Q2 2026 Cmb.Tech NV Earnings Call

August 27, 2026

Speaker #2: Good afternoon, and welcome to the earnings conference call for the second quarter of 2026 of CMB.TECH NV. My name is Alexander Saverys.

Alexander Saverys: Good afternoon, and welcome to the earnings conference call for the second quarter of 2026 of CMB.TECH. My name is Alexander Saverys, I am the CEO of CMB.TECH, and I am joined by my colleagues, Joris Damman and Enya Derkinderen. We will start, as always, with our financials and some highlights. Before we do, we give you an overview of the fleet of CMB.TECH. You can see that we have 206 vessels on the water with another 26 new buildings coming. Our contract backlog is stable at $3.3 billion. The fleet is young. We have an average age below six years. Our CapEx commitments, we will discuss a bit later, have now gone down to less than $1 billion. We have a market cap of $5.2 billion, a fair market value of the fleet of $11.2 billion.

Speaker #2: I'm the CEO of CMB.TECH NV and I'm joined by my colleagues , Joris Damon and Enya . Dickinson We will start , as always , with our financials and some highlights .

Speaker #2: And before we do, we give you an overview of the fleet of CMB.TECH NV. You can see that we have 206 vessels on the water.

Speaker #2: With 26 new buildings coming, our contract backlog is stable at $3.3 billion. The fleet is young; we have an average age below six years.

Speaker #2: Our CapEx commitments, as we will discuss a bit later, have now gone down to less than $1 billion. We have a market cap of $5.2 billion and a fair market value of the fleet of $11.2 billion.

Speaker #2: And for those might not know , but we are still listed in New York , in Brussels and in Oslo Our second quarter financials and the title of our press release was Making Hay Making Hay , while the Sun Shines .

Alexander Saverys: For those who might not know, we are still listed in New York, in Brussels and in Oslo. Our second quarter financials. The title of our press release was Making Hay. Making hay while the sun shines. These are exceptional times for shipping, and also exceptional times for CMB.TECH. The company has made a profit of $364.4 million in the second quarter. This was on the back of an increased revenue of over $700 million and an exceptional profit that we made on the sale of assets of $127 million. You can see the other items in our profit and loss that stick out. One of them is the net finance expense. We are reducing our quarterly net finance expense to $76 million, which is a 5% reduction compared to the first quarter. This is led by cheaper refinancings and also just a general repayment of our debt.

Speaker #2: These are exceptional times for shipping and also exceptional times for CMB.TECH. The company has made a profit of $364.4 million in the second quarter.

Speaker #2: This was on the back of increased revenue of over $700 million and an exceptional profit that we made on the sale of assets of $127 million.

Speaker #2: You can see the other items in our profit and loss that stick out. One of them is the net finance expense. We are reducing our quarterly net finance expense to $76 million, which is a 5% reduction compared to the first quarter.

Speaker #2: This is led by cheaper refinancings and also just a general repayment of our debt. Our EBITDA stood at $552 million. Our liquidity is slightly below $400 million in total assets.

Alexander Saverys: Our EBITDA stood at $552 million. Our liquidity, slightly below $400 million. On total assets, book value stands at above 35%, and our equity on total assets value adjusted is now above 50% at 51.5%. For the highlights during the quarter, I already mentioned our net profit and our EBITDA. The liquidity, which stands at around $400 million. We have a contract backlog which is stable. We have added during the quarter two-year charters on our CSOVs and one-year VLCC charter. We have the intention to distribute an amount of $0.64 per share, which will be split in an intermediary dividend of $0.21 per share and a payment of $0.43, so $0.21 per share and $0.43 per share out of the share premium reserve, which is exempt from any withholding tax.

Speaker #2: Book value stands at above 35% , and our equity on total assets value adjusted , is now above 50% at 51.5% . For the highlights during the quarter , I already mentioned our net profit and our EBITDA .

Speaker #2: The liquidity , which stands at around 400 million . We have a contract backlog , which is stable . We have added during the quarter two two year charters on our Sovs and one one year VLC charter .

Speaker #2: The intention is to distribute an amount of $0.64 per share, which will be split into an interim dividend of $0.21 per share and a payment of $0.43 per share.

