Q1 2026 Cmb.Tech NV Earnings Call

May 19, 2026

Speaker #1: Saverys, and I'm joined by my colleagues Ludovic Saverys, Enya Derkinderen, and Joris Daman. We will present to you the highlights of our first quarter, and the title of this call is "Firing on All Cylinders: We had a very interesting quarter, a very good quarter, and we would like to start with some financials and highlights, and I will hand it over to Ludovic."

Speaker #1: transcribed. this year another 10, maybe 1 or 2 will deliver, beginning of next year. but so in the next 6 months, we will have 46 new Castle Maxis Big Armada of new Castle Maxis, on the water.

Speaker #2: Thanks, Alex. As usual, we will start with a high-level overview of our company, where we're active in five different segments from global crew tankers, containers, chemicals to offshore energy.

Speaker #2: We had an interesting quarter, as Alex mentioned, compared to last quarter. Our total fair market value has increased. Our market cap has increased. We've reduced our leverage.

Speaker #2: We've reduced our CapEx commitments and increased our contracts backlog. Next slide, please. If we zoom in on the Q1 financials, we've ended the quarter with a net profit of $368.8 million.

Speaker #2: Notable in these figures are obviously our increased revenue, but we have been able to, while the quarter passed the lever quite a bit, and reduced our margin with the banks and so our interest on net finance expenses decreased from $130 million from last quarter to $81 this quarter, delivering a very nice profit.

Speaker #2: The liquidity of the company ended Q1 stands a little bit above half a billion dollars. And our equity on total assets value adjusted is below 50%, which is our through-the-cycle target.

Speaker #2: Further zooming in, we have deleveraged we are paying dividends, and we're strengthening the balance sheet while we are optimizing our fleet through well-timed S&P.

Speaker #2: Notable on the contract backlog, we have signed one five-year time charter on a Swiss Max charter, a Swiss Max vessel, and extended to nine-year time charters by another year.

Speaker #2: The board of directors has decided they would like to distribute 64 cents per share as distribution. This will be managed by 20 cents interim dividends and 44 cents distribution out of share premium.

Speaker #2: That's quite interesting because there is no withholding tax on that part, so 70% of our dividends will be exempt from withholding tax. We took delivery of seven newbuilding vessels, which Alex will discuss a little later on, and we have sold quite a few ships that were announced already on two cap sizes and eight TLCC.

Speaker #2: One additional vessel, the Swiss Max Sienna, has been sold, and will be delivered in Q2. For the capital gains of the first quarter were $267 million, and in Q2, we're expecting a capital gain of $127 million.

Speaker #2: We are a diversified platform; however, we have a large spot exposure on two of our promising markets, which is dry bulk on the one hand and tankers.

Speaker #2: If you look at full 2026, we have roughly $53,000 shipping days from which 80% is spot, and from those spot days, we have $36,000 open dry bulk days, which is roughly $10,000 on the CAMSON Maxes and $26,000 on capes and new customers.

Speaker #2: These are increasing markets and hence we are favorably positioned to enjoy those in the coming quarters. On this slide, we have shown a hypothetical free cash flow for our company in 2026.

Speaker #2: This is including a free cash flow from the first quarter. But putting some rate assumptions on the right bottom side, where you could see that actually, if we take the market today, we are in the plus 20% case compared to our market assumptions, and we would have an operational free cash flow of over $1 billion.

Speaker #2: This is excluding vessel sales, but it is also excluding the remaining CapEx, which we will discuss a little later on. On the CapEx, we've come a long way.

Speaker #2: We have the remaining CapEx end of April of $1.2 billion, from which roughly $184 million is unfunded. If you have followed our story, you know that with the vessel sales, this is more than double covered for the unfunded CapEx, but this slide shows that 2026 will be the last heavy newbuilding delivery year, where the remaining $740 million to be paid to the shipyards in the coming three quarters whereafter obviously our free cash flow could be used on other topics than CapEx.

Speaker #2: Contract backlog, we've increased our contract backlog roughly by $200 million as mentioned. There is a gradual repayment. The contract backlog reduces by roughly $100 million per quarter, but we've added $200 million of fresh charters.

Speaker #2: Of these long-term contracts, still $1.9 billion is on dual fuel-related vessels. And we have a quite strong counterparts, most of them investment grades, as you can see on the right side.

Speaker #2: I'll then hand over the discussion topics to Alex to talk about the markets.

Speaker #1: Thank you, Ludovic. So I'll start with our normal slide overview slide. In all the segments, we are, as you can see, still positive on the dry bulk market.

Speaker #1: The tanker market and the offshore energy market. We are and have been over the last two quarters cautious on the container and the chemical market.

Speaker #1: High-level dynamics: we see in dry bulk ton-mile growth for major commodities that we are transporting in our capes and Newcastle Maxes, like iron ore and bauxite.

Speaker #1: But also on other commodities in dry, we see some growth. Looking at the supply side, we will see a growth of 1.7% of the fleet in capes today, a tick under 5% on Panamaxes, but we still believe that in balance, and we'll dig in in the following slides more in detail, that the supply demand is actually positive for freight and positive for our market.

Speaker #1: The same can be said on tankers. Of course, tankers is a more complex story with what is happening right now in the Middle East.

Speaker #1: In terms of ton-mile, it's very difficult to predict, but as it stands, analysts are expecting a small reduction in ton-mile for crude oil this year, some growth next year.

Speaker #1: What is interesting on the tanker market is that the supply side, even though in the short term, the fleet is not growing that much, as from 2027 and particularly in 2028, we will see a big growth in the fleet.

Speaker #1: So the order book to fleet in VLCCs and Swiss Maxes is coming closer to 30%. This being said, in the short term, the tanker market dynamics are positive.

Speaker #1: We'll definitely zoom in on that a bit later. On the container side, not a lot has changed. I would say that in kind of the more negative story that we have been seeing over the last quarters, the Middle East turmoil has given some support to the market, but with a large order book and an expected contraction in TU mile demand, we are cautious on the container side.

Speaker #1: As you know, all our ships are fixed, so we are not really exposed on the spot market. On the chemical side, it all feels a little bit softer.

Speaker #1: Chemical market is less volatile. But there we see there are some new vessels being delivered to the fleet. There is a little bit softer growth in demand for chemical tankers.

Speaker #1: So in on balance, we are a bit more cautious. And then last but not least, we remain positive on the offshore energy markets. After two slow years of wind installation, we're expecting an increase this year and next in, for instance, the important North Sea market.

Speaker #1: But also on oil and gas, we are seeing a lot of demand for offshore energy supply vessels like our ships. And so all in all, we're expecting good markets going forward in that segment.

Speaker #1: I want to zoom in on the largest segment and the market that is most important to us right now, which is dry bulk. On the left side of the slide, you can see our fleet.

Speaker #1: We have 36 Newcastle Maxes on the water. We're adding this year another 10, maybe one or two will deliver beginning of next year. But so in the next six months, we will have 46 Newcastle Maxes.

Speaker #1: Big armada of Newcastle Maxes on the water. We have performed very well during the first quarter, which is traditionally a slower quarter. You can see that we reached levels of 28,000 a day.

Alexander Saverys: This year another 10, maybe 1 or 2 will deliver beginning of next year. In the next 6 months, we will have 46 Newcastlemax, big armada of Newcastlemax, on the water. We have performed very well during Q1, which is traditionally a slower quarter. You can see that we reached levels of $28,000 a day. What is even better is that looking forward for Q2, we have fixed most of our days, 80%, already at $44,000, which is very good for that segment. Capesize is a big fleet as well. We have 37 Capesize on the water.

Alexander Saverys: This year another 10, maybe one or two will deliver beginning of next year. In the next six months, we will have 46 Newcastlemaxes, big armada of Newcastlemaxes, on the water. We have performed very well during Q1, which is traditionally a slower quarter. You can see that we reached levels of $28,000 a day. What is even better is that looking forward for Q2, we have fixed most of our days, 80%, already at $44,000, which is very good for that segment. Capesize is a big fleet as well. We have 37 Capesize on the water.

Speaker #1: But what is even better is that looking forward for the second quarter, we have fixed most of our days, 80% already at 44,000, which is very good for that segment.

Speaker #1: Cape sizes is a big fleet as well. We have 37 cape sizes on the water. We achieved rates of 26,000 in the first quarter, have already fixed roughly three quarters of our days at 37,000 for the second quarter.

Speaker #1: With the amount of ships, the amount of days, this is all very supportive for our results going forward. And then last but not least, there comes our Max Panamax fleet of 30 ships.

Alexander Saverys: We achieved rates of $26,000 in Q1, have already fixed roughly three-quarters of our days at $37,000 for Q2. With the amount of ships, the amount of days, this is all very supportive for our results going forward. Last but not least, our Kamsarmax Panamax fleet of 30 ships. The Q1 was satisfactory. We reached kind of a break-even level of $14,500. We have seen in recent weeks a market uptick, and we have already been able to fix very good levels, close to $20,000 for three-quarters of our days in Q2.

Speaker #1: The first quarter was satisfactory. We reached kind of a break-even level of 14,500. But we have seen in recent weeks a market uptick, and we have already been able to fix very good levels close to 20,000 for three quarters of our days in the second quarter.

Speaker #1: When you look at the main drivers in dry bulk, it's a mixed picture. Some very positive signals some not so positive. But we will dig into some of the elements in the next slides and slides.

Speaker #1: Let's first start on the supply of the vessels, which is the new buildings, the order book, and then the age of the fleet. When you look at the new buildings, the order book to fleet has increased over the last three to six months.

Speaker #1: When you look at, the main drivers, in dry bulk, it's a mixed picture. Some, very positive, signals, some not so positive. but we will dig into some of the elements, in the next slides and slides.

Alexander Saverys: When you look at the main drivers in dry bulk, it's a mixed picture, some very positive signals, some not so positive. We will dig into some of the elements in the next slides. Let's first start on the supply of the vessels, which is the newbuildings, the order book, and then the age of the fleet. When you look at the newbuildings, the order book to fleet has increased over the last 3 to 6 months. There have been more orders for dry bulk tonnage, and specifically on Capesize and Panamaxes, you can see that we are now reaching a level of 14% to 15% of the fleet.

Speaker #1: There have been more orders for dry bulk tonnage. And specifically on cape sizes and Panamaxes, you can see that we are now reaching a level of 14 to 15% of the fleet.

Speaker #1: Let's first start on the, supply of the vessels, which is, the new buildings, the order book, and then the age of the fleet. when you look at the new buildings, the order book to fleet has increased over the last, three to six months.

Speaker #1: If you put that against the age of the vessels, and you can see that we've reached kind of an all-time high average age of the fleet, there is a lot of potential for scrapping.

Speaker #1: There have been more orders for dry bulk tonnage, and specifically on cape sizes and Panamaxes. You can see that we are now reaching a level of 14 to 15% of the fleet.

Speaker #1: There's a lot of potential for all these new buildings to replace the aging fleet. And actually, as it stands, there should normally be more ships leaving the fleet than being added to the fleet in the next two years, at least, and even going forward in 2029 and 2030.

Speaker #1: If you put that against the age of the vessels, you can see that we've reached kind of an all-time high average age of the fleet. There is a lot of potential for scrapping.

Alexander Saverys: If you put that against the age of the vessels, you can see that we've reached kind of an all-time high average age of the fleet, there is a lot of potential for scrapping. There's a lot of potential for all these newbuildings to replace the aging fleet. Actually, as it stands, there should normally be more ships leaving the fleet than being added to the fleet in the next 2 years at least, and even going forward in 2029 and 2030. On the supply side, we are still believing that this is supportive for our market going forward. If we look at the demand side, we are zooming in on important commodities for the Capes and important commodities for the Panamaxes.

Speaker #1: So on the supply side, we are still believing that this is supportive for our market going forward. If we look at the demand side, we are zooming in on important commodities for the capes and important commodities for the Panamaxes.

