Tanker operator Euronav files for a $100 million US IPO

Euronav, a Belgian shipping company with 50 oil tankers, filed on Thursday with the SEC to raise up to $100 million in an initial public offering. The company is currently traded on the NYSE Euronext Brussels under the symbol EURN.

Euronav 27 very large crude carriers (VLCCs), 1 ultra large crude carrier, 23 Suezmax vessels and 2 floating, storage and offloading vessels. Its tankers have an aggregate carrying capacity of about 13.3 million deadweight tons and an average age of 6.8 years. In July, the company agreed to purchase four VLCCs from Maersk Tankers for $342 million. It currently charters its vessels to major energy companies including Chevron, Maersk Oil, Total and Valero.

Primary shareholders include Chairman Peter Livanos, CEO Mark Saverys, York Capital Management, Blue Mountain Capital Management, Victrix and Golden Tree Asset Management. 

Revenue increased 31% to $201 million for the six months ended June 30, 2014 as the company acquired vessels. Its EBITDA rose 39% to $101 million (50% margin). Operating income swung positive to $908,000 from -23 million and net income narrowed to a $21 million loss from -$39 million. Adjusting for its Maersk acquisition, Euronav had $1.5 billion of debt at quarter end ($1.3 billion actual, 7.5x LTM adjusted EBITDA).

The Antwerpen, Belgium-based company, which was founded in 2003 and booked $352 million in sales for the 12 months ended June 30, 2014, plans to list on the NYSE under the symbol EURN. It initially filed confidentially on April 29, 2014. Deutsche Bank, Citi, J.P. Morgan and Morgan Stanley are the joint bookrunners on the deal. No pricing terms were disclosed.