Speaker #2: So $21 per share and $0.43 per share out of the share . Premium reserve , which is exempt from any withholding tax . We have taken delivery in the second quarter and quarter to date of nine new building vessels .

Alexander Saverys: We have taken delivery in Q2 and quarter to date of nine new building vessels. These were four Newcastlemaxes, one VLCC, two brand-new Suezmaxes, one CSOV, and one CTV. We have sold quite a few ships so far this year. In Q2, we have delivered to their new owners two VLCCs, the Ilma and the Ingrid, on which we booked a capital gain of $98 million. We have sold an older Suezmax, the Sienna, with a capital gain of $29 million. So total gain in Q2 was $127 million. In Q3, we will book a gain of $100 million on the sale of two Suezmaxes, and in Q4, we will add a gain of $130 million on the sale of the Donoussa, which is a VLCC, and one more Suezmax.

Alexander Saverys: We have taken delivery in Q2 and quarter-to date of nine new building vessels. These were four Newcastlemaxes, one VLCC, two brand-new Suezmaxes, one CSOV, and one CTV. We have sold quite a few ships so far this year. In Q2, we have delivered to their new owners two VLCCs, the Ilma and the Ingrid, on which we booked a capital gain of $98 million. We have sold an older Suezmax, the Sienna, with a capital gain of $29 million. So total gain in Q2 was $127 million. In Q3, we will book a gain of $100 million on the sale of two Suezmaxes, and in Q4, we will add a gain of $130 million on the sale of the Donoussa, which is a VLCC, and one more Suezmax.

Speaker #2: These were for Newcastle , Max's one Vlcc , two brand new Suez Maxis , one Cove and one CTV . We have sold quite a few ships so far this year .

Speaker #2: In the second quarter, we have delivered to their new owners two VLCCs, the Ilma and the Ingrid, on which we booked a capital gain of $98 million.

Speaker #2: We have sold an older Suezmax, the Sienna, with a capital gain of $29 million. So, total gain in the second quarter was $127 million, and in the third quarter.

Speaker #2: We will book a gain of $100 million on the sale of two Suezmaxes, and in the fourth quarter, we will add a gain of $130 million on the sale of the Donoso, which is a VLCC.

Speaker #2: And one more Suez Max The sales of our tankers . We believe , are very well timed . We are at a historic high prices for Vlccs and Suez Maxes on this slide .

Alexander Saverys: The sales of our tankers, we believe are very well-timed. We are at historic high prices for VLCCs and Suezmaxes. On this slide, you can basically see the 10-year average for a five-year-old VLCC and a five-year-old Suezmax compared to today's values, and also compared to the last 10 years minimum and maximum. As you can see on VLCCs and Suezmaxes, we are well above the 10-year average. We are also well above the maximum of over the last 10 years that we have seen. We therefore believe it's a good time to sell some of our assets, particularly our older assets. Then we have put a comparison where other segments stand, like Panamax and Capesizes. As you can see, that's today's values. Even though they're at the top end of what we have seen over the last 10 years, they are still in line of that bracket.

Speaker #2: You can basically see the ten year average for a five year old Vlcc and a five year old Suez Max compared to today's values , and also compared to the last ten years , minimum and maximum .

Speaker #2: And as you can see on Vlccs , Suez Max's , We are well above the ten year average . We are also well above the maximum of over the last ten years that we have seen , we therefore believe it's a good time to sell some of our assets , particularly our older assets , and then we have put a comparison where other segments stand , like Panamax and Cape sizes .

Speaker #2: As you can see that today's values , even though they are at the top end of what we have seen over the last ten years , they are still in line of of that bracket .

Speaker #2: Same goes for vlccs . Of course , on the container vessels , the situation is is different . And also on LNG We wanted to show you what we believe in 2027 are operational cash flow could be based on certain rate assumptions .

Alexander Saverys: Same goes for VLGCs. Of course, on the container vessels, the situation is different and also on LNGs. We wanted to show you what we believe in 2027 our operational cash flow could be based on certain rate assumptions. So we have put the rate assumptions at the bottom right of the slide with a 10% and 20% uplift. Rate assumptions for 2027 have been based on FFAs and assumptions for next year. You can see the numbers there. What you then see is, after having repaid or paid all our CapEx investments, we still are forecasting a cash flow of $700 million to $1 billion. Would say that's a very powerful figure to see, that even after all our CapEx have been repaid, our operational cash flow will be between $700 million and $1 billion.