Speaker #1: There's a lot of potential for all these new buildings to replace the aging fleet. and actually, as it stands, there should normally be more ships leaving the fleet than being added to the fleet in the next two years at least, and even going forward in 2029 and 2030.

Speaker #1: On capes, it's, of course, iron ore, bauxite, and a little bit of coal. But you can see that the numbers are adding up very nicely definitely compared to last year.

Speaker #1: So on the supply side, we are still, believing that this is supportive for our market, going forward. If we look at the demand side, we are zooming in on, important commodities, for, the capes and important commodities for the Panamaxes.

Speaker #1: We are in all segments above. Coal is a little bit below. But all in all, it's a supportive picture in the first quarter and in the month of April.

Speaker #1: On Capes, it's, of course, iron ore, bauxite, and a little bit of coal. But you can see that the numbers are adding up very nicely, definitely compared to last year.

Alexander Saverys: On Capes, it's, of course, iron ore, bauxite, and a little bit of coal. You can see that the numbers are adding up very nicely, definitely compared to last year. We are in all segments above. Coal is a little bit below, but all in all, it's a supportive picture in the Q1 and in the month of April. The similar story can be said on the Panamaxes. The typical cargoes that Panamaxes transport, coal and grain, have been growing. We are seeing this being translated in, of course, better freight rates. I would say that Q1 has surprises to the upside, has been less slow than usually, and has underpinned the freight market.

Speaker #1: The similar story can be said on the Panamaxes. The typical cargoes at Panamaxes transport coal and grain have been growing. And so we are seeing this being translated in, of course, better freight rates.

Speaker #1: we are in all segments, above. coal is a little bit below. but all in all, it's a supportive, picture, in the first quarter and in the month of April.

Speaker #1: So I would say that Q1 has surprised us to the upside, has been less slow than usually, and has underpinned the freight market. Now, if we look at the total year, so what to expect for the next couple of months, the picture remains supported for our capes with the iron ore trade.

Speaker #1: A similar story can be said on the Panamaxes. The typical cargoes that Panamaxes transport—coal and grain—have been growing, and so we are seeing this being translated, of course, into better freight rates.

Speaker #1: So I would say that Q1 has surprised us to the upside, has been less slow than usual, and has underpinned the freight market. Now, if we look at the total year—so what to expect for the next couple of months—the picture remains supported for our Capes with the iron ore trade.

Speaker #1: The bauxite trade is a bit of a question mark. If we see some export caps out of Guinea than this could be a negative for our market in the numbers, we don't see it yet.

Alexander Saverys: If we look at the total year, so what to expect for the next couple of months, the picture remains supported for our Capes with the iron ore trade. The bauxite trade is a bit of a question mark. If we see some export caps out of Guinea, this could be a negative for our market. In the numbers, we don't see it yet, it is, of course, something to watch. Interestingly, something that could underpin our markets is the coal trade, I'd like to zoom in on that on the next slide. We have added on this slide as well the rate forecasts for a regular 180,000 DWT Capesize for this year, including Q1.

Speaker #1: But it is, of course, something to watch. Interestingly, something that could underpin our market is the coal trade. And I'd like to zoom in on that on the next slide.

Speaker #1: The bauxite trade is a bit of a question mark. If we see some export caps out of Guinea, then this could be a negative for our market. In the numbers, we don't see it yet.

Speaker #1: We have added on this slide as well the rate forecasts for a regular 180K cape size for this year, including the first quarter. We are now at 31,500, which is actually a very good rate and definitely in profit-making territory.

Speaker #1: But it is, of course, something to watch. Interestingly, something that could underpin our market is the coal trade. And I'd like to zoom in on that on the next slide.

Speaker #1: We have added on this slide as well, the rate forecasts for a regular, 180K, cape size for this year, including, the first quarter. We are now at 31,500 dollars, which is actually a very good rate, and definitely in, profit-making, territory.

Speaker #1: Operation Epic Fury and the gas-to-coal switching. We've tried to analyze based on the information that is available what the impact would be if certain countries that are powering their countries and are making electricity with oil and gas would shift more to coal.

Alexander Saverys: We are now at $31,500, which is actually a very good rate and definitely in profit-making territory. Operation Prosperity Guardian and the gas to coal switching. We've tried to analyze, based on the information that is available, what the impact would be if certain countries that are powering their countries and are making electricity with oil and gas would shift more to coal. This gas to coal switching is basically sketched out on this slide. Initially on the coal side, all the analysts and including ourselves were expecting a relatively soft market for seaborne coal, definitely going into H2 of the year.

Speaker #1: Operation Epic Fury and the gas-to-coal switching. We've tried to analyze, based on the information that is available, what the impact would be if certain countries that are powering their countries and are making electricity with oil and gas would shift more to coal.

Speaker #1: And this gas-to-coal switching is basically sketched out on this slide. Initially, on the coal side, all the analysts, and including ourselves, were expecting a relatively soft market for seaborne coal.

Speaker #1: Definitely going into the second half of the year. And we were looking at our base case scenario of coal power generation in Europe and in Japan, South Korea, and Taiwan, to go down.

Speaker #1: And this gas-to-coal switching is basically sketched out on this slide. Initially, on the coal side, all the analysts, including ourselves, were expecting a relatively soft market for seaborne coal.

Speaker #1: Now, obviously, the war in Iran and the turmoil in the Middle East, which have led to an increase in gas and oil prices, have changed the situation.

Speaker #1: Definitely going into the second half of the year. And we were looking at our base case scenario of coal power generation in Europe, and in Japan, South Korea, and Taiwan, to go down.

Alexander Saverys: We were looking at our base case scenario of coal power generation in Europe and in Japan, South Korea, and Taiwan to go down. Obviously, the war in Iran and the turmoil in the Middle East, which have led to an increase in gas and oil prices, have changed the situation. What we are now taking as a base scenario is that over the course of this year, Japan, South Korea, and Taiwan will increase their imports of seaborne coal by 27 million tons, so increase the utilization of their existing coal infrastructure. On Europe, as it stands, expecting 12 million tons of coal to be added to the trade and increasing utilization from 40% to 55%.

Speaker #1: And what we are now taking as a base scenario is that over the course of this year, Japan, South Korea, and Taiwan will increase their imports of seaborne coal by 27 million tons.

Speaker #1: Now, obviously, the war in Iran and the turmoil, in the Middle East, had which have led to an increase in gas and oil prices, have changed the situation.

Speaker #1: So increase the utilization of their existing coal infrastructure. And on Europe, as it stands, expecting 12 million tons of coal to be added to the trade and increasing utilization from 40% to 55%.

Speaker #1: And, what we are now taking as a base scenario is that over the course of this year, Japan, South Korea, and Taiwan will increase their imports of, seaborne coal by 27 million tons.

Speaker #1: Now, there is further upside to that if Europe would import in a high case another 60 million tons of coal. And we've tried to map this out on the right side of the slide where you can see in green the supply of ships.

Speaker #1: so increase the utilization of their existing coal infrastructure. And on Europe, as it stands, expecting 12 million tons of coal, to be added, to the trade, and increasing utilization from, 40% to, 55%.

Speaker #1: And in blue, gray, and light blue, the different scenarios on the demand. You can see on capes, we were looking at 1.7% increase in the fleet and a 3% base case increase in ton-mile demand.

Speaker #1: Now, there is further upside, upside to that. If, Europe would import in a high case, another 60 million tons of, coal. And we've tried to map this out on, the right side of the slide, where you can see, in green, the supply of ships.

Alexander Saverys: There is further upside to that. If Europe would import in a high case, another 60 million tons of coal. We've tried to map this out on the right side of the slide, where you can see in green, the supply of ships, and in blue-gray and light blue, the different scenarios on the demand. You can see on Capes, we were looking at 1.7% increase in the fleet and a 3% base case increase in ton-mile demand. We have revised that to 3.5% ton-mile demand. If you get this extra kicker on coal to Europe, in the high case, this could go all the way up to 5.2% increase in demand.

Speaker #1: We have revised that to 3.5% ton-mile demand. Now, if you get this extra kicker on coal to Europe in the high case, this could go all the way up to 5.2% increase in demand.

Speaker #1: And in, blue, gray, and, light blue, the, different scenarios on the demand. you can see on capes, we were looking at 1.7% increase in the fleet, and a 3% base case increase in ton-mile demand.

Speaker #1: And the same goes for Panamaxes. And I think that's very interesting because, obviously, that's coal is a very important commodity for Panamaxes. We have a pretty high delivery schedule this year of close to 5% increase in the fleet.

Speaker #1: We have revised that to 3.5% ton-mile demand. Now, if you get this extra kicker on coal to Europe in the high case, this could go all the way up to a 5.2% increase in demand.

Speaker #1: The base case, we were looking at a bit under 4% demand growth for Panamaxes. In the current new base case, we're looking at 5% growth.

Speaker #1: And the same goes for Panamaxes, and I think that's very interesting because obviously that's—coal is a very important commodity for Panamaxes. We have a pretty high delivery schedule this year, of close to a 5% increase in the fleet.

Alexander Saverys: The same goes for Panamax, and I think that's very interesting because obviously that's, coal is a very important commodity for Panamax. We have a pretty high delivery schedule this year of close to 5% increase in the fleet. The base case, we were looking at a bit under 4% demand growth for Panamax. In the current new base case, we're looking at 5% growth, but in the high case, this could even go to 7.5%. This Epic Fury, the war in the Middle East, could have a significant positive impact on the dry bulk markets, and we're seeing some of it already now. Then basically to conclude, what we've mapped here is the new base case, so not the high case, in numbers of volumes from Q1 to Q4.

Speaker #1: But in the high case, this could even go to 7.5%. So this Epic Fury, the war in the Middle East, could have a significant positive impact on the dry bulk markets.

Speaker #1: The base case, we were looking at, a bit under 4% demand growth for Panamaxes. in the current new base case, we're looking at 5% growth, but in the high case, this could even go to 7.5%.

Speaker #1: And we're seeing some of it already now. And then basically to conclude, what we've mapped here is the new base case, so not the high case.

Speaker #1: In numbers of volumes from Q1 to Q4, what we wanted to highlight here for those who are not very familiar with the dry bulk market is that the first quarter is always the lowest quarter in terms of volume.

Speaker #1: So this, Epic Fury, the war in the Middle East, could have a significant, positive impact, on the dry bulk markets. And we're seeing some of it already now.

Speaker #1: Usually, volumes then ramp up. In the second quarter, third quarter, and fourth quarter, which again, we think bodes very well for our dry bulk market going forward.

Speaker #1: And then basically, to conclude, what we've mapped here is the new base case—not the high case—in numbers of volumes from Q1 to Q4. What we wanted to highlight here, for those who are not very familiar with the dry bulk market, is that the first quarter is always the lowest quarter in terms of volume.

Alexander Saverys: What we wanted to highlight here, for those who are not very familiar with the dry bulk market, is that Q1 is always the lowest quarter in terms of volume. Usually volumes then ramp up in Q2, Q3, and Q4, which again, we think bodes very well for our dry bulk market going forward. Of course, CMB.TECH NV is very well-positioned with a large fleet of Capesize, Newcastlemaxes, and Panamax. I want to talk about Euronav and the crude oil markets, probably where most of you have a lot of questions on what our view is on what is happening in the world. Let me first start with a quick overview of what our fleet has done. After the sales of our VLCC, we are down to 6 VLCC.

Speaker #1: And of course, CMB.TECH is very well positioned with our large fleet of cape sizes, Newcastle Maxis, and Panamaxes. I want to talk about Euronav and the crude oil markets and probably where most of you have a lot of questions on what our view is on what is happening in the world.

Speaker #1: usually volumes then ramp up. In the second quarter, third quarter, and fourth quarter, which again we think bodes very well, for our dry bulk market going forward.

