CMB.TECH announces Q4 2024 results

27 Feb 2025 07:00 CET

CMB.TECH ANNOUNCES Q4 2024 RESULTS

STRONG RESULTS DESPITE SLOW MARKETS

ANTWERP, Belgium, 27 February 2025 – CMB.TECH NV (“CMBT”, “CMB.TECH” or “the
Company”) (NYSE: CMBT & Euronext: CMBT) reported its non-audited financial
results today for the fourth quarter ended 31 December 2024. 

HIGHLIGHTS

Profit of USD 93.1 million in Q4 2024 bringing YTD profit to USD 870.8 million​
Delivery of 7 newbuilding vessels
Sale of 4 Suezmaxes Selena (2007, 150,205 dwt), Cap Victor (2007, 158,853 dwt),
Cap Felix (2008, 158,765 dwt) & Cap Lara (2007, 158,826 dwt)
Sale of Windcat 6

For the fourth quarter of 2024, the company realised a net gain of USD 93.1
million or USD 0.48 per share (fourth quarter 2023: a net gain of 406.6 USD
million or USD 2.01 per share). EBITDA (a non-IFRS measure) for the same period
was USD 180.4 million (fourth quarter 2023: USD 474.4 million).

Commenting on the Q4 results, Alexander Saverys (CEO) said:

“During the fourth quarter of 2024, CMB.TECH booked a very healthy profit amidst
slow tanker and dry bulk markets. This was largely thanks to the sale of some of
our older Suezmaxes. We unlocked good value as we continue our strategy of
rejuvenating and optimising our fleet. Seven more newbuildings were delivered: 2
Suezmaxes, 3 Newcastlemaxes, 1 container vessel and 1 chemical tanker. This
completes a year whereby 20 newbuildings were delivered to our fleet, 8 ships
were sold and another 8 ships were ordered. CMB.TECH is very well positioned to
generate value in 2025 with our diversified fleet of modern and low carbon ships
and a good mix of spot and time charter exposure.”

Key figures

The most important key figures (unaudited) are: to be found in attachment.

TCE

The average daily time charter equivalent rates (TCE, a non IFRS-measure) can be
summarized as follows: to be found in attachment. 

CORPORATE UPDATE

Reopening, closing and results mandatory bid

In September 2024, the company was informed that the Market Court in Belgium has
largely rejected the claims brought forward by certain funds managed by
FourWorld Capital Management, LLC (“FourWorld”) in connection with CMB NV’s
(“CMB”) mandatory public takeover bid for the shares in the company.  The bid
closed on 15 March 2024.However, the court did find that the pricing of certain
vessels sold by Euronav to Frontline implied certain special indirect benefits
to Frontline. The court calculated these benefits to be USD 0.52 per Euronav
share.

In October 2024, the company was informed that CMB announced that, pursuant to
an order of the Belgian Financial Services and Markets Authority (the “FSMA”) of
7 October 2024, it would make a subsequent additional payment of USD 0.52 (or
EUR 0.47) per share to all shareholders who have transferred their shares to CMB
in the bid that expired on March 15, 2024 and reopen the bid at an adjusted
price of USD 12.66 per share. CMB published a notice in accordance with article
8, §1 of the Belgian Royal Decree of 27 April 2007 on public takeover bids
regarding the subsequent payment and its intention to launch the reopening of
the Bid, which can be found here: https://www.cmb.be/mandatory-bid. The
subsequent payment was made by CMB on 31 October 2024.

On 23 October 2024, CMB reopened its Belgian public takeover bid on all shares
in CMB.TECH not already owned by CMB or persons affiliated with it, in
accordance with applicable Belgian law, and  concurrently commenced a new U.S.
offer in accordance with applicable U.S. federal securities laws (the “New U.S.
Offer”), addressed to U.S. shareholders within the meaning of Rule 14d-1(d)
under the Securities Exchange Act of 1934, as amended (together the
“Reopening”). The acceptance period of the Reopening opened on 23 October 2024
and closed on 21 November 2024 at 4 p.m. (CET) (10 a.m. New York City time). The
bid price of the reopening amounted to USD 12.66 per share, i.e. USD 18.95 per
share (as increased by USD 0.52) reduced by distributions totaling USD 6.29 per
share.