Speaker #2: So we have put the rate assumptions at the bottom right of the slide, where a 10% and 20% uplift rate assumption for 2027 have been based on FHFA's and assumptions for next year.

Speaker #2: You can see the numbers there. What you then see is, after having repaid or paid all our CapEx investments, we still are forecasting a cash flow of $700 million to $1 billion.

Speaker #2: We'd say that's a very powerful figure to see that even after all our CapEx have been repaid, our operational cash flow will be between $700 million and $1 billion.

Speaker #2: Of course, if the market changes, the numbers will change. But it gives you an indication of the cash flow generating potential of all our different divisions.

Alexander Saverys: Of course, if the market changes, the numbers will change, but it gives you an indication of the cash flow generating potential of all our different divisions. The most important, of course, are Newcastlemaxes and Capesizes, our VLCCs and Suezmaxes. I mentioned the CapEx. We still have USD 890 million of new buildings to be delivered, of new building installments to be made. Of that number, the vast majority has already been financed. We have an unfunded CapEx of USD 119 million, which is basically spread out this year, USD 43 million, and then other amounts in 2027, 2028, and 2029, which are relatively small. At the end of this year, our outstanding CapEx commitment will be between USD 375 and USD 390 million. So we've come to the end of our large two-and-a-half-year new building investment plan.

Speaker #2: The most important , of course , are Newcastle Maxes and Cape sizes of Vlccs and Suez Maxes I mentioned the CapEx . We still have $890 million of new buildings to be delivered of new building installments to be made of that number .

Speaker #2: The vast majority has already been financed . We have an unfunded CapEx of 119 million , which is basically spread out this year , 43 million , and then other amounts in 27 , 28 and 29 , which are relatively small .

Speaker #2: At the end of this year . Our outstanding CapEx commitment will be between 375 and $390 million . So we've come to the end of our large two and a half year new building investment plan I want to give you an update on the market and talk about Boston , Ma , Uranus , Delphi , Bochum , and Wind Cat .

Alexander Saverys: I want to give you an update on the market and talk about Bocimar, Euronav, Delphis, Bochem, and Windcat. I always start with an overview of the different markets we operate in and what we feel is the sentiment and the state of the market. Starting with dry bulk, clearly, we are positive on dry bulk. We see that demands on the major commodities we are moving is growing. That goes for iron ore, bauxite, grain, and coal. The order book to fleet has increased a little bit on Capesizes. It actually decreased a little bit on Panamax. We are around the 15% mark, which we still think is something that the market can take for the next couple of years. The age of the fleet, 41% of our Capes are older than 15 years. More than one-third of the Panamax are older than 15 years.

Speaker #2: And I always start with an overview of the different markets we operate in and what we feel is the sentiment and the state of the market, starting with Drybulk.

Speaker #2: Clearly, we are positive on dry bulk. We see that demand for the major commodities we are moving is growing. That goes for iron ore, bauxite, grain, and coal.

Speaker #2: The order book to fleet has increased a little bit on Cape, actually decreased a little bit on Panamax. We are around the 15% mark, which we still think is something that the market can take for the next couple of years.

Speaker #2: The age of the fleet: 41% of our Capes are older than 15 years. More than one third of the Panamax are older than 15 years.

Speaker #2: The balance between supply and demand on Drybulk , we believe , is positive . Moving to tankers , you can see that we have colored from positive to cautious and basically kept a positive and cautious approach .

Alexander Saverys: The balance between supply and demand on dry bulk, we believe is positive. Moving to tankers, you can see that we have colored from positive to cautious and basically kept a positive and cautious approach. No doubt, the market is very positive today. We are seeing all-time high rates on secondhand numbers, on the freight numbers on the spot market. So the market is very strong. The reason we are becoming a little bit more cautious is that on the demand side, we don't know what the effect will be of a potential solution in the Strait of Hormuz. Obviously, we don't know the timing. But that solution could lead to softer markets. What worries us a bit more is the order book to fleet. We are now seeing an order book to fleet on VLCCs and Suezmaxes of over 30%. This is not impacting the market right now.

