Equity-accounted investees

12 Months Ended

Dec. 31, 2021

Interests in Other Entities [Abstract]

Equity-accounted investees

Equity-accounted investees

(in thousands of USD)	December 31, 2021	December 31, 2020
Assets
Interest in joint ventures	72,446	51,703
Interest in associates	—	—
TOTAL ASSETS	72,446	51,703
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:

	ASSET
(in thousands of USD)	Investments in equity accounted investees	Shareholders loans
Gross balance	43,182	28,666
Offset investment with shareholders loan	—	—
Balance at January 1, 2019	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

	ASSET
(in thousands of USD)	Investments in equity accounted investees	Shareholders loans
Group's share of profit (loss) for the period	22,976	—
Group's share of other comprehensive income	951	—
Dividends received from joint ventures	(4,635)	—
Movement shareholders loans to joint ventures	—	(2,242)
Gross balance	70,995	31,694
Offset investment with shareholders loan	1,451	(1,451)
Balance at December 31, 2021	72,446	30,242

The increase in the balance of the shareholders' loan to joint ventures in 2019 is attributable to the shareholders loans to newly set-up joint ventures Bari Shipholding Ltd. and Bastia Shipholding Ltd.

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.

The increase in investments in equity accounted investees at December 31, 2021 is mainly due to a decrease in the depreciation and amortization cost for TI Asia and TI Africa and a decrease in income tax expenses for the two joint ventures compared to the period ended December 31, 2020.

Joint venture	Segment	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		Tankers Agencies (UK) Ltd (see Note 24)		TI LLC (see Note 24)		Bari Shipholding Ltd		Bastia Shipholding Ltd		Total
At December 31, 2019
Percentage ownership interest	50	%	50	%	50	%	50	%	50	%	50	%	50	%	50	%
Non-Current assets	530		—		137,426		128,722		944		—		21,833		21,628		311,083
of which vessel	—		—		135,195		128,722		—		—		21,833		21,628		307,377
Current Assets	—		800		10,809		10,001		418,505		267		1,573		5,577		447,531
of which cash and cash equivalents	—		800		1,701		917		3,246		—		—		250		6,913
Non-Current Liabilities	—		525		97,514		49,026		490		—		18,390		18,773		184,718
of which bank loans	—		—		45,567		43,927		—		—		—		—		89,495
Current Liabilities	10		1		26,370		27,318		415,301		51		705		4,328		474,085
of which bank loans	—		—		24,856		23,968		135,000		—		—		—		183,824
Net assets (100%)	520		274		24,351		62,379		3,658		216		4,310		4,104		99,811
Group's share of net assets	260		137		12,175		31,189		2,227		127		2,155		2,052		50,322
Shareholders loans to joint venture	—		—		23,215		—		—		—		18,390		18,773		60,379
Net Carrying amount of interest in joint venture	260		137		12,175		31,189		2,227		127		2,155		2,052		50,322
Remaining shareholders loan to joint venture	—		—		23,215		—		—		—		18,390		18,773		60,379
Revenue	—		8		49,434		49,487		1,307,523		—		938		1,970		1,409,360
Depreciations and amortization	—		—		(18,209)		(17,933)		(67)		—		(273)		(507)		(36,988)
Interest Expense	—		—		(4,633)		(4,482)		(3,292)		—		(155)		(202)		(12,764)
Income tax expense	—		—		(1,588)		(1,573)		(243)		—		—		—		(3,405)
Profit (loss) for the period (100%)	(3)		6		15,881		15,743		746		(24)		310		104		32,763
Other comprehensive income (100%)	—		—		(735)		(706)		—		—		—		—		(1,441)
Group's share of profit (loss) for the period	(1)		3		7,941		7,871		454		(14)		155		52		16,460
Group's share of other comprehensive income	—		—		(367)		(353)		—		—		—		—		(720)

Asset

(in thousands of USD)	Kingswood Co. Ltd		Seven Seas Shipping Ltd		TI Africa Ltd		TI Asia Ltd		Tankers Agencies (UK) Ltd (see Note 24)		TI LLC (see Note 24)		Bari Shipholding Ltd		Bastia Shipholding Ltd		Total
At December 31, 2020
Percentage ownership interest	50	%	50	%	50	%	50	%	50	%	50	%	50	%	50	%
Non-Current assets	—		—		118,337		112,160		720		—		20,079		—		251,296
of which vessel	—		—		118,337		112,160		—		—		20,079		—		250,576
Current Assets	—				10,187		10,176		232,865		243		2,609		514		256,595
of which cash and cash equivalents	—		—		1,138		1,109		3,124		—		1,573		193		7,137
Non-Current Liabilities	—				65,355		30,652		276		—		17,271		—		113,554
of which bank loans	—		—		19,929		19,215		—		—		—		—		39,144
Current Liabilities	—				29,277		30,547		228,851		61		2,856		345		291,937
of which bank loans	—		—		25,886		24,961		37,500		—		—		—		88,347
Net assets (100%)	—		—		33,893		61,136		4,458		182		2,562		170		102,401
Group's share of net assets	—		—		16,946		30,568		2,715		107		1,281		85		51,703
Shareholders loans to joint venture	—		—		16,665		—		—		—		17,271		—		33,936
Net Carrying amount of interest in joint venture	—		—		16,946		30,568		2,715		107		1,281		85		51,703
Remaining shareholders loan to joint venture	—		—		16,665		—		—		—		17,271		—		33,936
Revenue	—		—		49,922		49,976		1,478,909		—		12,288		14,131		1,605,227
Depreciations and amortization	—		—		(16,858)		(16,562)		(56)		—		(4,257)		(2,871)		(40,604)
Interest expense	—		—		(3,358)		(3,233)		(1,651)		—		(1,834)		(1,251)		(11,327)
Income tax expense	—		—		(10,397)		(10,135)		(232)		—		—		—		(20,764)
Profit (loss) for the period (100%)	(1)		(1)		9,549		9,855		800		(34)		(1,748)		3,246		21,666
Other comprehensive income (100%)	—		—		(1)		(3)		—		—		—		—		(4)
Group's share of profit (loss) for the period	—		—		4,775		4,927		487		(20)		(874)		1,623		10,917
Group's share of other comprehensive income	—		—		—		(1)		—		—		—		—		(2)