The acceptance period of the reopening of the public takeover bid launched by
CMB NV (“CMB” or “the Bidder”) on all shares in CMB.TECH not already owned by
CMB or persons affiliated with it (the “Reopening”) expired on November 21,
2024. During the acceptance period, 1,579,159 shares in CMB.TECH were tendered
into the bid. As a result, the Bidder owns a total of 178,726,458 shares in
CMB.TECH. Considering the 25,807,878 treasury shares held by CMB.TECH and the
24,400 shares held by Saverco NV, the Bidder and persons affiliated with it
together own 204,558,736 shares. This represents 92.04% of the voting rights in
CMB.TECH.

CMB.TECH FLEET DEVELOPMENTS

Sales

Euronav

CMB.TECH has sold three Suezmax vessels, Selena (2007, 150,205 dwt), Cap Victor
(2007, 158,853 dwt) & Cap Felix (2008, 158,765 dwt) to a wholly owned subsidiary
of CMB NV as part of the fleet rejuvenation. The sale generated a capital gain
of 70.930 million USD. The vessels were delivered to their new owner in December
2024. The procedure for transactions among related parties under Belgian law was
applied in connection with the sale. More information can be found in the legal
announcement. The advice of the committee of independent directors is available
on the company’s website.

CMB.TECH has sold the Suezmax Cap Lara (2007, 158,826 dwt). The sale will
generate a capital gain of 18.77 million USD. The vessel will be delivered to
the new owner during the first quarter of 2025.

The VLCC Alsace (2012 – 299,999 DWT) has successfully been delivered to its new
owner. A capital gain of approximately USD 27.5 million will be booked in Q1
2025.

Windcat

The Windcat 6 has also been sold, after 18 years of service. The sale generated
a capital gain of 0.25 million USD. The vessel will be delivered to its owner
during the first quarter of 2025. 

Newbuilding deliveries

On 8 October 2024, the Newcastlemax Mineral Eire (2024 – 210,000 dwt) was
delivered.

On 10 October 2024, the Suezmax Helios (2024 - 156,790 dwt) was delivered.

On 15 October 2024, the chemical tanker Bochem Brisbane (2024 - 25,000 dwt) was
delivered.

On 16 October 2024, the container vessel CMA CGM Dolomites (2024 - 6,000 TEU)
was delivered.

On 21 October 2024, the Newcastlemax Mineral Hellas (2024 - 210,000 dwt) was
delivered.

On 22 November 2024, the Newcastlemax Mineral Espana (2024 – 210,000 dwt) was
delivered.

On 25 November 2024, the Suezmax Orion (2024 - 156,790 dwt) was delivered.
 

MARKET & OUTLOOK

Euronav – Tanker Markets

After a strong start to 2024, tanker spot rates have retreated to lower levels,
failing to gain momentum during the traditionally stronger Q4 period. However,
despite a softer finish to the year, Suezmax Q4 rates remained within the same
range observed in Q4 2022/23. Conversely, VLCC earnings continued to face
significant pressure, constrained by ongoing OPEC+ production cuts, deferred
cargoes, and a growing cannibalising dark fleet shipping Iranian and Russian
exports. Resulting in VLCC Q4 2024 TCE rates of USD 37,372 per day, and Suezmax
Q4 2024 TCE rates of USD 38,274 per day. That said, potential opportunities may
arise from renewed demand driven by an expanded OFAC sanctions list, stricter
enforcement of Iran sanctions, and minimal new VLCC capacity expected in 2025
(just five new VLCCs are slated for delivery).

