CMB.TECH NV’s 2025 Earnings Call: Fleet Sales Hesitation and Newbuilding Uncertainty Clash

Date of Call: Feb 26, 2026

Business Commentary:

Financial Performance and Deleveraging:

• CMB.TECH NV reported a net profit of $90 million for Q4, contributing to a full-year profit of $140 million, with an EBITDA of $322 million for the quarter and $943 million for the year.
• The company successfully deleveraged, repaid a bridge facility, and strengthened its balance sheet, with liquidity at $560 million.
• The deleveraging and improved financial position were achieved through strong market performance, asset sales, and effective refinancing strategies.

Dry Bulk Market and Strategic Positioning:

• The dry bulk segment, comprising 60% of the fleet's fair market value, reported strong performance with Capesize and Newcastlemax vessels achieving $35,000 and $30,000 per day in Q4, respectively.
• CMB.TECH is well-positioned with a low order book-to-fleet ratio for Capesizes and Newcastlemaxes, supporting positive market expectations for 2026.
• This positioning is attributed to strategic fleet management and favorable market conditions driven by strong demand for iron ore and bauxite.

Tanker Market and Fleet Adjustments:

• The tanker segment saw strong performance with VLCC rates reaching around $75,000 per day, supported by high demand and limited supply.
• The company sold 8 older VLCCs, reducing its fleet and securing significant capital gains, which were used to repay debt and potentially increase dividends.
• Strategic fleet adjustments were made to capitalize on favorable market conditions and enhance overall financial health.

Offshore Energy and Wind Market Opportunities:

• The offshore energy segment, particularly offshore wind, is experiencing growth with new projects in the North Sea, supporting demand for CSOVs and CTVs.
• CMB.TECH's vessels are in high demand due to their modernity and suitability for both wind and oil & gas markets.
• The company benefits from versatile fleet deployment and strong market fundamentals in offshore energy.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed optimism across multiple segments: 'We are still positive on dry bulk tankers and offshore.' 'The tanker market is still very positive.' 'We are seeing a very strong Q1.' 'We are very optimistic because our assets...can also be deployed in offshore oil and gas markets.' 'This market has a lot more in it, and we would like to let it run.'

Q&A:

• Question from Frode Morkedal (Clarksons Platou Securities AS): On this Golden Ocean bridge repayment, is it fair to assume that the strong tanker market helped you with this? And specifically, obviously, the sale of the 8 VLCCs must have been instrumental in being able to repay this way ahead of schedule, right? So that's -- and also you could just remind us the numbers we're talking about, how large was the bridge facility? And what's the net proceeds of these 8 plus 2 Capes, I guess, you sold?
  Response: The $1.3B bridge facility was repaid using ~$270M from tanker sales and operational cash, with the sale proceeds totaling ~$420M, providing opportunities for dividends, deleveraging, and bond repayment.

• Question from Frode Morkedal (Clarksons Platou Securities AS): Right. So is it still that the target is to bring down the LTV -- net LTV to around 50%? And at that point, you could...
  Response: The long-term LTV target is 50%; current LTV is ~55%, but with asset value increases, the target is achievable, and the focus is on using cash flows for dividends, deleveraging, and reducing interest costs.

• Question from Frode Morkedal (Clarksons Platou Securities AS): Right. So is it fair to assume that you would probably wait for the bond maturity or some type of refinancing before you step up the dividend payments, even if you are probably approaching 50% earlier than this, right?
  Response: The Board has demonstrated it can balance paying dividends, deleveraging, and funding newbuilds, as evidenced by the $0.16 interim dividend declaration.

• Question from Frode Morkedal (Clarksons Platou Securities AS): Great. Final question is on NAV. What do you see about investment opportunities, specifically newbuilds, I guess. For example, in tankers, I mean, I'm hearing it's starting to get tempting to start ordering VLCCs, right, because you can order at $120-something million and the prompt resale is $40 million to $50 million higher. So that type of, let's say, [ arm ] is opening up and maybe that is interesting. What's your view?
  Response: The company is not actively pursuing new tanker orders currently, preferring to enjoy the strong spot market instead, though it remains opportunistic.

