Cmb.Tech N.V. Q3 FY2025 earnings call

• Finished Q3 with net profit ~$17M, EBITDA $238M, liquidity >$555M, contract backlog ~$3B. - Declared interim dividend of $0.05 per share. - CapEx fully funded, will generate ~$50M capital gain in Q4. - Positive on dry bulk and tankers due to supply-demand fundamentals; cautious on containers and chemicals. - Renaming program for dry bulk vessels, fixed substantial ships for Q4, expecting strong free cash flow.

Dry Bulk: Newcastlemaxes achieved TCE of $29,500 in Q3, with Q4 to date at close to $34,000; Capesizes had Q3 TCE of $20,500, rising to $26,200 in Q4; Kamsarmaxes and Panamaxes had better-than-anticipated rates, with Q3 rates around $13,500 and Q4 up to $17,000. Tankers: Euronav trading fleet with 10 VLCCs, achieved $30,500 in Q3, $68,000 in Q4 to date with 78% fixed; Suezmaxes had Q3 rates of $48,000, close to $60,000 in Q4. Containers: Exposure is limited (0), market weakened with low SCFI and high order book. Chemical Tankers: Spot exposure limited, mostly time chartered, still at healthy levels. Offshore (WindCat): Ordered a multipurpose accommodation service vessel, CSOV deliveries with earnings, CTVs had Q3 rates ~$3,500/day, Q4 ~$2,800/day.

• Anticipate $600M+ liquidity increase over a year based on current market rates. - Bridge financing to be reduced by $300M by end of Q3. - Focus on large tankers and dry bulk, expecting good markets.

• Uncertainty with IMO carbon pricing delay affecting strategy but not changing it. - Container market risks from high order book and Red Sea unwinding. - Chemical tanker market risks from limited spot exposure but still healthy.

Q: Frode Morkedal asked about IMO carbon pricing delay and dual fuel technology interest.

A: Delay won't change strategy, dual fuel engines based on finding partners for decarbonization.

Q: Frode Morkedal asked about investment philosophy in other segments.

A: Newbuildings pricey but will look opportunistically; clearing older vessels as secondhand prices high.

Q: Frode Morkedal asked about dividend.

A: Dividend policy is discretionary, Board decides based on cash flow.

Q: Eirik Haavaldsen asked about S&P of vessels and locking in cash flows.

A: Sell older vessels at high prices; will consider time charters if market levels are right.

Q: Kristof Samoy asked about IMO impact on ammonia choice and H2 infra.

A: Focus on ammonia for decarbonization, H2 infra has ongoing discussions.

Q: Climent Molins asked about interest expenses and G&A.

A: Interest expenses affected by bridge financing and acquisitions; G&A will normalize post-merger integration.

Q: Kristoffer Skeie asked about CSOV options and tanker time charters.

A: Options can be declared without contracts; need higher long-term market levels for tankers.

Q: Axel Styrman asked about Simandou mine and financing.

A: Simandou mine opening will impact iron ore market; targeting 50% loan-to-value.

Q: Enya Derkinderen asked about FCF sensitivities and Simandou.

A: FCF assumptions are for illustration; Simandou will impact offshore market.

Q: Quirijn Mulder asked about tariffs and fixed contracts.

A: Tariffs had limited impact on Cmb.Tech; aim to increase fixed contract cover.

Q: Enya Derkinderen asked about Q4 VLCC bookings and News-Capes relationship.

A: VLCC bookings low due to older tonnage; News and Capes carry same cargo, News taking over.