In the final days of his administration, President Biden intensified enforcement
of sanctions on Russia’s oil industry and exports. The updated OFAC sanctions
list identified 183 additional “dark fleet” vessels, bringing the total number
of US-sanctioned crude tankers to 284—representing approximately 12% of the
global crude oil tanker fleet (source: Fearnleys). These measures coincide with
China's Shandong Port Group banning US-sanctioned tankers from discharging in
the province, along with India’s decision to prohibit such tankers from its
ports for cargoes loaded after January 10 (source: Bloomberg). In addition,
President Trump reimposed the “maximum pressure” campaign against Iran on
February 4th.  Recently, on Monday February 24th, the OFAC announced additional
new sanctions targeting Iran (including 13 tanker vessels whereof five VLCCs).
Thereby the dark tanker fleet may face increased pressure, with more vessels
likely headed to the breakers. This scenario could result in the compliant
tanker fleet stepping in to transport replacement cargoes from more reliable
sources in the Middle East, Africa, and the Americas.

Looking ahead, non-OPEC oil production is projected to grow by approximately 1.3
mbp/d in 2025, primarily from the Atlantic basin, which could offset the supply
impact of sanctioned exports (source: Morgan Stanley). With +1.3 mbp/d supply
West of Suez, and only +0.2 mbp/d demand West of Suez, seaborne transportation
is growing to East of Suez with +0.8 mbp/d of demand. Any remaining demand
shortfall would likely be met by OPEC’s spare capacity, currently standing at
4.9 mbp/d. (source: OPEC)

Analysts estimate that replacing the majority of Iran’s oil exports could
increase tanker utilization by 2.5–3.0%, with global oil demand anticipated to
grow by 1.1 mbp/d to reach 104.4 mbp/d in 2025 (source: average of IEA, EIA,
Rystad, OPEC). This demand growth, predominantly sourced from the Atlantic, is
expected to raise utilisation rates by an additional 3.0%. Combined with
voluntary moves by China and India to restrict US-sanctioned tankers carrying
Russian oil, and a potential revival of Trump’s “maximum pressure” strategy on
Iran, the outlook for the tanker market appears (again and/or finally)
cautiously optimistic.

From a supply-side perspective, the outlook for the tanker fleet remains
generally favourable for Very Large Crude Carriers (VLCCs), where the
orderbook-to-fleet (OB/F) ratio stands at a manageable 8.9%. However, caution is
warranted for the Suezmax segment, where the order book has grown significantly,
now totalling 108 vessels with an OB/F ratio of 16.6%.

Q1 2025 spot rates to-date: so far 73% fixed at 31,359 USD per day for VLCCs and
74% fixed at 32,924 USD for Suezmaxes.

Bocimar – Dry-Bulk Market

The dry bulk market also experienced a counter-seasonal pattern in 2024,
starting the year with an unexpectedly strong Q1 but concluding with a
weaker-than-anticipated Q4. Despite the softer year-end, overall market
fundamentals remained supported by several drivers: increased long-haul
transport of iron ore and bauxite from the Atlantic, diverting trade flows from
the Red Sea (spillover effects into the Capesize segment from smaller dry bulk
segments), periods of port congestion in Brazil, record-high Chinese coal
imports, rising coal demand in India, and slower sailing speeds.

However, headwinds emerged in the latter half of the year. Long-haul Panamax
grain shipments from Brazil declined, heavy rainfall impacted Brazilian ports,
congestion eased, and the global dry bulk fleet expanded by approximately 3.0%,
adding pressure to freight rates. In addition, during Q3 2024, domestic Chinese
iron ore prices averaged USD 114/ton as compared to the landed cost (CFR) of USD
104/ton. This USD 10/ton spread induced a sizable level of imports, leading Cape
rates counter-seasonally higher. However, the spread has narrowed significantly,
down to just USD 2.50/ton which has led to a pullback in spot iron ore volumes
in Q4 2024. With for example, Vale publishing its production and sales report
for Q4 with production of iron ore at 85.3m tons (-4.6%), resulting in full year
production of 327.7m tons (vs. guidance of ~328m tons and up +2.0% y-o-y).
Overall, resulting in Q4 2024 TCE rates of USD 29,802 per day.