Speaker #1: Let me first start with a quick overview of what our fleet has done after the sales of our VLCCs. We are down to six VLCCs for our underwater two will be delivered during the course of this year and in January of 2027.

Speaker #1: And of course, CMB.TECH is very well positioned with our large fleet of cape sized newcastle maxes and Panamaxes. I want to talk about Euronav and the crude oil, markets, and probably, where, most of you have a lot of questions on, what our view is on what is happening in the world.

Speaker #1: Let me first start with a quick overview of what our fleet has done. after the sales of our VLCCs, we are down to, six VLCCs.

Speaker #1: We achieved very good rates in the first quarter. And even better rates for the bookings that we have done in the second quarter. You can see we're at 180,000 of rates booked for 80% of our days.

Speaker #1: Four are on the water; two will be delivered during the course of this year, and in January of 2027. We achieved very good rates in the fourth, in the first quarter.

Alexander Saverys: Four are on the water, two will be delivered during the course of this year and in January 2027. We achieved very good rates in Q1, and even better rates for the bookings that we have done in Q2. You can see we're at 180,000 dollars of rates booked for 80% of our days. Of course we only have six VLCC left, but nevertheless this will of course contribute very positively to our profits going forward. The sale of the eight ships we have communicated on that already.

Speaker #1: Of course, we only have six VLCCs left, but nevertheless, this will, of course, contribute very positively to our profits going forward. The sale of the eight ships, we have communicated on that already.

Speaker #1: And even better rates for the bookings that we have done in the second quarter. You can see we're at $180,000 of rates booked for 80% of our days.

Speaker #1: We did a very nice capital gain of in total 360 million dollars on the sale of these six older VLCCs. Which have been reflected in our first quarter results and will partly be reflected in the second quarter results.

Speaker #1: We have 18 Suez Maxis underwater. We recently took delivery of the Cap Grace and Cap Joseph. So we have 18 ships in our fleet.

Speaker #1: We did a very nice capital gain of, in total, $360 million on the sale of these six older VLCCs, which have been reflected in our first quarter results, and will partly be reflected in the second quarter results.

Alexander Saverys: We did a very nice capital gain of in total $360 million on the sale of these six older VLCC, which have been reflected in our Q1 results and will partly be reflected in the Q2 results. We have 18 Suezmax on the water. We recently took delivery of the Cap Grace and Cap Joseph. We have 18 ships in our fleet. We achieved rates on the spot market of $91,000 in Q1, $122,000 for most of our days in Q2. Again, excellent rates in the current circumstances. We have sold one of our older Suezmax, the Sienna.

Speaker #1: We achieved rates on the spot market of 91,000 in the first quarter, 122,000 for most of our days in the second quarter, again, excellent rates in the current circumstances.

Speaker #1: We, have 18 Suez maxes, on the water. we recently, took delivery of the cap grade and cap Joseph. So, we have, 18 ships, in our fleet.

Speaker #1: And we have sold one of our older Suez Maxis, the Sienna, which is a 19-year-old Suez Max. Which will deliver in the second quarter.

Speaker #1: We achieved rates on the spot market of $91,000 in the first quarter, and $122,000 for most of our days in the second quarter.

Speaker #1: And this will give us a capital gain of 30 million dollars. You can see on the right side, all the indicators again, these need to be taken with a big pinch of salt because the real impact of these numbers is, of course, influenced a lot on the sea going side with what is happening in the Middle East.

Speaker #1: Again, excellent rates in the current circumstances. And we have sold one of our older Suezmaxes, the Sienna, which is a 19-year-old Suezmax, which will deliver in the second quarter.

Alexander Saverys: She's a 19-year-old Suezmax, which we'll deliver in Q2, and this will give us a capital gain of $30 million. You can see on the right side, all the indicators. Again, these need to be taken with a big pinch of salt because the real impact of these numbers, is of course, influenced a lot, on the sea, going side with what is happening, in the Middle East and, what is, happening, in the Strait of Hormuz. First, before we talk about that, I wanted to show you the slide on the order book and the supply of ships and the age of the vessels. The order book has really shot up.

Speaker #1: And this will give us a capital gain of $30 million. You can see on the right side all the indicators—again, these need to be taken with a big pinch of salt because the real impact of these numbers is, of course, influenced a lot on the seagoing side by what is happening in the Middle East.

Speaker #1: And what is happening in the Strait of Hormuz. First, before we talk about that, I wanted to show you the slide on the order book.

Speaker #1: And the supply of ships and the age of the vessels. The order book has really shot up. We are now looking at a combined 500 VLCCs and Suez Maxis on order, which we believe is a lot of ships.

Speaker #1: And, what is, happening, in the Strait of Hormuz. first, before we talk about that, I wanted to show you the slide on the, order book, and the supply of ships, and the age of the vessels.

Speaker #1: Obviously, very much skewed towards the second half of 2027 and 2028. But you can see the numbers there. In 2028, already more than 200 VLCCs and Suez Maxis are on order.

Speaker #1: the order book has really, shot up. we are now looking at, a combined 500 VLCCs and Suez maxes on order, which, we believe, is a lot of ships.

Alexander Saverys: We are now looking at a combined 500 VLCC and Suezmax on order, which we believe is a lot of ships, obviously, very much skewed towards H2 2027 and 2028. You can see the numbers there. In 2028, already more than 200 VLCC and Suezmax are on order. Even though theoretically, the age profile of the fleet would be able to absorb these vessels, i.e., all the vessels should be scrapped and the new buildings could replace them, we are, you know, a little bit concerned going forward, looking at the order book. In the short term, of course, not that many vessels are coming on stream, and this is of course, translated in good freight markets.

Speaker #1: Even though theoretically, the age profile of the fleet would be able to absorb these vessels, i.e., older vessels should be scrapped and the new buildings could replace them.

Speaker #1: Obviously, very much skewed towards the second half of 2027 and 2028. But you can see the numbers there. In 2028, already more than 200 VLCCs and Suezmaxes are on order.

Speaker #1: We are a little bit concerned going forward, looking at the order book. But in the short term, of course, not that many vessels are coming on stream.

Speaker #1: even though theoretically, the age profile of the fleet, would be able to absorb these vessels, i.e., older vessels, should be scrapped and the new buildings could replace them.

Speaker #1: And this is, of course, translated in good freight markets. Average age of the fleet, you can see there, is getting to historical highs. We're at 13, 13 and a half years.

Speaker #1: We are, you know, a little bit concerned going forward, looking at the order book. But in the short term, of course, not that many vessels are coming on stream, and this has, of course, translated into good freight markets.

Speaker #1: Again, this is a positive as and when and if we would need to scrap some vessels. I want to talk about the Strait of Hormuz situation, Operation Epic Fury.

Speaker #1: Average age of the fleet, you can see there, is getting to historical highs. We're at 13, 13 and a half years. Again, this is a positive, as and when and if we would need to scrap some vessels.

Speaker #1: And the impact on shipping in general and on the oil. Supply. On the left side, you can basically see the number of transits through the Strait of Hormuz on a daily basis.

Alexander Saverys: Average age of the fleet, you can see there, is getting to historical highs. We're at 13.5 years. Again, this is a positive, as and when and if, we would need to scrap some vessels. Wanna talk about the Strait of Hormuz situation, Operation Prosperity Guardian, and the impact on shipping in general and on the oil supply. On the left side, you can basically see the number of transits through the Strait of Hormuz on a daily basis. We are talking anywhere between 110, 150 ships a day. We are down now between 5 and 20 transits a day.

Speaker #1: We are talking anywhere between 110, 150 ships a day. We are down now between 5 and 20 transits a day. In terms of tankers, we see that 115 VLCCs and 24 Suez Maxis are still trapped in the Persian Gulf.

Speaker #1: I want to talk about the, Strait of Hormuz situation, Operation Epic Fury, and the impact, on, on shipping in general, and on the oil.

Speaker #1: Supply. On the left side, you can basically see the number of transits through the Strait of Hormuz on a daily basis. We are talking anywhere between 110 and 150 ships a day.

Speaker #1: Of that fleet, 40% are dark fleet vessels, so not really vessels that we would compete with. But it's still a significant amount of ships that are trapped there.

Speaker #1: We are down now between 5 and 20 transits, a day. in terms of, tankers, we see that 115 VLCCs and 24 Suez maxes, are still trapped, in the Persian Gulf.

Alexander Saverys: In terms of tankers, we see that 115 VLCC and 24 Suezmax are still trapped in the Persian Gulf. Of that fleet, 40% are dark fleet vessels, so not really vessels that we would compete with, but it's still a significant amount of ships that are trapped there. On the supply side of oil, my colleague, Joris Daman, has made a very interesting analysis on the right side of the slide. Because it's his analysis, I wanna hand it over to him so that he can explain to you what he is seeing in the numbers.

Speaker #1: On the supply side, of oil, my colleague Joris Daman has made a very interesting analysis on the right side of the slide. And because it's his analysis, I want to hand it over to him so that he can explain to you what he is seeing in the numbers.

Speaker #1: of that fleet, 40%, are dark fleet vessels, so not really vessels, that we would compete with. But it's still a significant amount of ships, that are trapped there.

Speaker #2: Yes. Happy to run through it. So the right-hand side graph really starts by showing the baseline. The baseline was 15 million barrels per day of crude oil.

Speaker #1: On the supply side, of, oil, my colleague Joris, Daman has made a very interesting analysis on the right side, of the slide. And, because it's his analysis, I want to hand it over to him so that he can explain to you, what, he is seeing in the numbers.

Speaker #2: This is only crude oil traversing the Strait of Hormuz. So being exported out of the Persian Gulf. Now, that's close. The strait is de facto closed.

Speaker #1: Yes, happy to run through it. So, the right-hand side graph really starts by showing the baseline. The baseline was 15 million barrels per day of crude oil.

Joris Daman: Yes, happy to run through it. The right-hand side graph really starts by showing the baseline. The baseline was 15 million barrels per day of crude oil. That is only crude oil traversing the Strait of Hormuz, being exported out of the Persian Gulf. Now that's closed. The strait is de facto closed, we made the assumption that's lost. We are going to look, what is the actual impact on crude tanker flows? We have a selective passage of 1.2 million barrels per day. That is the actual passage over the last 2 months divided by 60 days. That's 1.2 million barrels per day, it's actually 1 Suezmax a day or every second day, 1 VLCC. We have some pipeline capacity which came upstream and is today roughly around 5.5 million barrels per day.

Speaker #2: So we made the assumption that's lost. And then we are going to look, okay, what is the actual impact on crude tanker flows? We have a selective passage of 1.2 million barrels per day.

Speaker #1: This is only crude oil traversing the Strait of Hormuz. So being exported out of the Persian Gulf. Now that's close. The strait is de facto closed.

Speaker #2: That's the actual passage over the last two months divided by 60 days. That's 1.2 million barrels per day. So it's actually one Suez Max a day or every second day one VLCC.

Speaker #1: So we made the assumption that's lost. And then we are going to look, okay, what is the actual impact on crude tanker flows? We have a selective passage of 1.2 million barrels per day.

Speaker #2: Then we have some pipeline capacity, which came upstream and is today roughly around 5.5 million barrels per day. It's Jambu, Fujairah, and then the Kirkuk Seyhan pipeline.

Speaker #1: That's the actual passage over the last two months divided by 60 days. That's 1.2 million barrels per day. So it's actually one Suezmax a day, or every second day, one VLCC.

Speaker #2: Then we had a temporary effect of floating storage release. So reversal of floating storage. And also some Russian sanctions being lifted. And actually being able to be added to the tanker market.

Speaker #1: Then we have some pipeline capacity, which came upstream and is today roughly around 5.5 million barrels per day. It's the Ambu Fujairah, and then the Kirkuk Seyan pipeline.

Speaker #2: And then the real interesting part comes. And that's on one hand, the export growth out of the US, which is a combination of additional volumes but also SPR, strategic petroleum reserve, releases.

