Cmb.Tech N.V. Q4 FY2025 earnings call

• Financial highlights: Net profit $90M in Q4, full year $140M; EBITDA Q4 $322M, full year $943M; liquidity $560M; delevered, paid dividends, strengthened balance sheet; contract backlog $3.05B; interim dividend $0.16 declared; $3.05B contract backlog with Q4 addition; $420M capital gains secured; CapEx remaining $1.5B, financing secured. • Market update: Positive on dry bulk, tankers, offshore; cautious on container, chemical; dry bulk has positive ton-mile growth, balanced order book to fleet; tanker market positive with sentiment; container spot rates down but charter supported; chemical market with mix of time charters and spot; wind offshore with accelerating installation and supportive market.

Dry bulk is predominantly 60% of total fair market value. Net profit for Q4 was $90 million, full year profit $140 million. EBITDA for Q4 was $322 million, full year $943 million. Liquidity at $560 million. Contract backlog at $3.05 billion. Interim dividend of $0.16 declared. Balance sheet strengthened. Dry bulk segments like Capesizes, Newcastlemaxes, Kamsarmaxes/Panamaxes had various performance metrics in Q4 and Q1. Tanker fleet reduced with sales, still has some vessels with strong rates. Container vessels on long-term charters. Chemical tankers with mix of time charters and spot. Windcat's CSOVs performing well with supportive market.

• Expect to pay $45M dividend in April from interim dividend. • Anticipate $700M free cash flow with estimated rates, ample capability to pay back Nordic bonds, fund CapEx, and delever. • Board will decide on dividends from capital gains on sale of 6 VLCCs in Q1 and Q2. • Will actively engage to take more long-term cover for dry bulk if market conditions are right.

Q: On Golden Ocean bridge repayment, was strong tanker market helpful, size of bridge facility, net proceeds of sold vessels?

A: $1.4B acquisition facility drawn $1.3B, re-levered with $2B facility, used $750M cash to pay down to $550M, sold tankers and Capes contributed to repayment.

Q: Target to bring down net LTV to around 50%?

A: Long-term target 50% LTV, Board paid dividend while delevering.

Q: Investment opportunities in newbuilds, tanker newbuilding plans?

A: View is ship ordered today may be expensive in future, not actively pursuing tanker newbuilding plans but opportunistic.

Q: Consider sell some tankers for debt paydown and dividends?

A: Have sold older vessels, will look at high prices for assets.

Q: Sell older dry bulk ships, take more coverage?

A: Sold some older dry bulk ships, will look at taking more coverage when market conditions right.

Q: Counterparty of Capesize charters, rate, dividends on sale gains?

A: Counterparty confidential, can't disclose rate, will declare dividend on Q1 gains.

Q: Expect Sinokor behavior to trigger regulatory reaction?

A: Don't know, ask Sinokor.

Q: Expectations on framework changes after European Industry Summit?

A: Politicians aware of need to change for maritime industry.

Q: Leverage, equity ratio, covenants, China cooperation?

A: Target 50% LTV, equity ratio adjusted, covenants good, invested in China for ammonia-powered vessels.

Q: EU ETS price target?

A: Higher price better for using assets in European waters.

Q: Wind offshore utilization and prospects?

A: Optimistic due to new wind parks and demand in oil and gas markets