• Question from Petter Haugen (ABG Sundal Collier Holding ASA): In terms of -- well, I suppose then turning through this question upside down. You still have tankers, although now it's predominantly Suezmax tankers, obviously. Would you consider to sell some of those in order to, well, do the combination of further paying down debt and dividends?
  Response: The company may consider selling older vessels if offered exceptionally high prices but sees no need, as the heavy deleveraging is largely complete and operational cash flows will manage leverage comfortably.

• Question from Petter Haugen (ABG Sundal Collier Holding ASA): Understood. And in terms of your dry bulk fleet, sort of the same question there. I suppose we've seen how the market has appreciated your -- yes, your sales and the communicated increase in dividends. So on the Capesize fleet, there are, I suppose, more opportunities still to sell older ships. But is that done now? Or is that still on the table? I know that you say that you sell at the right price. That's true to all of us, I would say. But in light of the very strong tanker market and increasingly strong dry bulk markets. I would -- well, in interpretation of your earlier statements, I would think that you were contemplating to sell more rather than the opposite.
  Response: The company believes the dry bulk market has more upside and intends to stay spot-exposed, only selling older ships at exceptional prices or fixing vessels at good long-term rates, not planning significant additional sales.

• Question from Kristof Samoy (KBC Securities NV): I have 2. One on long-term charters. You've concluded these 5-year charters for your Capesizes. Could you disclose the counterparty? And then secondly, we've also seen in the market that Vale has been ordering quite some newbuild VLOCs. Would your Newcastlemaxes have been competitive for the trade? Or were they particularly looking for 400,000 deadweight ton plus vessels for the transportation? That's the first bulk of my question.
  Response: Counterparty for the Capesize charters is confidential but is a good one. The company would not have competed for Vale's long-term low-return deals with its Newcastlemaxes, as those are typically for specialists; the company prefers spot trading with Vale.

• Question from Kristof Samoy (KBC Securities NV): And then secondly, on the U.S. Maritime Action Plan proposal. I recall when we discussed USTR and the impact or the potential impact of USTR in previous calls that you indicated that the impact would be fairly limited because you have little port calls in the U.S. Does this logic still apply to the now proposed U.S. Maritime Action Plan? Or are there like substantial differences there that you see for CMB?
  Response: It is too early to assess the impact of the new U.S. proposal; the company has limited port calls in the U.S. for its container fleet but is exempt under existing regulations.

• Question from Climent Molins (Value Investor's Edge): I wanted to follow up on Kristof's question on the Capesize charters. Could you disclose the rate on the contracts? Or is it confidential as well? And secondly, what's your current stance on potentially adding more coverage based on your forward outlook on the dry bulk side?
  Response: The charter rate is confidential but is above typical broker quotes for 5-year Capes due to the company's modern vessels. The company would actively seek more long-term coverage when markets are strong to create stable cash flows.

• Question from Climent Molins (Value Investor's Edge): Makes sense. And I also wanted to ask about the dividends on the gains on sales. I assumed a few minutes late, and you may have already touched upon this, but is it fair to assume you'll declare a dividend on that front on both Q1 and Q2 based on the reported gains?
  Response: A dividend is planned for Q1 based on the $270M profit, with the decision to be confirmed in the Q1 earnings release; future dividends will be considered quarterly based on cash flow and opportunities.

• Question from Unknown Analyst: I had a quick question regarding your leverage. Do you intend to lower it back to pre-2025? Or do you have a figure in mind on the leverage you're looking for? Also on the equity ratio, you haven't moved a lot on this part. And just wondering how far you are within your covenants?
  Response: The long-term LTV target remains 50%, which is approximately achieved given asset value increases. The company is well within all covenants, with the bond covenant of 31% being comfortably satisfied.

• Question from Unknown Analyst: And last question, if you allow me this. Do you have a target on the EU ETS price?
  Response: A higher EU ETS price is better as it incentivizes the use of the company's assets in European waters.