Joris Daman: It's Yanbu, Fujairah, and then the Kirkuk-Ceyhan pipeline. We have a temporary effect of floating storage release or reversal of floating storage, and also some Russian sanctions being lifted and actually being able to be added to the tanker market. The real interesting part comes, and that's on one hand, the export growth out of the US, which is a combination of additional volumes, but also SPR, Strategic Petroleum Reserve releases, roughly 1.4 million barrels per day. Also other countries stepping up the game, for example, Brazil, Guyana, Canada, Angola, and they are additionally bringing 1 million barrels per day capacity to the market. If you go from the 15, we take all those steps, we end up with a loss of 5.3 million barrels per day, capacity lost to be transported on board of crude oils.

Speaker #1: Then we had a temporary effect of floating storage release, so reversal of floating storage. And also some Russian sanctions being lifted, and actually being able to be added, to the tanker market.

Speaker #2: Roughly 1.4 million barrels per day. And then also other countries, stepping up the game. For example, Brazil, Guyana, Canada, Angola. And they are additionally bringing one million barrels per day capacity to the market.

Speaker #1: And then the real interesting part comes, and that's, on one hand, the export growth out of the US, which is a combination of additional volumes, but also SPR—Strategic Petroleum Reserve—releases.

Speaker #2: So if you go from the 15, we take all those steps, we end up with a loss of 5.3 million barrels per day capacity lost to be transported on board of crude oils.

Speaker #1: Roughly 1.4 million barrels per day. And then also other countries, stepping up the game. For example, Brazil, Guyana, Canada, Angola, and they are additionally bringing 1 million barrels per day capacity to the market.

Speaker #2: Now, it's really important to see here that we're actually increasing longer mile transportation. So we get a ton mile kicker because of the exports out of the US.

Speaker #1: So if you go from the 15, we take all those steps, we end up with a loss of 5.3 million barrels per day capacity lost to be transported on board of crude oils.

Speaker #2: But also Brazil, Guyana are actually further away than a typical Middle Eastern China transportation. And it's 2 to 2 and a half times more so if we take the 2.4 and we multiply that by 2, 2 and a half, and we compare it with the 5.3, we're actually quite balanced from a ton mile perspective.

Speaker #1: Now it's really important to see here that we're actually increasing longer mile transportation. So we get a ton mile kicker, because of the exports out of the US, but also Brazil, Guyana, are actually further away than a typical Middle Eastern China transportation.

Joris Daman: It's really important to see here that we are actually increasing longer-mile transportation. We get a ton-mile kicker because of the exports out of the US, but also Brazil, Guyana are actually further away than a typical Middle Eastern China transportation, and it's 2 to 2.5 times more. If we take the 2.4 and we multiply that by 2.5, and we compare it to the 5.3, we are actually quite balanced from a ton-mile perspective. That's really the reason why the utilization of the tankers are still healthy and that the remains for US Gulf China transportation are actually still quite healthy. If you go one step further, really look, what could be the potential impact on the barrel price?

Speaker #2: And that's really the reason why the utilization of the tankers are still healthy. And that remains for US Gulf, China transportation are actually still quite healthy.

Speaker #1: And it's two to two and a half times more. So if we take the 2.4 and we multiply that by two, two and a half, and we compare it with the 5.3, we're actually quite balanced from a ton-mile perspective.

Speaker #2: If you go one step further, really look, okay, what could be the potential impact on the barrel price? There, it's really important to understand that we started the operation Epic Fury in a global situation where there was a large oversupply.

Speaker #1: And that's really the reason why the utilization of the tankers are still healthy, and that the remains for the US Gulf China transportation are actually still, quite healthy.

Speaker #2: So there was a bigger supply of crude oil to the market than a demand. So we had actually an oversupply of 2.6 million barrels per day.

Speaker #1: If you go one step further, really, really look, okay, what could be the potential impact on the barrel price? There it's really important. To understand that we started the operation Epic Fury in a global situation where there was a large oversupply.

Joris Daman: There, it's really important to understand that we started the Operation Prosperity Guardian in a global situation where there was a large oversupply. There was a bigger supply of crude oil to the market than a demand. We had actually an oversupply of 2.6 million barrels per day, meaning that in the end, today's market is only undersupplied by approximately 2.7 million barrels per day of crude, which will have an impact on demand structure or any other means to have the balance again in the market.

Speaker #2: Meaning that in the end, today's market is only undersupplied by approximately 2.7 million barrels per day of crude, which will have an impact on demand structure or any other means to have the balance again in the market.

Speaker #1: So there was a bigger supply of crude oil to the market than a demand. So we had actually an oversupply of 2.6 million barrels per day.

Speaker #1: Meaning that in the end, today's market is only undersupplied by approximately 2.7 million barrels per day of crude, which will have an impact on demand structure or any other means to have the balance, again in the market.

Speaker #1: Thank you very much, Joris. So after that analysis, what we just wanted to add is basically the consequences of the closure of the Strait of Hormuz is that we see a lot more ballasters going towards the Atlantic to pick up the oil where it is still available.

Speaker #1: Thank you very much, Joris. so after that analysis, what we just wanted to add is basically the consequences of the closure of the Strait of Hormuz.

Alexander Saverys: Thank you very much, Joris. After that analysis, what we just wanted to add is basically the consequences of the closure of the Strait of Hormuz is that we see a lot more ballasters going towards the Atlantic to pick up the oil where it is still available. This obviously also has an impact on rates. You can see the rate from the Middle East to China, which we think is much of a theoretical rate. Not that many ships are being fixed at these kind of levels.

Speaker #1: And this obviously also has an impact on rates. You can see the rate from the Middle East to China. Which we think is much of a theoretical rate, not that many ships are being fixed at these kind of levels.

Speaker #1: We see a lot more ballasters going towards the Atlantic to pick up the oil where it is still available. And this obviously also has an impact on rates.

Speaker #1: The more interesting one is, of course, is the TD22 route at the bottom in green. Where you can see that rates were very high.

Speaker #1: you can see the, rate from the Middle East to China, which we think is much of a theoretical rate, not that many ships are being fixed at these kind of levels.

Speaker #1: But then gradually started going down as more ballasters, more VLCCs were coming towards the US Gulf to pick up the oil there. Now, when I say gradually going down, we are still at a level around 100,000 dollars a day, which is very, very healthy for our market.

Speaker #1: the more interesting one is, of course, is the TD22 route, at the bottom in green, where you can see that, rates were very high, but then gradually started going down as more ballasters, more VLCCs, were coming, towards, the US Gulf to pick up, the oil there.

Alexander Saverys: The more interesting one is, of course, is the TD22 route, at the bottom in green, where you can see that, rates were very high, but then gradually started going down as more ballasters, more VLCCs, were coming, towards, the US Gulf to pick up, the oil there. Now, when I say gradually going down, we are still at a level around 100,000 dollars a day, which is very, very healthy, for our market. It shows you the disruption that the closure of the Strait of Hormuz also has on the positioning of the vessels. I'd like to finish with our three, slightly smaller divisions, Delfzijl, Bochem and, Windcat. On Delfzijl, we can be relatively short. You know, all our ships are fixed on long-term time charters.

Speaker #1: But it shows you the disruption that the closure of the Strait of Hormuz also has on the positioning of the vessels. I'd like to finish with our three slightly smaller divisions, Delphis, Bokem, and Windcat.

Speaker #1: Now, when I say gradually going down, we are still at a level around 100,000 a day, which is very, very healthy for our market.

Speaker #1: But it shows you the disruption that the closure of the Strait of Hormuz also has on the positioning of the vessels. I'd like to, finish with our three, slightly smaller divisions, Delphis, Bokem, and, Windcat.

Speaker #1: On Delphis, we can be relatively short. You know, all our ships are fixed on long-term time charters. We still have one new building coming this year delivering in October.

Speaker #1: Which has been fixed on a 15-year contract. The bottom line on the container market is that the order book is very high. We still see a huge TU mile disturbance with the de facto closure of the Red Sea.

Speaker #1: on Delphis, we can be relatively short. You know, all our ships are fixed on long-term time charters. We still have one new building coming this year, delivering in October.

Alexander Saverys: We still have 1 new building coming this year, delivering in October, which has been fixed on a 15-year contract. The bottom line on the container market is that the order book is very high. We still see a huge TEU-mile disturbance with the de facto closure of the Red Sea. If no container ships pass by there, it's basically 12% of a demand kicker. If that falls away, including the big tsunami of new container vessels that will come on stream in the next couple of years, the market should continue to go down. Very short term, we have seen a little uptick because of the disturbance around the Strait of Hormuz.

Speaker #1: If no container ships pass by there, it's basically 12% of demand kicker. So if that falls away, including the big tsunami of new container vessels that will come on stream in the next couple of years, the market should continue to go down.

Speaker #1: which has been fixed on a 15-year contract. the bottom line on the container market is that the order book is very high. we still see, huge, TU mile disturbance with the de facto closure of the Red Sea.

Speaker #1: But very short term, we have seen a little uptick because of the disturbance around the Strait of Hormuz. And so rates both on the spot market and also on time charter rates have gone up a little bit in recent days.

Speaker #1: If no container ships pass by there, it's basically 12% of demand, kicker. So if that falls away, including the big tsunami of new container vessels that will come on stream in the next couple of years, the market should continue to go down.

Speaker #1: And weeks. But we believe fundamentally this should normally go down again as soon as certain things resolve themselves. And as the order book starts delivering to the market.

Speaker #1: But very short term, we have seen a little uptick because of the disturbance around the Strait of Hormuz, and so rates, both on the spot market and also on time charter rates, have gone up a little bit in recent days.

Alexander Saverys: Rates both on the spot market and also on time charter rates have gone up a little bit in recent days and weeks. We believe, fundamentally, this should normally go down again as soon as certain things resolve themselves and as the order book starts delivering to the market. Chemical tankers, I was mentioning a slightly softer market that is reflected in what we are earning in the spot pool. Now, most of our vessels are fixed on time charters, so we're not really affected by that. It has to be said also, chemical tanker markets are much less volatile than other markets.

Speaker #1: Chemical tankers, I was mentioning a slightly softer market that is reflected in what we are earning in the spot pool. Now, most of our vessels are fixed on time charters.

Speaker #1: And weeks, but we believe, fundamentally this should normally go down again, as soon as certain things resolve themselves and as the order book starts, delivering, to the market.

Speaker #1: So we're not really affected by that. But it has to be said also, chemical tanker markets are much less volatile than other markets. So when we say softening and you look at the numbers that we are achieving on the spot market of 21,500 dollars, that is compared to around 25,000 last year, we still believe these rates are very healthy.

Speaker #1: chemical tankers, I was mentioning a slightly softer market, that is reflected, in, what we are earning, in, the spot pool. Now, most of our vessels are, fixed on time charters, so we're not really affected by that.

Speaker #1: but it has to be said also, chemical tanker markets are much less volatile than other markets. So when we say softening and you look at the numbers that we are achieving on the spot market of 21,500, that is compared to around 25,000 last year, we still believe these rates are very healthy.

Speaker #1: Finishing off with Windcat. Exciting times for our division Windcat because we have taken delivery now of our third CSOV, which is our large offshore energy supply vessels.

Alexander Saverys: When we say softening and you look at the numbers that we are achieving on the spot market of $21,500, that is compared to around $25,000 last year, we still believe these rates are very healthy. Finishing off with Windcat. Exciting times for our division Windcat because we have taken delivery now of our third CSOV, which is our large offshore energy supply vessels. We still have 3 that will be delivered, plus 1 larger CSOV, an MPASV, as we call it. Still 4 ships on order. We have seen very healthy rates for our CSOVs. You can see an average of $65,000 a day in Q1. Q2 already fully fixed at $62,000 a day.

Speaker #1: We still have three that will be delivered plus one larger CSOV, an MPASV as we call it. So still four ships on order. We have seen very healthy rates for our CSOVs.

