is performed (refer to accounting policy 19.A.2). IFRS 16 requires the Group to separate lease and non-lease components, with the lease component qualifying as operating lease under IFRS16 and the service components accounted for under IFRS 15.

17.3. Spot voyages

As from 1 January 2018, the Group applied IFRS 15. Voyage revenue is recognized over time for spot charters on a load-to-discharge basis. Progress is determined based on time elapsed. Voyage expenses are expensed as incurred unless they are incurred between the date on which the contract was concluded and the next load port. They are then capitalized if they qualify as fulfillment costs and if they are expected to be recovered. When our vessels cannot start or continue performing its obligation due to other factors such as port delays, a demurrage is paid. The applicable demurrage rate is stipulated in the contract. Demurrage which occurs at the discharge port is recognized as incurred. As demurrage is often a commercial discussion between Euronav and the charterer, the outcome and total compensation received for the delay is not always certain. As such, Euronav only recognizes the revenue which is highly probable to be received. No revenue is recognized if the collection of the consideration is not highly probable. The amount of revenue recognized is estimated based on historical data. The Group updates its estimate on an annually basis. Payment is typically done at the end of the voyage. There is no specific financing component.

18. GAIN AND LOSSES ON DISPOSAL OF VESSELS

In view of their importance the Group reports capital gains and losses on the sale of vessels as a separate line item in the consolidated statement of profit or loss. For the sale of vessels, transfer of control usually occurs upon delivery of the vessel to the new owner.

19. LEASES

The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16.

Financial report 2020  24

1. As a lessee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at the amount equal to the lease liability adjusted by initial direct costs incurred by the lessee. Adjustments may also be required for any payments made at or before the commencement date and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. After lease commencement, the Group measures the right-of-use asset using a cost model, namely at cost less accumulated depreciation and accumulated impairment. The right-of-use asset is subsequently depreciated using the straight-line method, refer to accounting policy 11.5. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The lessee's incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources (e.g. World office yield rate) and makes certain adjustments to reflect the terms of the lease and type of the asset leased or by calculating the weighted average of the cost of secured debt and unsecured debt. Lease payments included in the measurement of the lease liability comprise the following:
* fixed payments;
* variable lease payments that depend on an index or a rate;
* amounts expected to be payable under a residual value guarantee and
* the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain to not terminate early.

The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether the purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain to not be exercised. The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether the Group is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognized. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in the profit or loss if the carrying amount of the right-to-use asset has been reduced to zero. Lease and non-lease components in the contracts are separated.

Short-term leases and leases of low-value assets

The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, including IT equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

2. As a lessor

When the Group acts as a lessor, it determines at lease inception whether each lease is a finance or operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. If the lease qualifies as an operating lease, e.g. time charter out, the leased asset remains on the balance sheet of the lessor and continues being depreciated. The adoption of IFRS 16 required the Group to separate the lease and non-lease component in the contract, with the lease component qualified as operating lease and the non-lease component accounted for under IFRS 15. The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'revenue' (refer to accounting policy 17.2.) Payments related to service component made under operating leases are also recognized in the income statement over the term of the lease. The Group sub-leases some of its properties. The sub-lease contracts are classified as finance leases under IFRS 16. For these sub-lease, the right-of-use asset related to the head lease was derecognized and a lease receivable, at an amount equal to the net investment, relating to the sublease is recognized. Subsequently the Group recognizes finance income over the lease term of a finance lease, based on a pattern reflecting a constant periodic rate of return on the net investment and if applicable impairment losses on lease receivable.

Policy applicable before 1 January 2019

For contracts entered into before 1 January 2019, the Group determined whether the arrangement was or contained a lease.

25 Financial report 2020 

1. As a lessee

Leases in terms of which the Group assumes substantially all of the risks and rewards of ownership were classified as finance leases.# Accounting Policies (Continued)

19. Leases (Continued)

A. Leases as lessee (Continued)

Vessels, property, plant and equipment acquired by way of finance lease was stated at an amount equal to the lower of its fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation (see below) and impairment losses (refer to accounting policy 12). Lease payments were accounted for as described in accounting policy 19.A.1. Other leases are operating leases and were not recognized in the Group’s statement of financial position.

2. As a lessor

Payments received under operating leases were recognized in the income statement on a straight-line basis over the term of the lease. Lease incentives received were recognized as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases were apportioned between the finance expense and the reduction of the outstanding liability. The finance expense were allocated to each period during the lease term so as to produce a constant period rate of interest on the remaining balance of the liability.

20. Finance income and finance cost

Net financing costs comprise interest payable on borrowings calculated using the effective interest rate method, interest receivable on funds invested, dividend income, foreign exchange gains and losses, and gains and losses on hedging instruments that are recognized in the consolidated statement of profit or loss (refer to accounting policy 8).

The 'effective interest rate' is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
• the gross carrying amount of the financial asset; or
• the amortized cost of the financial liability.

In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortized cost of the liability. Interest income is recognized in the consolidated statement of profit or loss as it accrues, taking into account the effective yield on the asset. Dividend income is recognized in the consolidated statement of profit or loss on the date that the dividend is declared. Interest income related to finance lease for the subleases is also recognized in the consolidated statement of profit or loss as a finance income. The interest expense component of lease liabilities is recognized in the consolidated statement of profit or loss using the effective interest rate method.

21. Income tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognized using the balance sheet method, in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for: the initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.

The amount of deferred tax recognized is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the balance sheet date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

In application of an IFRIC agenda decision on IAS 12 Income taxes, tonnage tax is not accounted for as income taxes in accordance with IAS 12 and is not presented as part of income tax expense in the income statement but is shown as an administrative expense under the heading Other operating expenses. In accordance with IFRIC 23 the Group assesses whether there is any uncertainty over income tax treatments.

22. Segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. The Group distinguishes two segments: the operation of crude oil tankers on the international markets and the floating storage and offloading operations (FSO/FpSO). The Group’s internal organizational and management structure does not distinguish any geographical segments.

23. Discontinued operations

A discontinued operation is a component of the Group’s business that represents a separate major line of business or geographical area of operations that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier. When an operation is classified as a discontinued operation, the comparative statement of profit or loss is represented as if the operation had been discontinued from the start of the comparative period.

Financial report 2020  26

24. New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 31 December 2020, and have not been applied in preparing these consolidated financial statements. The amendments are not expected to have a material impact on the Group’s consolidated financial statements.

Amendments to IAS 1 Presentation of Financial statements: Classification of Liabilities as Current or Non-current, issued on 23 January 2020, clarify a criterion in IAS 1 for classifying a liability as non-current: the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendments:
a. specify that an entity’s right to defer settlement must exist at the end of the reporting period;
b. clarify that classification is unaffected by management’s intentions or expectations about whether the entity will exercise its right to defer settlement;
c. clarify how lending conditions affect classification; and
d. clarify requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments.

On July 15, 2020, the IASB issued Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Amendment to IAS 1) deferring the effective date of the January 2020 amendments to IAS 1 by one year to annual reporting periods beginning on or after January 1, 2023. The amendments have not yet been endorsed by the EU.

Amendments to IFRS 3 Business Combinations; IAS 16 Property, plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets as well as Annual improvements, issued on 14 May 2020, include several narrow-scope amendments which are changes that clarify the wording or correct minor consequences, oversights or conflicts between requirements in the Standards:
a. Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.
b. Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss. The amendments also clarify that testing whether an item of PPE is functioning properly means assessing its technical and physical performance rather than assessing its financial performance.
c. Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a company includes when assessing whether a contract will be loss-making. The amendments clarify that the ‘costs of fulfilling a contract’ comprise both: the incremental costs; and an allocation of other direct costs.
d. Annual Improvements to IFRS Standards 2018–2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases

The amendments are effective for annual periods beginning on or after 1 January 2022. These amendments have not yet been endorsed by the EU.

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2 (issued on 27 August 2020) address issues that might affect financial reporting during the reform of an interest rate benchmark, including the effects of changes to contractual cash flows or hedging relationships arising from the replacement of an interest rate benchmark with an alternative benchmark rate (replacement issues).# Financial Report 2020

Consolidated statement of financial position (in thousands of USD)

December 31, 2020

	Tankers	FSO	Less: Equity-accounted investees	Total
ASSETS
Vessels	2,875,348	115,248	(125,288)	2,865,308
Assets under construction	207,069	—	—	207,069
Right-of-use assets	52,955	—	—	52,955
Other tangible assets	1,759	—	—	1,759
Intangible assets	161	—	—	161
Receivables	46,419	—	8,635	55,054
Investments in equity accounted investees	2,822	—	48,881	51,703
Deferred tax assets	1,357	—	—	1,357
Total non-current assets	3,187,890	115,248	(67,772)	3,235,366
Total current assets	453,009	10,182	(11,318)	451,873
TOTAL ASSETS	3,640,899	125,430	(79,090)	3,687,239
EQUITY and LIABILITIES
Total equity	2,264,271	47,515	—	2,311,786
Bank and other loans	836,318	36,237	(36,237)	836,318
Other notes	198,279	—	—	198,279
Other borrowings	100,056	—	—	100,056
Lease liabilities	21,172	—	—	21,172
Other payables	6,893	242	(242)	6,893
Deferred tax liabilities	—	11,525	(11,525)	—
Employee benefits	7,987	—	—	7,987
Provisions	1,154	—	—	1,154
Total non-current liabilities	1,171,859	48,004	(48,004)	1,171,859
Total current liabilities	204,769	29,911	(31,086)	203,594
TOTAL EQUITY and LIABILITIES	3,640,899	125,430	(79,090)	3,687,239

Note 2 - Segment reporting

The Group distinguishes two operating segments: the operation of crude oil tankers on the international markets (Tankers) and the floating production, storage and offloading operations (FSO/FPSO). These two divisions operate in completely different markets, where in the latter the assets are tailor made or converted for specific long term projects. The tanker market requires a different marketing strategy as this is considered a very volatile market, contract duration is often less than two years and the assets are to a large extent standardized. The segment profit or loss figures and key assets as set out below are presented to the management board on at least a quarterly basis to help the key decision makers in evaluating the respective segments. The Chief Operating Decision Maker (CODM) also receives the information per segment based on proportionate consolidation for the joint ventures and not by applying equity accounting. The reconciliation between the figures of all segments combined on one hand, with the consolidated statements of financial position and profit or loss on the other hand, is presented in a separate column Equity-accounted investees. The Group has one client in the Tankers segment that represented 6% of the Tankers segment total revenue in 2020 (2019: one client which represented 7% and in 2018 also one client which represented 7%). All the other clients represent less than 6% of total revenues of the Tankers segment. The Group has one client in the FSO segment. The Group's internal organizational and management structure does not distinguish any geographical segments.

Consolidated statement of financial position

December 31, 2019

	Tankers*	FSO*	Less: Equity-accounted investees*	Total
	3,198,993	131,958	(153,689)	3,177,262
	—	—	—	—
	58,908	—	—	58,908
	2,265	—	—	2,265
	39	—	—	39
	52,502	—	18,581	71,083
	2,355	—	47,967	50,322
	2,715	1,116	(1,116)	2,715
Total non-current assets	3,317,777	133,074	(88,257)	3,362,594
Total current assets	805,613	10,405	(13,769)	802,249
TOTAL ASSETS	4,123,390	143,479	(102,026)	4,164,843
EQUITY and LIABILITIES
Total equity	2,268,490	43,365	—	2,311,855
Bank and other loans	1,173,944	67,962	(67,962)	1,173,944
Other notes	198,571	—	—	198,571
Other borrowings	107,978	—	—	107,978
Lease liabilities	43,161	—	—	43,161
Other payables	3,809	539	(539)	3,809
Deferred tax liabilities	—	4,769	(4,769)	—
Employee benefits	8,094	—	—	8,094
Provisions	1,381	—	—	1,381
Total non-current liabilities	1,536,938	73,270	(73,270)	1,536,938
Total current liabilities	317,962	26,844	(28,756)	316,050
TOTAL EQUITY and LIABILITIES	4,123,390	143,479	(102,026)	4,164,843

Consolidated statement of profit or loss (in thousands of USD)

	2020		Tankers	FSO	Less: Equity-accounted investees	Total
Shipping income
Revenue	1,241,252	49,949	(60,451)	1,230,750
Gains on disposal of vessels/other tangible assets	23,107	—	(379)	22,728
Other operating income	9,907	2,577	(2,372)	10,112
Total shipping income	1,274,266	52,526	(63,202)	1,263,590
Operating expenses
Voyage expenses and commissions	(129,833)	—	4,403	(125,430)
Vessel operating expenses	(213,489)	(12,014)	14,869	(210,634)
Charter hire expenses	(5,410)	—	(2,544)	(7,954)
Losses on disposal of vessels/other tangible assets	(1)	—	—	(1)
Impairment on non-current assets held for sale	—	—	—	—
Depreciation tangible assets	(323,216)	(16,710)	20,274	(319,652)
Depreciation intangible assets	(99)	—	—	(99)
General and administrative expenses	(65,606)	(560)	668	(65,498)
Total operating expenses	(737,654)	(29,284)	37,670	(729,268)
RESULT FROM OPERATING ACTIVITIES	536,612	23,242	(25,532)	534,322
Finance income	20,045	21	1,430	21,496
Finance expenses	(91,645)	(3,295)	3,387	(91,553)
Net finance expenses	(71,600)	(3,274)	4,817	(70,057)
Gain on bargain purchase	—	—	—	—
Share of profit (loss) of equity accounted investees (net of income tax)	467	—	10,450	10,917
Profit (loss) before income tax	465,479	19,968	(10,265)	475,182
Income tax expense	(1,944)	(10,265)	10,265	(1,944)
Profit (loss) for the period	463,535	9,703	—	473,238
Attributable to:
Owners of the company	463,535	9,703	—	473,238

	2019			Tankers*	FSO*	Less: Equity-accounted investees*	Total
Shipping income
Revenue	933,823	49,461	(50,907)	932,377	600,024	49,155	(49,155)
Gains on disposal of vessels/other tangible assets	14,879	—	—	14,879	19,138	—	—
Other operating income	10,075	3,351	(3,332)	10,094	4,775	72	(72)
Total shipping income	958,777	52,812	(54,239)	957,350	623,937	49,227	(49,227)
Operating expenses
Voyage expenses and commissions	(145,047)	2	364	(144,681)	(141,416)	(1)	1
Vessel operating expenses	(212,010)	(12,657)	12,872	(211,795)	(185,792)	(9,637)	9,637
Charter hire expenses	(604)	—	—	(604)	(31,114)	—	—
Losses on disposal of vessels/other tangible assets	(75)	—	—	(75)	(273)	—	—
Impairment on non-current assets held for sale	—	—	—	—	(2,995)	—	—
Depreciation tangible assets	(338,036)	(18,071)	18,461	(337,646)	(270,582)	(18,071)	18,071
Depreciation intangible assets	(56)	—	—	(56)	(111)	—	—
General and administrative expenses	(66,958)	(283)	351	(66,890)	(66,235)	(425)	428
Total operating expenses	(762,786)	(31,009)	32,048	(761,747)	(698,518)	(28,134)	28,137
RESULT FROM OPERATING ACTIVITIES	195,991	21,803	(22,191)	195,603	(74,581)	21,093	(21,090)
Finance income	20,399	147	26	20,572	15,023	160	(160)
Finance expenses	(119,809)	(4,558)	4,564	(119,803)	(89,412)	(3,795)	3,795
Net finance expenses	(99,410)	(4,411)	4,590	(99,231)	(74,389)	(3,635)	3,635
Gain on bargain purchase	—	—	—	—	—	—	—
Share of profit (loss) of equity accounted investees (net of income tax)	440	—	16,020	16,460	220	—	15,856
Profit (loss) before income tax	97,021	17,392	(1,581)	112,832	(125,691)	17,458	(1,599)
Income tax expense	(602)	(1,581)	1,581	(602)	(238)	(1,599)	1,599
Profit (loss) for the period	96,419	15,811	—	112,230	(125,929)	15,859	—
Attributable to:
Owners of the company	96,419	15,811	—	112,230	(125,929)	15,859	—

Summarized consolidated statement of cash flows (in thousands of USD)

	2020	Tankers	FSO	Less: Equity-accounted investees	Total
Net cash from (used in) operating activities	958,798	36,328	(25,341)	969,785
Net cash from (used in) investing activities	(110,314)	—	(6,792)	(117,106)
Net cash from (used in) financing activities	(995,151)	(36,503)	31,953	(999,701)
Capital expenditure	(226,663)	—	1,253	(225,410)

	2019			Tankers*	FSO*	Less: Equity-accounted investees*	Total
Net cash from (used in) operating activities	259,109	41,278	(28,396)	271,991	843	40,672	(40,674)
Net cash from (used in) investing activities	44,211	—	(461)	43,750	190,042	—	—
Net cash from (used in) financing activities	(178,587)	(41,491)	28,891	(191,187)	(160,165)	(42,164)	42,164
Capital expenditure	(30,173)	—	22,120	(8,053)	(238,065)	—	—

Note 3 - Assets and liabilities held for sale and discontinued operations

Assets held for sale

The assets held for sale can be detailed as follows:

	December 31, 2020	December 31, 2019	December 31, 2018
Vessels	—	12,705	42,000
Of which in Tankers segment	—	12,705	42,000
Of which in FSO segment	—	—	—

	(Estimated) Net sale price	Book Value	Asset Held For Sale	Impairment Loss (Expected)	Gain
At January 1, 2019	—	—	42,000	—	—
Assets transferred to assets held for sale
Finesse	21,003	12,705	12,705	—	8,298
Assets sold from assets held for sale
Felicity	42,000	42,000	(42,000)	—	—
At December 31, 2019	—	—	12,705	—	8,298
At January 1, 2020	—	—	12,705	—	—
Assets sold from assets held for sale
Finesse	21,003	12,705	(12,705)	—	8,298
At December 31, 2020	—	—	—	—	8,298

On January 23, 2020, the Company sold the Suezmax Finesse (2003 - 149,994 dwt), for USD 21.8 million. The fair value less cost of disposal amounted to USD 21.0 million. This vessel was accounted for as a non-current asset held for sale as at December 31, 2019, and had a carrying value of USD 12.7 million as of that date. The vessel was delivered to its new owner on February 21, 2020.# Financial report 2020

Taking into account the sales commission, the net gain on this vessel amounts to USD 8.3 million and was recorded in the consolidated statement of profit or loss in the first quarter of 2020 (see Note 8). As of December 31, 2020, the Group had no assets held for sale.

Discontinued operations

As of December 31, 2020 and December 31, 2019, the Group had no operations that meet the criteria of a discontinued operation.

Note 4 - Revenue and other operating income

In the following table, revenue is disaggregated by type of contract. (in thousands of USD)

	2020	2019	Note
Tankers
FSO
Less: Equity-accounted investees
Total
Pool Revenue	715,812	594	716,406
Spot Voyages	410,256	(9,799)	400,457
Revenue from contracts with customers	1,126,068	(9,205)	1,116,863
Time Charters	115,184	49,949	(51,246)
Lease income	115,184	49,949	(51,246)
Total revenue	1,241,252	49,949	(60,451)
Other operating income	—	—	—

(in thousands of USD)

	2020	2019	Note
Tankers
FSO
Less: Equity-accounted investees
Total
Pool Revenue	524,840	7	524,847
Spot Voyages	318,674	(1,453)	317,221
Revenue from contracts with customers	843,514	(1,446)	842,068
Time Charters	90,309	49,461	(49,461)
Lease income	90,309	49,461	(49,461)
Total revenue	933,823	49,461	(50,907)
Other operating income	10,112	—	—

For the accounting treatment of revenue, we refer to the accounting policies (see Note 1.17) - Revenue. The increase in revenue is mostly related to the increase in pool and spot voyage revenue which is due to improved rates compared to 2019. The increase in revenue from time charters is also due to favorable market conditions and a slightly higher number of vessels on time charter. The increase in time charter rates compared to 2019 is related to the fact that as from the end of the first quarter of 2020, the tanker market benefited from the development of three key factors. Firstly, unilateral actions were taken by Saudi Arabia in simultaneously cutting their oil prices but also raising their crude oil exports. This prompted a large short-term increase in demand for tanker tonnage, primarily in the VLCC sector. Secondly, the restrictions taken by governments to curtail the COVID-19 virus globally curbed economic activity and consequently crude oil consumption. This led to a steep and rapid disconnect between crude oil demand and supply alongside a wide contango. Thirdly, this pricing structure itself further incentivised the storage of crude oil for financial gain during April/May 2020, thus increasing short-term the demand for tonnage to store this excess oil. The disruption to tanker markets from these factors combined to take between 7-9% of the global trading fleet for storage purposes (300 million barrels). These features combined to create a highly favourable tanker freight market from February until August reflected in strong revenues for the Company. The OPEC plus nations agreed a 9.7M bpd cut to production of global crude (out of 100M bpd daily output) applicable from May 2020. However, the impact of these cuts was not felt in tanker markets until the third quarter 2020 given the positive disruption from storage on fleet supply. The returning vessels from storage from August 2020 onwards combined with fewer available cargoes from the production cuts has led to a challenging freight market from August 2020 onwards. Other operating income includes revenues related to the daily standard business operation of the fleet and that are not directly attributable to an individual voyage.

Note 5 - Expenses for shipping activities and other expenses from operating activities

Voyage expenses and commissions (in thousands of USD)

	2020	2019	2018
Commissions paid	(12,748)	(10,130)	(8,193)
Bunkers	(98,761)	(101,947)	(103,920)
Other voyage related expenses	(13,921)	(32,604)	(29,303)
Total voyage expenses and commissions	(125,430)	(144,681)	(141,416)

The voyage expenses and commissions decreased in 2020 compared to 2019 mainly due to a decrease in other voyage related expenses. For vessels operated on the spot market, voyage expenses are paid by the shipowner while voyage expenses for vessels under a time charter contract, are paid by the charterer. Voyage expenses for vessels operated in a Pool, are paid by the Pool. The majority of other voyage expenses are port costs, agency fees and agent fees paid to operate the vessels on the spot market. Port costs vary depending on the number of spot voyages performed, number and type of ports. The decrease in other voyage related expenses in 2020 compared to 2019 is due to changed trading patterns. Bunker expenses decreased compared to last year due to a change in the composition of the fleet for vessels operated on the spot.

Vessel operating expenses (in thousands of USD)

	2020	2019	2018
Operating expenses	(196,677)	(196,739)	(172,589)
Insurance	(13,957)	(15,056)	(13,203)
Total vessel operating expenses	(210,634)	(211,795)	(185,792)

The operating expenses relate mainly to the crewing, technical and other costs to operate tankers. In 2020 these expenses were in line with 2019.

Charter hire expenses (in thousands of USD)

	2020	2019	2018
Charter hire	(7,954)	(604)	6
Bare boat hire	—	—	(31,120)
Total charter hire expenses	(7,954)	(604)	(31,114)

The charter-hire expenses in 2020 are entirely attributable to internal short term time charter agreement with our joint venture Bari Shipholding Ltd. and the hire expenses for the barge (Dragon Satu) in relation to the bunker fuel strategy. The Group elected to apply the short-term lease exemption and accordingly, the lease payments were recognized as an expense and right-of-use assets and lease liabilities were not recognized.