	Asset
(in thousands of USD)	TI Africa Ltd		TI Asia Ltd		Tankers Agencies (UK) Ltd (see Note 24)		TI LLC (see Note 24)		Bari Shipholding Ltd		Bastia Shipholding Ltd		Total
At December 31, 2021
Percentage ownership interest	50	%	50	%	50	%	50	%	50	%	50	%
Non-Current assets	108,245		102,454		503		—		15,210		—		226,413
of which vessel	108,245		102,454		—		—		15,210		—		225,910
Current Assets	10,883		10,073		295,289		231		6,582		403		323,461
of which cash and cash equivalents	1,799		984		4,059		—		17		320		7,179
Non Current Liabilities	33,755		10,245		66		—		20,228		—		64,295
of which bank loans	—		—		—		—		—		—		—
Current Liabilities	25,153		24,305		290,626		68		4,466		112		344,731
of which bank loans	20,075		19,361		51,500		—		—		—		90,937
Net assets (100%)	60,221		77,977		5,100		163		(2,903)		290		140,848
Group's share of net assets	30,110		38,988		3,106		96		(1,451)		145		70,995
Shareholders loans to joint venture	11,465		—		—		—		20,228		—		31,694
Net Carrying amount of interest in joint venture	30,110		38,988		3,106		96		—		145		72,446
Remaining shareholders loan to joint venture	11,465		—		—		—		18,777		—		30,242
Revenue	50,105		50,160		649,665		—		11,872		—		761,801
Depreciations and amortization	(10,092)		(9,706)		(39)		—		(4,869)		—		(24,706)
Interest expense	(2,005)		(1,943)		(1,054)		—		(1,932)		(1)		(6,934)
Income tax expense	(2,646)		(2,626)		(141)		—		—		—		(5,413)
Profit (loss) for the period (100%)	25,357		25,180		642		(19)		(5,464)		121		45,816
Other comprehensive income (100%)	971		930		—		—		—		—		1,902
Group's share of profit (loss) for the period	12,678		12,590		391		(11)		(2,732)		60		22,976
Group's share of other comprehensive income	486		465		—		—		—		—		951

Loans and borrowings

On March 29, 2018, TI Asia Ltd. and TI Africa Ltd. entered into a $220.0 million senior secured credit facility. The facility consists of a term loan of $110.0 million and a revolving loan of $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 $2.2 million are amortized over the lifetime of the instrument using the effective interest rate method. As of December 31, 2021 the outstanding balance on this facility was $39.5 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, 2021			December 31, 2020
	Curr.	Nominal interest rate	Year of mat.	Facility size	Drawn	Carrying value	Facility size	Drawn	Carrying value
TI Asia Ltd revolving loan 54M*	USD	libor + 2.0%	2022	9,699	9,699	9,681	22,179	22,179	22,088
TI Asia Ltd loan 54M*	USD	libor + 2.0%	2022	9,699	9,699	9,681	22,179	22,179	22,088
TI Africa Ltd revolving loan 56M*	USD	libor + 2.0%	2022	10,058	10,058	10,038	23,001	23,001	22,908
TI Africa Ltd loan 56M*	USD	libor + 2.0%	2022	10,058	10,058	10,038	23,001	23,001	22,908
Total interest-bearing bank loans				39,513	39,513	39,437	90,360	90,360	89,991

* The mentioned secured bank loans are subject to loan covenants.

Loan covenant

As of December 31, 2021, 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 $208.8 million (Euronav’s share amounts to 50%) in connection to the $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 of less than one year 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 $40.6 million. The vessel

Bastia was sold on September 15, 2020 for a net sale price of $20.1 million. The Company recorded a capital gain of $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, 2021, December 31, 2020 and December 31, 2019.

Cash and cash equivalents

(in thousands of USD)	2021	2020
Cash and cash equivalents of the joint ventures	7,179	7,137
Group's share of cash and cash equivalents	4,036	3,912

Services

The Group entered into an agreement with its joint venture to manage commercially both vessels (Bari and Bastia) from the Group's chartering desk. Furthermore, the Group also entered into an agreement to render accounting, assistance and administrative services to these JVs. In 2021 the Group invoiced a total amount of $285,476 (2020: $667,500).

Furthermore, the joint venture entered into an agreement with the Group to invoice us management fees to do the supervision of the external shipmanagement. In 2021, the joint-venture Bari Shipholding Ltd. invoiced the Group $163,000 (2020: $453,600).