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Analyze The Financial Risk In The Financial Management of Euronav

I'm trying to canalize the annual report for the company Euronav. I will upload the financial report and annual report. i'm trying to answer these questions in a discussion format. so i need to see how you get the numbers for ratio and the analysis behind it, and what does the ratio tell about the financial position for Euronav.

Also this is not an essay so please do not add an introduction and just start with answer directly

The purpose of this assignment is to analyse the financial risk in the financial management of Euronav. Your analysis should be primarily qualitative but should use ratio, cash flow and market and peer information to support your analysis.

Debt Service Capability
Can the company afford the level of debt that it currently has: Can it meet its interest and debt repayment (debt service) obligations from the cash it generates internally? Assess what payments are expected to be non-discretionary apart from interest and taxes:
• Capital expenditure: Assess the level of capex required to maintain the asset base, reasoning behind it
• Dividend: What is the company's expected dividend policy?

Assess historical debt servicing capability by using for example: EBITDA/ Gross interest+ rents, EBIT(DA) / interest, Debt service coverage ratio, Debt service + Dividend coverage ratio, Years to repay)?

Based on the present value of future cash flow available for debt service (‘debt capacity’) are lenders relying on cash flow, or other sources of repayment such as refinancing, asset sales or third-party support? To what degree?

Is profitability and cash flow generation potentially exposed to changes in foreign currency rates? Does the company hedge its exposures? If so are these effectively hedged? What is the currency of the debt? Does the company have cash flow earnings or assets in that currency? Is there a potential mismatch? Is there a chance that FX exposure might impair the company’s ability to service its debts?

Analyze The Financial Risk In The Financial Management of Euronav

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