Speaker #1: Finishing off with Windcat—exciting times for our division, Windcat, because we have taken delivery now of our third CSOV, which is our large offshore energy supply vessel.

Speaker #1: You can see an average of 65,000 dollars a day in the first quarter. Second quarter already fully fixed at 62,000 dollars a day. And we have further vessels delivering and are in talks with customers for both short-term and longer-term employment.

Speaker #1: We still have three that will be delivered, plus one, larger CSOV—an MPASV, as we call it. So, still four ships on order. We have seen very healthy rates for our CSOVs.

Speaker #1: You can see an average of $65,000 a day in the first quarter. Second quarter already fully fixed at $62,000 a day. And we have further vessels delivering, and are in talks with customers for both short-term and longer-term employment.

Speaker #1: Our CTVs are doing well as well. After the traditionally slow winter periods, we are now coming into the peak period of spring and summer.

Speaker #1: And you can see that our utilization is above 90%. And we are earning good rates of an average of 3,000, 400 dollars a day.

Alexander Saverys: We have further vessels delivering and are in talks with customers for both short-term and longer-term employment. Our CTVs are doing well as well. After the traditionally slow winter periods, we are now coming into the peak period of spring and summer, and you can see that our utilization is above 90%, and we are earning good rates of an average of $3,400 a day. We're expecting, as I said before, this offshore wind market, offshore oil and gas market to remain supported in the following months. This wraps up the market updates, and I will now hand it over to Enya for the Q&A.

Speaker #1: Our CTVs are doing well as well. After the traditionally slow winter periods, we are now coming into the peak period of spring and summer.

Speaker #1: We're expecting, as I said before, these offshore wind market, offshore oil and gas market to remain supported in the following months. This wraps up the market updates.

Speaker #1: And you can see that our utilization is above 90%, and we are earning good rates of an average of $3,400 a day. We're expecting, as I said before, these offshore wind market, offshore oil and gas market, to remain supported in the following months.

Speaker #1: And I will now hand it over to Enya for the Q&A.

Speaker #2: Thank you, Alexander. We will now continue with Q&A. If you would like to ask a question, please raise your hands. Make sure to introduce yourself and unmute before asking your question.

Speaker #1: This, wraps up the market updates, and I will now hand it over to Enya for the Q&A. Thank you, Alexander. we will now, continue with Q&A.

Speaker #2: For telephone participants, if you want to raise your hands, you can type star five. And star six to unmute. If in any case you can't ask your question live, you can also use the Q&A section or you can send an email to yorisdaman.

Operator: Thank you, Alexander. We will now continue with Q&A. If you would like to ask a question, please raise your hands. Make sure to introduce yourself and unmute before asking your question. For telephone participants, if you want to raise your hands, you can type star five and star six to unmute. If in any case you can't ask your question live, you can also use the Q&A section, or you can send an email to Joris Daman. His contact details are also in the presentation. We will now start with the first question coming from Frode Mørkedal. You can now unmute and ask your question, please.

Speaker #1: If you would like to ask a question, please raise your hand. Make sure to introduce yourself and unmute before asking your question. For telephone participants, if you want to raise your hand, you can type *5, and *6 to unmute.

Speaker #2: He's contact details are also in the presentation. We will now start with the first question. Coming from Frode Morkedal. You can now unmute and ask your question, please.

Speaker #1: If, in any case, you can't ask your question live, you can also use the Q&A section or you can send an email to Joris Daman.

Speaker #1: He's contact details are also in the presentation. we will now, start with the first question. coming from, Frode Merkenau. You can now unmute and ask your question, please.

Speaker #3: Yes, thank you. This is Frode at Clarksons. My first question is on capital allocation. So you basically reached the 50% net long-term value target you have.

Speaker #1: Yes, thank you. This is, Frode at Clarkson's. my first question is on, a couple of locations. So you basically reached the 50% net loan-to-value target you have.

Speaker #3: So you've been the yield leveraging the balance sheet. You have plenty of liquidity. And new build program looks fully funded. So basically, how should you think about capital allocation from here?

Frode Mørkedal: Yes. Thank you. This is Frode at Clarksons. My first question is on capital allocation. You basically reached the 50% of net loan-to-value targets you have. You've been de-leveraging the balance sheet. You have plenty of liquidity, and the new build program looks fully funded. Basically, how should we think about capital allocation from here? Specifically on the dividend, you raised it from EUR 0.16 to EUR 0.20 on the interim dividend. Is this a level that you would like to maintain, or should we think about dividends as variable quarter to quarter?

Speaker #3: Specifically on the dividend you raised it from 16 cents to 20 cents on the interim. Dividend. Is this a level that you would like to maintain?

Speaker #1: So you've been the yield leveraging the balance sheet, you have plenty of liquidity, and the new build program looks fully funded. So basically, how should you think about capital allocation from here?

Speaker #3: Or should we think about dividends as variable quarter to quarter?

Speaker #1: If, specifically on the dividend, you raised it from 16 cents to 20 cents on the interim dividend, is this a level that you would like to maintain?

Speaker #1: Yeah, Frode, let me take this one. Indeed, we are I think working on all sides. The leveraging the balance sheet, especially with the bridge loan that we had, which was quite expensive.

Speaker #1: or should we think about dividends as, variable quarter to quarter? Yeah, Frode, let me, take this one. indeed, we are, I think, working on all, sides.

Speaker #1: You know, we were able to repay that fully. But we also reduced our margins on close to all our financings with our banks. And I think that was visible on the net finance expenses.

Alexander Saverys: Yeah, Frode, let me take this one. Indeed, we are, I think, working on all sites. The deleveraging the balance sheet, especially with the bridge loan that we had, which was quite expensive, you know. We were able to repay that fully, but we also reduced our margins on close to all our financings with our banks. I think that was visible on the net finance expenses. The CapEx program is coming to an end. I think on the dividends, which is as every quarter, the board decides what to do, whether it's paying, accelerating down payments on debt, capital, potential M&A, or distribute to shareholders.

Speaker #1: The, the leveraging the balance sheet, especially, with the bridge loan that we had, which was quite expensive, you know, we were able to repay that fully, but we also reduced our margins on, close to all our financings, with, with our banks.

Speaker #1: The CapEx program is coming to an end. And I think on the dividend, which is as every quarter the boards decides what to do, whether it's paying accelerating down payments on debt capital, potential M&A, or distributes to shareholders.

Speaker #1: So, and, and I think that was a visible on the, net finance expenses. the capex program is coming to an end. and I think on a dividend, which is, as every quarter the boards decides what to do, whether it's paying accelerating down payments on debt capital, potential M&A, or distribution to shareholders.

Speaker #1: And I think we have made clear that once the leverage targets are more into play like we are today, then we can start allocating more of the free dollars to shareholders.

Speaker #1: And I think, we have made clear that once the leverage targets are, are more into play like we are today, that we can start, allocating more of the free dollars, to, to shareholders.

Speaker #1: Yet we do have a full discretionary dividend policy. So we'll continue to keep that. Historically, as I mentioned on the previous earnings calls, we've always paid between 50 and 60 percent of the net profits distributed to the shareholders.

Alexander Saverys: I think we have made clear that once the leverage targets are more into play like we are today, then we can start allocating more of the free dollars to shareholders. Yet we do have a full discretion in dividend policy, so we'll continue to keep that. Historically, as I mentioned, on the previous earnings calls, we've always paid between 50% and 60% of the net profits distributed to shareholders. After announcing the 50% distribution on the vessel sales, which was in December, we announced it, the board decided that we would actually rather pay EUR 0.50 on the whole profit of Q1. Going forward, I think there's definitely every quarter announce is gonna happen.

Speaker #1: And after announcing the 50% distribution on the vessel sales, which was in December we announced it, the board decided that we would actually rather pay 50% on the whole profit of Q1.

Speaker #1: yet we do have a full discretionary dividend policy. So we'll continue to keep that. historically, as I mentioned, on the previous earnings calls, we've always paced between 50 and 60 percent of the net profits, distributed to the shareholders.

Speaker #1: Going forward, I think there's definitely every quarter now is going to happen. But the less leverage we have, the less CapEx that we have, less opportunities that could arise.

Speaker #1: And after announcing the 50% distribution on the vessel sales, which was in December, we announced it, the board decided that we would actually rather pay 50% on the whole profit of Q1.

Speaker #1: Like we mentioned on new builds, there's nothing really interesting in the core markets, dry bulk and tankers today. I think distribution to shareholders will definitely continue to be a full focus on our side.

Speaker #1: Now, going forward, I think that there's, there's definitely, every quarter analysis is going to happen. But the less leverage we have, the less capex that we have, less opportunities that could arise, like, we, we mentioned on new builds, there's nothing really, interesting in, in the core markets.

Alexander Saverys: The less leverage we have, the less CapEx that we have, less opportunities that could arise. Like we mentioned on new builds, there's nothing really interesting in the core markets, dry bulk and tankers today. I think distribution to shareholders will definitely continue to be a full focus on our side. To your question, we didn't go from EUR 0.16 to EUR 0.20. We actually went from EUR 0.16 to EUR 0.64. I think the parts, the EUR 0.44 on share issue premium, it's a different way to a more fiscal optimized way of reducing the withholding tax for mostly the retail shareholders and then the foreign shareholders to do that. I think going forward, we will see how the market continues.

Speaker #1: To your question, we didn't go from 16 cents to 20 cents. We actually went from 16 cents to 64 cents. I think the parts, the 44 cents on share issue premium, it's a different way to more fiscal optimized way of reducing the withholding tax or mostly the retail shareholders.

Speaker #1: Dry bulk and, and, and tankers today. I think, distribution to shareholders will definitely continue to be a, a, a, a, a full focus on, on our sides.

Speaker #1: To your question, we didn't go from 16 cents to 20 cents. We actually went from 16 cents to 64 cents. I think the parts, the 44 cents on share issue premium, it's a different way to—more fiscally optimized way—of reducing the withholding tax, or mostly for the retail shareholders.

Speaker #1: And then the foreign shareholders. To do that. But I think going forward, we'll see how the market continues. But we'll definitely analyze the distribution to shareholders with a full focus.

Speaker #3: Okay, that's interesting. So 50% looks reasonable. That's what I heard from you.

Speaker #1: and then the foreign shareholders. to, to do that. But, I think going forward, we'll, we'll see how the market continues. but we'll definitely analyze, the distribution to shareholders, with a full focus.

Speaker #1: That's why we also historically we pay to the shareholders, yes.

Alexander Saverys: We will definitely analyze the distribution to shareholders with a full focus.

Speaker #3: Okay, next question I had was just started thinking. I mean, the gold notion acquisition, that looks quite well timed now. You know, clearly dry bulk asset values have moved higher.

Speaker #1: Okay. That's interesting. So, 50% looks reasonable. That's, what I heard from you. That's why we also we historically, we paid to the shareholders, yes.

Frode Mørkedal: Okay. That's interesting. 50% looks reasonable. That's what I heard from you.

Alexander Saverys: That's what we also historically paid to the shareholders, yes.

Speaker #1: Okay, next question I had was—I just started thinking—I mean, the Gold Notion acquisition, that looks quite well-timed now. You know, clearly, dry bulk asset values have moved higher.

Speaker #3: So just had like a quick question. Do you have any sense of how much you are up on that investment? So far?

Frode Mørkedal: Okay. Next question I had was, just started thinking, I mean, the Golden Ocean acquisition, that looks quite well timed now. you know, clearly, dry bulk asset values have moved higher. I just have like a quick question. Do you have a sense of how much you are up on that investment, so far?

Speaker #1: Frode, can you not do the calculation for us? Let's say that, you know, based on the acquisition price, obviously we've done but you have to take the full costs.

Speaker #1: So, just had, like, a quick question. Do you have any sense of how much you are up on that investment so far? Frode, can you not do the calculation for us?