Speaker #2: No doubt, the market is very positive today. We are seeing all-time high rates on secondhand numbers, on the freight numbers, and on the spot market.

Speaker #2: So the market is very, very, very strong. The reason we are becoming a little bit more cautious is that on the demand side, we don't know what the effect will be of a potential solution in the Strait of Hormuz.

Speaker #2: Obviously , we don't know the timing , but that solution could lead , could lead to softer markets . What worries us a bit more is the order book to fleet .

Speaker #2: We are now seeing an order book to fleet on VLCCs and Suezmaxes of over 30%. Now, this is not impacting the market right now.

Speaker #2: The order book for 2026 is still very reasonable , but as from next year and the year after , we will see a tsunami of VLC and Suezmaxes coming to the market , moving to containers and the chemical tankers , we have had a cautious approach to both markets .

Alexander Saverys: The order book for 2026 is still very reasonable, but as from next year and the year after, we will see a tsunami of VLCC and Suezmaxes coming to the market. Moving to containers and the chemical tankers, we have had a cautious approach to both markets. Actually, the container market has surprised to the upside. The unwinding of the Red Sea rerouting has been postponed with the renewed tensions around the Bab el-Mandeb and the Houthi attacks. But when you look at the order book, we would still be quite cautious for containers going forward. But right now, the market on containers is still quite good. On the chemical tankers, the order book is something we are watching closely. The market has actually performed relatively well. But going forward, we take a slightly cautious approach.

Speaker #2: Actually, the container market has surprised to the upside. The unwinding of the Red Sea rerouting has been postponed with the renewed tensions around Al-Mandeb and the Houthi attacks.

Speaker #2: But when you look at the order book, we would still be quite cautious for containers going forward. But right now, the market on containers is still quite good.

Speaker #2: On the chemical tankers . The order book is something we are watching closely . The market has actually performed relatively well , but going forward , we take a slight cautious approach .

Speaker #2: As you know, both in Delphis and Borkum, our container and chemical tanker division, we have close to no spot exposure.

Alexander Saverys: As you know, both in Delphis and Bochem, our container and chemical tanker division, we have close to no spot exposure, so we are very well covered and shielded from any market fluctuations. Our last division, Windcat, offshore energy. We are seeing good rates. We believe if you look at the demand for the offshore wind energy projects, but also offshore oil and gas projects, combined with the order book with the fleet that is coming, there is a substantial fleet of CSOVs coming to the market next year and in 2028. But combined with the demand that we see in oil and gas and wind, we believe that the balance is positive. I want to zoom in on certain specific dynamics in our sub-sectors, starting with dry bulk. First, our dashboard, what we have done in Q2.

Speaker #2: So we are very well covered and shielded from any market fluctuations. Our last division, Weingut Offshore Energy, we are seeing good rates.

Speaker #2: We believe if you look at the demand for the offshore wind energy projects, but also offshore oil and gas projects, combined with the order book and with the fleet that is coming, there is a substantial fleet coming to the market next year.

Speaker #2: And in 2028. But combined with the demand that we see in oil and gas and wind, we believe that the balance is positive. I want to zoom in on certain specific dynamics in our subsectors, starting with dry bulk.

Speaker #2: First , our dashboard . What we have done in the second quarter , our fleet today is 40 Newcastle Maxes on the water , 37 capes and 30 Cameron Maxes and Panamax is the performance in the second quarter was very good .

Alexander Saverys: Our fleet today is 40 Newcastlemaxes on the water, 37 Capes, and 30 Kamsarmaxes and Panamaxes. The performance in Q2 was very good. We earned USD 46,000 on our Newcs, close to USD 40,000 on our Capes, and USD 20,000 on our Panamaxes. The rates for Q3 are in line with the rates of Q1, so far of Q2. So far, what we have booked in Q3 is slightly below Q2 because we have positioned quite some vessels into interesting front haul positions, and we would normally see a bump on our rates towards the end of Q3 and into Q4. A lot of the indicators on dry bulk are green. Some indicators like iron ore inventories and steel inventories are slightly negative. But overall, we see that the demand side of things is looking very positive.