General and administrative expenses (in thousands of USD)

	Note	2020	2019	2018
Wages and salaries		(19,806)	(25,050)	(16,247)
Social security costs		(3,269)	(3,430)	(3,746)
Provision for employee benefits	17	(545)	(134)	(111)
Cash-settled share-based payments	23	1,338	(2,455)	(505)
Equity-settled share-based payments	23	(140)	—	(37)
Other employee benefits		(4,450)	(3,713)	(7,607)
Employee benefits		(26,872)	(34,782)	(28,253)
Administrative expenses		(35,565)	(31,226)	(33,485)
Tonnage tax		(3,459)	(1,313)	(4,436)
Claims		10	(17)	(100)
Provisions		388	448	42
Total general and administrative expenses		(65,498)	(66,890)	(66,232)
Average number of full time equivalents (shore staff)		185.66	184.90	161.77

The general and administrative expenses which include amongst others: shore staff wages, director fees, office rental, consulting and audit fees and tonnage tax, decreased in 2020 compared to 2019. This decrease was mainly related to the merger with Gener8 Maritime Inc. and the settlement following the stepping down of the CEO Paddy Rodgers, which had an impact on wages and salaries in 2019. This decrease was offset by an increase in administrative expenses. The increase in administrative expense is mainly related to an increase in TI admin fees due to a better freight market in 2020 and higher IT expenses. Furthermore the legal and other fees decreased in 2020, as well as travel and meal expenses due to COVID-19 restrictions. Tonnage tax increased in 2020 compared to 2019 due to the reversal of the voluntary tonnage tax provision in 2019, which was waived as a result of a change in the tonnage tax regime. The voluntary tonnage tax is no longer applicable to the Group as from 2019. The provision for employee benefits decreased in 2020 compared to 2019. This decrease resulted from the vesting of the first tranche of the TBIP 2019 and one-third of the LTIP 2016, LTIP 2017 and LTIP 2018 (see Note 14 and 17).

Note 6 - Net finance expense

Recognized in profit or loss (in thousands of USD)

	2020	2019	2018
Interest income	6,487	6,529	4,106
Foreign exchange gains	15,009	14,043	10,917
Finance income	21,496	20,572	15,023
Interest expense on financial liabilities measured at amortized cost	(62,350)	(84,378)	(67,956)
Interest leasing	(3,287)	(4,811)	—
Fair value adjustment on interest rate swaps	(108)	(8,533)	(2,790)
Other financial charges	(9,936)	(7,474)	(6,802)
Foreign exchange losses	(15,872)	(14,607)	(11,864)
Finance expense	(91,553)	(119,803)	(89,412)
Net finance expense recognized in profit or loss	(70,057)	(99,231)	(74,389)

Interest expense on financial liabilities measured at amortized cost decreased during the year ended December 31, 2020, compared to 2019. This decrease was attributable to a decrease in the average outstanding debt combined with decreased interest rates and was partially offset by an increase in the interest expenses on the sale and leaseback agreement for three VLCCs entered into on December 30, 2019 (see Note 16). Interest leasing is the interest on lease liabilities. Fair value adjustment on interest rate swaps relate primarily to the amortization over the remaining duration of the interest rate swaps which were acquired in the Gener8 Maritime Inc. merger. Three IRSs related to the Gener8 Maritime Inc. merger were settled in the third quarter of 2019 and the two remaining had a duration matching the repayment profile of the underlying facility and matured in September 2020 (see Note 14).## Financial report 2020

Note 7 - Income tax benefit (expense)

(in thousands of USD)

	2020	2019	2018
Current tax
Current period	(575)	(1,066)	(37)
Total current tax	(575)	(1,066)	(37)
Deferred tax
Recognition of unused tax losses/(use of tax losses)	(1,369)	474	(195)
Other	—	(10)	(6)
Total deferred tax	(1,369)	464	(201)
Total tax benefit/(expense)	(1,944)	(602)	(238)

Reconciliation of effective tax

	2020	2019	2018
Profit (loss) before tax	475,182	112,832	(109,832)
Tax at domestic rate (25.00)%	(118,796)	(29,58)%	(33,376)
Effects on tax of :
Tax exempt profit / loss	241	317	(50)
Tax adjustments for previous years	—	34	9
Loss for which no DTA (*) has been recognized	(61)	(26)	(1,037)
Non-deductible expenses	(482)	(538)	(962)
Use of previously unrecognized tax losses and tax credits	267	4,066	—
Tonnage Tax regime	115,174	24,534	(33,602)
Effect of share of profit of equity-accounted investees	2,613	2,482	4,690
Effects of tax regimes in foreign jurisdictions	(900)	1,905	(1,774)
Total taxes (0.41)%	(1,944)	(0.53)%	(602)

In application of an IFRIC agenda decision on ‘IAS 12 Income taxes’, tonnage tax is not accounted for as income taxes in accordance with IAS 12 and is not presented as part of income tax expense in the consolidated statement of profit or loss but has been shown as an administrative expense under the heading General and administrative expenses. The amount paid for tonnage tax in the year ended December 31, 2020 was USD 3.5 million (see Note 5).
* DTA = Deferred Tax Asset

Note 8 - Property, plant and equipment

(in thousands of USD)

	Vessels	Vessels under construction	Right-of-use assets	Other tangible assets	Total PPE
At January 1, 2018
Cost	—	3,595,692	63,668	—	3,545,692
Depreciation & impairment losses	—	(1,324,192)	—	(1,882)	(1,326,074)
Net carrying amount	—	2,271,500	63,668	1,663	2,336,831
Acquisitions	—	45,750	191,726	588	238,064
Acquisitions through business combinations	25	1,704,250	—	345	1,704,595
Disposals and cancellations	—	(7,814)	—	(75)	(7,889)
Disposals and cancellations through business combinations	25	(434,000)	—	—	(434,000)
Depreciation charges	—	(270,018)	—	(564)	(270,582)
Transfer to assets held for sale	3	(44,995)	—	—	(44,995)
Transfers	—	255,394	(255,394)	—	—
Translation differences	—	—	—	(14)	(14)
Balance at December 31, 2018	3,520,067	—	—	1,943	3,522,010
At January 1, 2019
Cost	—	4,927,324	—	4,274	4,931,598
Depreciation & impairment losses	—	(1,407,257)	—	(2,331)	(1,409,588)
Net carrying amount	—	3,520,067	—	1,943	3,522,010
Acquisitions	—	7,024	549	1,012	8,585
Adoption IFRS 16	—	—	87,598	—	87,598
Disposals and cancellations	—	(29,386)	—	(52)	(29,438)
Depreciation charges	—	(307,738)	—	(29,265)	(337,646)
Transfer to assets held for sale	3	(12,705)	—	—	(12,705)
Translation differences	—	—	26	5	31
Balance at December 31, 2019	3,177,262	—	58,908	2,265	3,238,435
At January 1, 2020
Cost	—	4,815,910	88,182	5,042	4,909,134
Depreciation & impairment losses	—	(1,638,648)	—	(2,777)	(1,670,699)
Net carrying amount	—	3,177,262	58,908	2,265	3,238,435
Acquisitions	—	17,835	207,069	257	250,890
Disposals and cancellations	—	(42,641)	—	(2)	(42,643)
Depreciation charges	—	(287,148)	—	(31,702)	(319,652)
Translation differences	—	—	48	13	61
Balance at December 31, 2020	2,865,308	207,069	52,955	1,759	3,127,091
At December 31, 2020
Cost	—	4,608,326	207,069	113,859	5,189,793
Depreciation & impairment losses	—	(1,743,018)	—	(60,904)	(3,430,368)
Net carrying amount	2,865,308	207,069	52,955	1,759	3,127,091

In 2020, the Hakata, Hakone, Filikon, Sofia, Statia, Dominica and Dia have been dry-docked. The cost of planned repairs is capitalized and included under the heading Acquisitions. The adoption of IFRS 16 as of January 1, 2019 (see Note 1.19), resulted in the recognition of right-of-use assets of USD 87.6 million on the balance sheet which are included under the heading Adoption IFRS 16. On October 27, 2020 and November 6, 2020, the Company entered into a time charter agreement for two Suezmaxes, Marlin Sardinia and Marlin Somerset (see Note 20). In accordance with IFRS, the Group recognized a right-of-use asset of USD 24.9 million. The group had four vessels under construction at December 31, 2020 for an aggregate amount of USD 207.1 million (2019: no vessels under construction). The amounts presented within "vessels under construction" relate to four Eco-type VLCCs.

Disposal of assets – Gains/losses

(in thousands USD)

	Note	Sale price	Book Value	Gain	Loss
At December 31, 2018
Cap Jean - Sale		—	10,175	—	10,175
Cap Romuald - Sale		—	10,282	1,319	8,963
Companion - Sale		—	6,305	6,495	—
Other		—	—	—	(83)
At December 31, 2018		26,762	7,814	19,138	(273)

	Note	Sale price	Book Value	Gain	Loss
At December 31, 2019
Felicity - Sale		—	42,000	42,000	—
Compatriot - Sale		—	6,615	6,173	442
VK Eddie - Sale		—	37,620	23,212	14,408
Other		29	—	29	(75)
At December 31, 2019		86,264	71,385	14,879	(75)

	Note	Sale price	Book Value	Gain	Loss
At December 31, 2020
Finesse - Sale		—	21,003	12,705	8,298
Cap Diamant - Sale		—	20,072	7,242	12,830
TI Hellas - Sale		—	37,000	35,400	1,600
At December 31, 2020		78,075	55,347	22,728	—

On January 23, 2020 the Company sold the Suezmax Finesse (2003 - 149,994 dwt), for USD 21.0 million. This vessel was accounted for as a non-current asset held for sale as at December 31, 2019 and had a carrying value of USD 12.7 million. The vessel was delivered to its new owner on February 21, 2020 and the capital gain of USD 8.3 million was recorded in the first quarter of 2020. On March 20, 2020, Euronav sold the Suezmax Cap Diamant (2001 - 160,044 dwt) for a net sale price of USD 20.1 million. The Company recorded a capital gain of USD 12.8 million in the second quarter of 2020 upon delivery to its new owner on April 9, 2020. On April 22, 2020, Euronav sold the VLCC TI Hellas (2005 - 319,254 dwt) for a net sale price of USD 37.0 million. A capital gain of USD 1.6 million was recorded in the second quarter of 2020 upon delivery to its new owner on June 5, 2020.

Impairment

In previous years Euronav carefully assessed through a detailed approach if the carrying amounts of the vessels would require an impairment. No impairment was booked so far. In 2019 the Group did not perform an impairment test because no indicators of impairment were present. This year, and both for the CGUs under the tankers segment and the FSO segment (as defined in Note 2), the Group performed a review of the internal as well as external indicators of impairment to consider whether further testing was necessary. As of December 31, 2020, the significant drop in market rates and the very low share price of the Group were identified as two indicators which triggered the requirement to perform a more in-depth impairment analysis (2019: no such indicators were present) for CGUs under the tankers segment. For the FSO segment, the Group concluded that the impairment indicator ‘market rates’ was not applicable following the conclusion of the profitable extension agreements until the end of the FSOs’ useful lives. Hence, the annual impairment tests were performed for the defined cash-generating units under the tankers segment. The recoverable amount of those cash-generating units has been determined based on a value-in-use calculation using cash flow projections generated. This exercise is complex and requires various estimates to be made, relating to, among other things, vessel values, future freight rates, earnings from the vessels, discount rates and economic life of vessels. These assumptions, and in particular for estimating future charter rates, are based on historical trends and current market conditions, as well as future expectations, the latter integrating the impact of weaker TCE because of COVID-19. The same methodology used in previous years was applied which takes into consideration the volatile character of the tanker business by considering a full shipping cycle defined from peak to the next peak level while applying a weighing to the past cycles. The Weighted Average Cost of Capital ('WACC') used to calculate the value in use was 5.45%. The most significant factors that could impact management’s assumptions regarding future time charter equivalent rates include (i) unanticipated changes in demand for transportation of crude oil cargoes, (ii) changes in production or supply of or demand for oil, generally or in specific geographical regions, (iii) the levels of tanker newbuilding orders or the levels of tanker scrappings, (iv) changes in rules and regulations applicable to the tanker industry, including legislation adopted by international organizations such as the IMO or by individual countries and vessels’ flag states. The assessment did not indicate that the carrying amounts of the cash generating units, including right of use assets, may be higher than its recoverable amount.Whilst no impairment is required this year, we cannot assure this will be also the case in the future. Any impairment charge incurred could negatively affect our financial condition, operating results, the value of our shares and amount of dividend. With an increase of the WACC of 200bps to 7.45%, the analysis would also indicate that the carrying amount of the vessels as of December 31, 2020 is not impaired. This weighting and forecasting on the ongoing cycle is based on management judgement, but none of the full cycles, with or without management forecasting of the ongoing cycle or the sole use of the ongoing cycle would lead to an impairment. When using 10-year historical charter rates in this impairment analysis, the impairment analysis indicates that an impairment is required for the tanker fleet of USD 0.7 million. When using 5-year historical charter rates in this impairment analysis, the impairment analysis indicates that an impairment is required for the tanker fleet of USD 2.4 million and when using 1-year historical charter rates in this impairment analysis, the impairment analysis indicates that no impairment is required for the tanker fleet. Security All tankers financed are subject to a mortgage to secure bank loans (see Note 16). Capital commitment As at December 31, 2020 the Group's total capital commitments amounts to USD 172.1 million (December 31, 2019 no capital commitments). These capital commitments relate to three out of the four VLCC newbuilding contracts entered into in 2020. The capital commitments can be detailed as follows:

	Total	2021	2022
Commitments in respect of VLCCs	172,100	172,100	—
Commitments in respect of Suezmaxes	—	—	—
Commitments in respect of FSOs	—	—	—
Total	172,100	172,100	—

Note 9 - Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

	ASSETS	LIABILITIES	NET
Employee benefits	26	—	26
Unused tax losses & tax credits	29,011	—	29,011
Unremitted earnings	—	(26,322)	(26,322)
	29,037	(26,322)	2,715
Offset	(26,322)	(26,322)
Balance at December 31, 2019	2,715	—
Employee benefits	29	—	29
Unused tax losses & tax credits	27,650	—	27,650
Unremitted earnings	—	(26,322)	(26,322)
	27,679	(26,322)	1,357
Offset	(26,322)	26,322
Balance at December 31, 2020	1,357	—

(in thousands of USD)

Unrecognized deferred tax assets and liabilities

Deferred tax assets and liabilities have not been recognized in respect of the following items:

	December 31, 2020	December 31, 2019
	ASSETS	LIABILITIES
Deductible temporary differences	38	—
Taxable temporary differences	—	(12,162)
Tax losses & tax credits	64,923	—
	64,961	(12,162)
Offset	(12,162)	12,162
Total	52,799	—

(in thousands of USD)

The unrecognized deferred tax assets in respect of tax losses and tax credits relates to tax losses carried forward, investment deduction allowances and excess dividend received deduction. Tax losses and tax credits have no expiration date. The increase in unrecognized deferred tax assets is mainly due to currency translations. A deferred tax asset ('DTA') is recognized for unused tax losses and tax credits carried forward, to the extent that it is probable that future taxable profits will be available. The Group considers future taxable profits as probable when it is more likely than not that taxable profits will be generated in the foreseeable future. When determining whether probable future taxable profits are available the probability threshold is applied to portions of the total amount of unused tax losses or tax credits, rather than the entire amount. Given the nature of the tonnage tax regime, the Group has a substantial amount of unused tax losses and tax credits for which no future taxable profits are probable and therefore no DTA has been recognized. No deferred tax liabilities have been recognized for temporary differences related to vessels for which the Group expects that the reversal of these differences will not have a tax effect. In December 2017, changes to the Belgian corporate income tax rate were enacted, lowering the rate to 29.58% as from 2018 and to 25% from 2020. These changes have been reflected in the calculation of the amounts of deferred tax assets and liabilities in respect of Belgian Group entities as at December 31, 2020 and December 31, 2019.

Movement in deferred tax balances during the year

	Balance at Jan 1, 2018	Recognized in income	Recognized in equity	Translation differences	Balance at Dec 31, 2018
Provisions	1	(1)	—	—	—
Employee benefits	44	(5)	—	(2)	37
Unused tax losses & tax credits	2,442	(195)	—	(29)	2,218
Total	2,487	(201)	—	(31)	2,255

(in thousands of USD)

	Balance at Jan 1, 2019	Recognized in income	Recognized in equity	Translation differences	Balance at Dec 31, 2019
Provisions	—	—	—	—	—
Employee benefits	37	(10)	—	(1)	26
Unused tax losses & tax credits	2,218	474	—	(3)	2,689
Total	2,255	464	—	(4)	2,715

(in thousands of USD)

	Balance at Jan 1, 2020	Recognized in income	Recognized in equity	Translation differences	Balance at Dec 31, 2020
Provisions	—	—	—	—	—
Employee benefits	26	—	—	3	29
Unused tax losses & tax credits	2,689	(1,369)	—	8	1,328
Total	2,715	(1,369)	—	11	1,357

(in thousands of USD)

Note 10 - Non-current receivables

	December 31, 2020	December 31, 2019
Shareholders loans to joint ventures	33,936	60,379
Derivatives	2	—
Other non-current receivables	14,434	2,094
Lease receivables	6,681	8,609
Investment	1	1
Total non-current receivables	55,054	71,083

(in thousands of USD)

Following the sale of the Suezmax Bastia in September 2020, the shareholders loan to Bastia Shipholding Ltd. was fully repaid. Please refer to Note 26 for more information on the shareholders loans to joint ventures. The increase in other non-current receivables is related to the issuance of a bank guarantee for the amount of USD 12.3 million through a cash deposit in the context of the enforcement proceedings lodged by Unicredit on January 15, 2021 (see Note 21). The lease receivables relate to the subleases of office space to third parties regarding the leased offices of Euronav UK and Euronav MI II Inc. (formerly Gener8 Maritime Inc.). Because the shareholders loans are perpetual non-amortizing loans, these non-current receivables are presented as maturing after 5 years with the exception of the shareholders loan to Bari Shipholding Ltd. which will mature in 2024.

The maturity date of the non-current receivables is as follows:

	December 31, 2020	December 31, 2019
Receivable:
Within two years	2,100	1,959
Between two and three years	2,305	2,076
Between three and four years	18,862	2,278
Between four and five years	2,764	38,754
More than five years	29,023	26,016
Total non-current receivables	55,054	71,083

(in thousands of USD)

Note 11 - Bunker inventory

The Group has set up a Bunker Fuel Management Group to manage the fuel oil exposure in the future relating to the IMO 2020 requirements. IMO 2020 requires the vessels to operate with low Sulphur fuel (LSFO) which was expected to be higher priced due to anticipated or potential shortage in the production of LSFO in the first months of 2020 compared to demand. The activity involves the purchase and storage of compliant fuel oil inventory on board of a Euronav vessel, the ULCC Oceania, so that there would be a safety inventory available for the use on our own fleet. The bunker inventory is accounted for at the lower of cost and net realizable value with cost being determined on a weighted average basis. The cost includes: the purchase price, fuel inspection costs, the transport and handling costs for loading the bunker on our vessel and the effective portion of the change in fair value of derivatives (see Note 14) designated as a cashflow hedge of the underlying index between commitment and pricing. In the course of 2020, the Company purchased an additional 179,927 metric ton (2019: 420,000 metric ton) of compliant fuel for an amount of USD 49.7 million (2019: USD 202.3 million) (all costs included). As of December 31, 2020 the carrying amount of the total bunker inventory amounted to USD 75.8 million (2019: USD 183.4 million) of which USD 57.7 million (2019: USD 164.0 million) was the carrying amount of the bunker inventory related to the purchase and storage of compliant fuel oil inventory on board of the Oceania. The compliant fuel has already been partially transferred to our fleet and will continue to be transferred and used in the course of 2021. USD 22.7 million (2019: USD 0) has been recognized as bunker expense in the consolidated statement of profit or loss during 2020 which is included under voyage expenses and commissions (as discussed in Note 5). As of December 31, 2020 the carrying amount of the bunker inventory on board of our vessels amounted to USD 18.1 million (2019: USD 19.4 million). Bunkers delivered to vessels operating in the TI Pool, are sold to the TI Pool and bunkers on board of these pooled vessels are no longer shown as bunker inventory but as trade and other receivables. In compliance with the accounting policy no write-down had to be considered at the course of 2020 as the net realizable value remained positive as the bunker fuel is being used in the end product because future TCE was estimated as high enough to recoup higher cost. As of December 31, 2020, the market price of compliant fuel oil exceeded our weighted average cost. The inventory is pledged as security to the USD 100 million loan facility.# Note 12 - Trade and other receivables - current (in thousands of USD)

	December 31, 2020	December 31, 2019
Receivable from contracts with customers	70,658	105,925
Receivable from contracts with customers - TI Pool	99,236	149,800
Accrued income	8,149	20,815
Accrued interest	441	678
Deferred charges	21,239	19,134
Deferred fulfillment costs	714	2,556
Other receivables	12,046	8,220
Lease receivables	1,981	1,802
Derivatives	15	57
Total trade and other receivables	214,479	308,987

The decrease in receivables from contracts with customers mainly relates to a decrease in market freight rates at year-end. The decrease in receivables from contracts with customers - TI Pool relates to income to be received by the Group from the Tankers International Pool. These amounts decreased in 2020 mainly due to lower working capital per vessel in the Pool as a result of Tankers International drawing under their working capital credit lines and the decrease in market freight rates as from August 2020 onwards and for the remainder of 2020. The decrease in accrued income is mainly related to lower market freight rates at year-end and the timing of the cut-off in the voyages in progress at year-end. Fulfillment costs represent primarily bunker costs incurred between the date on which the contract of a spot voyage charter was concluded and the next load port. These expenses are deferred according to IFRS 15 Revenue from Contracts with Customers and are amortized on a systematic basis consistent with the pattern of transfer of service.

Note 13 - Cash and cash equivalents (in thousands of USD)

	December 31, 2020	December 31, 2019
Bank deposits	—	215,000
Cash at bank and in hand	161,478	81,954
TOTAL	161,478	296,954

The increase in other receivables relate mainly to outstanding receivables of several commodity swaps or futures in connection with the low sulfur fuel oil strategy (see Note 14). The lease receivables relate to the sublease of office space to third parties regarding the leased offices of Euronav UK and Euronav MI II Inc. (formerly Gener8 Maritime Inc). For currency and credit risk, we refer to Note 19. No bank deposits were held at December 31, 2020 due to very low interest rates. All cash is in different banks which all have a high credit rating. The bank deposits as at December 31, 2019 had an average maturity of 8 days.

Note 14 - Equity

Number of shares issued (in shares)

	December 31, 2020	December 31, 2019	December 31, 2018
On issue at 1 January	220,024,713	220,024,713	159,208,949
Issued in business combination	—	—	60,815,764
On issue at 31 December - fully paid	220,024,713	220,024,713	220,024,713

Upon the completion of the merger transaction with Gener8 Maritime Inc. on June 12, 2018, 60,815,764 new ordinary shares were issued at a stock price of USD 9.10 each (see Note 25) increasing the number of shares issued to 220,024,713 shares (see Note 15). This resulted in an increase of USD 66.1 million in share capital and USD 487.3 million share premium. As at December 31, 2020, the share capital is represented by 220,024,713 shares. The shares have no nominal value. As at December 31, 2020, the authorized share capital not issued amounts to USD 83,898,616 (2019 and 2018: USD 83,898,616) or the equivalent of 77,189,888 shares (2019 and 2018: 77,189,888 shares). The holders of ordinary shares are entitled to receive dividends when declared and are entitled to one vote per share at the shareholders' meetings of the Group.