Speaker #1: Because we did a semi-leverage buyout. Yes, we paid 50% with shares. But we did pay 50% with full financing. It is true that the returns on paper today look good.

Alexander Saverys: Frode, can you not do the calculation for us?

Speaker #1: Let's say that, you know, based on the, the acquisition price, obviously, we've done, but you have to take the full costs, because we did a semi-leverage buyout.

Frode Mørkedal: Uh-

Alexander Saverys: Let's say that, you know, based on the acquisition price, obviously, we've done, you have to take the full costs, because we did a semi-levelled buyouts. Yes, we paid 50% with shares, we did pay 50% with full financing. It is true that the returns on paper today look good. As always, I think we need to ride the cycle fully before we can claim victory on that. The market has picked up somewhat faster than we were expecting on the medium term. I think the spot strategy that we've entailed is definitely setting it up to reap the benefits on the short term.

Speaker #1: But as always, I think we need to ride the cycle fully before we can claim victory on that. But the market has picked up somewhat faster than we were expecting on the medium term.

Speaker #1: Yes, we paid 50% with shares, but we did pay 50% with, full, financing. it is true that the, the returns on paper today look good.

Speaker #1: And I think the spot strategy that we've entailed is definitely setting us up to reap the benefits on the short term.

Speaker #1: But as always, I think we need to ride the cycle fully before we can, claim victory on that. but, the market has picked up somewhat faster than we were expecting on the medium term.

Speaker #3: Yeah, I did actually do the calculation. I think you're up at least 20%. But yeah.

Speaker #1: and I think the spot strategy that we've, we've entailed, is definitely, setting it up to reap the benefits, on the short term. Yeah. No, I did actually do the calculation.

Speaker #1: Only 20%, Frode? Oh, you're selling us short.

Speaker #3: Could be, could be. As a follow, I mean, given where asset values are today, do you still see value in further investments? Or is this becoming a more market to sell further assets?

Frode Mørkedal: Yeah. No, I did actually do the calculation. I think you are up at least 20%. Yeah.

Speaker #1: I think in Europe, at least 20%. but, yeah. Only 20%, Frode? Or you're selling off short? Could be, could be. as a follow-up, I mean, given where asset values are today, do you still see in value in further investments?

Alexander Saverys: Only 20%, Frode? Boy, you're selling it short.

Frode Mørkedal: Maybe I'm wrong. Could be. Could be. As a follow-up, I mean, given where asset values are today, do you still see in value in further investments, or is this becoming a more market to sell, you know, further assets?

Speaker #1: Well, it's a good question, Frode. I can repeat what I told you last time, I think, or I told someone else. Everything's pricey today.

Speaker #1: Let's not lie about the facts. New buildings, second hand, everything has gone up. There will always be opportunities. I'm sure. We will analyze these opportunities.

Speaker #1: or is this becoming a more market-to-sell, you know, further assets? Well, it's a good question, Frode. I can repeat what I told you last time, I think, or, or I told someone else.

Alexander Saverys: Well, it's a good question, Frode. I can repeat what I told you last time, I think, or I told someone else. Everything's pricey today. Let's not, you know, let's not lie about the facts. New buildings, second-hand, everything has gone up. There will always be opportunities, I'm sure. We will analyze these opportunities. Right now, having sold most of our older vessels, we still might sell some ships of older vintage or sell some ships if we see a very good price. What we wanna do now is really ride the cycle, definitely on dry bulk, and see what comes, you know, after this high cycle. Obviously, for us, the story doesn't end when the cycle turns. That's when the story begins.

Speaker #1: But right now, having sold most of our older vessels, we still might sell some ships. Of older vintage. Or sell some ships if we see a very good price.

Speaker #1: everything's pricey today. Let's not, you know, let's not lie about the facts. New buildings, secondhand, everything has gone up. there will always be opportunities.

Speaker #1: But what we want to do now is really ride the cycle, definitely on dry bulk. And see what comes after this high cycle. Because obviously, for us, the story doesn't end when the cycle turns.

Speaker #1: I'm sure. We will analyze these opportunities. But right now, having sold most of our older vessels, we still might sell some ships of older vintage, or sell some ships if we see a very good price.

Speaker #1: That's when the story begins.

Speaker #1: but what we want to do now is really, ride the cycle, definitely on dry bulk. and, and see what comes, you know, after this high cycle.

Speaker #3: Good answer. That's it for me. Thank you.

Speaker #2: Thanks.

Speaker #4: The next question is coming from Clement. Can you please unmute and ask your question?

Speaker #1: Because obviously, for us, the story doesn't end when the cycle turns. That's when the story begins. Good answer. That's it for me. Thank you.

Speaker #2: Yeah. Hi, good afternoon. Thank you for taking my questions. I wanted to start by following up on your finance expenses, which the client significantly, as you review step and refinance some facilities.

Frode Mørkedal: Good answer. That's it for me. Thank you.

Speaker #1: Thanks. The next question is coming from Clement. Can you please unmute and ask your question? Yeah. Hi. Good afternoon. Thank you for taking my questions.

Alexander Saverys: Thanks.

Operator: The next question is coming from Clement. Can you please unmute and ask your question?

Speaker #2: Did the 82 million expenses for the quarter include any one-offs due to refinancings? And secondly, is the GNA for Q1 a good proxy for the remainder of the year?

[Analyst]: Yeah. Hi, good afternoon. Thank you for taking my questions. I wanted to start by following up on your finance expenses, which declined significantly as you reduced debt and refinanced some facilities. Did the EUR 82 million expenses for the quarter include any one-offs due to refinancings? Secondly, is the G&A for Q1 a good proxy for the remainder of the year?

Speaker #1: I wanted to start by following up on your finance expenses, which the client significantly, as you review step and refinance some facilities. Did the 82 million expenses for the quarter include any one-offs due to refinancings?

Speaker #1: Yeah, no, it's two great questions, Clement. On the net finance expenses, I think in the 82, there were maybe 3 million one-offs. But so it's insignificant, I would say.

Speaker #1: And secondly, is the G&A for Q1 a good proxy for the remainder of the year? Yeah. No, it's two great questions. Clement, on the net finance expenses—I think in the $82 million, there were maybe $3 million one-offs.

Speaker #1: So it is definitely on the current optimized debt situation. But not yet taking into account some of the margin reductions we've we're actually executing on roughly 2 billion dollars of financing.

Alexander Saverys: Yeah. No, it's two great questions, Clement. On the net finance expenses, I think, in the EUR 82 million, there were maybe EUR 3 million one-offs. It's insignificant, I would say. It is definitely on the current optimized debt situation, but not yet taking into account some of the margin reductions. We're actually executing on roughly $2 billion of financing, which will only come into play end of Q2. There's more room to reduce the net finance expenses. On the SG&A, with the EUR 51 million we had in Q4 compared to the EUR 27 million in Q1, I think Q4 was definitely exceptional. I think we mentioned that on the last earnings call.

Speaker #1: but so it's insignificant, I would say. so, it is definitely, on the current, optimized debt situation, but not yet taking into account some of the margin reductions we've, we're actually executing on roughly 2 billion dollars of, financing.

Speaker #1: Which will only come into play end of Q2. So there's more room to reduce the net finance expenses. On the SGNA, with the 51 million we had in Q4, compared to 27 million in Q1, I think Q4 was definitely exceptional.

Speaker #1: with all, which will only come into play end of, Q2. So there's, there's more room to reduce, the net finance expenses. On the SG&A, with the 51 million we had in Q4, compared to the 27 million in, Q1, I think Q4 was definitely exceptional.

Speaker #1: I think we mentioned that also in the last earnings call. Q1 is definitely better. But we are, as management, we're keeping optimizing and looking at that.

Speaker #1: Integrating companies is often harder than we think. But we're well on the way to reach our targets on the SGNA.

Speaker #1: I think we mentioned that also in the last earnings call. Q1 is definitely better. But we are, as management, we're keeping optimizing and looking at that.

Alexander Saverys: Q1 is definitely better, but we are as management, we keep on optimizing, and looking at that. Integrating companies is often harder than we think. We're well on way to reach our targets on the SG&A.

Speaker #2: Okay, that's very helpful. Thank you. Could you talk a bit about whether you've had any impact on the operations of the two FSOs contracted with Qatar Energy on the back of the conflict?

Speaker #1: integrating companies, is often harder than we think. but, but we're well on the way to, to reach our targets on the SG&A. Okay. That's very helpful.

Speaker #1: Yes, Clement. We have had some operational disturbances. But we are trying to get everything back on track. As you know, in the safety of our people on board is the most important one.

Speaker #1: Thank you. Could you talk a bit about whether you've had any impact on the operations and of the two FSOs contracted with Qatar Energy on the back of the conflict?

[Analyst]: Okay, that's very helpful. Thank you. Could you talk a bit about whether you've had any impact on the operations and of the 2 FSOs contracted with QatarEnergy on the back of the conflict?

Speaker #1: And we are in very close collaboration with NOC, who is our customer, to make sure that we can restart the operations in a safe way.

Speaker #1: Yes, Clement. we have had, some operational disturbances. but, we are trying to get everything, back on track. as you know, in the safety of our people on board is, the most important one.

Alexander Saverys: Yes, Clement. We have had some operational disturbances, but we are trying to get everything back on track. As you know, the safety of our people on board is the most important one. We are in a very close collaboration with NOC, who is our customer, to make sure that we can restart the operations in a safe way.

Speaker #2: Makes sense. And final question from me. You've got a 12 million profit from equity accounted investees. To what does that refer specifically?

Speaker #1: and we are in, very close collaboration, with, NOC, who is our customer, to make sure, that, we can restart the operations in a safe way.

Speaker #1: That's a good question. It's reflecting the proportional profits that we made at least debts the companies were in which we have small participations made.

Speaker #1: Makes sense. And final question from me. You've got a 12 million profit from equity accounted investees. To what does that refer, specifically? That's a good question.

[Analyst]: Makes sense. Final question from me. You've got a EUR 12 million profit from equity accounted investees. To what does that refer specifically?

Speaker #1: This is, I would say, half of it is one-offs. From these companies. And it's a very diverse slew of small participations from ammonia logistics, to basically Japanese joint ventures.

Speaker #1: It's reflecting the proportional profits that we made—at least, that's the company's way—in which we have small participations made. This is, I would say, half of it is one-offs.

Alexander Saverys: A good question. It's reflecting the proportional profits that we made. At least that the companies were in which we have small participations made. This is, I would say half of it is one-offs from these companies. It's a very diverse slew of small participations, from ammonia logistics, to basically Japanese joint ventures. There is, I think a good smaller companies that deliver profits quarter on quarter. There's definitely some of that to stay in the coming quarters.

Speaker #1: But there is, I think, a good smaller companies that deliver profits quarter on quarter. So there's definitely some of that to stay in the coming quarters.

Speaker #1: From these, companies. And, it's, it's, it's a very diverse, slew of small participations. from, ammonia logistics, to basically, Japanese, joint ventures. but, but there is, I think, a good smaller companies that deliver profits, quarter on quarter.

Speaker #2: Great. Good to hear. That's everything from me. I'll turn it over. Thank you.

Speaker #1: Thanks.

Speaker #4: The next one is Peter Haugen. You can now unmute and ask your question, please.

Speaker #1: so, there's definitely, some of that to stay in the coming quarters. Great. Good to hear. That's everything from me. I'll turn it over. Thank you.

Speaker #5: Good afternoon. This is then Peter Haugen from ABG Sundal Collier in Oslo. First, well, I would like to put some emphasis on Joris Mork on the slide 25 that the slide showing the shortfall and the partial refillment of what was lost is a very, I think, instructive way to think about this.

Speaker #1: Thanks. The next one is, Freder Haugen. You can now unmute and ask your question, please. Good afternoon. this is Dan Petter Haugen from ABG Sundal Collier in, in Oslo.

