Q2 2026 CMB.TECH NV Earnings Call Transcript
Key Points
- Record Q2 2026 net profit of $364.4 million, driven by strong revenue of over $700 million and exceptional asset sale gains of $127 million.
- Proactive fleet sales at historically high tanker prices, with additional gains of $100 million in Q3 and $130 million in Q4, locking in value.
- Strong contract backlog of $3.3 billion and a young fleet (average age below six years), ensuring future revenue visibility.
- Reduced net finance expense by 5% quarter-over-quarter to $76 million, reflecting cheaper refinancing and debt repayment.
- Forecasted operational cash flow of $700 million to $1 billion in 2027 after all CapEx, highlighting strong cash generation potential.
- Declared a dividend of $0.64 per share, split into an intermediary dividend and a tax-exempt share premium payment, rewarding shareholders.
- Positive dry bulk market outlook, supported by growing demand for commodities and potential ton-mile gains from Simandou iron ore and El Nino effects.
- Cautious on tanker market due to a large order book (over 30% for VLCCs and Suezmaxes), with a potential oversupply from 2027.
- Uncertainty over the impact of a potential Iran-US peace deal on tanker rates, which could lead to softer markets if China does not restock.
- Container and chemical tanker markets remain under caution due to high order books, despite current better-than-expected performance.
- CapEx commitments remain significant at $890 million, though mostly financed, with $119 million unfunded.
- Liquidity is relatively low at $400 million, which may limit flexibility for new investments.
- Management has low expectations for the upcoming IMO meeting on decarbonization, citing potential lack of progress.
- Q3 tanker rates are slightly below Q2 levels, and CSOV rates have dropped from $64,000 to $50,000 per day, indicating some softening.
Portions of this transcript marked (audio in progress) indicate audio problems. The missing text will be supplied if a replay becomes available.
(audio in progress)
CMB.TECH. And I'm joined by my colleagues, Joris Daman and Enya Derkinderen.
We will start, as always, with our financials and some highlights. And before we do, we give you an overview of the fleet of CMB.TECH. You can see that we have 206 vessels on the water with another 26 newbuildings coming. Our contract backlog is stable at $3.3 billion. The fleet is young.
We have an average age below six years. Our CapEx commitments, we will discuss a bit later, have now gone down to less than $1 billion. We have a market cap of $5.2 billion, a fair market value of the fleet of $11.2 billion. And for those who might not know, but we are still listed in New York, in Brussels and in Oslo. Our second quarter financials, the title of our press release was making hay, making hay while
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