Translation reserve

The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations.

Hedging reserve

The Group, through two of its JV companies in connection to the USD 220.0 million facility raised in March 2018 (Note 16), entered on June 29, 2018 in several Interest Rate Swaps (IRSs) for a combined notional value of USD 208.8 million (Euronav’s share amounts to 50%). These IRSs are used to hedge the risk related to the fluctuation of the LIBOR rate and qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments have been measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. These IRSs have a remaining duration between one and two years matching the repayment profile of that facility and mature on July 21, 2022 and September 22, 2022 for FSO Asia and FSO Africa respectively. The notional value of these instruments at December 31, 2020 amounted to USD 90.4 million. The fair value of these instruments at December 31, 2020 amounted to USD (2.4) million (100%), of which USD (5) thousand was reflected in OCI at the level of the JV companies in 2020 (Note 26).

The Group, through the acquisition of Gener8 Maritime Inc. on June 12, 2018, acquired several IRSs for a combined notional value of USD 668.0 million. These IRSs were used to hedge the risk related to the fluctuation of the LIBOR rate and qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments have been measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. Three IRSs have been settled in 2019 (see Note 6) and two matured in September 2020.

The Group, through the long term charter parties with Valero for two Suezmaxes (Cap Quebec and Cap Pembroke), entered on March 28, 2018 and April 20, 2018, in two IRSs for a combined notional value of USD 86.8 million. These IRSs are used to hedge the risk related to the fluctuation of the LIBOR rate and qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments have been measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. These IRSs have the same duration as the long term charter parties matching the repayment profile of the underlying USD 173.6 million facility and mature on March 28, 2025. The notional value of these instruments at December 31, 2020 amounted to USD 70.1 million. The fair value of these instruments at December 31, 2020 amounted to USD (6.0) million (see Note 18) and USD (2.6) million has been recognized in OCI in 2020.

The Group entered on December 7, 2018 into two forward cap contracts (CAPs) with a strike at 3.25% starting on October 1, 2020, to hedge against future increase of interest rates with a notional value of USD 200.0 million and qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments have been measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. These CAPs have a maturity date at October 3, 2022. The notional value of these instruments at December 31, 2020 amounted to USD 200.0 million. The fair value of these instruments at December 31, 2020 amounted to USD 15 thousand (see Note 12) and USD 0.1 million has been recognized in OCI in 2020.

During 2019 and the beginning of 2020, the Group entered into several commodity swaps or futures in connection with its low sulfur fuel oil strategy for a combined notional value of USD 25.8 million and USD 133.6 million, respectively. These swaps are used to hedge a potential increase in the index underlying the price of low sulfur fuel between the purchase date and the delivery date of the product, i.e. when title to the low sulphur fuel is actually transferred. These instruments qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments have been measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. All swaps were settled in 2020 upon delivery of the fuel.

The Group, through the long term charter parties with Valero for two Suezmaxes (Cap Corpus Christi and Cap Port Arthur), entered on October 26, 2020 in two IRSs for a combined notional value of USD 70.1 million with effective date in 2021. These IRSs are used to hedge the risk related to the fluctuation of the LIBOR rate and qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments have been measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. These IRSs have the same duration as the long term charter parties matching the repayment profile of the underlying USD 173.6 million facility and mature on September 28, 2025. The notional value of these instruments at December 31, 2020 amounted to USD 70.1 million. The fair value of these instruments at December 31, 2020 amounted to USD (0.3) million (see Note 18) and USD (0.3) million has been recognized in OCI in 2020.

The Group entered in the second half of 2020 in six Interest Rate Swaps (IRSs) for a combined notional value of USD 237.2 million with effective date in 2021. These IRSs are used to hedge the risk related to the fluctuation of the LIBOR rate in connection with the new USD 713.0 million sustainability linked loan and qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments have been measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. These IRSs mature on March 11, 2025. The notional value of these instruments at December 31, 2020 amounted to USD 237.2 million. The fair value of these instruments at December 31, 2020 amounted to USD (0.1) million (see Note 18) and USD (0.1) million has been recognized in OCI in 2020.# Treasury shares

As of December 31, 2020, Euronav owned 18,346,732 of its own shares, compared to 4,946,216 of shares owned on December 31, 2019. In the twelve months period ended December 31, 2020, Euronav bought back 13,400,516 shares at an aggregate cost of USD 118.5 million.

Dividends

During its meeting of May 5, 2020, the Supervisory Board of Euronav approved an interim dividend for the first quarter of 2020 of USD 0.81 per share. The interim dividend of USD 0.81 per share was payable as from June 26, 2020. The interim dividend to holders of Euronext shares was paid in EUR at the USD/EUR exchange rate of the record date.

On May 20, 2020, the Annual Shareholders' meeting approved a full year dividend for 2019 of USD 0.35 per share. Taking into account the interim dividend approved in August 2019 in the amount of USD 0.06 per share, the final dividend of 2019, which was paid after the AGM on June 9, 2020 was USD 0.29 per share. The dividend to holders of Euronav shares trading on Euronext Brussels was paid in EUR at the USD/EUR exchange rate of the record date.

During its meeting of August 4, 2020, the Supervisory Board of Euronav approved an interim dividend for the second quarter of 2020 of USD 0.47 per share. The interim dividend of USD 0.47 per share was payable as from August 28, 2020. The interim dividend to holders of Euronext shares was paid in EUR at the USD/EUR exchange rate of the record date.

During its meeting of November 3, 2020, the Supervisory Board of Euronav approved an interim dividend for the third quarter of 2020 of USD 0.09 per share. The interim dividend of USD 0.09 per share was payable as from November 30, 2020. The interim dividend to holders of Euronext shares was paid in EUR at the USD/EUR exchange rate of the record date.

During its meeting of February 2, 2021, the Supervisory Board of Euronav approved an interim dividend for the fourth quarter of 2020 of USD 0.03 per share. The interim dividend of USD 0.03 per share was payable as from March 5, 2021. The interim dividend to holders of Euronext shares was paid in EUR at the USD/EUR exchange rate of the record date.

On March 26, 2021, the Supervisory Board proposed the Annual Shareholders' meeting be held on May 20, 2021, to approve a full year dividend for 2020 of USD 1.40 per share. Taking into account the interim dividends paid based on the Group’s policy to return 80% of the net income to shareholders, no closing dividend will be paid. The total amount of dividends paid in 2020 was USD 352.0 million (USD 26.0 million in 2019).

Long term incentive plan 2015

The Group's Board of Directors (as of February 2020 Supervisory Board) implemented in 2015 a long term incentive plan ('LTIP') for key management personnel. Under the terms of this LTIP, the beneficiaries will obtain 40% of their respective LTIP in the form of Euronav stock options, with vesting over three years and 60% in the form of restricted stock units ('RSU's'), with cliff vesting on the third anniversary. In total 236,590 options and 65,433 RSU's were granted on February 12, 2015.

Long term incentive plan 2016

The Group's Board of Directors (as of February 2020 Supervisory Board) implemented in 2016 an additional long term incentive plan for key management personnel. Under the terms of this LTIP, key management personnel is eligible to receive phantom stock unit grants. Each phantom stock unit grants the holder a conditional right to receive an amount of cash equal to the fair market value of one share of the company on the settlement date. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. In total a number of 54,616 phantom stock units were granted on February 2, 2016.

Long term incentive plan 2017

The Group's Board of Directors (as of February 2020 Supervisory Board) implemented in 2017 an additional long term incentive plan for key management personnel. Under the terms of this LTIP, key management personnel are eligible to receive phantom stock unit grants. Each phantom stock unit grants the holder a conditional right to receive an amount of cash equal to the fair market value of one share of the company on the settlement date. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. In total a number of 66,449 phantom stock units were granted on February 9, 2017.

Long term incentive plan 2018

The Group’s Board of Directors (as of February 2020 Supervisory Board) implemented in 2018 an additional long term incentive plan for key management personnel. Under the terms of this LTIP, key management personnel is eligible to receive phantom stock unit grants. Each phantom stock unit grants the holder a conditional right to receive an amount of cash equal to the fair market value of one share of the company on the settlement date. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. In total a number of 154,432 phantom stock units were granted on February 16, 2018.

Transaction Based Incentive Plan 2019

The Group’s Board of Directors (as of February 2020 Supervisory Board) has implemented in 2019 a transaction-based incentive plan for key management personnel. Under the terms of this TBIP, key management personnel is eligible to receive phantom stock unit grants. Each phantom stock unit grants the holder a conditional right to receive an amount of cash equal to the Fair Market Value ("FMV") of one share of the Company multiplied by the number of phantom stock units that have vested prior to the settlement date. The TBIP defines FMV as the volume weighted average price of the shares on the New York Stock Exchange over the thirty (30) Business Days preceding such date.

Long term incentive plan 2019

The Group’s Board of Directors (as of February 2020 Supervisory Board) implemented in 2019 an additional long term incentive plan (‘LTIP’) for key management personnel. Under the terms of this LTIP, key management personnel will obtain 100% of their respective LTIP in the form of Euronav restricted stock units (‘RSU’s’). The RSU’s vest over three years in three equal annual installments at the three anniversary dates from the reference date (April 1, 2019) and will be settled in shares. In total 152,346 RSU’s were granted on April 1, 2019.

Long term incentive plan 2020

The Group’s Supervisory Board implemented in 2020 an additional long term incentive plan (‘LTIP’) for key management personnel. Under the terms of this LTIP, key management personnel will obtain 100% of their respective LTIP in the form of Euronav restricted stock units (‘RSU’s’). The RSU’s vest over three years in three equal annual installments at the three anniversary dates from the reference date (April 1, 2020) and will be settled in shares. In total 144,392 RSU’s were granted on April 1, 2020. As of December 31, 2020, no RSU's were vested. No compensation expense was recognized in the consolidated statement of profit or loss during 2020.

Note 15 - Earnings per share

Basic earnings per share

The calculation of basic earnings per share was based on a result attributable to ordinary shares and a weighted average number of ordinary shares outstanding during the period ended December 31 of each year, calculated as follows:

Result attributable to ordinary shares	2020	2019	2018
Result for the period (in USD)	473,237,286	112,230,267	(110,069,928)
Weighted average number of ordinary shares	210,193,707	216,029,171	191,994,398
Basic earnings per share (in USD)	2.25	0.52	(0.57)

Weighted average number of ordinary shares (in shares)

	Shares issued	Treasury shares	Shares outstanding	Weighted number of shares
On issue at January 1, 2018	159,208,949	1,042,415	158,166,534	158,166,534
Issuance of shares	60,815,764	—	60,815,764	33,823,562
Purchases of treasury shares	—	545,486	(545,486)	(13,917)
Withdrawal of treasury shares	—	—	—	—
Sales of treasury shares	—	(350,000)	350,000	18,219
On issue at December 31, 2018	220,024,713	1,237,901	218,786,812	191,994,398
On issue at January 1, 2019	220,024,713	1,237,901	218,786,812	218,786,812
Issuance of shares	—	—	—	—
Purchases of treasury shares	—	3,708,315	(3,708,315)	(2,757,641)
Withdrawal of treasury shares	—	—	—	—
Sales of treasury shares	—	—	—	—
On issue at December 31, 2019	220,024,713	4,946,216	215,078,497	216,029,171
On issue at January 1, 2020	220,024,713	4,946,216	215,078,497	215,078,497
Issuance of shares	—	—	—	—
Purchases of treasury shares	—	13,400,516	(13,400,516)	(4,884,790)
Withdrawal of treasury shares	—	—	—	—
Sales of treasury shares	—	—	—	—
On issue at December 31, 2020	220,024,713	18,346,732	201,677,981	210,193,707

Diluted earnings per share

For the twelve months ended December 31, 2020, the diluted earnings per share (in USD) amount to 2.25 (2019: 0.52 and 2018: (0.57)). At December 31, 2020, December 31, 2019 and December 31, 2018, 236,590 options issued under the LTIP 2015 were excluded from the calculation of the diluted weighted average number of shares because these 236,590 options were out-of-the money and have been considered as anti-dilutive. At December 31, 2020, the 12,696 vested RSU's under the LTIP 2019 have been considered as dilutive, as these are only subject to the passage of time and therefore no longer contingent.

Weighted average number of ordinary shares (diluted)

The table below shows the potential weighted number of shares that could be created if all stock options and restricted stock units were to be converted into ordinary shares.# Financial report 2020

(in shares)

	2020	2019	2018
Weighted average of ordinary shares outstanding (basic)	210,193,707	216,029,171	191,994,398
Effect of share-based payment arrangements	12,696	—	—
Weighted average number of ordinary shares (diluted)	210,206,403	216,029,171	191,994,398

There are no more remaining outstanding instruments at December 31, 2020, December 31, 2019 and December 31, 2018 which can give rise to dilution, except for the Euronav stock options of the LTIP 2015 and the RSU's of the LTIP 2019.

Financial report 2020

Note 16 - Interest-bearing loans and borrowings (in thousands of USD)

Note	Bank loans	Other notes	Lease liabilities	Other borrowings	Total
More than 5 years	—	433,662	—	—	433,662
Between 1 and 5 years	—	987,803	148,166	—	1,135,969
More than 1 year	1,421,465	148,166	—	—	1,569,631
Less than 1 year	—	138,537	—	60,342	198,879
At January 1, 2019	1,560,002	148,166	—	60,342	1,768,510
New loans	—	986,755	50,500	498	1,933,898
Adoption IFRS 16	—	—	—	105,238	105,238
Scheduled repayments	—	(92,651)	—	(30,214)	(708,135)
Early repayments	—	(1,225,747)	—	—	(1,225,747)
Other changes	—	(4,908)	(95)	—	(5,003)
Translation differences	—	—	—	102	(1,139)
Balance at December 31, 2019	1,223,451	198,571	75,624	247,213	1,744,859
More than 5 years	—	628,711	—	1,652	630,363
Between 1 and 5 years	—	545,233	198,571	41,509	107,978
More than 1 year	1,173,944	198,571	43,161	107,978	1,523,654
Less than 1 year	—	49,507	—	32,463	139,235
Balance at December 31, 2019	1,223,451	198,571	75,624	247,213	1,744,859
More than 5 years	—	628,711	—	1,652	630,363
Between 1 and 5 years	—	545,233	198,571	41,509	107,978
More than 1 year	1,173,944	198,571	43,161	107,978	1,523,654
Less than 1 year	—	49,507	—	32,463	139,235
At January 1, 2020	1,223,451	198,571	75,624	247,213	1,744,859
New loans	—	630,000	—	25,703	263,827
Scheduled repayments	—	(88,989)	—	(34,492)	(371,021)
Early repayments	—	(905,000)	(1,000)	—	—
Other changes	—	(2,602)	708	—	—
Translation differences	—	—	—	86	11,334
Balance at December 31, 2020	856,860	198,279	66,921	151,353	1,273,413
More than 5 years	—	631,044	—	—	631,044
Between 1 and 5 years	—	205,274	198,279	21,172	100,056
More than 1 year	836,318	198,279	21,172	100,056	1,155,825
Less than 1 year	—	20,542	—	45,749	51,297
Balance at December 31, 2020	856,860	198,279	66,921	151,353	1,273,413

The amounts shown under "New Loans" and "Early Repayments" include drawdowns and repayments under revolving credit facilities during the year.

Bank Loans

On October 13, 2014, the Group entered into a USD 340.0 million senior secured credit facility with a syndicate of banks. Borrowings under this facility were used to partially finance the acquisition of the four (4) modern Japanese built VLCC vessels ('the VLCC Acquisition Vessels') from Maersk Tankers Singapore Pte Ltd and to repay USD 153.1 million of outstanding debt and retire the Group's USD 300.0 million Secured Loan Facility dated April 3, 2009. This facility is comprised of (i) a USD 148.0 million non-amortizing revolving credit facility and (ii) a USD 192.0 million term loan facility. This facility has a term of 7 years and bears interest at LIBOR plus a margin of 2.25% per annum. This credit facility is secured by seven of our wholly-owned vessels.

On October 22, 2014 a first drawdown under this facility was made to repay a former USD 300 million secured loan facility, followed by additional drawdowns on December 22, 2014 and December 23, 2014 for an amount of 60.3 million and 50.3 million following the delivery of the Hojo and Hakone respectively. On March 3, 2015 and April 13, 2015 additional drawdowns of 53.4 million and 50.4 million were made following the delivery of the Hirado and Hakata respectively.

Following the sale of the Suezmax Felicity in January 2019, the total revolving credit facility was reduced by USD 13.6 million and an early repayment of USD 7.3 million. As of December 31, 2019, the outstanding balance on this facility was USD 43.4 million. Following the signing of the new USD 713.0 million sustainability linked senior secured credit facility, the loan facility was repaid in full on September 29, 2020.

On August 19, 2015, the Group entered into a USD 750.0 million senior secured amortizing revolving credit facility with a syndicate of banks. The facility is available for the purpose of (i) refinancing 21 vessels; (ii) financing four newbuilding VLCCs vessels as well as (iii) Euronav's general corporate and working capital purposes. The credit facility will mature on 1 July 2022 and carries a rate of LIBOR plus a margin of 195 bps. On September 11, 2020, 5 vessels under this facility were refinanced under the new USD 713.0 million sustainability linked senior secured credit facility and the total commitment was therefore reduced with USD 190.5 million. As of December 31, 2020 and December 31, 2019, the outstanding balance under this facility was USD 0.0 million and USD 130.0 million, respectively. This facility is currently secured by 9 of our wholly-owned vessels.

On November 9, 2015, the Group entered into a USD 60.0 million unsecured revolving credit facility carrying a rate of LIBOR plus a margin of 2.25%. As of December 31, 2020 and December 31, 2019, there was no outstanding balance under this facility. The credit facility matured on November 9, 2020.

On December 16, 2016, the Group entered into a USD 409.5 million senior secured amortizing revolving credit facility for the purpose of refinancing 11 vessels as well as Euronav’s general corporate purposes. The credit facility was used to refinance the USD 500 million senior secured credit facility dated March 25, 2014 and will mature on January 31, 2023 carrying a rate of LIBOR plus a margin of 2.25%. Following the sale and lease back of the VLCC Nautica, Nectar and Noble in December 2019, the total revolving credit facility was reduced by USD 56.9 million. As of December 31, 2020 and December 31, 2019, the outstanding balance on this facility was USD 65.0 million and USD 90.0 million, respectively. The credit facility is currently secured by 8 vessels.

On January 30, 2017, the Group signed a loan agreement for a nominal amount of USD 110.0 million with the purpose of financing the Ardeche and the Aquitaine. On April 25, 2017, following a successful syndication, the loan was replaced with a new Korean Export Credit facility for a nominal amount of USD 108.5 million with Korea Trade Insurance Corporation or “K-sure” as insurer. The new facility is comprised of (i) a USD 27.1 million commercial tranche, which bears interest at LIBOR plus a margin of 1.95% per annum and (ii) a USD 81.4 million tranche insured by K-sure which bears interest at LIBOR plus a margin of 1.50% per annum. The facility is repayable over a term of 12 years, in 24 installments at successive six month intervals, each in the amount of USD 3.6 million together with a balloon installment of USD 21.7 million payable with the 24th installment on January 12, 2029. The K-sure insurance premium and other related transaction costs for a total amount of USD 3.2 million are amortized over the lifetime of the instrument using the effective interest rate method. As of December 31, 2020 and December 31, 2019, the outstanding balance on this facility was USD 83.2 million and USD 90.5 million, respectively in aggregate. This facility is secured by the VLCCs the Ardeche and the Aquitaine. The facility agreement contains a provision that entitles the lenders to require us to prepay to the lenders, on January 12, 2024, with 180 days’ notice, their respective portion of any advances granted to us under the facility. The facility agreement also contains provisions that allow the remaining lenders to assume an outgoing lender’s respective portion(s) of the advances made to us or to allow us to suggest a replacement lender to assume the respective portion of such advances.

On March 22, 2018, the Group signed a senior secured credit facility for an amount of USD 173.6 million with Kexim, BNP and Credit Agricole Corporate and Investment bank acting also as Agent and Security Trustee. The purpose of the loan was to finance up to 70 per cent of the aggregate contract price of the four Ice Class Suezmax vessels that were delivered over the course of 2018. The new facility was comprised of (i) a USD 69.4 million commercial tranche, which bears interest at LIBOR plus a margin of 2.0% per annum and (ii) a USD 104.2 million ECA tranche which bears interest at LIBOR plus a margin of 2.0% per annum. The commercial tranche is repayable by 24 equal consecutive semi-annual installments, each in the amount of USD 0.6 million per vessel together with a balloon installment of USD 3.5 million payable with the 24th and last installment on August 24, 2030. The ECA tranche is repayable by 24 consecutive semi-annual installments, each in the amount of USD 1.1 million per vessel and last installment on August 24, 2030. Transaction costs for a total amount of USD 1.6 million are amortized over the lifetime of the instrument using the effective interest rate method. As of December 31, 2020 and December 31, 2019, the outstanding balance on this facility was USD 143.6 million and USD 156.9 million, respectively. Lenders of the facility have a put option on the 7th anniversary of the facility, for which a notice has to be served 13 months in advance requesting a prepayment of their remaining contribution. After receiving notice, the Group will have to either repay the relevant contribution on the 7th year anniversary or to transfer this contribution to another acceptable lender. The put option can only be exercised if the employment of the vessel at that time is not satisfactory to the lenders.As a result of the business combination on June 12, 2018, Euronav assumed the USD 633.5 million senior secured loan facility from Gener8 Maritime Inc. This facility provided for term loans up to the aggregate approximate amount of USD 963.7 million, which is comprised of a tranche of term loans to be made available by a syndicate of commercial lenders up to the aggregate approximate amount of USD 282.0 million (the “Commercial Tranche”), a tranche of term loans to be fully guaranteed by the Export-Import Bank of Korea (“KEXIM”) up to the aggregate approximate amount of up to USD 139.7 million (the “KEXIM Guaranteed Tranche”), a tranche of term loans to be made available by KEXIM up to the aggregate approximate amount of USD 197.4 million (the “KEXIM Funded Tranche”) and a tranche of term loans insured by Korea Trade Insurance Corporation (“K-Sure”) up to the aggregate approximate amount of USD 344.6 million (the “K-Sure Tranche”). The Commercial Tranche with a final maturity on September 28, 2022, bears interest at LIBOR plus a margin of 2.75% per annum and is reduced in 10 remaining installments of consecutive three-month interval and a balloon repayment at maturity in 2022. The KEXIM Guaranteed Tranche, with a final maturity on February 28, 2029, bears interest at LIBOR plus a margin of 1.50% per annum and is reduced in 39 remaining installments of consecutive three-month interval. The KEXIM Funded Tranche, with a final maturity on February 28, 2029, bears interest at LIBOR plus a margin of 2.60% per annum and is reduced in 39 remaining installments of consecutive three-month interval. The K-Sure Tranche, with a final maturity on February 28, 2029, bears interest at LIBOR plus a margin of 1.70% per annum and is reduced in 39 remaining installments of consecutive three-month interval. This facility was secured by 13 of our wholly-owned vessels. On September 26, 2019, the Group repaid this facility in full (USD 561.6 million) using a portion of the borrowings under our new USD 700.0 million Senior Secured Credit Facility. On September 7, 2018, the Group signed a senior secured credit facility for an amount of USD 200.0 million. The Group used the proceeds of this facility to refinance all remaining indebtedness under the USD 581.0 million senior secured loan facility, the USD 67.5 million secured loan facility (Larvotto), and the USD 76.0 million secured loan facility (Fiorano). This facility is secured by 9 of our wholly-owned vessels. This revolving credit facility is reduced in 12 installments of consecutive six-month interval and a final USD 55.0 million repayment is due at maturity in 2025. This facility bears interest at LIBOR plus a margin of 2.0% per annum plus applicable mandatory costs. As of December 31, 2020 and December 31, 2019, the outstanding balance on this facility was USD 55.0 million and USD 100.0 million, respectively. On June 27, 2019, the Group entered into a USD 100.0 million senior secured amortizing revolving credit facility with a syndicate of banks of which ABN Amro Bank also acting as Coordinator, Agent and Security Trustee. The facility, secured by the Oceania and the bunker inventory bought in anticipation of the new legislation starting in January 1, 2020, will mature on December 31, 2021 and carries a rate of LIBOR plus a margin of 2.10%. As of December 31, 2020 and December 31, 2019, the outstanding balance on this facility was USD 0.0 million and USD 70.0 million respectively. On August 28, 2019, the Group entered into a USD 700.0 million senior secured amortizing revolving credit facility with a syndicate of banks and Nordea Bank Norge SA acting as Agent and Security Trustee for the purpose of refinancing all remaining indebtedness under the USD 633.5 million senior secured loan facility. The credit facility will mature on January 31, 2026 carrying a rate of LIBOR plus margin of 1.95%. The facility is secured by 13 of our wholly-owned vessels. As of December 31, 2020 and December 31, 2019, the outstanding balance on this facility was USD 345.0 million and USD 560.0 million, respectively. On September 11, 2020, the Group entered into a USD 713.0 million sustainability linked loan with specific targets to emission reduction. This facility is secured by 16 of our wholly-owned vessels, 9 VLCCs, 3 Suezmaxes and the 4 new VLCCs under construction at DSME. The credit facility will mature on March 31, 2026 and carries a rate of LIBOR plus a margin of 2.35%. The facility consist of (i) a revolver of 469.0 million to refinance the USD 340.0 million senior secured credit facility and part of the USD 750.0 million senior secured credit facility and (ii) a term loan of 244.0 million to finance the acquisition of 4 newbuilding VLCCs with delivery in Q1 2021. The revolver commitment includes terms with specific targets to reduce our GHG emissions with compliance being rewarded with a reduced interest coupon by five basis points. As of December 31, 2020, the outstanding balance on this facility was USD 185.0 million.

