Cmb.Tech NV's Q1 2025: Navigating Contradictions in Dividend Strategy, Mergers, and Fuel Choices

Dividend policy and cash flow, merger and acquisitions strategy, ammonia as the preferred fuel, dividend policy and execution, and spot market exposure in dry bulk are the key contradictions discussed in Cmb.Tech NV's latest 2025Q1 earnings call.



Financial Performance and Profitability:
- Cmb.Tech NV reported a profit of roughly $40 million in Q1 2025. Excluding capital gains, the net income would be minus $6 million.
- This was driven by the consolidation of Golden Ocean's balance sheet and strong earnings from the tanker division.

Contract Backlog and Growth:
- The company's contract backlog reached close to $3 billion, with an addition of $1 billion in the first quarter.
- This growth was supported by long-term contracts with major clients like Fortescue and MOL, indicating strong market demand.

Investment in Ammonia and Decarbonization:
- Cmb.Tech is focusing on decarbonization strategies, including the development of ammonia-powered vessels and retrofitting existing ships with dual-fuel engines.
- This is in response to the IMO's MEPC '83 regulations and the company's commitment to reducing its carbon footprint.

Merger with Golden Ocean:
- The proposed merger between Cmb.Tech and Golden Ocean aims to create a leading maritime group with 250 vessels, including 200 on the water.
- This move is expected to enhance the company's financial position and expand its fleet, particularly in the dry bulk segment.