Looking ahead, medium-term downside risks remain for dry bulk demand, primarily
tied to US-China trade policy uncertainty. A reduction in Chinese demand for
US-origin grain could have spillover effects on larger vessel classes.
Additionally, Chinese steel production is expected to stay flat and below peak
levels, with iron ore inventories remaining elevated. Albeit, iron ore seaborne
transportation is supported by the positive margins of global iron ore miners,
as CFR import prices remain below the cost of lower-quality domestic production
in China (30%Fe versus 65%Fe). As a reference point, Vale’s production guidance
for 2025 is kept unchanged at 325-335m tons, implying a modest y-o-y growth of
0.7%. Comparably, BHP Group highlighted in its first half 2025 report (financial
year) a stable production guidance for 2025 at 282-294mt, and its near-term
expectations for global seaborne iron ore demand to remain stable with marginal
declines from China mostly balanced by growth in developing Asia. In addition,
on the domestic production front, Chinese iron ore output is projected to
decline by 11 million tonnes (MT) in 2025 and an additional 9 MT in 2026, while
the share of steel production from scrap recycling versus iron ore blast
furnaces is expected to remain stable in 2025. Additionally, bauxite shipments
out of Guinea have started the year with a staggering 67% growth compared to the
same period last year. (source: Breakwave)

Furthermore, Deutsche Bank’s China Macro Research team anticipates significant
fiscal stimulus measures in March 2025, targeting a 4.5% GDP growth rate. The
stimulus may include direct government spending, bank recapitalisation, and
property sector stabilisation efforts. Beyond China, global steel production and
iron ore demand are expected to grow by 6% in 2025, providing incremental demand
support.

The supply outlook for the Capesize segment remains structurally favourable. The
orderbook-to-fleet (OB/F) ratio stands at a historically low 7.7%, while the
Newcastlemax segment offers a compelling exposure with an OB/F ratio of just
6.0%. Meanwhile, the fleet is aging rapidly, with the average vessel age
reaching a record high of 11.3 years. Additionally, constrained shipyard
capacity has pushed newbuilding delivery timelines to 2028, limiting supply
growth in the near to medium term.

In the long run, these tight supply-side dynamics are expected to play a
critical role in shaping charter rates. While near-term demand risks persist,
the combination of an aging fleet, limited orderbook, and potential incremental
demand from China and other markets suggests a cautiously optimistic outlook for
the dry bulk market, particularly for the Capesize and Newcastlemax segments.

Q1 2025 spot rate so far: 93% fixed 17,571 USD per day.

Delphis – Container Markets

The container shipping sector experienced one of its strongest years in 2024,
surpassed only by the extraordinary post-COVID years of 2021 and 2022. The
outperformance was partially linked to a series of Houthi attacks in the Red Sea
that prompted widespread route diversions by ocean carriers. Given that the Red
Sea traditionally accounts for more than 20.0% of containership trade, this
diversion effectively removed over 12.0% of the fleet's capacity from regular
operations. (source: Clarksons)

Despite the influx of new vessel deliveries, these capacity additions were more
than compensated by an overall robust 17.8% growth in trade TEU-mile volumes,
particularly along mainline routes and trades between Asia and developing
economies (incl. Red Sea diversion effect of ~11.0%).

