CMB.TECH NV Q3 FY2024 earnings call

• Quarterly profit was $98.1 million, year-to-date profit $777.7 million. - Took delivery of 8 newbuilding vessels and sold 2 older tankers, generating $61 million capital gain. - Name changed from Euronav to CMB.TECH. - Signed 7-year contract on last newbuilding chemical tanker. - Inaugurated hydrogen engine R&D center in Tunisia. - Contract backlog $2.06 billion, liquidity $326 million, CapEx $2.5 billion, equity on total assets 30.4%.

Tanker Division: Quarterly profit was $98.1 million, adjusted for capital gains around $37 million. EBITDA was $116 million. Fleet includes 14 VLCCs and 21 Suezmaxes on water, with 5 VLCCs and 3 Eco-Suezmaxes on order. Rates in Q3 for VLCCs were below $40,000, Suezmaxes around $37,000. Dry Bulk Division: Nine ships on water, 19 Newcastlemaxes on order. Q3 and Q4 rates around $31,000 with breakeven around $22,000. Container Division: Four ships on water, one 1,400 TEU on order. Cautious due to large supply of ships and Red Sea issues. Chemical Tanker Division: Six ships, four on long-term charters, two in pool. Markets healthy with rates above $25,000. Offshore Wind Division: CSOV launched, CTVs with rates above $3,000, CSOVs with healthy rates.

• Ambition to increase contract backlog despite recent flatness. - Positive on tanker, dry bulk, chemical tanker, and offshore wind markets; cautious on container market. - Dividend policy discretionary, remain listed on Euronext and NYC. - Mandatory tender offer closing on 21st November.

• Geopolitical risks in Middle East affecting oil markets. - Container market affected by large supply of ships and potential Red Sea issues resolution. - CII compliance worsening globally may impact fleet supply, but effect unclear.

Q: About backlog and India's crude oil demand, and MEPC meeting A: Backlog ambition still present, hard to determine gray fleet portion to India, MEPC meeting had positive takeaways on carbon levy but US election impact unclear Q: On CII compliance and dry bulk coverage A: World fleet CII metrics worsening, dry bulk market positive, no FFA hedging yet but constantly looking at time charter coverage Q: On debt floating rate, offshore wind exposure A: Mostly floating rate debt, focus on support vessels for offshore wind due to lower CapEx and flexibility Q: On cash balance, CSOV market, and fleet composition A: Cash balance due to repaying revolving credit facilities, CSOV breakeven around $32-33k/day, ideal fleet modern and low carbon by 2027 Q: On equity ratio, CapEx financing A: Equity ratio 30.4% intended to comply with covenants, CapEx $2.5 billion with $950 million newbuilding financing in process Q: On Vopak ammonia project and CapEx secured financing A: Not involved in Vopak's Antwerp project yet interested, CapEx secured for most newbuildings with remaining delta covered by excess cash flow