[Analyst]: Great. Good to hear. That is everything from me. I will turn it over. Thank you.

Alexander Saverys: Thanks.

Operator: The next one is Frederik Haugen. You can now unmute and ask your question, please.

Frederik Haugen: Good afternoon. This is then Frederik Haugen from ABG Sundal Collier in Oslo. First, well, I would like to put some emphasis on Joris' work on slide 25, that the slide showing the shortfall and the partial refillment of what was lost is a very, I think, instructive way to think about this. One question in this context. Would it be positive or sort of if adjusted for distances, the same slide just on ton-mile, so to speak. Would that be still in a negative territory or is it in positive territory?

Petter Haugen: Good afternoon. This is then Frederik Haugen from ABG Sundal Collier in Oslo. First, well, I would like to put some emphasis on Joris' work on slide 25, that the slide showing the shortfall and the partial refillment of what was lost is a very, I think, instructive way to think about this. One question in this context. Would it be positive or sort of if adjusted for distances, the same slide just on ton-mile, so to speak. Would that be still in a negative territory or is it in positive territory?

Speaker #1: first, well, I would like to, to put some emphasis on Joris' work on the slide 25 that, the slide showing the shortfall and the pa-partial, refillment of, what was lost, is, is a very, I think, instructive way to think about this.

Speaker #5: And one question in this context. Would it be positive or sort of if adjusted for distances the same slide just on Tom Milestone so to speak?

Speaker #5: Would that be still in a negative territory? Or is it in positive territory?

Speaker #1: and one question in this context. Would it be, positive or, sort of if adjusted for distances? the same slide, just, on ton milestone. so to speak.

Speaker #1: Well, Joris can take that question. It's fairly balanced. And that was the main message here that if you not only look at tons, but at ton miles, the situation is actually up until today a balanced situation whereby the lost volumes are being balanced out by the additional distance.

Speaker #1: Would that be still in a negative territory? Or is it, in, in positive territory? Well, Joris can take that question, huh? it's, it's fairly balanced.

Alexander Saverys: Joris can take that question, huh? It's fairly balanced and that's, that was the main message here that if you not only look at tons, but at ton-miles, the situation is actually up until today, a balanced situation whereby that the lost volumes are being balanced out by the additional distance. Of course, that only holds as long as US exports keep the same levels and the other countries like Brazil, Guyana, Angola keep on the, let's say, the higher volumes than what we saw in the first 2, 3 months of the year. That's the big assumption of this slide.

Alexander Saverys: Joris can take that question, huh?

Speaker #1: And, and that's, that was the, the, the main message here: that if you not only look at tons, but at ton-miles, the situation is actually, up until today, a balanced situation, whereby the lost volumes are being balanced out by the additional distance.

Joris Daman: It's fairly balanced and that's, that was the main message here that if you not only look at tons, but at ton-miles, the situation is actually up until today, a balanced situation whereby that the lost volumes are being balanced out by the additional distance. Of course, that only holds as long as US exports keep the same levels and the other countries like Brazil, Guyana, Angola keep on the, let's say, the higher volumes than what we saw in the first 2, 3 months of the year. That's the big assumption of this slide.

Speaker #1: Of course, that only holds as long as US exports keep the same levels and the other countries like Brazil, Guyana, Angola keep on the, let's say, the higher volumes than what we saw in the first two, three months of the year.

Speaker #1: That's the big assumption of this slide.

Speaker #5: Okay. So very balanced then, Tom Wildwise. Thank you. Just one further question. In Q3, you ordered one CSOE, the large version. And also had options for five more.

Speaker #1: That's the big assumption, of this slide. Okay. So very balanced on, ton mile wise. Thank you. Yeah. just one further question. In Q3, you, you ordered, one CSOE, the, the large version.

Speaker #5: Is there any progress on those options in terms of, well, either striking them or lapsing them?

Frederik Haugen: Okay. very balanced on ton-mile wise. Thank you.

Petter Haugen: Okay. very balanced on ton-mile wise. Thank you.

Alexander Saverys: Yeah.

Joris Daman: Yeah.

Frederik Haugen: Just one further question. In Q3, you ordered 1 CSOV, the large version, and also had options for 5 more. Is there any progress on those options in terms of, well, either striking them or lapsing them?

Petter Haugen: Just one further question. In Q3, you ordered 1 CSOV, the large version, and also had options for 5 more. Is there any progress on those options in terms of, well, either striking them or lapsing them?

Speaker #1: Yeah, we still have time to lift the next option. But right now, if you ask me, it looks very interesting. There's good demand for these assets.

Speaker #1: And also, had options for five more. Is there any progress on those options in terms of, well, either striking them or lapsing them? Yeah.

Speaker #1: But as long as we don't need to lift the option, we will still wait the market can still change. But it is definitely one of the segments that we are watching closely for potential new buildings.

Speaker #1: We still have time to lift the next option. But, right now, if you ask me, it looks very interesting. There's good demand for these assets.

Alexander Saverys: Yeah. We still have time to lift the next option. Right now, if you ask me, it looks very interesting. There's good demand for these assets. As long as we don't need to lift the option, we will still wait. The market can still change. It is definitely one of the segments that we are watching closely for potential new buildings, because we still see value and the value at which we hold the options is interesting.

Speaker #1: Because we still see value and the value at which we hold the options is interesting.

Speaker #1: but as long as we don't need to lift the option, we will still wait, the market can still change. but it is definitely one of the segments, that we are watching closely for potential new buildings.

Speaker #5: Okay. Could you elaborate a bit on what sort of employment you would potentially do on a new build order? So yeah, and also the delivery schedule for those options.

Speaker #1: Because we still see value, and the value at which we hold the options is interesting. Okay. Could you elaborate a bit on what sort of employment you would potentially do on a newbuild order—sort of a back to, yeah?

Speaker #1: It would be in 2028. And we would lift the option most probably without any employment attached. We have decided on the CSOEs that we would operate on the spot market.

Frederik Haugen: Okay. Could you elaborate a bit on what sort of employment you would potentially do on a newbuild order.

Petter Haugen: Okay. Could you elaborate a bit on what sort of employment you would potentially do on a newbuild order.

Speaker #1: And also, the delivery schedule for those, options. Would be in 2028. and we would lift the option most probably without any employment attached. we have decided on the CSOVs, that we would operate on the spot market.

Speaker #1: And if we see long-term business, we would go for the long-term business. That's exactly what we've done with the first two ships. What we're doing with the next vessels, always be a mix of spot employment and longer-term employment if it makes sense.

Alexander Saverys: Yeah.

Frederik Haugen: Also the delivery schedule for those options.

Petter Haugen: Also the delivery schedule for those options.

Alexander Saverys: Would be in 2028. We would lift the option most probably without any employment attached. We have decided on the CSOVs that we would operate on the spot market, if we see long-term business, we would go for the long-term business. That's exactly what we've done with the 1st, 2 ships, what we're doing with the next vessels. Always be a mix of spot employment and longer-term employment, if it makes sense. You know that in this offshore wind market, if you order some of these CSOVs with a charter attached, usually the returns are very, very low.

Speaker #1: You know that in this offshore wind market, if you order some of these CSOEs with a charter attached, usually the returns are very, very low.

Speaker #1: And if we see long-term business, we would go for the long-term business. That's exactly what we've done with the first, two ships. what we're doing with the next vessels, always be a mix of spot employment and longer-term employment, if it makes sense.

Speaker #1: So if we lift the options, we will most probably, I mean, never say never. We might find some customers before we're lifting the option.

Speaker #1: You know that in this offshore wind market, if you order, some of these CSOVs, with a charter attached, usually the returns are very, very low.

Speaker #1: But it will most probably be without any employment. And then we will work on the employment as we go.

Speaker #2: And just to add to Alex, as a spot market today, both in international winds, but also regional international oil and gas, is actually very good.

Speaker #1: So, if—if we lift the options, we will most probably—I mean, never say never—we might find some customers before we're lifting the option.

Alexander Saverys: If, if we lift the options, we will most probably, I mean, never say never, we might find some customers before we lifting the option, but it will most probably be without any employment, and then we will work on the employment as we go. As just to add to Alex, as the spot market today, both in international winds, but also regional and international oil and gas is actually very good. For us to do long-term charters, it really has to be great rates. Otherwise, we just stay in the spot market and enjoy the rates we've shown on the slides.

Speaker #1: But it will most probably be, without any employment. And then we will work on the employment, as we go. And, and as just to add to Alex, as the spot market today, both, in international winds, but also, regional international oil and gas, is actually very good.

Speaker #2: For us to do long-term charters, it really has to be great rates. Otherwise, we just stay in the spot market. And enjoy the rates we've shown on the slides.

Speaker #5: Understood. Thank you. And just then finally, the options all five of them. Could you elaborate on when those lapses?

Speaker #1: for us to do long-term charters, it really has to be great rates. Otherwise, we just stay in the spot market. And enjoy the rates we've shown on the slides.

Speaker #1: I think the first one is in a couple of months from now, end of the summer.

Speaker #1: Understood. Thank you. And just, finally, the options, all, all five of them. Could you elaborate on, on when those, lapses? I think the first one is in a couple of months from now, end of the summer.

Speaker #5: Okay. And then they all.

Frederik Haugen: Understood. Thank you. Just then, finally, the options, all 5 of them, could you elaborate on when those lapses?

Petter Haugen: Understood. Thank you. Just then, finally, the options, all 5 of them, could you elaborate on when those lapses?

Speaker #1: And then we still have time for the following ones. Which is always with a couple of months interval.

Speaker #5: Okay. Understood. Thank you. That was all from me.

Alexander Saverys: I think the first one is in a couple of months from now, end of the summer.

Speaker #1: Okay. And then they will. That's the first one. And then and then we still have time, for the following ones. which is always with a couple of months, interval.

Speaker #1: Thanks.

Speaker #4: We received some questions in the Q&A. So I will go to those questions. The first question: the premium of nukes to capes in Q1 seemed quite low.

Frederik Haugen: Okay.

Petter Haugen: Okay.

Alexander Saverys: That's the first one. We still have time for the following ones, which is always with a couple of months interval.

Speaker #1: Okay. Understood. Thank you. That was all from me. Thanks. Thanks. we received some questions in the Q&A. So I will, go to those questions.

Speaker #4: Any particular reason for this? What premium would you expect over time?

Frederik Haugen: Okay. Understood. Thank you. That was all for me.

Petter Haugen: Okay. Understood. Thank you. That was all for me.

Alexander Saverys: Thanks. Thanks.

Speaker #1: I think I'll take it from a financial point of view, Alex, you can take it from operational. It was, as we are delivering quite a bit out of the yards, there's a lot of repositioning on these ships.

Operator: We received some questions in Q&A. I will go to those questions. The first question, the premium of Newcastlemaxes to Capes in Q1 seems quite low. Any particular reason for this? What premium would you expect over time?

Speaker #1: the first question, the premium of nukes to capes in Q1 seemed quite low. Any particular reason for this? What premium would you expect over time?

Speaker #1: Ballasting to Brazil, for instance. And so it's a more IFRS load to discharge. I think the Newcastle Maxis on a discharge to discharge basis would have been higher.

Speaker #1: I think I'll take it from a financial point of view, Alex. You can take it from operational. it was as we are delivering quite a bit, out of the yards, there's a lot of, repositioning, on the ships, ballasting to, Brazil, for instance.

[Company Representative] (CMB.TECH NV): I think I'll take it from a financial point of view. Alex, you can take it from operational. It was as we are delivering quite a bit out of the yards, there's a lot of repositioning on the ships, ballasting to Brazil, for instance. It's a more IFRS look to discharge. I think the Newcastlemaxes on a discharge-to-discharge basis would have been higher. But since we had a relatively much higher repositioning, so ballasters, that impacted it, the results. Yeah. I would say in a premium, it all depends, of course, on the height of the market, but you would be anywhere between 15% and 30%, depending on the market and of course, depending also on the fuel prices.