Undrawn borrowing facilities
At December 31, 2020, Euronav and its fully-owned subsidiaries have undrawn credit line facilities amounting to USD 940.4 million (2019: USD 753.1 million), of which USD 100.0 million will mature within 12 months.

Financial report 2020  55
Financial report 2020 
Terms and debt repayment schedule
The terms and conditions of outstanding loans were as follows: (in thousands of USD)

	December 31, 2020	December 31, 2019
Facility size	Drawn	Carrying value
Secured vessels loan 192M USD libor +2.25% 2021	—	—
Secured vessels Revolving loan 148M* USD libor +2.25% 2021	—	—
Secured vessels Revolving loan 750M* USD libor +1.95% 2022	45,958	—
Secured vessels Revolving loan 409.5M* USD libor +2.25% 2023	175,605	65,000
Secured vessels loan 27.1M USD libor +1.95% 2029	25,554	25,554
Secured vessels loan 81.4M USD libor +1.50% 2029	57,667	57,667
Secured vessels loan 69.4M USD libor + 2.0% 2030	59,007	59,007
Secured vessels loan 104.2M USD libor +2.0% 2030	84,606	84,606
Secured vessels Revolving loan 200.0M* USD libor +2.0% 2025	148,688	55,000
Secured vessels Revolving loan 100.0M* USD libor +2.1% 2021	100,000	—
Secured vessels Revolving loan 700.0M* USD libor +1.95% 2026	651,160	345,000
Secured vessels Revolving loan 713.0M* USD libor +2.35% 2026	469,000	185,000
Unsecured bank facility 60M USD libor +2.25% 2020	—	—
Total interest-bearing bank loans	1,817,246	876,834

The facility size of the vessel loans can be reduced if the value of the collateralized vessels falls under a certain percentage of the outstanding amount under that loan. For further information, we refer to Note 19. * The total amount available under the revolving loan Facilities depends on the total value of the fleet of tankers securing the facility.

On June 14, 2019, the Group successfully completed a tap issue of USD 50 million under its existing senior unsecured bonds. The bonds have the same maturity date and carry the same coupon of 7.50%. The tap issue was priced at 101% of par value. Arctic Securities AS, DNB Markets and Nordea acted as joint lead managers in connection with the placement of the tap issue. The related transaction costs of USD 675,000 are amortized over the lifetime of the instrument using the effective interest rate method as well as the above par issuance of USD 500,000. In the course of the first quarter of 2020, the company bought back USD 1.0 million face value of its USD 200.0 million senior unsecured notes at an average price of 15% below face value.

Other borrowings
On June 6, 2017, the Group signed an agreement with BNP to act as dealer for a Treasury Notes Program with a maximum outstanding amount of 50 million Euro. On October 1, 2018, KBC has been appointed as an additional dealer in the agreement and the maximum amount has been increased from 50 million Euro to 150 million Euro. As of December 31, 2020, the outstanding amount was USD 38.7 million or 31.5 million Euro (December

Other notes
(in thousands of USD)

	December 31, 2020	December 31, 2019
Facility size	Drawn	Carrying value
Unsecured notes USD 7.50% 2022	200,000	199,000
Total other notes	200,000	199,000

Financial report 2020  56
31, 2019: USD 122.8 million or 109.3 million Euro). The Treasury Notes are issued on an as needed basis with different durations not exceeding 1 year, and initial pricing is set to 60 bps over Euribor. The company enters into FX forward contracts to manage the currency risks related to these instruments issued in Euro compared to the USD Group functional currency. The FX contracts have the same nominal amount and duration as the issued Treasury Notes and they are measured at fair value with changes in fair value recognized in the consolidated statement of profit or loss. On December 31, 2020, the fair value of these forward contracts amounted to USD 1.2 million (December 31, 2019: USD 1.3 million). On December 30, 2019, the Company entered into a sale and leaseback agreement for three VLCCs. The three VLCCs are the Nautica (2008 – 307,284), Nectar (2008 – 307,284) and Noble (2008 – 307,284). The vessels were sold and were leased back under a 54-months bareboat contract at an average rate of USD 20,681 per day per vessel.In accordance with IFRS, this transaction was not accounted for as a sale but Euronav as seller-lessee will continue to recognize the transferred assets, and recognized a financial liability equal to the net transfer proceeds of USD 124.4 million. As of December 31, 2020, the outstanding amount was USD 112.7 million. At the end of the bareboat contract, the vessels will be redelivered to their new owners. Euronav may, at any time on and after the 1st anniversary, notify the owners by serving an irrevocable written notice at least three months prior to the proposed purchase option date of the charterers' intention to terminate this charter on the purchase option date and purchase the vessel from the owners for the applicable purchase option price. The future lease payments for these leaseback agreements are as follows: (in thousands of USD)

	December 31, 2020	December 31, 2019
Less than one year	22,667	22,853
Between one and five years	56,545	79,211
Total future lease payables	79,211	102,064

Transaction and other financial costs

The heading 'Other changes' in the first table of this footnote reflects the recognition of directly attributable transaction costs as a deduction from the fair value of the corresponding liability, and the subsequent amortization of such costs. In 2020, the Group recognized USD 6.2 million of amortization of financing costs. The Group recognized USD 8.1 million of directly attributable transaction costs as a deduction from the fair value of the USD 713.0 million senior secured amortizing loan facility entered into September 11, 2020. Interest expense on financial liabilities measured at amortized cost decreased during the year ended December 31, 2020, compared to 2019 (2020: USD (-62.4) million, 2019: USD (-84.4) million). This decrease was attributable to a decrease in the average outstanding debt during the year and was partially offset by an increase in the interest expenses on the sale and leaseback agreement for three VLCCs entered into December 30, 2019. Other financial charges increased in 2020 compared to 2019 (2020: USD (-9.9) million, 2019: USD (-7.5) million) which was primarily attributable to commitment fees paid for available credit lines. Interest on lease liabilities (2020: USD (-3.3) million, 2019: USD: (-4.8) million) were recognized due to the adoption of IFRS 16 on January 1, 2019 (see Note 1.19).

57 Financial report 2020  Financial report 2020  58

Reconciliation of movements of liabilities to cash flows arising from financing activities

Liabilities	Note	Loans and borrowings	Other Notes	Other borrowings	Lease Liabilities	Equity	Share capital / premium	Reserves	Treasury shares	Retained earnings	Total
Restated balance at January 1, 2019		1,560,002	148,166	60,342	105,736		1,941,697	(2,287)	(14,651)	335,764	4,134,769
Changes from financing cash flows
Proceeds from loans and borrowings	16	986,755	50,500	—	—		1,037,255	—	—	—	1,037,255
Proceeds from issue of other borrowings	16	—	—	62,446	—		—	—	—	—	62,446
Purchase treasury shares	14	—	—	—	—		—	—	(30,965)	—	(30,965)
Proceeds from sale and leaseback agreement	16	—	—	124,425	—		124,425	—	—	—	124,425
Transaction costs related to loans and borrowings	16	(9,046)	(675)	—	—		(9,721)	—	—	—	(9,721)
Repayment of borrowings	16	(1,318,398)	—	—	—		(1,318,398)	—	—	—	(1,318,398)
Repayment of lease liabilities	16	—	—	—	(30,214)		—	—	—	—	(30,214)
Dividend paid		—	—	—	—		(26,015)	—	—	—	(26,015)
Total changes from financing cash flows		(340,689)	49,825	186,871	(30,214)		(30,965)	—	(30,965)	(191,187)	(191,187)
Other changes
Liability-related
Amortization of transaction costs	16	4,138	674	—	—		4,812	—	—	—	4,812
Amortization of above par issuance	16	—	(94)	—	—		(94)	—	—	—	(94)
Translation differences	16	—	—	—	102		—	—	—	102	102
Total liability-related other changes		4,138	580	—	102		4,718	—	—	102	4,820
Total equity-related other changes	14	—	—	—	—		—	(1,996)	—	110,309	108,313
Balance at December 31, 2019		1,223,451	198,571	247,213	75,624		1,941,697	(4,283)	(45,616)	420,058	4,056,715

59 Financial report 2020 

Equity

	Share capital / premium	Reserves	Treasury shares	Retained earnings	Total
	1,941,697	(4,283)	(45,616)	420,058	4,056,715
Balance at January 1, 2020	1,223,451	198,571	247,213	75,624
Changes from financing cash flows
Proceeds from loans and borrowings	16	630,000	—	—	—
Proceeds from issue of other borrowings	16	—	—	263,827	—
Proceeds from sale of treasury shares	14	—	—	—	—
Purchase treasury shares	14	—	—	—	—
Repayment of sale and leaseback liability	16	—	—	(22,853)	—
Transaction costs related to loans and borrowings	16	(8,083)	—	—	—
Repayment of borrowings	16	(993,989)	(1,000)	—	—
Repayment of commercial paper	16	—	—	(359,295)	—
Repayment of lease liabilities	16	—	—	—	(37,779)
Dividend paid		—	—	—	—
Total changes from financing cash flows		(372,072)	(1,000)	(118,321)	(37,779)
Other changes
Liability-related
Amortization of transaction costs	16	5,481	787	—	—
Amortization of above par issuance	16	—	(175)	—	—
Amortization of below par issuance	16	—	96	—	—
New leases	16	—	—	—	25,703
Interest expense	6	—	—	11,127	3,287
Translation differences	16	—	—	11,334	86
Total liability-related other changes		5,481	708	22,461	29,076
Total equity-related other changes	14	—	—	—	—
Balance at December 31, 2020		856,860	198,279	151,353	66,921

61 Financial report 2020 

Equity

	Share capital / premium	Reserves	Treasury shares	Retained earnings	Total
	1,941,697	(6,521)	(164,104)	540,714	3,585,199

62 Note 17 - Employee benefits

The amounts recognized in the balance sheet are as follows:

(in thousands of USD)

	December 31, 2020	December 31, 2019	December 31, 2018
NET LIABILITY AT BEGINNING OF PERIOD	(8,094)	(4,336)	(3,984)
Recognized in profit or loss	653	(2,589)	(616)
Recognized in other comprehensive income	(97)	(1,223)	120
Foreign currency translation differences	(449)	54	144
NET LIABILITY AT END OF PERIOD	(7,987)	(8,094)	(4,336)
Present value of funded obligations	(5,074)	(4,298)	(3,538)
Fair value of plan assets	3,940	3,241	2,970
	(1,134)	(1,057)	(568)
Present value of unfunded obligations	(6,853)	(7,037)	(3,768)
NET LIABILITY	(7,987)	(8,094)	(4,336)
Amounts in the balance sheet:
Liabilities	(7,987)	(8,094)	(4,336)
Assets	—	—	—
NET LIABILITY	(7,987)	(8,094)	(4,336)

Liability for defined benefit obligations

The Group makes contributions to three defined benefit plans that provide pension benefits for employees upon retirement. One plan - the Belgian plan - is fully insured through an insurance company. The second and third - French and Greek plans - are uninsured and unfunded. The unfunded obligations include provisions in respect of LTIP 2016, LTIP 2017, LTIP 2018, TBIP 2019 and LTIP 2019 (see Note 23). The Group expects to contribute the following amount to its defined benefit pension plans in 2021: USD 50,798. The valuation used for the defined contribution plans is the Projected Unit Credit Cost as prescribed by IAS 19 R. The Group expects to contribute the following amount to its defined contribution pension plans in 2021: USD 368,301.

63 Financial report 2020 

Note 18 - Trade and other payables

(in thousands of USD)

	December 31, 2020	December 31, 2019
Advances received on contracts in progress, between 1 and 5 years	508	414
Derivatives	6,385	3,395
Total non-current other payables	6,893	3,809
Trade payables	27,226	22,737
Accrued expenses	35,321	45,997
Accrued payroll	5,849	3,313
Dividends payable	565	123
Accrued interest	2,959	3,924
Deferred income	13,138	17,783
Other payables	92	333
Derivatives	—	198
Total current trade and other payables	85,150	94,408

The non-current derivatives relate to the interest rate swap derivatives used to hedge the risk related to the fluctuation of the LIBOR rate (see Note 14). The increase is due to a negative mark-to-market on these IRSs at December 31, 2020. The increase in trade payables is due to a higher number of outstanding invoices mainly related to two time charter agreements for the vessels Marlin Sardinia and Marlin Somerset which were entered into at the end of 2020 and a higher number of outstanding invoices related to bunkers. The decrease in accrued expenses is mainly due to receiving more invoices upfront related to vessels operated on the spot market. The decrease in accrued interest is related to the payment schedule of the USD 340 million facility that was repaid in the course of 2020. The decrease in deferred income is due to a lower number of vessels on time charter as of December 31, 2020 compared to December 31, 2019. The current derivative relate to the IRS acquired through the acquisition of Gener8 Maritime Inc. and matured in September 2020 (see Note 14).

Financial report 2020  64

Note 19 - Financial instruments - Fair values and risk management

Carrying amount	Fair value (in thousands of USD)	Note	Fair value - Hedging instruments	Financial assets at amortized cost	Other financial liabilities	Total	Level 1	Level 2	Level 3	Total
December 31, 2019
Financial assets measured at fair value
Forward exchange contracts	16	1,306	—	—	1,306	—	1,306	—	1,306
Interest rate swaps	12	5	—	—	5	—	5	—	5
Forward cap contracts	12	52	—	—	52	—	52	—	52
		1,363	—	—	1,363	—	1,363	—	1,363
Financial assets not measured at fair value
Non-current receivables	10	—	62,474	—	62,474	—	—	52,591	52,591
Lease receivables	10	—	8,609	—	8,609	—	9,961	—	9,961
Trade and other receivables *	12	—	286,447	—	286,447	—	—	—	—
Cash and cash equivalents	13	—	296,954	—	296,954	—	—	—	—
		—	654,484	—	654,484	—	—	52,591	62,552
Financial liabilities measured at fair value
Interest rate swaps	18	3,593	—	—	3,593	—	3,593	—	3,593
		3,593	—	—	3,593	—	3,593	—	3,593
Financial liabilities not measured at fair value
Secured bank loans	16	—	—	1,223,451	1,223,451	—	1,235,770	—	1,235,770
Unsecured other notes	16									# Financial report 2020

Accounting classifications and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value, such as trade and other receivables and payables.

(in thousands of USD)	Note	Fair value - Hedging instruments	Financial assets at amortized cost	Other financial liabilities	Total	Level 1	Level 2	Level 3	Total
December 31, 2020
Financial assets measured at fair value
Forward exchange contracts	16	1,246			1,246	—	1,246	—	1,246
Interest rate swaps	10	2			2	—	2	—	2
Cap contracts	12	15			15	—	15	—	15
		1,262	—	—	1,262	—	1,262	—	1,262
Financial assets not measured at fair value
Non-current receivables	10	—	48,371		48,371	—	—	44,512	44,512
Lease receivables	10	—	6,681		6,681	—	7,925	—	7,925
Trade and other receivables *	12	—	191,633		191,633	—	—	—	—
Cash and cash equivalents	13	—	161,478		161,478	—	—	—	—
		—	408,163	—	408,163	—	7,925	44,512	44,512
Financial liabilities measured at fair value
Interest rate swaps	18	6,385			6,385	—	6,385	—	6,385
		6,385	—	—	6,385	—	6,385	—	6,385
Financial liabilities not measured at fair value
Secured bank loans	16	—		856,860	856,860	—	864,848	—	864,848
Unsecured other notes	16	—		198,279	198,279	207,099	—	—	207,099
Other borrowings	16	—		151,353	151,353	—	151,353	—	151,353
Lease liabilities	16	—		66,921	66,921	—	62,387	—	62,387
Trade and other payables *	18	—		71,958	71,958	—	—	—	—
Advances received on contracts	18	—		508	508	—	—	—	—
		—	—	1,345,879	1,345,879	207,099	1,078,588	—	1,285,677

• Deferred charges, deferred fulfillment costs and VAT receivables (included in other receivables) (see Note 12), deferred income and VAT payables (included in other payables) (see Note 18), which are not financial assets (liabilities) are not included.

Measurement of fair values

Valuation techniques and significant unobservable inputs

Level 1 fair value was determined based on the actual trading of the unsecured notes, due in 2022, and the trading price on December 31, 2020.

The following tables show the valuation techniques used in measuring Level 1, Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.

Financial instruments measured at fair value

Type	Valuation Techniques	Significant unobservable inputs
Forward exchange contracts	Forward pricing: the fair value is determined using quoted forward exchange rates at the reporting date and present value calculations based on high credit quality yield curve in the respective currencies.	Not applicable
Interest rate swaps	Swap models: the fair value is calculated as the present value of the estimated future cash flows. Estimates of future floating-rate cash flows are based on quoted swap rates, futures prices and interbank borrowing rates.	Not applicable
Forward cap contracts	Fair values for both the derivative and the hypothetical derivative is determined based on the net present value of the expected cash flows using LIBOR rate curves, futures and basis spreads.	Not applicable

Financial instruments not measured at fair value

Type	Valuation Techniques	Significant unobservable inputs
Non-current receivables (consisting primarily of shareholders' loans)	Discounted cash flow	Discount rate and forecasted cash flows
Lease receivables	Discounted cash flow	Discount rate
Other financial liabilities (consisting of secured and unsecured bank loans and lease liabilities)	Discounted cash flow	Discount rate
Other financial notes (consisting of unsecured notes)	List price	Not applicable

The Group’s risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Group’s Audit and Risk Committee oversees how management monitors compliance with the Group’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group’s Audit and Risk Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls

Transfers between Level 1, 2 and 3

There were no transfers between these levels in 2019 and 2020.

Financial risk management

In the course of its normal business, the Group is exposed to the following risks:

• Credit risk
• Liquidity risk
• Market risk (Tanker market risk, interest rate risk, currency risk and commodity risk)

The Company’s Supervisory Board has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Supervisory Board has established the Audit and Risk Committee, which is responsible for developing and monitoring the Group’s risk management policies. The Committee reports regularly to the Supervisory Board on its activities.

considering any forward-looking factors, there was only a small impact on doubtful amounts at year-end. Based on individual analyses, provisions for doubtful debtors increased compared to 2019. In particular, the one client representing 6% of the Tankers segment's total revenue in 2020 (see Note 2) only represented 0.03% of the total trade and other receivables at December 31, 2020 (2019: one client representing 3.82%). The maximum exposure to credit risk is represented by the carrying amount of each financial asset. The ageing of current trade and other receivables is as follows:

and procedures, the results of which are reported to the Audit and Risk Committee.

Credit risk

Trade and other receivables

The Group has a formal credit policy. Credit evaluations - when necessary - are performed on an ongoing basis. At the balance sheet date there were no significant concentrations of credit risk. All trade and other receivables were with oil majors, traders and refiners within the same industry but with a geographic spread and a different business focus. Based on past experience, and

(in thousands of USD)	2020	2019
Not past due	183,138	246,422
Past due 0-30 days	9,961	35,036
Past due 31-365 days	16,253	21,020
More than one year	5,127	6,509
Total trade and other receivables	214,479	308,987

Past due amounts are not credit impaired as collection is still considered to be likely and management is confident the outstanding amounts can be recovered.

As at December 31, 2020 46.27% (2019: 47.45%) of the total current trade and other receivables relate to TI Pool. TI Pool is paid after completion of the voyages which only deals with oil majors, national oil companies and other actors of the oil industry whose credit worthiness historically has been high. Amounts not past due are also with customers with high credit worthiness and are therefore not credit impaired.

Non-current receivables

Non-current receivables mainly consist of shareholder's loans to joint ventures (see Note 10). As at December 31, 2020 and December 31, 2019, these receivables had no maturity date, except for the shareholder loan to Bari Shipholding Ltd. which has a maturity date in 2024, and was not credit impaired as there is no credit risk exposure for the Group.

Cash and cash equivalents

The Group held cash and cash equivalents of USD 161.5 million at December 31, 2020 (2019: USD 297.0 million). The cash and cash equivalents are held with bank and financial institution counterparties, which are rated A- to AA+, based on rating agency S&P (see Note 13).

Derivatives

Derivatives are entered into with banks and financial institution counterparties, which are rated A- to AA+, based on rating agency S&P.

