CMB.TECH NYSE: CMBT reported a strong first quarter of 2026, with management highlighting higher revenue, reduced leverage, lower financing costs and substantial gains from vessel sales during an earnings call titled “Firing on All Cylinders.”
Chief Financial Officer Ludovic Saverys said the company ended the quarter with net profit of $368.8 million. He pointed to increased revenue and a decline in net finance expenses, which fell from $113 million in the previous quarter to about $81 million in the first quarter, as key contributors to profitability. In response to an analyst question, Saverys said the quarter’s finance expenses included roughly $3 million of one-time items and that further margin reductions on about $2 billion of financing would take effect toward the end of the second quarter.
The company ended the quarter with liquidity slightly above $500 million. Saverys said CMB.TECH continued to deleverage, reduce capital expenditure commitments and increase its contract backlog while optimizing the fleet through vessel sales and purchases.
Dividend and Balance Sheet
The board approved a distribution of $0.64 per share, consisting of a $0.20 interim dividend and a $0.44 distribution from share premium. Saverys said the structure is tax-efficient because the share premium portion is not subject to withholding tax, meaning about 70% of the distribution will be exempt from withholding tax.
Asked about capital allocation, Saverys said the board evaluates each quarter whether to reduce debt, pursue capital projects or M&A opportunities, or return capital to shareholders. He said the company has historically distributed 50% to 60% of net profit to shareholders, but emphasized that dividend policy remains at the board’s discretion.
Saverys said CMB.TECH has made significant progress on its capital expenditure program. Remaining capex at the end of April was $1.2 billion, of which about $184 million was unfunded. He said vessel sales more than cover the unfunded portion. Management expects 2026 to be the final heavy year for newbuilding deliveries, with $740 million still to be paid to shipyards over the remaining three quarters.
The company booked $267 million in capital gains in the first quarter and expects another $127 million in capital gains in the second quarter. Sales included two Capesize vessels and a VLCC previously announced, as well as the Suezmax Sienna, which is expected to be delivered in the second quarter.
Dry Bulk Market Drives Optimism
Alexander Saverys said management remains positive on dry bulk, tankers and offshore energy, while remaining cautious on containers and chemicals. Dry bulk is currently the largest and most important market for the company, he said.
CMB.TECH has 36 Newcastlemax vessels on the water and expects to have 46 in operation within about six months. The Newcastlemax fleet earned about $28,000 per day in the first quarter, and management said 80% of second-quarter days were already fixed at $44,000 per day. The Capesize fleet earned $26,000 per day in the first quarter, with roughly three-quarters of second-quarter days fixed at $37,000 per day. The Kamsarmax and Panamax fleet earned about $14,500 per day in the first quarter, with three-quarters of second-quarter days fixed near $20,000 per day.
Alexander Saverys said the dry bulk supply picture remains supportive, despite an increase in ordering activity. He said the average age of the fleet is high, creating potential for scrapping, and that newbuilds should largely replace aging vessels. On the demand side, he cited supportive volumes in iron ore, bauxite, coal and grain.
Management also discussed the potential effect of higher energy prices and Middle East turmoil on coal demand. Alexander Saverys said gas-to-coal switching could support seaborne coal trade, particularly in Japan, South Korea, Taiwan and Europe, which would be positive for Capesize and Panamax demand. He said CMB.TECH’s “new base case” assumes higher coal imports than before, with additional upside if Europe increases coal imports further.
Tanker Rates Strong Amid Strait of Hormuz Disruption
In the tanker segment, Alexander Saverys said CMB.TECH is down to six VLCCs following vessel sales, with four on the water and two to be delivered by January 2027. The company booked about 80% of second-quarter VLCC days at $180,000 per day. Its Suezmax fleet earned $91,000 per day in the first quarter and had most second-quarter days booked at $122,000 per day.
Management said the sale of older VLCCs generated a total capital gain of $360 million, reflected partly in first-quarter results and partly in second-quarter results. The Suezmax Sienna, a 19-year-old vessel, is expected to generate a $30 million capital gain when delivered in the second quarter.
Alexander Saverys said the tanker order book has risen sharply, with about 500 combined VLCCs and Suezmaxes on order, heavily weighted toward the second half of 2027 and 2028. While the age profile of the fleet could theoretically absorb new deliveries through scrapping, he said management is “a little bit concerned” about the order book over the longer term.
Joris Daman, head of investor relations, discussed the impact of the Strait of Hormuz situation. He said the strait is “de facto closed,” reducing crude flows, but that increased exports from the U.S., Brazil, Guyana, Canada and Angola are helping offset lost volumes on a ton-mile basis because those voyages are longer. Daman said the market is “fairly balanced” from a ton-mile perspective under current assumptions.
Alexander Saverys added that more ballast voyages toward the Atlantic are affecting vessel positioning and tanker rates. He said the U.S. Gulf-to-China route had eased from recent highs but remained around $100,000 per day, which he described as healthy for the market.
Containers, Chemicals and Offshore Energy
In containers, Alexander Saverys said all of CMB.TECH’s ships are fixed on long-term time charters, limiting spot exposure. He said the company remains cautious because of a high order book and the risk that the demand boost from Red Sea diversions could fade if disruptions ease.
In chemical tankers, he said the market has softened, with spot pool earnings around $21,500 per day compared with about $25,000 last year. However, most of the company’s vessels are on time charters, and he said current rates remain healthy.
Offshore energy remains a positive area for the company. CMB.TECH has taken delivery of its third CSOV, with three more CSOVs and one larger MPASV on order. The CSOV fleet averaged $65,000 per day in the first quarter and was fully fixed for the second quarter at $62,000 per day. Crew transfer vessels also improved after the slower winter period, with utilization above 90% and average rates of $3,400 per day.
During the question-and-answer session, management said it continues to evaluate options for additional CSOV newbuilds, with the first option expiring near the end of the summer. Alexander Saverys said the company would likely order without employment attached and then seek a mix of spot and longer-term work, while Ludovic Saverys said long-term charters would need to offer attractive rates to justify fixing vessels rather than remaining in the spot market.
About CMB.TECH NYSE: CMBT
Euronav NV, together with its subsidiaries, engages in the transportation and storage of crude oil worldwide. The company offers floating, storage, and offloading (FSO) services. It also owns and operates a fleet of vessels. The company was incorporated in 2003 and is headquartered in Antwerp, Belgium. As of March 15, 2024, Euronav NV operates as subsidiary of CMB NV.
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