[Company Representative] (CMB.TECH): I think I'll take it from a financial point of view. Alex, you can take it from operational. It was as we are delivering quite a bit out of the yards, there's a lot of repositioning on the ships, ballasting to Brazil, for instance. It's a more IFRS look to discharge. I think the Newcastlemaxes on a discharge-to-discharge basis would have been higher. But since we had a relatively much higher repositioning, so ballasters, that impacted it, the results.

Speaker #1: But since we had a relative much higher repositioning, so ballasters, that impacted it. The results.

Speaker #1: And so it's a more IFRS load to discharge. I think the, the Newcastle Maxis on a discharge to discharge basis, would have been higher, but, since we had a relatively much higher, repositioning, so ballasters, that impacted it.

Speaker #5: Yeah. And I would say in a premium, what also depends, of course, on the height of the market. But you would be anywhere between 15 and 30 percent, depending on the market.

Speaker #5: And of course, depending also on the fuel prices.

Speaker #1: the results. Yeah. And I would say, in a premium, it also depends, of course, on the height of the market. but you would be anywhere between, 15 and 30 percent, depending on the market.

Speaker #4: See, moving on to the next question. Do you have any plans for the 25 million treasury shares you hold? We issued to outside holders a dividend used for acquisitions, retire, I assume they do not receive the dividends.

Alexander Saverys: Yeah. I would say in a premium, it all depends, of course, on the height of the market, but you would be anywhere between 15% and 30%, depending on the market and of course, depending also on the fuel prices.

Speaker #1: And of course, depending also on the fuel prices. See, moving on to the next question. Do you have any plans for the 25 million treasury shares you hold?

Speaker #5: So the treasury shares, to be clear, do not get dividends. They cannot vote neither. So our company has 290.2 million shares. That's what you really have to look at.

Operator: Moving on to the next question. Do you have any plans for the 25 million treasury shares you hold? Reissue to outside holders as dividends, use for acquisitions, retire? I assume they do not receive the dividends.

Speaker #1: We issue to outside holders as dividends used for acquisitions, retire. I assume they do not receive the dividends. No. So the treasury shares, to be clear, do not, get dividends.

Speaker #5: Retiring them for us, there's part of the authorized capital. So that said, the board discretion to use them, to dividend out to shareholders, or for M&A acquisitions, or other instruments.

Alexander Saverys: No. The treasury shares, to be clear, do not get dividends. They cannot vote neither. Our company has 290.2 million shares. That's what you really have to look at. Retiring them, for us, there's part of the authorized capital. That said, the board discretion to use them to dividend to shareholders or for M&A acquisitions or other instruments. Today, we don't have any plans. We bought them quite inexpensively, if you see, over the last years. I think this was a good investment from a long-term investor, but we have no plans right now.

Speaker #1: They cannot vote neither. So our company has 290.2 million shares. That's what you really have to look at. retiring them, for us, so that said, the board discretion to use them, to, to dividend out to shareholders or, for M&A acquisitions or, or other instruments.

Speaker #5: But today, we don't have any plans. We bought them quite inexpensively, if you see. Over the last years, so I think this was a good investment from a long-term investor.

Speaker #5: But we have no plans right now.

Speaker #1: But today, we don't have any plans, we bought them, quite inexpensively, if you see. over the last years, so I think, this was a good investment from a long-term investor.

Speaker #4: See, then the next one, with a cost per ship massively increased when the cycle turns, the recently purchased chips will have a much higher breakeven level.

Speaker #4: That could indicate what? If rates do come down, there'll be a lot of for sale signs at much lower prices.

Speaker #1: But we have no plans right now. See, then the next one, with a cost per ship massively increased when the cycle turns, the recently purchased chips will have a much higher break-even level.

Speaker #1: There's a statement or a question?

Speaker #4: It's a question.

Operator: Okay. The next one. With the cost per ship massively increased, when the cycle turns, the recently purchased ships will have a much higher breakeven level. That could indicate what if rates do come down, there will be a lot of for sale signs at much lower prices.

Speaker #1: Yes. If the market comes down and if owners are under duress, they will have to sell their ships at a lower price. And it is clear that the breakeven of the whole fleet has gone up, not only because of the high new building prices, but also because of the higher secondhand prices.

Speaker #1: That could indicate what? If rates do come down, there'll be a lot of for sale signs at much lower prices. This is a statement or a question?

Speaker #1: It's a question. Yes. If the market comes down, and if owners are under duress, they will have to sell their ships at a lower price.

Alexander Saverys: Is that a statement or a question?

Speaker #1: So it will be indeed interesting to see when the cycle turns how the market will react and how distressed sales could potentially come to the market.

Operator: It's a question.

Alexander Saverys: Yes. If the market comes down, and if owners are under duress, they will have to sell their ships at a lower price. It is clear that the break-even of the whole fleet has gone up, not only because of the high new building prices, but also because of the higher secondhand prices. It will be indeed interesting to see when the cycle turns, how the market will react and then how distressed sales could potentially come to the market.

Speaker #1: And it is clear that the break-even of the whole fleet has gone up, not only because of the high newbuilding prices, but also because of the higher secondhand prices.

Speaker #4: Okay. Then the next one, could you please are currently blocked in the Persian Gulf? If so, how many and what type of vessels are involved?

Speaker #1: So it will be indeed interesting to see when the cycle turns, how the market will react and, and how distressed sales could potentially come to the market.

Speaker #1: So there's a couple of ships that are indeed in the Persian Gulf right now. We don't communicate about the details of the vessels. The vessels' names.

Speaker #1: Okay. Then the next one, could you please clarify whether any CMB.TECH vessels are currently blocked in the Persian Gulf? If so, how many and what type of vessels are involved?

Operator: Okay. The next one. Could you please clarify whether any CMB.TECH NV vessels are currently blocked in the Persian Gulf? If so, how many and what type of vessels are involved?

Speaker #1: Out of safety concerns for our crew, which is on board.

Speaker #1: So, there's a couple of ships that are indeed in the Persian Gulf right now. We don't communicate about the details of the vessels—the vessels' names—out of safety concerns for our crew, which is on board.

Speaker #4: Okay. Then the next one, what is the ambition with respect to your green ammonia terminal project in Namibia? What is the latest status? What are the timelines in KPX requirements?

Alexander Saverys: There's a couple of ships that are indeed in the Persian Gulf right now. We don't communicate about the details of the vessels, the vessels' names, out of safety concerns for our crew, which is on board.

Speaker #1: So right now, no FID has been taken on that project. We are assembling all necessary information for the investment. And we hope to be able to say something more in the next quarterly call when we have a better view on that file.

Speaker #1: Okay. Then the next one, what is the ambition with respect to your green ammonia terminal project in Namibia? What is the latest status? What are the timelines in CAPEX requirements?

Operator: Okay. The next one. What is the ambition with respect to your green ammonia terminal project in Namibia? What is the latest status? What are the timelines and CapEx requirements?

Speaker #1: So right now, no, FID has been taken on that project. We are assembling all necessary information for the investment, and we hope to be able to say something more in the next quarterly call, when we have a better view on that file.

Speaker #1: So have a little bit of patience with us. But we will definitely mention that in the next quarterly call.

Alexander Saverys: Right now, no FID has been taken on that project. We are assembling all necessary information for the investment, and we hope to be able to say something more in the next quarterly call when we have a better view on on that file. Have a little bit of patience with us, but we will definitely mention that in the next quarterly call.

Speaker #4: Okay. And then moving on to the last question, this one is referring to slides 25. It's a slide that Joris explained. How much good oil, if any, is coming onto the world market from Venezuela?

Speaker #1: So, have a little bit of patience with us, but we will definitely mention that in the next quarterly call, okay? And then, moving on to the last question.

Speaker #1: So Venezuela crude oil for April was roughly 1.2 million barrels per day. It increased with 150,000 barrels compared to March because of, let's say, the political changes in the country.

Speaker #1: this one is referring to slide 25. It's a slide that Joris, explained. From Euronef, how much crude oil, if any, is coming onto the world market from Venezuela?

Operator: Okay. Then, moving on to the last question. This one is referring to slide 25. It's a slide that Joris explained from Euronav. How much crude oil, if any, is coming onto the world market from Venezuela?

Speaker #1: So, Venezuela crude oil, for April was roughly 1.2 million barrels per day. It increased with, 150, thousand barrels compared, to March because of, let's say, the political changes in the country.

Speaker #1: Exports are being increased. It's not the increase, which is interesting. It's rather that those barrels are now being transported on compliant vessels and no longer on any dark or gray fleet vessels.

Alexander Saverys: Venezuela crude oil for April was roughly 1.2 million barrels per day. It increased with 150,000 barrels compared to March because of, let's say, the political changes in the country. Exports are being increased. It's not the increase which is interesting, it's rather that those barrels are now being transported on compliant vessels and no longer on any, let's say, dark or gray fleet vessels. It's a net positive for crude tankers.

Speaker #1: Exports are being increased. It's not the increase which is interesting; it's rather that those barrels are now being transported on compliant vessels, and no longer on any, let's say, dark or 'gravelly' vessels.

Speaker #1: So it's a net positive for crude tankers.

Speaker #4: Okay. We have one last question. Can you explain what the 20 million in other operating income booked in Q1 is?

Speaker #1: So it’s a net positive for crude tankers. Okay. We have one last question. Can you explain what the $20 million in other operating income booked in Q1 is?

Speaker #1: Yes. Sure. That's a series of it's an amalgamation of all smaller profits we took that goes from claims we won from lawsuits or vessel claims we have over the last couple of years.

Operator: Okay, we have one last question. Can you explain what the EUR 20 million in other operating income booked in Q1 is?

Speaker #1: Yes. Sure. that's a series of, it's an amalgamation of all smaller profits we took. This goes from claims we won, from lawsuits or, vessel claims we have over the last couple of years.

Speaker #1: It's liquidated damages that we deliver ships and then they deliver earlier or later. With shipyards as well. So it's a whole slew of, I would say, smaller one-offs.

Alexander Saverys: Yes, sure. It's an amalgamation of all smaller profits we took. It goes from claims we won, from lawsuits or vessel claims we have over the last couple of years. It's liquidated damages that we deliver ships, and then they deliver earlier or later with shipyards as well. It's a whole slew of, I would say smaller one-offs. There's half of it or roughly is a revaluation of some investments we hold in smaller companies. Nothing meaningful, mostly one-offs, but always nice to have when you can book that on your balance sheet.

Speaker #1: There's half of it or roughly it's a revaluation of some investments we hold in smaller companies. So nothing meaningful. Mostly one-offs. But always nice to have when you can book that on your balance sheet.

Speaker #1: It's liquidated damages that we, we, deliver ships, and then they, they deliver earlier or later, with shipyards as well. So it's a it's a whole slew of, I would say, smaller one-offs.

Speaker #1: Half of it is roughly a revaluation of some investments we hold in smaller companies, so nothing meaningful. Mostly one-offs, but always nice to have when you can book that on your balance sheet.

Speaker #4: Okay. And I think that's concludes the questions.

Speaker #1: Thank you very much, Enya. Thank you, all of you, for joining in this quarterly call. And I'm looking forward to talking to you either at our general assembly on Thursday or on the next call we're organizing during the summer.

Speaker #1: Okay. And I think that's, concludes the questions. Thank you very much, Enya. Thank you, all of you for joining in this, quarterly call. And I'm looking forward to talking to you either at our general assembly on Thursday or on the next call we're organized, during the summer.

Speaker #1: Thank you. Bye-bye.

Operator: Yeah. I think that concludes the questions.

Alexander Saverys: Thank you very much, Enya. Thank you, all of you for joining in this quarterly call, and I'm looking forward to talking to you either at our general assembly on Thursday or on the next call we organize during the summer. Thank you. Bye-bye.

Operator: Bye-bye.

Joris Daman: Bye-bye.