Key Takeaways
CMB.TECH NV (NYSE: CMBT) reported a first-quarter net profit of $368.8 million, capitalizing on robust tanker and dry bulk markets and significant gains from vessel sales. The result is a nearly nine-fold increase from the $40.4 million profit recorded in the same period a year earlier.
"CMB.TECH is firing on all cylinders," CEO Alexander Saverys said in a statement. "We are reaping the benefits of a red-hot tanker market through a mix of sales of older vessels at stellar prices, a historically high spot market and the addition of lucrative long-term charters."
The Antwerp-based shipping group's earnings per share reached $1.27, up from $0.23 in the first quarter of 2025. Revenue for the quarter was $519.6 million, and the company booked a $267.4 million capital gain from the sale of several vessels. The company's board announced its intention to make a $0.64 per share distribution to shareholders.
The strong results were driven by surging rates in the company's core segments. In its tanker division, VLCC spot rates for the second quarter are 81 percent fixed at an average of $182,731 per day. The Suezmax fleet is 83 percent fixed for the second quarter at $122,147 per day. The dry bulk division also showed strength, with Newcastlemax vessels 80 percent fixed for the second quarter at $44,105 per day.
The tanker market was the primary engine of profitability. Geopolitical disruptions in the Middle East, particularly around the Strait of Hormuz, have tightened vessel supply and pushed freight rates to historic highs. Euronav, CMB.TECH's tanker division, capitalized on this by securing high rates and selling older vessels.
The company sold six VLCCs and two Capesize vessels during the first quarter. It expects to book an additional capital gain of approximately $127.4 million in the second quarter from the sale of two more VLCCs and one Suezmax vessel. While management expressed some long-term concern about the growing tanker order book, they expect the market to remain strong in the near term.
The Bocimar dry bulk division also performed well, supported by resilient demand for iron ore and bauxite, and an upside in coal demand driven by gas-to-coal switching. Management remains positive on the dry bulk and offshore energy sectors. The Windcat offshore division saw its CSOV fleet fully fixed for the second quarter at an average rate of $62,301 per day.
The performance highlights the success of the company's strategy over the past two years, focusing on well-timed newbuilding orders and acquisitions. The results position CMB.TECH to continue strengthening its balance sheet and returning capital to shareholders. Investors will be watching the company's upcoming general meeting on May 21 for the final approval of the proposed shareholder distribution.
This article is for informational purposes only and does not constitute investment advice.