Guarantees

The Group's policy is to provide financial guarantees only for subsidiaries and joint ventures. At December 31, 2018, the Group had issued a guarantee to certain banks in respect of the new credit facilities entered into 2018 which were granted to 2 joint ventures (see Note 26). At December 31, 2020, these guarantees towards joint ventures were still outstanding but have not been called upon. At December 30, 2019, the Group issued a guarantee to the buyer of the three VLCCs in relation to the sale and leaseback transaction (see Note 16) whereby the VLCCs were leased back in a subsidiary under a 54-months bareboat contract.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The sources of financing are diversified and the bulk of the loans are irrevocable, long-term and maturities are spread over different years.# Financial report 2020  68

The following are the remaining contractual maturities of financial liabilities:

Contractual cash flows December 31, 2019 (in thousands of USD)

Note	Carrying Amount	Total	Less than 1 year	Between 1 and 5 years	More than 5 years
Non derivative financial liabilities
Bank loans and other notes	16	1,422,022	1,697,327	110,720	905,302
Other borrowings	16	247,213	268,661	145,640	123,021
Lease liabilities	16	75,624	79,873	35,525	42,667
Current trade and other payables *	18	76,589	76,589	76,589	—
		1,821,448	2,122,450	368,474	1,070,990
Derivative financial liabilities
Interest rate swaps	18	3,593	3,300	758	2,432
Forward exchange contracts	18	—	—	—	—
		3,593	3,300	758	2,432

Contractual cash flows December 31, 2020

	Carrying Amount	Total	Less than 1 year	Between 1 and 5 years	More than 5 years
Non derivative financial liabilities
Bank loans and other notes	16	1,055,139	1,191,925	55,079	474,687
Other borrowings	16	151,353	180,865	61,320	119,545
Lease liabilities	16	66,921	70,245	47,976	22,150
Current trade and other payables *	18	71,958	71,958	71,958	—
		1,345,371	1,514,993	236,333	616,382
Derivative financial liabilities
Interest rate swaps	18	6,385	8,601	2,194	6,406
Forward exchange contracts	18	—	—	—	—
		6,385	8,601	2,194	6,406

• Deferred income and VAT payables (included in other payables) (see Note 18), which are not financial liabilities, are not included. The Group has secured bank loans that contain loan covenants. A future breach of covenant may require the Group to repay the loan earlier than indicated in the above table. For more details on these covenants, see "capital management" below. The interest payments on variable interest rate loans in the table above reflect market forward interest rates at the reporting date and these amounts may change as market interest rates change. It is not expected that the cash flows included in the table above (the maturity analysis) could occur significantly earlier, or at significantly different amounts than stated above.

Market risk

Managing interest rate benchmark reform and associated risks

Overview

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). The Group has exposures to IBORs on its financial instruments that will be replaced or reformed as part of these market-wide initiatives. There is uncertainty over the timing and the methods of transition in some jurisdictions that the Group operates in. The Group anticipates that IBOR reform will impact its risk management and hedge accounting. The Audit and Risk Committee monitors the Group’s transition to alternative rates.

Derivatives

The Group holds interest rate swaps for risk management purposes which are designated in cash flow hedging relationships. The interest rate swaps have floating legs that are indexed to USD LIBOR.

Hedge Accounting

The Group has evaluated the extent to which its cash flow hedging relationships are subject to uncertainty driven by IBOR reform as at 31 December 2020. The Group’s hedged items and hedging instruments continue to be indexed to USD LIBOR. These benchmark rates are quoted each day and the IBOR cash flows are exchanged with counterparties as usual. However, the Group’s USD LIBOR cash flow hedging relationships extend beyond the anticipated cessation date for USD LIBOR. The Group expects that LIBOR will be discontinued after the end of 2021. However, there is uncertainty about when and how replacement may occur with respect to the relevant hedged items and hedging instruments. Such uncertainty may impact the hedging relationship. The Group applies the amendments to IFRS 9 issued in September 2019 to those hedging relationships directly affected by IBOR reform. Hedging relationships impacted by IBOR reform may experience ineffectiveness attributable to market participants’ expectations of when the shift from the existing IBOR benchmark rate to an alternative benchmark interest rate will occur. This transition may occur at different times for the hedged item and hedging instrument, which may lead to hedge ineffectiveness. The Group has measured its hedging instruments indexed to USD LIBOR using available quoted market rates for LIBOR-based instruments of the same tenor and similar maturity and has measured the cumulative change in the present value of hedged cash flows attributable to changes in USD LIBOR on a similar basis. The Group's exposure to USD LIBOR designated in hedging relationships is USD 270.1 million nominal amount at 31 December 2020 (see Note 14), representing the nominal amount of the hedging caps and interest rate swaps maturing in 2022 and 2025, respectively.

Tanker market risk

The spot tanker freight market is a highly volatile global market and the Group predicting what the market will be, involves significant uncertainty. The Group has a strategy of operating the majority of its fleet on the spot market but keeps a certain part of the fleet under fixed time charter contracts. The proportion of vessels operated on the spot will vary according to the many factors affecting both the spot and fixed time charter contract markets. Every increase (decrease) of 1,000 USD on the spot tanker freight market (VLCC and Suezmax) per day would have increased (decreased) profit or loss by the amounts shown below.

(effect in thousands of USD)	2020	2019	2018
	Profit or loss	Profit or loss	Profit or loss
	1,000 USD	1,000 USD	1,000 USD
	Increase	Decrease	Increase
1,000 USD	19,638	(19,638)	22,601

Interest rate risk

Euronav interest rate management general policy is to borrow at floating interest rates based on LIBOR plus a margin. The Euronav Corporate Treasury Department monitors the Group's interest rate exposure on a regular basis. From time to time and under the responsibility of the Chief Financial Officer, different strategies to reduce the risk associated with fluctuations in interest rates can be proposed to the Supervisory Board for their approval. The Group hedges part of its exposure to changes in interest rates on borrowings. All borrowings contracted for the financing of vessels are on the basis of a floating interest rate, increased by a margin. On a regular basis the Group may use interest rate related derivatives (interest rate swaps, caps and floors) to achieve an appropriate mix of fixed and floating rate exposure as defined by the Group. On December 31, 2020 and December 31, 2019, the Group had such instruments in place and approximately 48% of the floating interest rates have been hedged. The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the reference interest rates, tenors, repricing dates and maturities and the notional or par amounts. If a hedging relationship is directly affected by uncertainty arising from IBOR reform, then the Group assumes for this purpose that the benchmark interest rate is not altered as a result of interest rate benchmark reform. Hedging relationships that are impacted by IBOR reform may experience ineffectiveness because of timing mismatch between the hedged item and the hedging instrument regarding IBOR transition. For further details, see 'Managing interest rate benchmark reform and associated risks' above.

Financial report 2020  70

At the reporting date the interest rate profile of the Group's interest-bearing financial instruments was:

(in thousands of USD)	2020	2019
FIXED RATE INSTRUMENTS
Financial assets	17,271	37,163
Financial liabilities	377,899	398,620
	395,170	435,783
VARIABLE RATE INSTRUMENTS
Financial liabilities	895,514	1,346,239
	895,514	1,346,239

Fair value sensitivity analysis for fixed rate instruments

The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Group does not designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge accounting model. Therefore a change in interest rates at the reporting date would not affect profit or loss nor equity as of that date.

Cash flow sensitivity analysis for variable rate instruments

A change of 50 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.

	Profit or Loss	Equity
	50 BP Increase	50 BP Decrease
(effect in thousands of USD)
December 31, 2018
Variable rate instruments	(4,238)	4,238
Interest rate swaps	—	—
Cash Flow Sensitivity (Net)	(4,238)	4,238
December 31, 2019
Variable rate instruments	(6,195)	6,195
Interest rate swaps	—	—
Cash Flow Sensitivity (Net)	(6,195)	6,195
December 31, 2020
Variable rate instruments	(3,819)	2,484
Interest rate swaps	—	—
Cash Flow Sensitivity (Net)	(3,819)	2,484

Currency risk

The Group policy is to monitor its material non-functional currency transaction exposure so as to allow for natural coverage (revenues in the same currency than the expenses) whenever possible. When natural coverage is not deemed reasonably possible (for example for long term commitments), the Company manages its material non-functional currency transaction exposure on a case-by-case basis, either by entering into spot foreign currency transactions, foreign exchange forward, swap or option contracts. The Group’s exposure to currency risk is related to its operating expenses expressed in Euros and to Treasury Notes denominated in Euros. In 2020 about 14.4% (2019: 12.5% and 2018: 12.9%) of the Group’s total operating expenses were incurred in Euros.# Financial report 2020

Revenue and borrowings are expressed in USD only, except for instruments issued under the Treasury Notes Program (Note 16).

	December 31, 2020	December 31, 2019	December 31, 2018
	EUR	USD	EUR
Trade payables	(5,662)	(21,564)	(4,002)
Operating expenses	(105,172)	(624,096)	(95,278)
Treasury Notes	(38,654)	—	(122,788)

For the average and closing rates applied during the year, we refer to Note 27.

Sensitivity analysis

A 10 percent strengthening of the EUR against the USD at December 31, would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.

(in thousands of USD)	2020	2019	2018
Equity	735	437	491
Profit or loss	(10,412)	(9,952)	(7,888)

A 10 percent weakening of the EUR against the USD at December 31, would have had the equal but opposite effect to the amounts shown above, on the basis that all the other variables remain constant.

Cash flow hedges

At December 31, 2020, the Group held the following instruments to hedge exposures to changes in interest rates.

Maturity	1-6 months	6-12 months	More than 1 year
Interest rate risk
Interest rate swaps
Net exposure	(10,855)	(10,942)	(81,803)
Average fixed interest rate	2.96%	2.96%	2.96%

At December 31, 2019, the Group held the following instruments to hedge exposures to changes in interest rates.

Maturity	1-6 months	6-12 months	More than 1 year
Interest rate risk
Interest rate swaps
Net exposure	(23,469)	(23,261)	(176,598)
Average fixed interest rate	1.99%	2.00%	2.96%

At December 31, 2020 and December 31, 2019, the Group had 2 interest cap options with a notional amount of USD 200.0 million starting on October 1, 2020.

The amounts at the reporting date relating to items designated as hedged items were as follows.

(in thousands of USD)	December 31, 2020	December 31, 2019
	Change in value used for calculating hedge ineffectiveness	Cash flow hedge reserve
Interest rate risk
Variable-rate instruments	2,989	(6,385)
Cap option	(116)	(1,071)

The amounts relating to items designated as hedging instruments and hedge ineffectiveness were as follows.

2020

(in thousands of USD)	Nominal amount	Carrying amount - Assets	Carrying amount - Liabilities	Line item in the statement of financial position where the hedging instrument is included	Changes in the value of the hedging instrument recognized in OCI	Hedge ineffectiveness recognized in profit or loss	Line item in profit or loss that includes hedge ineffectiveness
Interest rate risk
Interest rate swaps	70,143	2	6,385	Trade and other receivables, non-current and current other payables	(2,989)	(108)	Finance expenses
Cap options	200,000	15		Trade and other receivables	116	—	Finance expenses

2019

(in thousands of USD)	Nominal amount	Carrying amount - Assets	Carrying amount - Liabilities	Line item in the statement of financial position where the hedging instrument is included	Changes in the value of the hedging instrument recognized in OCI	Hedge ineffectiveness recognized in profit or loss	Line item in profit or loss that includes hedge ineffectiveness
Interest rate risk
Interest rate swaps	506,603	5	3,593	Trade and other receivables, non-current and current other payables	(1,205)	(4,943)	Finance expenses
Forward cap options	200,000	52		Trade and other receivables	(680)	—	Finance expenses

During 2020, no amounts were reclassified from hedging reserve to profit or loss. During 2019, USD 4.9 million was reclassified from hedging reserve to profit or loss.

The following table provides a reconciliation by risk category of components of equity and analysis of OCI items, net of tax, resulting from cash flow hedge accounting.

(in thousands of USD)	Hedging reserve
Balance at January 1, 2020	(4,583)
Cash flow hedges
Change in fair value interest rate risk	(2,873)
Balance at December 31, 2020	(7,456)
Balance at January 1, 2019	(2,698)
Cash flow hedges
Change in fair value interest rate risk	(1,885)
Balance at December 31, 2019	(4,583)

Master netting or similar agreements

The Group enters into derivative transactions under International Swaps and Derivatives Association (ISDA) master netting agreements. In general, under such agreements the amounts owned by each counterparty on a single day in respect of all transactions outstanding in the same currency are aggregated into a single net amount that is payable by one party to the other.

Capital management

Euronav is continuously optimizing its capital structure (mix between debt and equity). The main objective is to maximise shareholder value while keeping the desired financial flexibility to execute the strategic projects. Some of the Group's other key drivers when making capital structure decisions are pay-out restrictions and the maintenance of the strong financial health of the Group. Besides the statutory minimum equity funding requirements that apply to the Group's subsidiaries in the various countries, the Group is also subject to financial covenants in relation to some of its senior secured credit facilities:

• an amount of current assets that, on a consolidated basis, exceeds current liabilities. Current assets may include undrawn amounts of any committed revolving credit facilities and credit lines having a maturity of more than one year;
• an aggregate amount of cash, cash equivalents and available aggregate undrawn amounts of any committed loan of at least USD 50.0 million or 5% of the Group's total indebtedness (excluding guarantees), depending on the applicable loan facility, whichever is greater;
• an amount of cash of at least USD 30.0 million; and
• a ratio of Stockholders' Equity to Total Assets of at least 30%

Further, the Group’s loan facilities generally include an asset protection clause whereby the fair market value of collateral vessels should be at least 125% of the aggregate principal amount outstanding under the respective loan.

The credit facilities discussed above also contain restrictions and undertakings which may limit the Group and the Group's subsidiaries' ability to, among other things:

• effect changes in management of the Group's vessels;
• transfer or sell or otherwise dispose of all or a substantial portion of the Group's assets;
• declare and pay dividends (with respect to each of the Group's joint ventures, other than Seven Seas Shipping Limited, no dividend may be distributed before its loan agreement, as applicable, is repaid in full); and
• incur additional indebtedness.

A violation of any of these financial covenants or operating restrictions contained in the credit facilities may constitute an event of default under these credit facilities, which, unless cured within the grace period set forth under the applicable credit facility, if applicable, or waived or modified by the Group's lenders, provides them with the right to, among other things, require the Group to post additional collateral, enhance equity and liquidity, increase interest payments, pay down indebtedness to a level where the Group is in compliance with loan covenants, sell vessels in the fleet, reclassify indebtedness as current liabilities and accelerate indebtedness and foreclose liens on the vessels and the other assets securing the credit facilities, which would impair the Group's ability to continue to conduct business. Furthermore, certain of our credit facilities contain a cross-default provision that may be triggered by a default under one of our other credit facilities. A cross-default provision means that a default on one loan would result in a default on certain other loans. Because of the presence of cross-default provisions in certain of our credit facilities, the refusal of any one lender under our credit facilities to grant or extend a waiver could result in certain of our indebtedness being accelerated, even if our other lenders under our credit facilities have waived covenant defaults under the respective credit facilities. If our secured indebtedness is accelerated in full or in part, it would be very difficult in the current financing environment for us to refinance our debt or obtain additional financing and we could lose our vessels and other assets securing our credit facilities if our lenders foreclose their liens, which would adversely affect our ability to conduct our business.

As of December 31, 2020, December 31, 2019 and December 31, 2018, the Group was in compliance with all of the covenants contained in the debt agreements. With respect to the quantitative covenants as of December 31, 2020, as described above:

1. current assets on a consolidated basis (including available credit lines of USD 840.4 million) exceeded current liabilities by USD 1,088.7 million
2. aggregated cash was USD 1,101.9 million
3. cash was USD 161.5 million
4. ratio of Stockholders’ Equity to Total Assets was 62.7%

The Company updated the guidance to its dividend policy and targets each quarter, applicable as of the first quarter 2020, to return 80% of the net income (including the fixed element of USD 3 cents per quarter) to shareholders. This return to shareholders is primarily in the form of a cash dividend and the Company always looks at share buyback as an alternative if it believes more value can be created for shareholders. The calculation does not include capital gains (reserved for fleet renewal) but include capital losses and the policy is at all times subject to freight market outlook, company balance sheet and cyclicality along with other factors and regulatory requirements.# Financial report 2020 74

As part of its capital allocation strategy, Euronav has the option of buying its own shares back should the Supervisory Board and Management Board believe that there is a substantial value disconnect between the share price and the real value of the Company. This return of capital is in addition to the fixed dividend of USD 0.12 per share paid each year. On December 31, 2020, the Company had purchased 13,400,516 of its own shares on Euronext Brussels. Following these transactions, the Company owned 18,346,732 own shares (8.34% of the total outstanding shares) at year-end.

Commodity risk

The Group has been purchasing compliant bunker fuel for the future consumption by its vessels. In order to fix the price of the fuel bought the company has used swaps and futures to hedge the risk between decision of buying the fuel and receiving and paying the cargo. These swaps and futures were designated as cash flow hedges of the variability in the price of bunker between the order date and the fixing date. At year-end, all fuel was received. The Group remain exposed to the risk of decrease in bunker fuel on the spot market.

Consequences and impact of the COVID-19 pandemic

The COVID-19 outbreak has impacted many countries around the world, and disrupted the lives of many millions of people. The Company has been taking the risks associated with the outbreak extremely seriously, and the safety and wellbeing of its employees is of paramount importance. In that respect, the biggest operational challenge was to conduct crew changes. Apart from serious humanitarian and crew welfare concerns, there is an increasing risk that fatigue will lead to serious maritime accidents. As well as restrictions placed on the movement of seafarers by national and local authorities, there is also the problem of the continued suspension of the majority of flights between major crew change ports and the home country of the Company’s crew. In order to resolve the difficult situation, the Company decided to accommodate deviations by ships to facilitate crew changes, resulting in an extra cost (USD 1.8 million) and less revenues because of off hire (USD 4.2 million). Going forward, it remains difficult to estimate the future impact of the pandemic on the economies where we are active, and hence the impact these factors might have on the financial results. In general terms, the market will become more challenging as demand for crude oil is negatively impacted by the COVID-19 pandemic. This decrease in demand combined with the gradual release of vessels that were used as storage may distort the supply-demand balance and thus the freight market. However, these negative consequences could very well be offset by continuing logistical delays of ships in ports, increased level of recycling, reduced ordering of newbuild vessels and increased crude oil production, partially neutralizing the COVID-19 impact to a certain extent. In view of these different dynamics which the company does not control, the longer term global macro-economic impact on the Company’s results related to the COVID-19 outbreak remains difficult to accurately quantify. Any forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks related to the current COVID-19 outbreak.

Financial report 2020 75

Note 20 - Leases

Leases as lessee

For the four bare boat charters for the vessels Nautilus, Nucleus, Neptun and Navarin, the Group recognized a right-of-use asset and lease liability which was the present value at January 1, 2019 of the future lease payments. The right-of-use asset, on January 1, 2019, was measured based on the transition option to align the value of the right of use asset to that of the lease liability. The right-of-use asset was adjusted for the effect of a previously deferred gain on the sale and leaseback of these vessels and is depreciated over the remaining lease term till December 15, 2021. Under these leaseback agreements, there is a sellers credit of USD 4.5 million of the sale price that becomes immediately due and payable by the owners upon sale of the vessel during the charter period and shall be paid out of the sales proceeds. It also becomes due to the extent of 50% of the (positive) difference between the fair market value of the vessels at the end of the leaseback agreements and USD 17.5 million (for the oldest VLCC) or USD 19.5 million (for the other vessels). Furthermore, the Group provided a residual guarantee to the owners in the aggregate amount of up to USD 20.0 million in total at the time of redelivery of the four vessels. The parties also agreed a profit split: if the vessel is sold at charter expiry, they shall share the net proceeds of the sale, 75% for owners and 25% for charterers, between USD 26.5 million and USD 32.5 million (for the oldest VLCC) or between USD 28.5 million and USD 34.5 million (for the other vessels).

On October 27, 2020 and November 6, 2020, the Company entered into a time charter agreement for two Suezmaxes. The two Suezmaxes are the Marlin Sardinia (2019 - 156,607) and the Marlin Somerset (2019 - 156,620). The time charter contracts have a duration of 24-months with an option for an additional 12 months, which should be declared no later than 20 months after delivery, at a rate of USD 25,000 per day per vessel for the firm 24-months period and USD 26,500 per day per vessel for the optional 12-months period. Owners have a right to sell the vessel during the firm and optional period of the charter and transfer the remaining charter to the new owners by way of novation agreement. In accordance with IFRS, the Group recognized a right-of-use asset and lease liability. As at December 31, 2020, the Company is not reasonably certain that the optional period will be exercised and has not been taking into account when calculating the future minimum lease payments.

The future undiscounted lease payments for these lease agreements are as follows:

(in thousands of USD)

	December 31, 2020	December 31, 2019
Less than one year	49,218	32,903
Between one and five years	14,714	31,870
Total future lease payables	63,932	64,773

For the office leases in Belgium, France, Greece, Hong Kong, Singapore, UK and US, which have an average lease term till November 2023, the Group recognized a right-of-use asset and lease liability. The right-of-use asset was adjusted by the practical expedient impairment assessment based on the onerous contract analysis option. The right-of-use asset related to office leases was reduced by the lease receivable related to subleases that qualify as finance lease under IFRS 16. The Group used the short-term lease exemption for all the lease contracts with a remaining lease term of less than one year. Accordingly, those lease payments were recognized as an expense and there was no impact on transition.

Financial report 2020 76

Information about leases for which the Group is a lessee is presented below.

Right-of-use assets

(in thousands of USD)

	Bare boats	Time charters	Office rental	Company cars	Total
Balance at January 1, 2019	83,698	—	3,711	189	87,598
Additions to right-of-use assets	—	—	—	653	653
Depreciation charge for the year	(28,287)	—	(900)	(78)	(29,265)
Derecognition of right-of-use assets	—	—	(78)	—	(78)
Balance at December 31, 2019	55,411	—	2,733	764	58,908

(in thousands of USD)

	Bare boats	Time charters	Office rental	Company cars	Total
Balance at January 1, 2020	55,411	—	2,733	764	58,908
Additions to right-of-use assets	—	24,873	762	66	25,701
Depreciation charge for the year	(28,364)	(2,078)	(1,092)	(167)	(31,702)
Translation differences	—	—	36	12	48
Balance at December 31, 2020	27,047	22,795	2,438	675	52,955

Amounts recognized in profit or loss

(in thousands of USD)

	2020	2019
Interest on lease liabilities	(3,287)	(4,811)
Depreciation right-of-use assets	(31,702)	(29,265)
Expenses relating to short-term leases	—	(103)
Low-value leases	(228)	(851)

Amounts recognized in statement of cash flows

(in thousands of USD)

	2020	2019
Total cash outflow for leases	(37,779)	(30,214)
Total cash inflow for leases	1,786	1,251

Financial report 2020 77

Extension options

Some property leases contain extension options exercisable by the Group. The Group assesses at lease commencement date whether it is reasonably certain to exercise the extension options, and reassesses if there is a significant event or significant changes in circumstances within its control. The Group has estimated that the potential future lease payments, should it exercise the option, would result in an impact of approximately USD 12.3 million in the lease liabilities. The amounts shown in the table above include the Group's share of leases of joint ventures. The increase in lease receivables is due to the extension of the time charter contracts, signed in November 2020, in the two joint ventures (TI Asia Ltd. and TI Africa Ltd.) for ten years in direct continuation of their current contractual service, until July 21, 2032 and September 21, 2032 respectively. On some of the above mentioned vessels the Group has granted the option to extend the charter period. These option periods have not been taken into account when calculating the future minimum lease receivables. Vessels employed by the TI Pool do not meet the definition of a lease under IFRS 16 and accordingly revenue generated in the Pool is accounted for under IFRS 15 Revenue from Contracts with Customers. Further the Group subleases office space to third parties in certain leased offices of Euronav UK and Euronav MI II Inc (formerly Gener8 Maritime Inc.). The Group recognized at January 1, 2019 USD 11.4 million lease receivables related to sublease agreements that qualify as finance lease. The following table sets out a maturity analysis of the lease receivables related to the subleased office space, showing the undiscounted sublease payments to be received after the reporting date.(in thousands of USD)
| | December 31, 2020 | December 31, 2019 |
| :------------ | :---------------- | :---------------- |
| Less than one year | 2,328 | 2,229 |
| One to two years | 2,359 | 2,304 |
| Two to three years | 1,898 | 2,335 |
| Three to four years | 1,689 | 1,890 |
| Four to five years | 1,285 | 1,689 |
| More than five years | — | 1,285 |
| Total undiscounted lease receivables | 9,559 | 11,732 |

Leases as lessor

As a lessor the Group leases out some of its vessels under long-term time charter agreements. For certain vessels employed under long-term time charter agreements, the adoption of IFRS 16 required the Group to separate the lease and non-lease component in the contract, with the lease component qualified as operating lease and the non-lease component accounted for under IFRS 15. This did not have a material impact for the Group. The future undiscounted lease payments to be received for these lease agreements are as follows:

(in thousands of USD)
| | December 31, 2020 | December 31, 2019 |
| :------------ | :---------------- | :---------------- |
| Less than one year | 123,319 | 143,748 |
| Between one and five years | 303,561 | 263,406 |
| More than five years | 217,354 | 27,362 |
| Total future lease receivables | 644,234 | 434,516 |

Financial report 2020  78

Note 21 - Provisions and contingencies

(in thousands of USD)

Note	Onerous contract	Total
Balance at January 1, 2019	5,265	5,265
Adoption IFRS 16	(3,049)	(3,049)
Provisions used during the year	(447)	(447)
Balance at December 31, 2019	1,769	1,769
Non-current	1,381	1,381
Current	388	388
Total	1,769	1,769
Balance at January 1, 2020	1,769	1,769
Provisions used during the year	(388)	(388)
Balance at December 31, 2020	1,381	1,381
Non-current	1,154	1,154
Current	227	227
Total	1,381	1,381

In 2004, Gener8 Maritime Subsidiary II Inc. entered into a non-cancellable lease for office space. This lease started on December 1, 2004 and would have expired on September 30, 2020. On July 14, 2015 this lease was extended for an additional 5 years until September 30, 2025. The facilities have been sub-let starting on December 1, 2018 for the remaining lease term, but changes in market conditions have meant that the rental income is lower than the rental expense. The obligation for the future payments, net of expected rental income, has been provided for. USD 3.0 million of the provision was reclassified to right-of-use assets as part of the adoption of IFRS 16 on January 1, 2019.

