CMB.TECH NV Q1 FY2025 earnings call

• Mergers and Acquisitions: Cmb.Tech bought Hemen’s stake in Golden Ocean, signed a merger term sheet with Golden Ocean. - Business Contracts: Added ~$1B in contracts in Q1, including a deal with Fortescue for an ammonia-powered Newcastlemax and a landmark agreement with MOL for ammonia-powered/Newcastlemaxes and chemical tankers. - Fleet Updates: Took delivery of 5 newbuilds (4 dry bulk, 1 CTV); sold 3 VLCCs; fleet stands at 113 vessels with 46 newbuilds on the way. - Liquidity and Backlog: Liquidity ended March at $245M; contract backlog ~$3B, with ~$1B added in Q1.

Tankers: Q1 average daily rate of $40,000; Q2 to-date ~$43,000. Bulkers: Q1 Newcastlemaxes earned $18,000 per day; Q2 expected to be $24,000. Container and Chemical Tankers: Mostly long-term contracts with fixed good rates; CTVs seeing uptick in offshoring market. Offshore Wind (CTVs and CSOVs): Healthy growth in European projects, demand for CTVs and CSOVs positive. Revenue contributions: Tankers, bulkers, container/chemical, and offshore wind each play distinct roles in the overall financial picture, with tankers and bulkers being key drivers based on market conditions.

• Merger Impact: Post-merger, fleet would grow to 250 vessels, contract backlog ~$3B, average fleet age 6 years. - Free Cash Flow: Pro forma free cash flow in 2025 ranges from $250M (low case) to $750M (high case) based on market rates. - Decarbonization: Ammonia and hydrogen are key fuels; tipping points for ammonia competitiveness in 2032 (par with low sulfur fuel oil with biodiesel blend) and 2038 (lower bunker bill than LNG/LSFO with biodiesel).

• MEPC '83 Compliance: Penalties for non-compliance with fuel intensity regulations; uncertainties in fuel availability and pricing affecting ammonia adoption timeline. - Market Volatility: Spot market fluctuations in dry bulk; container trade uncertainties due to tariffs and Red Sea issues. - Shipyard Delays: Potential impacts from USTR and defense orders on delivery schedules of newbuilds.

Q: Discussion on MEPC '83 and ammonia solution A: Alexander Saverys stated IMO 2028 is a strong step towards dual-fuel engines, ammonia prices improving could advance deadlines, and engagement with customers on retrofitting existing ships for compliance.

Q: Clarification on pro forma free cash flow including debt repayments A: Ludovic Saverys said it includes debt repayments, excluding capital commitments to yards; even in bearish scenarios, excess cash flow covers unfunded CapEx and sale of vessels.

Q: Dry bulk revenue improvement and ammonia for middle-sized assets A: Alexander Saverys mentioned building modern vessels to outperform older ones in freight environments; ammonia is seen as the fuel of choice for middle-sized assets like Kamsarmaxes, with hydrogen considered for shorter-distance CSOVs.

Q: Treasury shares and ammonia/hydrogen availability A: Alexander Saverys said treasury shares can be used for acquisitions; ammonia/hydrogen projects are slow but expected to accelerate in next 5 years.

Q: Merger float and LNG interest A: Alexander Saverys stated merger would increase free float to 38%; LNG not currently of interest, but focus is on completing merger with Golden Ocean