Bosses at Belgian tanker giant Euronav expect to be able to say more about its future direction following its annual general meeting (AGM) on 17 May.
Investors will vote on two new independent directors up for election, replacing current directors Anita Odedra and Carl Trowell, whose terms are expiring.
The board make-up will then be set for two years following recent upheavals surrounding the failed merger with John Fredriksen’s Frontline.
Fredriksen and the other major shareholder, the Saverys family, have two director representatives each after a special meeting in March.
Chief executive Hugo de Stoop told a conference call there would be “a lot of stability, but also clarity” after the meeting.
He said the company is not currently examining any merger or acquisition deals.
“We were obviously very busy last year but unfortunately we were not able to conclude,” De Stoop added.
“Going forward, we need to be a little bit more patient and I’m sure that we will be able to clarify the longer-term strategy of the company in the coming weeks or months,” he said.
The CEO also told the call: “You can already see the company is doing very well.”
He explained that capital returns to shareholders are are very strong. “We will continue to be very, very generous,” De Stoop said.
Three ways forward?
The new board candidates are Julie De Nul, chief executive of Belgian offshore shipping group Jan De Nul’s dredging subsidiary, and Norwegian investor Ole Henrik Bjorge.
BTIG analyst Greg Lewis and his team believes that, with Fredriksen having increased his stake to 26% in recent weeks, “we would not be surprised to see Frontline make another offer for Euronav."
The Saverys family, with 25%, has made clear its long term vision for the company is as a leader in green shipping.
BTIG views Euronav as already a global leader in the ongoing race to reduce emissions in shipping through its order of ammonia-ready newbuildings.
The investment bank sees three paths forwards, the most beneficial to shareholders being an acquisition by Frontline.
Then there is a “carve-out” by the Saverys group of a portion of the fleet and the company retaining the listing in Belgium — another win for Euronav shareholders.
The final option is a carve-out by the Fredriksen group, which is less positive for investors, BTIG believes.
“The worst case scenario would be more gridlock with no deal which probably results in investors rotating to other tanker names,” the analysts said.