The Group is currently involved in a litigation. Provisions related to legal and arbitration proceedings are recorded in accordance with the accounting policy as described in Note 1.16. The claim has been submitted on January 15, 2021 by Unicredit Bank in London with the High Court of Justice of England and Wales. The claim relates to an alleged misdelivery of 101,809 metric tons of low sulphur fuel oil that was transported by the Suezmax vessel, Sienna. The charterer, Gulf Petrochem FZC, a company of GP Global, instructed the vessel to discharge the cargo at Sohar without presentation of the bill of lading but against a letter of indemnification issued by the charterer as is customary practice in the crude oil shipping industry. Unicredit bank, who had financed the cargo for an amount of USD 26,367,200 and had become the holder of the bill of lading, was not repaid in accordance with the financing arrangements agreed with Gulf Petrochem FZC. As holder of the bill of lading, Unicredit Bank is now claiming that amount of USD 26,367,200 together with interest from Euronav NV. The GP Global group is currently under a restructuring plan and any recourse under the letter of indemnity issued by Gulf Petrochem FZC is therefore doubtful. The Group believes that it has followed well established standard working practices and that it has valid defense arguments. Based on an external legal advice, management believes that it has strong arguments that the risk of an outflow is less than probable and therefore no provision is recognized. As the court proceedings are in early stage no further details can be disclosed at this time. Furthermore, the Group is involved in a number of disputes in connection with its day-to-day activities, both as claimant and defendant. Such disputes and the associated expenses of legal representation are covered by insurance. Moreover, they are not of a magnitude that lies outside the ordinary, and their scope is not of such a nature that they could jeopardise the Group's financial position.

79 Financial report 2020 

Note 22 - Related parties

Identity of related parties

The Group has a related party relationship with its subsidiaries (see Note 24) and equity-accounted investees (see Note 26) and with its directors and executive officers (see Note 23).

(in thousands of EUR)
| | 2020 | 2019 | 2018 |
| :------------ | :---- | :---- | :---- |
| Total remuneration | 1,048 | 1,101 | 1,035 |

The Nomination and Remuneration Committee annually reviews the remuneration of the members of the Management Board. The remuneration (excluding the CEO) consists of a fixed and a variable component and can be summarized as follows:

(in thousands of EUR)
| | 2020 | 2019 | 2018 |
| :-------------------------- | :---- | :---- | :---- |
| Total fixed remuneration | 2,165 | 1,579 | 1,231 |
| of which Cost of pension | 18 | 80 | 39 |
| Other benefits | 143 | 81 | 75 |
| Total variable remuneration | 1,029 | 2,424 | 1,153 |
| of which Share-based payments | 69 | 1,403 | 299 |

All amounts mentioned refer to the Management Board in its official composition throughout 2020.

The remuneration of the CEO can be summarized as follows:
(2020 & 2019 in thousands of EUR, 2018 in thousands of GBP)

	2020	2019	2018
Total fixed remuneration	624	5,754	537
of which Cost of pension	—	7	—
Other benefits	—	26	40
Total variable remuneration	424	786	1,866
of which Share-based payments	54	786	118

On February 12, 2015, the Board of Directors (as of February 2020 Supervisory Board) granted 236,590 options and 65,433 restricted stock units within the framework of a long term incentive plan. Vested stock options may be exercised until 13 years after the grant date. As of December 31, 2020, all the stock options remained outstanding but all RSUs were exercised in 2018 (see Note 14 and 23).

On February 2, 2016, the Board of Directors (as of February 2020 Supervisory Board) granted 54,616 phantom stock units within the framework of an additional long term incentive plan. Each unit gives a conditional right to receive

Transactions with key management personnel

The total amount of the remuneration paid in local currency to all non-executive directors for their services as members of the board and committees (if applicable) is as follows:

an amount of cash equal to the fair market value of one share of the Company on the settlement date. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. One-third was vested on the second anniversary, one-third was vested on the third anniversary and one-third was vested on the fourth anniversary (see Note 14 and 23).

On February 9, 2017, the Board of Directors (as of February 2020 Supervisory Board) granted 66,449 phantom stock units within the framework of an additional long term incentive plan. Each unit gives a conditional right to receive an amount of cash equal to the fair market value of one share of the company on the settlement date. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. One-third was vested on the second anniversary and one-third was vested on the third anniversary(see Note 14 and 23).

On February 16, 2018, the Board of Directors (as of February 2020 Supervisory Board) granted 154,432 phantom stock units within the framework of an additional long term incentive plan. Each unit gives a conditional right to receive an amount of cash equal to the fair market value of one share of the company on the settlement date. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. One-third was vested on the second anniversary (see Note 14 and 23).

On January 8, 2019, the Board of Directors (as of February 2020 Supervisory Board) granted 1,200,000 phantom stock units within the framework of a transaction based incentive plan ("TBIP"). After the resignation of the former CEO, 400,000 phantom stock units were waived. The first tranche of 12% was vested in the first quarter of 2020. The contractual term of the TBIP offer is five years. A first tranche of 12% of the total number of phantom stock units vests on the date on which the Fair Market Value ("FMV") reaches USD 12 (decreased with the amount of dividend paid since grant, if any). A second tranche (16%) vests on the date the FMV reaches USD 14 (decreased with the amount of dividend paid since grant, if any), a third tranche (25%) vests on the date the FMV reaches USD 16 (decreased with the amount of dividend paid since grant, if any) and the final tranche (44%) vests on the date the FMV reaches USD 18 (decreased with the amount of dividend paid since grant, if any) (see Note 14 and 23). The TBIP defines FMV as the volume weighted average price of the shares on the New York Stock Exchange over the thirty (30) Business Days preceding such date.

On April 1, 2019, the Board of Directors (as of February 2020 Supervisory Board) granted 152,346 restricted stock units within the framework of a long term incentive plan. The RSU’s vest over three years in three equal annual installments at the three anniversary dates from the reference date (April 1, 2019) and will be settled in shares. As of December 31, 2020, 12,696 RSU’s were vested, however vested RSU’s will not be delivered in shares until the first business day after April 1, 2022.

On April 1, 2020, the Supervisory Board granted 144,392 restricted stock units within the framework of a long term incentive plan. The RSU’s vest over three years in three equal annual installments at the three anniversary dates from the reference date (April 1, 2020) and will be settled in shares. As of December 31, 2020, no RSU’s were vested.

Relationship with CMB

In 2004, Euronav split from Compagnie Maritime Belge (CMB).

Financial report 2020  80CMB renders some administrative and general services to Euronav. In 2020 CMB invoiced a total amount of USD 1,578 (2019: USD 1,336 and 2018: USD 1,151). In 2019, Euronav started up a project to develop software with CMB Technology to monitor fuel consumption performance of the Euronav fleet. In 2019, CMB Technology invoiced a total amount of USD 167 thousand (EUR 150 thousand) in relation to the software development project (2020: USD 0). The Group purchased IMO 2020 compliant bunker fuel (low sulphur fuel oil) for future use by its vessels (Note 11). A ruling was granted to include this activity under the tonnage tax regime. This ruling also allows the execution of physical swaps. Discussions were started in 2019 to enter into such fuel swaps with the CMB Group. The swap agreement was extended to CMB NV, Bocimar International NV and Bocimar Hong Kong Ltd. In the course of 2020, a total of 51,000 metric tons of compliant bunker fuel oil was swapped between these parties.

Properties

The Group leases office space in Belgium from Reslea N.V., an entity controlled by CMB. Under this lease, the Group paid an annual rent of USD 335,033 in 2020 (2019: USD 290,858 and 2018: USD 185,326). This lease expires on August 31, 2021. The Group subleases office space in its London, United Kingdom office, through its subsidiary Euronav (UK) Agencies Limited, pursuant to a sublease agreement, dated 25 September 2014, with Tankers (UK) Agencies Limited, a 50-50 joint venture with International Seaways. Under this sublease, the Company received in 2020 a rent of USD 218,074 (2019: USD 216,750 and 2018: USD 227,089). This sublease expires on April 27, 2023.

81 Financial report 2020

Transactions with subsidiaries and joint ventures

The Group has supplied funds in the form of shareholder's advances to some of its joint ventures at pre-agreed conditions (see below and Note 26). On November 19, 2019, the Group entered into a joint venture together with affiliates of Ridgebury Tankers and clients of Tufton Oceanic. Each 50%-50% joint venture acquired one Suezmax vessel. The JVs, Bari Shipholding Ltd and Bastia Shipholding Ltd, entered into various agreements including a secured term loan for USD 36.7 million and revolving credit for USD 3.0 million with Euronav Hong Kong as lender, a commercial management service with Euronav NV and a technical management service with Ridgebury. On September 15, 2020, the Suezmax Bastia was sold for USD 20.5 million. A capital gain on the sale of USD 0.4 million (Euronav's share) was recorded in the joint venture company. The vessel has been delivered to her new owners. Following this sale, the shareholders loan to Bastia Shipholding Ltd. was fully repaid. Balances and transactions between the Group and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. Details of outstanding balances and transactions between the Group and its joint ventures are disclosed below:

As of and for the year ended December 31, 2019 (in thousands of USD)

	Trade receivables	Trade payables	Shareholders Loan	Turnover	Dividend Income
TI Africa Ltd	227	—	23,215	390	—
TI Asia Ltd	90	—	—	390	12,600
Bari Shipholding Ltd	265	211	18,390	13	—
Bastia Shipholding Ltd	301	96	18,773	25	—
Tankers Agencies (UK) Ltd	—	132	—	—	—
Total	883	439	60,379	818	12,600

As of and for the year ended December 31, 2020 (in thousands of USD)

	Trade receivables	Trade payables	Shareholders Loan	Turnover	Dividend Income
TI Africa Ltd	440	—	16,665	398	—
TI Asia Ltd	472	—	—	398	5,550
Bari Shipholding Ltd	283	52	19,271	342	—
Bastia Shipholding Ltd	17	1	326	326	1,590
Tankers Agencies (UK) Ltd	19	135	—	—	—
Total	1,231	188	35,936	1,464	7,534

Guarantees

The Group provided guarantees to financial institutions that provided credit facilities to joint ventures of the Group. As of December 31, 2020, the total amount outstanding under these credit facilities was USD 90.4 million (2019: USD 139.2 million), of which the Group guaranteed USD 45.2 million (2019: USD 69.6 million) (see Note 26).

Financial report 2020

82

Note 23 - Share-based payment arrangements

Following the resignation of our former CEO Paddy Rodgers, his phantom stocks were waived. As of December 31, 2020, 16,210 phantom stocks were outstanding. The LTIP 2017 qualifies as a cash-settled share-based payment transaction. The Company recognizes a liability in respect of its obligations under the LTIP 2017, measured based on the Company’s share price at the reporting date, and taking into account the extent to which the services have been rendered to date. The compensation income recognized in the consolidated statement of profit or loss during 2020 was USD 0.3 million (2019: expense of USD 22,000).

Long term incentive plan 2018 (Cash-settled)

The Group's Board of Directors (as of February 2020 Supervisory Board) implemented in 2018 an additional long term incentive plan for key management personnel. Under the terms of this LTIP, the beneficiaries will obtain their respective LTIP in cash, based on the volume weighted average price of the shares on Euronext Brussels over the 3 last business days of the relevant vesting period. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. In total a number of 154,432 phantom stock units were granted on February 16, 2018 and one-third was vested on the second anniversary. Following the resignation of our former CEO Paddy Rodgers, his phantom stocks were waived. As of December 31, 2020, 71,854 phantom stocks were outstanding. The LTIP 2018 qualifies as a cash-settled share-based payment transaction. The Company recognizes a liability in respect of its obligations under the LTIP 2018, measured based on the Company’s share price at the reporting date, and taking into account the extent to which the services have been rendered to date. The compensation income recognized in the consolidated statement of profit or loss during 2020 was USD 0.4 million (2019: expense of USD 0.7 million).

Transaction Based Incentive Plan 2019 (Cash-settled)

The Group's Board of Directors (as of February 2020 Supervisory Board) has implemented in 2019 a transaction-based incentive plan ("TBIP") for key management personnel. Under the terms of this TBIP, key management personnel is eligible to receive phantom stock unit grants. Each phantom stock unit grants the holder a conditional right to receive an amount of cash equal to the Fair Market Value ("FMV") of one share of the Company multiplied by the number of phantom stock units that have vested prior to the settlement date. The TBIP defines FMV as the volume weighted average price of the shares on the New York Stock Exchange over the thirty (30) Business Days preceding such date. The vesting and settlement of the TBIP is spread over a time frame of five years. The phantom stock awarded matures in four tranches: the first tranche of 12% vesting when the FMV reaches USD 12 (decreased with the amount of dividend paid since grant, if any), the second tranche of 19% vesting when the FMV reaches USD 14 (decreased with the amount of dividend paid since grant, if any), the third tranche of 25% vesting when the FMV reaches USD 16 (decreased with the amount of dividend paid since grant, if any) and the fourth tranche of 44% vesting when the FMV reaches USD 18 (decreased with the amount of dividend paid since grant, if any). In total a number of 1,200,000 phantom stock units were granted on January 8, 2019 and the

Description of share-based payment arrangements:

At December 31, 2020, the Group had the following share-based payment arrangements:

Long term incentive plan 2015 (Equity-settled)

The Group's Board of Directors (as of February 2020 Supervisory Board) implemented in 2015 a long term incentive plan ('LTIP') for key management personnel. Under the terms of this LTIP, the beneficiaries will obtain 40% of their respective LTIP in the form of Euronav stock options, with vesting over three years at anniversary date and 60% in the form of restricted stock units ('RSU's') which will be paid out in cash, with cliff vesting on the third anniversary. In total 236,590 options and 65,433 RSU's were granted on February 12, 2015. Vested stock options may be exercised until 13 years after the grant date. The stock options have an exercise price of EUR 10.0475 and are equity-settled. As of December 31, 2020, all the stock options remained outstanding but all RSU's were exercised in 2018. The total employee benefit expense recognized in the consolidated statement of profit or loss during 2020 with respect to the LTIP 2015 was USD 0 thousand (2019: USD 0 thousand).

Long term incentive plan 2016 (Cash-settled)

The Group's Board of Directors (as of February 2020 Supervisory Board) implemented in 2016 an additional long term incentive plan for key management personnel. Under the terms of this LTIP, the beneficiaries will obtain their respective LTIP in cash, based on the volume weighted average price of the shares on Euronext Brussels over the 3 last business days of the relevant vesting period. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. In total a number of 54,616 phantom stocks were granted on February 2, 2016 and one-third was vested on the second anniversary, one-third on the third anniversary and one-third on the fourth anniversary. Following the resignation of our former CEO Paddy Rodgers, his phantom stocks were waived. As of December 31, 2020, no phantom stocks were outstanding. The LTIP 2016 qualifies as a cash-settled share-based payment transaction. The Company recognizes a liability in respect of its obligations under the LTIP 2016, measured based on the Company’s share price at the reporting date, and taking into account the extent to which the services have been rendered to date.The compensation income recognized in the consolidated statement of profit or loss during 2020 was USD 0.3 million (2019: income of USD 0.1 million).

Long term incentive plan 2017 (Cash-settled)

The Group's Board of Directors (as of February 2020 Supervisory Board) implemented in 2017 an additional long term incentive plan for key management personnel. Under the terms of this LTIP, the beneficiaries will obtain their respective LTIP in cash, based on the volume weighted average price of the shares on Euronext Brussels over the 3 last business days of the relevant vesting period. The phantom stock units will mature one-third each year on the second, third and fourth anniversary of the award. In total a number of 66,449 phantom stock units were granted on February 9, 2017 and one-third was vested on the second anniversary and one-third on the third anniversary. 83 Financial report 2020 first tranche of 12% was vested in the first quarter of 2020. Following the resignation of our former CEO Paddy Rodgers, his phantom stocks were waived. As of December 31, 2020, 704,000 phantom stocks were outstanding.

The TBIP 2019 qualifies as a cash-settled share-based payment transaction as the Company receives services from the participants and incur an obligation to settle the transaction in cash. The Company recognizes a liability at fair value in respect of its obligations under the TBIP 2019. The fair value of the plan is being determined using a binominal model with cost being spread of the expected vesting period over the various tranches. The compensation income recognized in the consolidated statement of profit or loss during 2020 was USD 0.4 million (2019: expense of USD 1.8 million).

Long term incentive plan 2019 (Equity-settled)

The Group's Board of Directors (as of February 2020 Supervisory Board) has implemented in 2019 an additional long term incentive plan (‘LTIP’) for key management personnel. Under the terms of this LTIP, key management personnel will obtain 100% of their respective LTIP in the form of Euronav restricted stock units (‘RSU’s’). The RSU’s vest over three years in three equal annual installments at the three anniversary dates from the reference date (April 1, 2019) and will be settled in shares. In total 152,346 RSU’s were granted on April 1, 2019. As of December 31, 2020, 12,696 RSU’s were vested, however vested RSU’s will not be delivered in shares until the first business day after April 1, 2022. The compensation expense recognized in the consolidated statement of profit or loss during 2020 was USD 0.1 million.

Long term incentive plan 2020 (Equity-settled)

The Group’s Supervisory Board has implemented in 2020 an additional long term incentive plan (‘LTIP’) for key management personnel. Under the terms of this LTIP, key management personnel will obtain 100% of their respective LTIP in the form of Euronav restricted stock units (‘RSU’s’). The RSU’s vest over three years in three equal annual installments at the three anniversary dates from the reference date (April 1, 2020) and will be settled in shares. In total 144,392 RSU’s were granted on April 1, 2020.

Measurement of Fair Value

The fair value of the employee share options under the 2015 LTIP has been measured using the Black-Scholes formula. Service and non-market performance conditions attached to the transactions were not taken into account in measuring fair value. The inputs used in measurement of the fair values at grant date for the equity-settled share option program was as follows:

LTIP 2015 (figures in EUR)

	Tranche 1	Tranche 2	Tranche 3
Fair value at grant date	1.853	1.853	1.853
Share price at grant date	10.050	10.050	10.050
Exercise price	10.0475	10.0475	10.0475
Expected volatility (weighted average)	39.63%	39.63%	39.63%
Expected life (days) (weighted average)	365	730	1,095
Expected dividends	8%	8%	8%
Risk-free interest rate	0.66%	0.66%	0.66%

Expected volatility has been based on an evaluation of the historical volatility of the Company's share price, particularly over the historical periods commensurate with the expected term. The expected term of the instruments has been based on historical experience and general option holder behavior using a Monte Carlo simulation.

The liability in respect of its obligations under the LTIP 2016, LTIP 2017 and LTIP 2018 is measured based on the Company’s share price at the reporting date and taking into account the extent to which the services have been rendered to date. One-third of the phantom stocks granted on February 2, 2016 was vested on the second anniversary, one-third on the third anniversary and one-third on the fourth anniversary. No phantom stocks remained outstanding as of December 31, 2020. One-third of the phantom stocks granted on February 9, 2017 was vested on the second anniversary and one-third on the third anniversary, 16,210 phantom stocks remained outstanding as of December 31, 2020. One-third of the phantom stocks granted on February 16, 2018 was vested on the second anniversary, 71,854 phantom stocks remained outstanding as of December 31, 2020. The Company’s share price was EUR 10.613 at the grant date of the LTIP 2016, EUR 7.268 at the grant date of the LTIP 2017 and EUR 7.237 at the grant date of the LTIP 2018, and was EUR 6.60 as at December 31, 2020.

The Company recognizes a liability at fair value in respect of its obligations under the TBIP 2019. The fair value of the plan is being determined using a binominal model with cost being spread of the expected vesting period over the various tranches. The vesting and settlement of the TBIP is spread over a timeframe of five years. The phantom stock awarded matures in four tranches: the first tranche of 12% vesting when the Fair Market Value ("FMV") reaches USD 12 (decreased with the amount of dividend paid since grant, if any), the second tranche of 19% vesting when the FMV reaches USD 14 (decreased with the amount of dividend paid since grant, if any), the third tranche of 25% vesting when the FMV reaches USD 16 (decreased with the amount of dividend paid since grant, if any) and the fourth tranche of 44% vesting when the FMV reaches USD 18 (decreased with the amount of dividend paid since grant, if any). The TBIP defines FMV as the volume weighted average price of the shares on the New York Stock Exchange over the thirty (30) Business Days preceding such date. In total a number of 1,200,000 phantom stock units were granted on January 8, 2019 and the first tranche of 12% was vested in the first quarter of 2020. Following the resignation Financial report 2020 84 of our former CEO Paddy Rodgers, his phantom stocks were waived. As of December 31, 2020, 704,000 phantom stocks were outstanding.

Expenses recognized in profit or loss

For details on related employee benefits expense, see Note 5 and Note 17. The expenses related to the LTIP 2016, LTIP 2017, LTIP 2018, TBIP 2019 and LTIP 2019 (USD -0.7 million) are included in the Provision for employee benefits.