Looking ahead, a gradual easing in freight market conditions is expected from
the firm levels seen in 2024. Yemen’s Houthis said that following Gaza ceasefire
on January 17th, that they have halted attacks on Red Sea shipping except for
“Israeli” vessels. Gradual impact through-out 2025 is to be expected. In
addition, policy impacts from the US election are unclear but point towards
potentially increased trade ‘friction’ ahead (US-China box trade accounts for
~5.0% of global volumes and ~9.0% of TEU-miles).  While the final form and
implementation of Trump’s proposed tariffs remains uncertain, trade wars are
generally not supportive for container freight demand in the long term. (source:
Jefferies)

The containership order-book-to-fleet (OB/F) ratio stood at 24.6% at the end of
2024 (average over all sizes) – with a more favourable outlook for the 3-7,999
TEU category with an OB/F of 13.3% at the end of 2024.

CMB.TECH’s 6,000 and 1,400 TEU container vessels are all employed under 10 to
15-year time charter contract.

Bochem – Chemical Markets

The chemical tanker sector maintained its strong performance throughout 2024,
despite experiencing some easing in market conditions during the second half of
the year. The one-year time charter (TC) rate for a 19,999-deadweight tonnage
(DWT) vessel averaged USD 20,771/day, which was 36.7% above the ten-year trend.
This significant premium underscores the robust demand for chemical tankers over
the past year. Resulting in Q4 2024 TCE rates of USD 24,463 per day (pool
vessels).

The first half of 2024 saw freight rates spike to record levels, driven by a
combination of factors. Disruptions in the Red Sea region created logistical
challenges that tightened the supply of available vessels, while strong market
conditions in the clean petroleum products (CPP) sector further bolstered demand
for chemical tankers (aligning closely with Global GDP growth). Additionally,
limited fleet growth contributed to the tight supply-demand balance, providing
further support for elevated freight rates. Over the year 2024, the Panama Canal
operations went back to normal.

By H2 2024, the share of seaborne chemicals transported by product tankers
increased from 9.0% to 16.0% - resulting in a weaker than anticipated Q4 of the
year. In addition, the Red Sea disruption effect reduced as Asia Pacific players
have stepped into impacted. Hence, winter chemical tanker market seasonality has
disappointed with spot markets remain subdued through-out Q4 2024.

With chemical production expected to remain stable in 2025-2026, the trajectory
of the chemical seaborne freight market will largely be influenced by tanker
supply dynamics. Additionally, recent sanction developments affecting crude and
product tanker trade suggest that swing tonnage may stabilise at current levels
or even contract if product rates experience a significant improvement. Despite
a slight decline in Q4 2024, spot rates remain robust, with the Chemical Tanker
Spot Index hovering near historical highs. On the downside, a full re-opening of
the Red Sea could have a gradual easing effect on the ton-mile demand
(product/chemical tankers ~5%).

Q1 2025 spot (pool) forecast: 27,450 USD per day.

CMB.TECH’s 25,000 DWT chemical tankers are employed under a 10-year time charter
(4 vessels), under a 7-year time charter (2 vessels), and in the spot pool (2
vessels). The bitumen tankers will be employed under a 10-year time charter as
from delivery in 2026.

Windcat – Offshore (Wind) Markets

Following a dynamic Q3 2024, the Crew Transfer Vessel (CTV) market experienced a
seasonal slowdown in Q4, as anticipated. However, the rate decline during the
winter months was notably less pronounced compared to prior off seasons,
reflecting improved baseline demand. For Q4 2024 CTV rates: 2,943 USD per day.

By late Q4, however, momentum shifted, with a notable uptick in inquiries and
tenders for the 2025 spring and summer seasons. October and November saw a surge
in demand for vessel charters, with several awards and contracts finalised in
December. This activity has already tightened the availability of larger 24 Pax
CTVs for summer 2025, signalling strong forward demand. Looking ahead,
additional tender awards are expected in early 2025, which should further
solidify utilisation rates across the industry. Windcat, has already secured
bookings for a substantial portion of 2025 (Q1 booked utilisation to date of 82%
at 3060 USD per day).