• Question from Quirijn Mulder (ING Groep N.V.): Quirijn Mulder from ING. You sound quite optimistic about the wind offshore market. Can you maybe give some idea about the utilization and let me say, the future prospects? Let me say, is it more what you see from your order book? Or is it more what you see in the market happening? Maybe you can elaborate a little bit on that.
  Response: Optimism is based on new wind projects in the North Sea and the ability to deploy assets in the high-demand, aging offshore oil and gas market, earning good money before transitioning to wind.

Contradiction Point 1

Dividend Payout Policy

Contradiction on the nature of the dividend as fixed versus discretionary.

Climent Molins (Value Investor's Edge) - Climent Molins (Value Investor's Edge)

2025Q4: The dividend policy is discretionary and reviewed quarterly. - Alexander Saverys(CEO)

Will you declare dividends on gains from sales for both Q1 and Q2? - Evan Coscard (Clarksons Securities)

2025Q2: The $0.05 dividend for Q2 is not a fixed payout but a discretionary policy. The company intends to continue paying dividends, as they have in the past. - Ludovic Saverys(CFO)

Contradiction Point 2

Fleet Strategy and Sale Intentions

Contradiction on the willingness to sell older vessels.

Petter Haugen (ABG Sundal Collier Holding ASA) - Petter Haugen (ABG Sundal Collier Holding ASA)

2025Q4: The company has already sold its older tanker vessels. While it is a ship trading business and would consider selling any asset for an exceptionally high price, the heavy lifting on deleveraging has been completed. - Alexander Saverys(CEO)

Would you consider selling some Suezmax tankers to pay down debt and fund dividends? - Unidentified Analyst (Kimo Molez)

2025Q2: Fleet rejuvenation is a key strategy. The company will sell older vessels if offered a good price... Not all older vessels will be sold, and there is no target or timeline. - Alexander Saverys(CEO)

Contradiction Point 3

Future Growth Strategy

Contradiction on the strategic focus regarding newbuilding commitments.

Frode Morkedal (Clarksons Platou Securities AS) - Frode Morkedal (Clarksons Platou Securities AS)

2025Q4: While the current price for VLCC newbuilds may look attractive, the company is not actively pursuing tanker newbuilding plans at this time. - Alexander Saverys(CEO)

What's your view on investment opportunities in newbuilds, such as VLCCs, given current ordering costs and resale value potential? - Evan Coscard (Clarksons Securities)

2025Q2: The focus will be on integrating the merged fleet properly... Beyond integration, the strategy remains 'business as usual.' The company will investigate good large opportunities across its five divisions... if they arise. - Alexander Saverys(CEO)

Contradiction Point 4

Strategy on Newbuilding Investments

Contradiction on actively pursuing newbuilds versus being non-committal.

Frode Morkedal (Clarksons Platou Securities AS) - Frode Morkedal (Clarksons Platou Securities AS)

2025Q4: While the current price for VLCC newbuilds may look attractive, the company is not actively pursuing tanker newbuilding plans at this time. - Alexander Saverys(CEO)

What is your view on investing in new VLCC orders given current pricing and potential resale value? - Unidentified Analyst

2025Q1: The company is happy with its current fleet but will look opportunistically to buy secondhand or order newbuildings if prices are right, as older vessels may be sold. - Alexander Saverys(CEO)

Contradiction Point 5

Dry Bulk Fleet Strategy and Asset Sales

Contradiction on willingness to sell older Capesize vessels.

Petter Haugen (ABG Sundal Collier Holding ASA) - Petter Haugen (ABG Sundal Collier Holding ASA)

2025Q4: The company does not intend to sell more older Capesize vessels at this time. The dry bulk market is still strong and has more potential, so the company prefers to remain spot-exposed and wait for better opportunities. - Alexander Saverys(CEO)

Is the company still considering selling older ships in the Capesize fleet, or has this been finalized? - Unidentified Analyst

2025Q1: The strategy is to balance spot exposure with long-term contracts. The diversified nature of the company allows it to manage risk by potentially selling assets to maintain liquidity and capitalize on opportunities when the market improves. - Alexander Saverys(CEO) and Ludovic Saverys(CFO)