Reconciliation of outstanding share options

The number and weighted-average exercise prices of options under the 2015 LTIP are as follows:

	Number of options 2020	Weighted average exercise price 2020	Number of options 2019	Weighted average exercise price 2019
Outstanding at January 1	236,590	7.732	236,590	7,732
Forfeited during the year	—	—	—	—
Exercised during the year	—	—	—	—
Granted during the year	—	—	—	—
Outstanding at December 31	236,590	7.732	236,590	7.732
Vested at December 31	236,590	—	236,590	—

The inputs used in measurement of the fair value at grant date for the TBIP was as follows:

	TBIP Tranche 1	TBIP Tranche 2	TBIP Tranche 3	TBIP Tranche 4
Risk-free interest rate	1.69%	1.69%	1.69%	1.69%
Annual volatility	33.43%	33.43%	33.43%	33.43%
Expected vesting period (years)	3.05	3.38	3.69	3.98

The liability in respect of its obligations under the LTIP 2019 is subject for 75% to a relative TSR (Total Shareholder Return) compared to a peer group over a three year period. Each yearly measurement to be worth 1/3rd of 75% of the award. And subject for 25% to an absolute TSR of the Company’s Shares measured each year for 1/3 of 25% of the award. In total 152,346 RSU’s were granted on April 1, 2019. As of December 31, 2020, 12,696 RSU’s were vested, however vested RSU’s will not be delivered in shares until the first business day after April 1, 2022.

85 Financial report 2020

Note 24 - Group entities

Country of incorporation	Consolidation method	Ownership interest December 31, 2020	Ownership interest December 31, 2019	Ownership interest December 31, 2018
Parent
Euronav NV	Belgium	full	100.00%	100.00%
Euronav NV, Antwerp
Geneva (branch office)
Euronav NV, London
(branch office)
Subsidiaries
Euronav Tankers NV	Belgium	full	100.00%	100.00%
Euronav Shipping NV	Belgium	full	100.00%	100.00%
Euronav (UK) Agencies	UK	full	100.00%	100.00%
Limited
Euronav Luxembourg SA	Luxembourg	full	100.00%	100.00%
Euronav sas	France	full	100.00%	100.00%
Euronav Ship Management	France	full	100.00%	100.00%
sas
Euronav Ship Management
Antwerp (branch office)
Euronav Ship Management	Liberia	full	100.00%	100.00%
Ltd
Euronav Ship Management
Hellas (branch office)
Euronav Hong Kong	Hong Kong	full	100.00%	100.00%
Euro-Ocean Ship Management	Cyprus	full	100.00%	100.00%
(Cyprus) Ltd
Euronav Singapore	Singapore	full	100.00%	100.00%
Fiorano Shipholding Ltd	Hong Kong	full	NA	NA
Larvotto Shipholding Ltd	Hong Kong	full	NA	NA
Euronav MI II Inc	Marshall Islands	full	100.00%	100.00%
Gener8 Maritime	Marshall Islands	full	100.00%	100.00%
Subsidiary II Inc.
Gener8 Maritime	Marshall Islands	full	100.00%	100.00%
Subsidiary New IV Inc.
Gener8 Maritime	Marshall Islands	full	100.00%	100.00%
Management LLC
Gener8 Maritime	Marshall Islands	full	NA	100.00%
Subsidiary V Inc.
Gener8 Maritime	Marshall Islands	full	NA	100.00%
Subsidiary VIII Inc.
Gener8 Maritime
Subsidiary Inc.

86 Country of incorporation Consolidation method Ownership interest December 31, 2020 December 31, 2019 December 31, 2018

Country of incorporation	Consolidation method	Ownership interest December 31, 2020	Ownership interest December 31, 2019	Ownership interest December 31, 2018
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Bermuda	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Liberia	full	NA	100.00%	100.00%
Liberia	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Liberia	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Liberia	full	NA	100.00%	100.00%
Marshall Islands	full	NA	NA	100.00%
Bermuda	full	NA	100.00%	100.00%
Bermuda	full	NA	100.00%	100.00%
Bermuda	full	NA	NA	100.00%
Liberia	full	NA	NA	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	100.00%	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%

87 Financial report 2020

Country of incorporation	Consolidation method	Ownership interest December 31, 2020	Ownership interest December 31, 2019	Ownership interest December 31, 2018
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Marshall Islands	full	NA	NA	100.00%
Joint ventures
Marshall Islands	equity	NA	50.00%	50.00%
Hong Kong	equity	50.00%	50.00%	50.00%
Hong Kong	equity	50.00%	50.00%	50.00%
UK	equity	50.00%	50.00%	50.00%
Marshall Islands	equity	50.00%	50.00%	50.00%
Hong Kong	equity	50.00%	50.00%	NA
Hong Kong	equity	50.00%	50.00%	NA

In 2019, Euronav NV, Antwerp, Geneva (branch office), was established and incorporated in the third quarter of 2019. In the fourth quarter of 2019, two new joint ventures Bari Shipholding Ltd. and Bastia Shipholding Ltd. were incorporated (see Note 26). In 2020 one joint venture, Kingswood Co. Ltd, was dissolved. In 2020, Euronav NV, London (branch office), was established and incorporated in the third quarter of 2020. The Group holds 100% of the voting rights in all of its subsidiaries. At December 31, 2020, the Group held 50% of the voting rights in TUKA but held 61% of the outstanding shares that participate in the result of the entity. At December 31, 2020, the Group held 50% of the voting rights in TI LLC but held 59% of the outstanding shares that participate in the result of the entity. In 2018 two subsidiaries, Fiorano Shipholding Ltd and Larvotto Shipholding Ltd were dissolved. Due to the merger with Gener8 Maritime Inc. on June 12, 2018 as set out in Note 25, the Group acquired new subsidiaries. Those subsidiaries were used by Gener8 mostly as SPV to own individual vessels. All of the vessels were transferred to Euronav NV in 2018. The Group intended to liquidate a majority of those subsidiaries. In 2020 the following subsidiaries were dissolved:
Gener8 Maritime Subsidiary V Inc.
GMR Defiance LLC
Gener8 Maritime Subsidiary VIII Inc.
Companion Ltd.
Gener8 Maritime Subsidiary Inc.
Compatriot Ltd.
GMR Zeus LLC
Gener8 Neptune LLC
GMR Atlas LLC
Gener8 Athena LLC
GMR Hercules LLC
Gener8 Apollo LLC
GMR Ulysses LLC
Gener8 Ares LLC
GMR Poseidon LLC
Gener8 Hera LLC
GMR Spartiate LLC
Gener8 Constantine LLC
GMR Maniate LLC
Gener8 Oceanus LLC
GMR St Nikolas LLC
Gener8 Nestor LLC
GMR George T LLC
Gener8 Nautilus LLC
GMR Kara G LLC
Gener8 Macedon LLC
GMR Harriet G LLC
Gener8 Noble LLC
GMR Orion LLC
Gener8 Ethos LLC
GMR Argus LLC
Gener8 Perseus LLC
GMR Horn LLC
Gener8 Theseus LLC
GMR Phoenix LLC
Gener8 Hector LLC

88 Note 25 - Business combinations

Merger with Gener8 Maritime, Inc. ('Gener8')

On June 11, 2018, the Group announced that Gener8's shareholders approved the merger that day between the two companies by which Gener8 became a wholly-owned subsidiary of Euronav. Gener8 Maritime Inc. a corporation incorporated under the laws of the Republic of the Marshall Islands, was a leading U.S.-based provider of international seaborne crude oil transportation services, resulting from a transformative merger between General Maritime Corporation, a well-known tanker owner, and Navig8 Crude Tankers Inc., a company sponsored by the Navig8 Group, an independent vessel pool manager. General Maritime Corporation was founded in 1997 and has been an active owner and operator in the crude tanker sector. At the date of the merger, Gener8 owned a fleet of 29 tankers on the water, consisting of 21 VLCC vessels, 6 Suezmax vessels, and 2 Panamax vessels, with an aggregate carrying capacity of approximately 7.4 million dwt, which includes 19 “eco” VLCC newbuildings delivered from 2015 through 2017 equipped with advanced, fuel-saving technology, that were constructed at highly reputable shipyards. The merger created the world’s leading independent crude tanker operator with 72 large crude tankers focused predominately on the VLCC and Suezmax asset classes and two FSO vessels in joint venture and provide tangible economies of scale via pooling arrangements, procurement opportunities, reduced overhead and enhanced access to capital. Furthermore it will offer a well-capitalized, highly liquid company for investors to participate in the tanker market and through commitment to the Tankers International Pool (a spot market-oriented tanker pool), provide the lowest commercial fees as a percentage of revenue in the sector upon closing of the merger. The "Exchange Ratio" of 0.7272 Euronav shares for each share of Gener8 resulted in the issuance of 60,815,764 new ordinary shares on June 12, 2018. The Exchange Ratio implied a premium of 35% paid on Gener8 shares based on the closing share prices on December 20, 2017. The merger resulted in Euronav shareholders owning approximately 72% of the issued share capital of the combined entity and Gener8 shareholders owning approximately 28% (based on the fully diluted share capital of Euronav and fully diluted share capital of Gener8). Euronav as the combined entity remain listed on NYSE and Euronext under the symbol "EURN". Subsequently, Euronav sold certain subsidiaries owning six VLCCs to International Seaways ("INSW") for a total cash payment of USD 141.0 million of which USD 120.0 million was received on June 14, 2018, the date of closing. The remaining balance of USD 20.9 million was paid in Q4. This sale was an important part of the wider merger with Gener8 Maritime transaction as it allows Euronav to retain leverage around a level of 50% and to retain substantial liquidity going forward. The six vessels are the Gener8 Miltiades (2016 – 301,038 dwt), Gener8 Chiotis (2016 – 300,973 dwt), Gener8 Success (2016 – 300,932 dwt), Gener8 Andriotis (2016 – 301,014 dwt), Gener8 Strength (2015 – 300,960 dwt) and Gener8 Supreme (2016 – 300,933 dwt). The assets and liabilities of these companies were recognized at fair value on the date of the closing of the merger. This fair value took into consideration the provisions of the sale and purchase agreement with INSW and accordingly, no result was recorded on this transaction.

Consideration transferred (in USD)
Total Business combinations
Gener8 shares outstanding	83,267,426
RSU	362,613
Total Gener8 shares	83,630,039
Ratio	0.7272
Issued Euronav shares	60,815,764
Closing price Euronav on June 11, 2018	9.1
Total consideration transferred	553,423,452

Since their acquisition by the Group on June 12, 2018, the acquired companies contributed revenue of USD 16.5 million and a loss of USD 43.7 million to the Group’s consolidated results for the year ended December 31, 2018.If the acquisition had occurred on 1 January 2018, management estimates that the Group’s consolidated revenue for the year ended December 31, 2018 would have been USD 665.5 million and consolidated loss for the twelve month period ended December 31, 2018 would have been USD (160.1) million. In determining these amounts, management has assumed that the fair value adjustments, that arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2018.

Acquisition related costs

The Group incurred approximately USD 5.0 million relating to external legal fees, due to diligence costs and advisory fees. These acquisition-related costs for the business combination were expensed as incurred and are included in 'General and administrative expenses'.

Financial report 2020

Repayment Blue mountain note

As part of the Merger Agreement and the Letter agreement between Gener8 and certain affiliates of BlueMountain Capital Management LLC, the Senior Note with a carrying value of USD 205.7 million was prepaid on June 12, 2018. The repayment of the Senior Notes was financed in full by Euronav under its existing liquidity (cash at hands and credit facilities) (see Note 16).

Bank loans

At the time of the merger, Gener8 had three senior secured credit facilities: (i) the KEXIM Credit Agreement, (ii) the Nordea Credit Agreement and (iii) the Sinosure Credit Agreement of which the first two were assumed by Euronav in the merger and the latter was acquired by INSW when they acquired certain subsidiaries owning six VLCCs. Prior to the merger, Gener8 was not in compliance with the interest expense coverage ratio covenant for which they obtained short-term waivers from its lenders. Following the merger, the Kexim Credit Agreement was amended to align the covenants with the other senior credit facilities of the Group, resolving the non compliance. The Group, in advance negotiations to refinance the Nordea Credit Agreement, decided not to amend this senior secured credit facility and as such, given the non compliance and remaining duration of the short-term waiver, classified the entire facility as short term. On September 17, 2018, this facility was repaid in full.

Identifiable assets acquired and liabilities assumed

The following table summarizes the recognized amounts of assets acquired and liabilities assumed at the acquisition date.

Note	Total	Gener8 Subsidiaries	INSW Subsidiaries
Vessels	1,704,250	1,270,250	434,000
Other tangible assets	345	345	—
Intangible assets	152	152	—
Receivables	16,750	9,599	7,151
Current assets	79,459	64,829	14,629
Cash and cash equivalents	126,288	126,288	—
Loans and borrowings (Note 16)	(1,312,446)	(1,001,478)	(310,968)
Provision onerous contracts (Note 21)	(5,303)	(5,303)	—
Current liabilities	(33,012)	(29,160)	(3,852)
Total identifiable net assets acquired	576,482	435,522	140,960

(in thousands of USD)

Fair value at acquisition date
Consideration transferred	553,423
Total identifiable net assets acquired	576,482
Bargain Purchase	23,059

The transaction resulted in a bargain purchase gain of USD 23.1 million as the fair value of assets acquired and liabilities assumed exceeded the total of the fair value of consideration paid. Euronav’s management has reassessed whether they had correctly identified all of the assets acquired and all of the liabilities assumed and this excess remains. Euronav’s management believes that the bargain purchase price is a direct consequence of Gener8 limited liquidity and its shares trading under the net asset value per share prior to and at the time of the agreed ratio as well as a small uptick in the fair value of the vessels between the time of the agreed exchange ratio and the date of the merger when the valuation of the vessels was assessed. This gain was recognized in the consolidated statement of profit or loss for 2018, under the heading ‘Gain on bargain purchase’. As at June 12, 2018, the gross contractual amounts receivable acquired amounted to USD 98.2 million and the amounts expected not to collect amounted to USD 2.0 million which gives a net amount receivable of USD 96.2 million (see table above, sum of receivables and current assets).

Financial report 2020

Note 26 - Equity-accounted investees

(in thousands of USD)

	December 31, 2020	December 31, 2019
Assets
Interest in joint ventures	51,703	50,322
Interest in associates	—	—
TOTAL ASSETS	51,703	50,322
Liabilities
Interest in joint ventures	—	—
Interest in associates	—	—
TOTAL LIABILITIES	—	—

Joint Ventures

The following table contains a roll forward of the balance sheet amounts with respect to the Group’s joint ventures: newly set-up joint ventures Bari Shipholding Ltd and Bastia Shipholding Ltd (see Note 10). The decrease in the balance of the shareholders' loan to joint ventures in 2020 is attributable to the repayment of the shareholders loans to TI Africa, Bari Shipholding Ltd. and Bastia Shipholding Ltd., the latter following the sale of the vessel in September 2020.

ASSET

	Investments in equity accounted investees	Shareholders loans
Gross balance	27,565	162,763
Offset investment with shareholders loan	3,030	(3,030)
Balance at January 1, 2018	30,595	159,733
Group's share of profit (loss) for the period	16,076	—
Group's share of other comprehensive income	(459)	—
Movement shareholders loans to joint ventures	—	(134,097)
Gross balance	43,182	28,666
Offset investment with shareholders loan	—	—
Balance at December 31, 2018	43,182	28,666
Group's share of profit (loss) for the period	16,460	—
Group's share of other comprehensive income	(720)	—
Dividends received from joint ventures	(12,600)	—
Movement shareholders loans to joint ventures	—	31,713
Initial capital provided to joint ventures	4,000	—
Gross balance	50,322	60,379
Offset investment with shareholders loan	—	—
Balance at December 31, 2019	50,322	60,379
Group's share of profit (loss) for the period	10,917	—
Group's share of other comprehensive income	(2)	—
Dividends received from joint ventures	(7,534)	—
Movement shareholders loans to joint ventures	—	(26,443)
Repayment capital provided to joint ventures	(2,000)	—
Gross balance	51,703	33,936
Offset investment with shareholders loan	—	—
Balance at December 31, 2020	51,703	33,936

The decrease in the balance of shareholders’ loans to joint ventures in 2018 is primarily due to the USD 220.0 million senior secured credit facility which TI Asia Ltd. and TI Africa Ltd. entered into March 29, 2018. The shareholders loans were partially repaid by using a part of the proceeds of this new borrowing. In this context, the Company provided a guarantee for the revolving tranche of the above credit facility. The increase in the balance of the shareholders' loan to joint ventures in 2019 is attributable to the shareholders loans to

Financial report 2020

Joint venture Segment Description

Joint venture	Description
Kingswood Co. Ltd	Tankers Holding company; parent of Seven Seas Shipping Ltd. and liquidated in 2020
Seven Seas Shipping Ltd	Tankers Formerly owner of 1 VLCC bought in 2016 by Euronav. Wholly owned subsidiary of Kingswood Co. Ltd. and liquidated in 2020
Tankers Agencies (UK) Ltd	Tankers Parent company of Tankers International Ltd
Tankers International LLC	Tankers The manager of the Tankers International Pool who commercially manages the majority of the Group's VLCCs
Bari Shipholding Ltd	Tankers Single ship company, owner of 1 Suezmax
Bastia Shipholding Ltd	Tankers Formerly owner of 1 Suezmax, dormant company
TI Africa Ltd	FSO Operator and owner of a single floating storage and offloading facility (FSO Africa)
TI Asia Ltd	FSO Operator and owner of a single floating storage and offloading facility (FSO Asia)

• FSO Asia and FSO Africa are on a time charter contract to North Oil Company (NOC), the new operator of Al Shaheen field, until mid 2032.

The following table contains summarized financial information for all of the Group’s joint ventures:

Asset

(in thousands of USD)	Kingswood Co. Ltd	Seven Seas Shipping Ltd	TI Africa Ltd	TI Asia Ltd
At December 31, 2018
Percentage ownership interest	50%	50%	50%	50%
Non-Current assets	522	—	154,553	147,962
of which vessel	—	—	153,404	146,654
Current Assets	—	792	9,119	22,450
of which cash and cash equivalents	—	696	484	2,561
Non-Current Liabilities	—	522	130,068	74,171
of which bank loans	—	—	70,080	67,551
Current Liabilities	6	1	24,400	23,699
of which bank loans	—	—	23,867	23,015
Net assets (100%)	516	269	9,205	72,542
Group's share of net assets	258	134	4,603	36,271
Shareholders loans to joint venture	—	—	28,665	—
Net Carrying amount of interest in joint venture	258	134	4,603	36,271
Remaining shareholders loan to joint venture	—	—	28,665	—
Revenue	—	1	49,129	49,180
Depreciations and amortization	—	—	(18,209)	(17,933)
Interest expense	—	—	(3,857)	(3,733)
Income tax expense	—	—	(1,585)	(1,611)
Profit (loss) for the period (100%)	(2)	(5)	15,742	15,977
Other comprehensive income (100%)	—	—	(477)	(441)
Group's share of profit (loss) for the period	(1)	(2)	7,871	7,989
Group's share of other comprehensive income	—	—	(239)	(220)

Financial report 2020

(in thousands of USD)	Tankers Agencies (UK) Ltd (see Note 24)	TI LLC (see Note 24)	Total
Asset
	50%	50%
Non-Current assets	306	—	303,343
of which vessel	—	—	300,058
Current Assets	288	384,351	351,702
of which cash and cash equivalents	2,487	—	6,227
Non-Current Liabilities	—	204,760	111,382
of which bank loans	—	137,630	85,685
Current Liabilities	2,912	240	43,182
of which bank loans	1,774	141	28,665
Net assets (100%)	306	—	749,229
Group's share of net assets	153	—	374,615
Shareholders loans to joint venture	—	28,665	28,665
Net Carrying amount of interest in joint venture	153	28,665	403,280
Remaining shareholders loan to joint venture	—	—	28,665
Revenue	306	—	749,229
Depreciations and amortization	(71)	—	(36,213)
Interest expense	(2,571)	—	(10,161)
Income tax expense	(216)	—	(3,412)
Profit (loss) for the period (100%)	352	10	32,074
Other comprehensive income (100%)	—	—	(918)
Group's share of profit (loss) for the period	176	5	16,037
Group's share of other comprehensive income	—	—	(459)

Financial report 2020

Asset (in thousands of USD)	Kingswood Co.
At December 31, 2018
Percentage ownership interest	50%
Non-Current assets	522
of which vessel	—
Current Assets	—
of which cash and cash equivalents	—
Non-Current Liabilities	—
of which bank loans	—
Current Liabilities	6
of which bank loans	—
Net assets (100%)	516
Group's share of net assets	258
Shareholders loans to joint venture	—
Net Carrying amount of interest in joint venture	258
Remaining shareholders loan to joint venture	—
Revenue	—
Depreciations and amortization	—
Interest expense	—
Income tax expense	—
Profit (loss) for the period (100%)	(2)
Other comprehensive income (100%)	—
Group's share of profit (loss) for the period	(1)
Group's share of other comprehensive income	—

TI LLC (see Note 24)

	Kingswood Co. Ltd	Seven Seas Shipping Ltd	TI Africa Ltd	TI Asia Ltd	Tankers Agencies (UK) Ltd
At December 31, 2019
Percentage ownership interest	50%	50%	50%	50%	50%
Non-Current assets	530	—	137,426	128,722	944
of which vessel	—	—	135,195	128,722	—
Current Assets	—	800	10,809	10,001	418,505
of which cash and cash equivalents	—	800	1,701	917	3,246
Non-Current Liabilities	—	525	97,514	49,026	490
of which bank loans	—	—	45,567	43,927	—
Current Liabilities	10	1	26,370	27,318	415,301
of which bank loans	—	—	24,856	23,968	135,000
Net assets (100%)	520	274	24,351	62,379	3,658
Group's share of net assets	260	137	12,175	31,189	2,227
Shareholders loans to joint venture	—	—	23,215	—	—
Net Carrying amount of interest in joint venture	260	137	12,175	31,189	2,227
Remaining shareholders loan to joint venture	—	—	23,215	—	—
Revenue	—	8	49,434	49,487	1,307,523
Depreciations and amortization	—	—	(18,209)	(17,933)	(67)
Interest expense	—	—	(4,633)	(4,482)	(3,292)
Income tax expense	—	—	(1,588)	(1,573)	(243)
Profit (loss) for the period (100%)	(3)	6	15,881	15,743	746
Other comprehensive income (100%)	—	—	(735)	(706)	—
Group's share of profit (loss) for the period	(1)	3	7,941	7,871	454
Group's share of other comprehensive income	—	—	(367)	(353)	—

	Bari Shipholding Ltd	Bastia Shipholding Ltd	Total
At December 31, 2019
Percentage ownership interest	50%	50%	50%
Non-Current assets	—	21,833	21,628
of which vessel	—	21,833	21,628
Current Assets	267	1,573	5,577
of which cash and cash equivalents	—	—	250
Non-Current Liabilities	—	18,390	18,773
of which bank loans	—	—	89,495
Current Liabilities	51	705	4,328
of which bank loans	—	—	183,824
Net assets (100%)	216	4,310	4,104
Group's share of net assets	127	2,155	2,052
Shareholders loans to joint venture	—	18,390	18,773
Net Carrying amount of interest in joint venture	127	2,155	2,052
Remaining shareholders loan to joint venture	—	18,390	18,773
Revenue	—	938	1,970
Depreciations and amortization	—	(273)	(507)
Interest expense	—	(155)	(202)
Income tax expense	—	—	—
Profit (loss) for the period (100%)	(24)	310	104
Other comprehensive income (100%)	—	—	—
Group's share of profit (loss) for the period	(14)	155	52
Group's share of other comprehensive income	—	—	—

TI LLC (see Note 24)

	Kingswood Co. Ltd	Seven Seas Shipping Ltd	TI Africa Ltd	TI Asia Ltd	Tankers Agencies (UK) Ltd
At December 31, 2020
Percentage ownership interest	50%	50%	50%	50%	50%
Non-Current assets	—	—	118,337	112,160	720
of which vessel	—	—	118,337	112,160	—
Current Assets	—	10,187	10,176	232,865
of which cash and cash equivalents	—	—	1,138	1,109	3,124
Non-Current Liabilities	—	65,355	30,652	276
of which bank loans	—	—	19,929	19,215	—
Current Liabilities	—	29,277	30,547	228,851
of which bank loans	—	—	25,886	24,961	37,500
Net assets (100%)	—	—	33,893	61,136	4,458
Group's share of net assets	—	—	16,946	30,568	2,715
Shareholders loans to joint venture	—	—	16,665	—	—
Net Carrying amount of interest in joint venture	—	—	16,946	30,568	2,715
Remaining shareholders loan to joint venture	—	—	16,665	—	—
Revenue	—	—	49,922	49,976	1,478,909
Depreciations and amortization	—	—	(16,858)	(16,562)	(56)
Interest expense	—	—	(3,358)	(3,233)	(1,651)
Income tax expense	—	—	(10,397)	(10,135)	(232)
Profit (loss) for the period (100%)	(1)	(1)	9,549	9,855	800
Other comprehensive income (100%)	—	—	(1)	(3)	—
Group's share of profit (loss) for the period	—	—	4,775	4,927	487
Group's share of other comprehensive income	—	—	—	(1)	—

	Bari Shipholding Ltd	Bastia Shipholding Ltd	Total
At December 31, 2020
Percentage ownership interest	50%	50%	50%
Non-Current assets	—	20,079	—
of which vessel	—	20,079	—
Current Assets	243	2,609	514
of which cash and cash equivalents	—	—	250
Non-Current Liabilities	—	17,271	—
of which bank loans	—	—	89,495
Current Liabilities	61	2,856	345
of which bank loans	—	—	183,824
Net assets (100%)	182	2,562	170
Group's share of net assets	107	1,281	85
Shareholders loans to joint venture	—	17,271	—
Net Carrying amount of interest in joint venture	107	1,281	85
Remaining shareholders loan to joint venture	—	17,271	—
Revenue	—	12,288	14,131
Depreciations and amortization	—	(4,257)	(2,871)
Interest expense	—	(1,834)	(1,251)
Income tax expense	—	—	—
Profit (loss) for the period (100%)	(34)	(1,748)	3,246
Other comprehensive income (100%)	—	(4)	—
Group's share of profit (loss) for the period	(20)	(874)	1,623
Group's share of other comprehensive income	—	—	—

Loans and borrowings

On March 29, 2018, TI Asia Ltd. and TI Africa Ltd. entered into a USD 220.0 million senior secured credit facility. The facility consists of a term loan of USD 110.0 million and a revolving loan of USD 110.0 million for the purpose of refinancing the two FSOs as well as for general corporate purposes. The Company provided a guarantee for the revolving credit facility tranche. The fair value of this guarantee is not significant given the long term contract both FSOs have with North Oil Company until mid 2032, which results in sufficient repayment capacity under these facilities. Transaction costs for a total amount of USD 2.2 million are amortized over the lifetime of the instrument using the effective interest rate method. As of December 31, 2020 the outstanding balance on this facility was USD 90.4 million in aggregate. All bank loans in the joint ventures are secured by the underlying FSO and subject to specific covenants.