The CSOV market entered winter 2024/25 with increased vessel availability as
summer campaigns concluded without significant contract extensions. The delivery
of 13 newbuild CSOVs in 2024 has given charterers more flexibility to select
high-capability assets, resulting in a more competitive landscape compared to
winter 2023/24. Despite this, Q4 2024 saw strong tender activity for medium- and
long-term contracts, with project start dates spanning 2025 to 2027. This
signals a dynamic first half of 2025, as operators aim to secure contracts and
optimise utilisation. On numerous occasions, CSOV owners walked away from CSOV
charters in the renewables space to seek traditional work scopes and ultimately
chase the healthy rates and term contract deals in offshore oil and gas
industry.

CONFERENCE CALL 

The call will be a webcast with an accompanying slideshow. You can find details
of this conference call below and on the “Investor Relations” page of the
website.

The presentation for the earnings call will be available in our presentation
section.

Webcast Information

Event Type: 
Audio webcast with user-controlled slide presentation

Event Date:
27 February 2025

Event Time:
8 a.m. EST / 2 p.m. CET

Event Title: 

“Q4 2024 Earnings Conference Call”


Event Site/URL:  

https://events.teams.microsoft.com/event/7203eab6-44ad-4145-be5b-9f09112ce051@d0
b2b045-83aa-4027-8cf2-ea360b91d5e4

 

 To attend this conference call, please register via the following link.

Telephone participants who are unable to pre-register may dial in to the
respective number of their location (to be found here). The Phone conference ID
is the following: 121 388 043#

The recording & a transcript of the call will be uploaded onto our website in
our investor section. 

The condensed consolidated statements (unaudited) are: to be found in
attachment.

Contact

CMB.TECH

Katrien Hennin

Head of Marketing and Communications CMB.TECH

+32 499 39 34 70

katrien.hennin@cmb.tech

Joris Daman

Head of Investor Relations

Tel: +32 498 61 71 11

joris.daman@cmb.tech

Announcement final year results – 27 March 2025


About CMB.TECH

CMB.TECH (all capitals) is a diversified and future-proof maritime group. We own
and operate more than 150 seagoing vessels: crude oil tankers, dry bulk vessels,
container ships, chemical tankers, offshore wind vessels & workboats. We also
offer hydrogen and ammonia fuel to customers, through own production or
third-party producers.

The company is headquartered in Antwerp, Belgium, and has offices across Europe,
Asia, United States and Africa.

CMB.TECH is listed on Euronext Brussels and the NYSE under the ticker symbol
CMBT.

More information can be found at https://cmb.tech

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides safe
harbour protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, future events or performance, and underlying assumptions and
other statements, which are other than statements of historical facts. The
Company desires to take advantage of the safe harbour provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbour legislation. The words "believe",
"anticipate", "intends", "estimate", "forecast", "project", "plan", "potential",
"may", "should", "expect", "pending" and similar expressions identify
forward-looking statements.

The forward-looking statements in this press release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, our management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our
view, could cause actual results to differ materially from those discussed in
the forward-looking statements include the failure of counterparties to fully
perform their contracts with us, the strength of world economies and currencies,
general market conditions, including fluctuations in charter rates and vessel
values, changes in demand for tanker vessel capacity, changes in our operating
expenses, including bunker prices, dry-docking and insurance costs, the market
for our vessels, availability of financing and refinancing, charter counterparty
performance, ability to obtain financing and comply with covenants in such
financing arrangements, changes in governmental rules and regulations or actions
taken by regulatory authorities, potential liability from pending or future
litigation, general domestic and international political conditions, potential
disruption of shipping routes due to accidents or political events, vessels
breakdowns and instances of off-hires and other  factors. Please see our filings
with the United States Securities and Exchange Commission for a more complete
discussion of these and other risks and uncertainties.

More information:
Access the news on Oslo Bors NewsWeb site

639843_Q4 Earnings release.pdf