The following table summarizes the terms and debt repayment profile of the bank loans held by the joint ventures:

(in thousands of USD)

	December 31, 2020	December 31, 2019
	Facility size	Drawn
TI Asia Ltd revolving loan 54M*	22,179	22,179
USD libor +2.0% 2022
TI Asia Ltd loan 54M*	22,179	22,179
USD libor +2.0% 2022
TI Africa Ltd revolving loan 56M*	23,001	23,001
USD libor +2.0% 2022
TI Africa Ltd loan 56M*	23,001	23,001
USD libor +2.0% 2022
Total interest-bearing bank loans	90,360	90,360

• The mentioned secured bank loans are subject to loan covenants.

Loan covenant

As of December 31, 2020, all joint ventures were in compliance with the covenants, as applicable, of their respective loans.

Interest rate swaps

In 2018, TI Asia and TI Africa entered in several Interest Rate Swap (IRSs) instruments for a combined notional value of USD 208.8 million (Euronav’s share amounts to 50%) in connection to the USD 220.0 million facility. These IRSs are used to hedge the risk related to the fluctuation of the Libor rate and qualify as hedging instruments in a cash flow hedge relationship under IFRS 9. These instruments are measured at their fair value; effective changes in fair value have been recognized in OCI and the ineffective portion has been recognized in profit or loss. These IRSs have a remaining duration between one and two years matching the repayment profile of that facility and mature on July 21, 2022 and September 22, 2022 for FSO Asia and FSO Africa respectively (see Note 14).

Vessels

On November 19, 2019, the group entered into a joint venture together with affiliates of Ridgebury Tankers and clients of Tufton Oceanic. Each 50%-50% joint venture company has acquired one Suezmax vessel. The joint ventures have acquired two Suezmax tankers (Bari & Bastia) for a total consideration of USD 40.6 million. The vessel Bastia was sold on September 15, 2020 for a net sale price of USD 20.1 million. The Company recorded a capital gain of USD 0.8 million in the third quarter of 2020 upon delivery to its new owner on September 30, 2020. There were no capital commitments as of December 31, 2020, December 31, 2019 and December 31, 2018.

Cash and cash equivalents

(in thousands of USD)

	2020	2019
Cash and cash equivalents of the joint ventures	7,137	6,913
Group's share of cash and cash equivalents	3,912	3,814

Services

The Group entered into an agreement with its joint venture to manage commercially both vessels by the Group's chartering desk. Furthermore the Group also entered into an agreement to render accounting, commercial assistance and administrative services. In 2020 the Group invoiced a total amount of USD 667,500 (2019: USD 18,222). Furthermore, the joint venture entered into an agreement with the Group to invoice us management fees to do the follow-up of the external shipmanagement. In 2020, the joint-venture invoiced the Group USD 453,600. (2019: USD 40,050).

Note 27 - Major exchange rates

The following major exchange rates have been used in preparing the consolidated financial statements:

	December 31, 2020	December 31, 2019	December 31, 2018	2020	2019	2018
closing rates
1 XXX = x,xxxx USD
EUR	1.2271	1.1234	1.1450	1.1384	1.1213	1.1838
GBP	1.3649	1.3204	1.2800	1.2860	1.2755	1.3374
average rates

Note 28 - Audit fees

The audit fees for the Group amounted to USD 0.9 million (2019: USD 0.9 million and 2018: USD 0.9 million). During the year the statutory auditor and persons professionally related to him performed additional audit related services amounting to USD 0.1 million (2019: USD 0.1 million and 2018: USD 0.4 million) and tax services for fees of USD 0.0 million (2019: USD 0.0 million and 2018: 0.0 million).

Note 30 - Statement on the true and fair view of the consolidated financial statements and the fair overview of the management report

Mr. Carl Steen, Chairman of the Supervisory Board, Mr. Hugo De Stoop, CEO and Mrs. Lieve Logghe, CFO, hereby certify that, to the best of their knowledge, (a) the consolidated financial statements as of and for the year ended December 31, 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and results of Euronav NV and the entities included in the consolidation, and (b) the annual report includes a true and fair view of the evolution of the activities, results and situation of Euronav NV and the entities included in the consolidation, and contains a description of the main risks and uncertainties they may face.

Note 29 - Subsequent events

In January 2021, Euronav took delivery of the first two of four newbuildings, Delos (2021 – 300,200 dwt) and Diodorus (2021 – 300,200 dwt), which have been purchased in February 2020. In February 2021, Euronav took delivery of the third newbuilding, Doris (2021 – 300,200 dwt) and in March 2021, Euronav took delivery of the fourth newbuilding, Dickens (2021 – 300,200 dwt). On February 3, 2021, Euronav announced it has entered into an agreement for the acquisition through resale of two eco-Suezmax newbuilding contracts.# Financial report 2020

Currently completing construction at the Daehan Shipyard in South Korea, these modern vessels are being acquired for an en-bloc price of USD 113 million. Both vessels are due for delivery in January 2022. The vessels are the latest generation of Suezmax Eco-type tankers. They will be fitted with Exhaust Gas Scrubber technology and Ballast Water Treatment systems. The vessels have the structural notation to be LNG Ready. Euronav is working closely with the shipyard to also have the structural notation to be Ammonia Ready. This provides the option to switch to other fuels at a later stage.

On February 23, 2021, Euronav announced that it has entered into a sale and leaseback agreement for the VLCC Newton (2009 – 307,284) with Taiping & Sinopec Financial Leasing Ltd Co. The vessel was sold for USD 36 million. The Company will record a capital gain of approximately USD 1.2 million in the first quarter of 2021 upon delivery to their new owners on February 22, 2021. Euronav has leased back the vessel under a 36-months bareboat contract at an average rate of USD 22,500 per day. At the end of the bareboat contract, the vessel will be redelivered to its owners.

Euronav NV Statutory Accounts 2020

ASSETS (in USD)

	December 31, 2020	December 31, 2019
FIXED ASSETS	3,062,083,687	3,142,166,044
Intangible assets	133,198	11,712
Tangible assets	2,872,085,640	2,964,057,421
Vessels	2,664,163,738	2,962,943,525
Land and buildings	-	-
Plant, machinery and equipment	-	-
Furniture and vehicles	360,981	460,744
Leasing and other similar rights	-	-
Other tangible assets	491,680	653,153
Assets under construction and advance payments	207,069,241	-
Financial assets	189,864,849	178,096,911
Enterprises accounted for using the equity method
1. Participating interests	160,030,957	151,439,957
2. Amounts receivable	16,665,303	26,656,954
Other companies
1. Participating interests	-	-
2. Amounts receivable	-	-
Other financial assets
1. Shares	-	-
2. Amounts receivable and cash guarantees	13,168,589	-
CURRENT ASSETS	483,297,379	743,728,624
Amounts receivable after one year	1,085,847	1,246,092
Trade debtors	-	-
Other amounts receivable	1,085,847	1,246,092
Stocks and contracts in progress	75,779,873	183,381,750
Stocks
4. Goods purchased	75,779,873	183,381,750
Write Off Goods Purchased	-	-
Amounts receivable within one year	181,746,212	269,102,168
Trade debtors	177,101,521	266,795,020
Other amounts receivable	4,644,692	2,307,149
Investments	147,901,952	224,310,468
Own shares	147,901,952	41,810,468
Other investments and deposits	-	182,500,000
Cash at bank and in hand	56,763,968	36,489,728
Deferred charges and accrued income	20,019,527	29,198,418
TOTAL ASSETS	3,545,381,065	3,885,894,668

Financial report 2020

LIABILITIES (in USD)

	December 31, 2020	December 31, 2019
CAPITAL AND RESERVES	2,381,081,656	2,224,154,312
Capital	239,147,506	239,147,506
Issued capital	239,147,506	239,147,506
Share premium account	1,702,549,244	1,702,549,244
Revaluation Surpluses	-	-
Reserves	233,360,378	114,872,636
Legal reserve	23,914,751	23,914,751
Reserves not available for distribution
1. Own shares	147,901,952	41,810,468
2. Other	500,969	500,969
Untaxed reserves	48,646,447	48,646,447
Reserves available for distribution	12,396,259	-
Result carried forward	206,024,528	167,584,927
PROVISIONS FOR LIABILITIES AND CHARGES	2,507,737	4,305,945
Provisions and deferred taxes	2,507,737	4,305,945
Provisions for liabilities and charges
3. Major repairs and maintenance	-	-
4. Other liabilities and charges	2,507,737	4,305,945
CREDITORS	1,161,791,672	1,657,434,411
Amounts payable after one year	1,033,792,110	1,342,316,756
Financial debts
2. Unsubordinated debentures	-	-
3. Leasing and other similar obligations	-	-
4. Credit institutions	856,292,110	1,191,316,756
5. Convertible loans	-	-
6. Other amounts payable	177,500,000	151,000,000
Trade Debts
1. Suppliers	-	-
Other amounts payable	-	-
Amounts payable within one year	110,592,324	293,258,708
Current portion of amounts payable after one year	20,542,243	49,507,050
Financial debts
1. Credit institutions	38,653,650	122,787,620
Trade debts
1. Suppliers	35,948,752	50,720,884
Advances received on contracts in progress	-	-
Taxes, remuneration and social security
1. Taxes	171,407	89,188
2. Remuneration and social security	3,286,834	1,650,932
Other amounts payable	11,989,438	68,503,034
Accrued charges and deferred income	17,407,238	21,858,947
TOTAL LIABILITIES	3,545,381,065	3,885,894,668

INCOME STATEMENT OF EURONAV NV (in USD)

	December 31, 2020	December 31, 2019
Operating income	1,285,506,130	989,058,276
Turnover	1,230,203,874	930,731,822
Other operating income	28,174,307	29,662,812
Non-recurring Operating Income	27,127,949	28,663,642
Operating charges	759,874,777	779,732,286
Services and other goods	487,316,174	474,791,745
Remuneration, social security costs and pensions	9,774,522	15,207,434
Depreciation of and other amounts written off formation expenses, intangible and tangible fixed assets	263,482,496	285,315,926
Increase (+) in amounts written off stocks, contracts in progress and trade debtors	1,009,001	-
Decrease (-) in amounts written off stocks, contracts in progress and trade debtors	-	-
Increase (+) in provisions for liabilities and charges	-	2,859,551
Decrease (-) in provisions for liabilities and charges	(1,798,208)	(990,709)
Other operating charges	90,791	406,671
Non-recurring Operating Charges	-	2,141,668
Operating result	525,631,353	209,325,990
Financial income	17,737,332	129,628,581
Recurring Finanacial Income	17,737,332	32,121,767
Income from financial fixed assets	-	15,102,503
Income from current assets	3,530,774	4,836,664
Other financial income	14,206,559	12,182,599
Non-recurring Financial Income	-	97,506,815
Financial charges	87,483,993	110,559,420
Recurring Finanacial Charges	87,483,993	109,046,337
Interest and other debt charges	42,546,181	75,013,401
Amounts written down current assets excl trade debts, stocks	12,396,259	(2,028,974)
Other financial charges	32,541,553	36,061,910
Non-recurring Financial Charges	-	1,513,083
Profit for the year before taxes	455,884,693	228,395,151
Transfer from deferred taxes	-	-
Transfer to deferred taxes	-	-
Income taxes	3,227,730	2,281,505
Taxes	3,227,730	2,283,301
Adjustment of income taxes and write-back of tax provisions	0	1,796
Profit for the year	452,656,963	226,113,646
Transfer from Untaxed Reserves	-	-
Transfer to Untaxed Reserves	-	-
Profit for the year	452,656,963	226,113,646

Financial report 2020

In the context of the statutory audit of the consolidated financial statements of Euronav NV (“the Company”) and its subsidiaries (jointly “the Group”), we provide you with our statutory auditor’s report. This includes our report on the consolidated financial statements for the year ended December 31, 2020, as well as other legal and regulatory requirements. Our report is one and indivisible. We were appointed as statutory auditor by the general meeting of May 20, 2020, in accordance with the proposal of the supervisory board issued on the recommendation of the audit and risk committee. Our mandate will expire on the date of the general meeting deliberating on the annual accounts for the year ending December 31, 2022. We have performed the statutory audit of the consolidated financial statements of the Group for 17 consecutive financial years.

Report on the consolidated financial statements

Unqualified opinion

We have audited the consolidated financial statements of the Group as of and for the year ended December 31, 2020, prepared in accordance with International Financial Reporting Standards as adopted by the European Union, and with the legal and regulatory requirements applicable in Belgium. These consolidated financial statements comprise the consolidated statement of financial position as of December 31, 2020, the consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the year then ended and notes, comprising a summary of significant accounting policies and other explanatory information. The total of the consolidated statement of financial position amounts to USD’000 3,687,239 and the consolidated statement of profit or loss shows a profit for the year of USD’000 473,238. In our opinion, the consolidated financial statements give a true and fair view of the Group’s equity and financial position as of December 31, 2020 and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union, and with the legal and regulatory requirements applicable in Belgium.

Basis for our unqualified opinion

We conducted our audit in accordance with International Standards on Auditing (“ISAs”) as adopted in Belgium. In addition, we have applied the ISAs as issued by the IAASB and applicable for the current accounting year while these have not been adopted in Belgium yet. Our responsibilities under those standards are further described in the “Statutory auditors’ responsibility for the audit of the consolidated financial statements” section of our report. We have complied with the ethical requirements that are relevant to our audit of the consolidated financial statements in Belgium, including the independence requirements. We have obtained from the supervisory board and the Company’s officials the explanations and information necessary for performing our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matter

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.# Assessment of impairment indicators and carrying value for vessels in the Tankers segment

As discussed in Note 2 to the consolidated financial statements, the net carrying value of vessels in the Tankers segment (vessels and vessels in assets under construction and in right of use assets) as of December 31, 2020 was USD 3.1 billion, representing 85% of the Group’s total assets. As discussed in Note 1 and Note 8, at each reporting date, the Group evaluates the carrying value of vessels for impairment at the level of the cash generating unit (CGU), by identifying events or changes in circumstances that indicate the carrying value of these CGUs may not be recoverable. The Group identified two impairment indicators for its CGU’s included in the Tankers segment: (1) the significant drop in market rates and (2) the very low share price of the Group. The Group subsequently performed its annual impairment tests for each CGU in its Tankers segment, considering management’s estimates and assumptions such as vessel values, expected future charter rates, earnings from the vessels, forecasted vessel operating expenses, weighted average cost of capital (WACC) and economic life of vessels. The Group concluded that the recoverable amount (value in use - VIU) of each defined CGU in its Tankers segment exceeded the CGU’s carrying value as of December 31, 2020 and consequently, that no impairment loss needed to be recorded as of December 31, 2020.

We identified the assessment of impairment indicators and carrying value of vessels included in the Tankers segment as a key audit matter. The Group's evaluation of the existence of impairment indicators considers both internal and external data, such as vessel and crude oil supply and demand trends, and changes in the extent and manner in which vessels are expected to be used. The assessment of the impact of these indicators on each CGU requires a high degree of auditor judgment. This is due to the existence of unobservable information and the unpredictability of global macroeconomic and geopolitical conditions affecting freight rates over the CGU’s useful life. There is also a high degree of auditor judgment involved in evaluating certain key assumptions such as the WACC, expected future Statutory auditor’s report to the general meeting of Euronav NV on the consolidated financial statements as of and for the year ended December 31, 2020 105 Financial report 2020  charter rates and forecasted vessel operating expenses applied in determining the VIU of the vessels.

The following are the primary procedures we performed to address this key audit matter:

• We evaluated the design and tested the operating effectiveness of certain internal controls related to the vessel impairment process. This included controls related to the assessment of the impact of internal and external impairment indicators, such as vessel and crude oil supply and demand trends and changes in the extent and manner in which vessels are expected to be used. This also included controls related to certain key assumptions used by management in determining the VIU of the vessels, such as the WACC, expected future charter rates and forecasted vessel operating expenses;
• We evaluated the information and assumptions used by the Group in its assessment of the existence of impairment indicators by comparing information such as vessel and crude oil supply and demand trends, and changes in the extent and manner in which vessels are expected to be used, to historical information, external third-party information such as brokers’ reports and other industry data as well as to internal data;
• We evaluated the Group’s VIU calculations for each CGU included in the Tankers segment by comparing the assumptions used by the Group with our knowledge of the Group’s business and the industry in which it operates, the Group’s future, current and historical charter rates and vessel operating expenses, third-party industry publications for conventional tankers with similar characteristics and other available observable market information;
• We evaluated the recoverability of the carrying value of each CGU in the Tankers segment by comparing to the average value of two independent broker values;
• We performed a retrospective comparison of historical expected charter rates and vessel operating expenses used in the Group’s VIU calculations to actual charter rates and vessel operating expenses incurred by the Group in prior years;
• We involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the reasonableness of the WACC by developing a range of rates and comparing this to the WACC used by the Group; and
• We performed sensitivity analyses on the WACC and the future charter rates used by the Group to assess the impact of changes to the assumptions, and assess whether there were any indications of management bias in the selection of these assumptions.

Supervisory board’s responsibilities for the preparation of the consolidated financial statements

The supervisory board is responsible for the preparation of these consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union, and with the legal and regulatory requirements applicable in Belgium, and for such internal control as the supervisory board determines, is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the supervisory board is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the supervisory board either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Statutory auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance as to whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of the users taken on the basis of these consolidated financial statements.

When performing our audit we comply with the legal, regulatory and professional requirements applicable to audits of the consolidated financial statements in Belgium. The scope of the statutory audit of the consolidated financial statements does not extend to providing assurance on the future viability of the Group nor on the efficiency or effectivity of how the supervisory board has conducted or will conduct the business of the Group. Our responsibilities regarding the going concern basis of accounting applied by the supervisory board are described below.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also perform the following procedures:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the supervisory board;
• Conclude on the appropriateness of the supervisory board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as Financial report 2020  106
• a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern;
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation;
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with the audit and risk committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the audit and risk committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. For the matters communicated with the audit and risk committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter.

Other legal and regulatory requirements

Responsibilities of the supervisory board

The supervisory board is responsible for the preparation and the content of the supervisory board’s annual report on the consolidated financial statements and the other information included in the annual report.

Statutory auditor’s responsibilities

In the context of our engagement and in accordance with the Belgian standard which is complementary to the International Standards on Auditing as applicable in Belgium, our responsibility is to verify, in all material respects, the supervisory board’s annual report on the consolidated financial statements and the other information included in the annual report, and to report on these matters.

Aspects concerning the supervisory board’s annual report on the consolidated financial statements and other information included in the annual report

Based on specific work performed on the supervisory board’s annual report on the consolidated financial statements, we are of the opinion that this report is consistent with the consolidated financial statements for the same period and has been prepared in accordance with article 3:32 of the Companies’ and Associations’ Code.

In the context of our audit of the consolidated financial statements, we are also responsible for considering, in particular based on the knowledge gained throughout the audit, whether the supervisory board’s annual report on the consolidated financial statements and other information included in the annual report:

• Shareholder letter, Quick facts, Highlights and Special report; and
• Activity report;

contains material misstatements, that is information incorrectly stated or misleading. In the context of the procedures carried out, we did not identify any material misstatements that we have to report to you.

Information about the independence

• Our audit firm and our network have not performed any engagement which is incompatible with the statutory audit of the consolidated accounts and our audit firm remained independent of the Group during the term of our mandate.
• The fees for the additional engagements which are compatible with the statutory audit referred to in article 3:65 of the Companies’ and Associations’ Code were correctly stated and disclosed in the notes to the consolidated financial statements.

Other aspect

• This report is consistent with our additional report to the audit committee on the basis of Article 11 of Regulation (EU) No 537/2014.

Antwerp, April 15, 2021

KPMG Bedrijfsrevisoren BV - Réviseurs d’Entreprises SRL

Statutory Auditor represented by Herwig Carmans

Bedrijfsrevisor / Réviseur d’Entreprises

This report can be downloaded on our website: www.euronav.com

Registered office
De Gerlachekaai 20
B-2000 Antwerp - Belgium
tel. + 32 3 247 44 11
fax + 32 3 247 44 09
e-mail admin@euronav.com
website www.euronav.com

Responsible editor
Lieve Logghe
De Gerlachekaai 20
B-2000 Antwerp - Belgium

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