Speaker #2: We earned $46,000 on our nukes , close to $40,000 on our capes , and $20,000 on our Panamax . The rates for the third quarter are in line with the rates of the first quarter so far of second quarter so far , what we have booked in Q3 is slightly below Q2 because we have positioned quite some vessels into interesting fronthaul positions , and we would normally see a bump on our rates towards the end of Q3 and into Q4 .

Speaker #2: A lot of the indicators on Drybulk are green . Some indicators like iron ore inventories and steel inventories , are slightly negative , but overall we see that the demand side of is looking very positive Looking at the order book to fleet , before we zoom in on the demand , one can see that the order book has grown .

Alexander Saverys: Looking at the order book to fleet before we zoom in on the demand, one can see that the order book has grown. We are now in a Capesize order book to fleet of 17%. Panamaxes has actually gone down slightly. We are at 14%, spread out nicely over the next couple of years. So, so far, we don't believe that the order book to fleet is an issue. The average age of the fleet is actually very positive. The fleet is aging. Very little scrapping going on. So that has the potential to help the market in the next couple of years. The volumes. We are seeing iron ore, coal actually supporting the market. So on our Capesizes, it's iron ore, bauxite, and a little bit of coal. On the Panamax, it's coal, grain, and some of the other commodities.

Speaker #2: We are now in a Capesize order book to fleet of 17%. Panamax has actually gone down slightly. We're at 14%, spread out nicely over the next couple of years.

Speaker #2: So, so far we don't believe that the order book to fleet is an issue. The average age of the fleet is actually very positive.

Speaker #2: The fleet is aging, with very little scrapping going on. So that has the potential to help the market in the next couple of years. The volumes we are seeing in iron ore cargoes are actually supporting the market.

Speaker #2: So on our capesize , it's iron ore , bauxite and a little bit of coal on the Panamax . It's coal grain . And , you know , some of the other commodities , when you look at what has been transported , we see that there is growth , bauxite seasonally dips in the second quarter , but we have seen a very interesting pickup recently .

Alexander Saverys: When you look at what has been transported, we see that there is growth. Bauxite seasonally dips in Q2, but we have seen a very interesting pickup recently. So strong Q2 volumes on all dry bulk commodities. When we look at the iron ore specifically, it's a China-Australia-Brazil story. And an interesting story that we are seeing is the Fe content. Overall, Chinese iron ore imports and Chinese iron ore imports are reducing in Fe content a little bit, and we are seeing lower production, domestic production in China on the iron ore. Both these elements, if you compare 2026 with what we are expecting for 2027, could add another 2.5% of extra iron ore imports into China.

Speaker #2: So strong second quarter volumes on all dry bulk commodities . When we look at the iron ore specifically , it's a China , Australia , Brazil story .

Speaker #2: And an interesting story that we are seeing is the Fe content. Overall, Chinese iron ore imports and Chinese iron ore imports are reducing in Fe content a little bit.

Speaker #2: And we are seeing a lower production , domestic production in China on the iron ore . Both these elements , if you compare 2026 with what we are expecting for 2027 , could add another 2.5% of extra iron ore imports into China .

Speaker #2: So something to watch . The Fe content and domestic Chinese production , which is going down and being replaced by a higher Fe content iron ore coming from abroad and being imported via sea But there's a new kid on the block since a couple of years , the importance of Africa is increasing .

Alexander Saverys: Something to watch, the Fe content and domestic Chinese production, which is going down and being replaced by higher Fe content iron ore coming from abroad and being imported via sea. There is a new kid on the block. Since a couple of years, the importance of Africa is increasing. We wanted to highlight this on this slide. Here you can see the volumes from some major commodities from major export areas, some of which have been around for a long time, some of which are new to the game, like Simandou in Guinea. You can see that the growth from 2025 to 2026 is massive, but is actually expected to grow even further at an average rate of 11%. Why do we believe this could be a very interesting dynamic for our markets in the next three to four years?

Speaker #2: We wanted to highlight this on this slide. Here you can see the volumes from some major commodities from major export areas, some of which have been around for a long time, and some of which are new to the game, like Simandou in Guinea.

Speaker #2: You can see that the growth from '25 to '26 is massive, but it's actually expected to grow even further at an average rate of 11%.

Speaker #2: Why do we believe this could be a very interesting dynamic for our markets in the next three to four years? The Simandou iron ore, in particular, is being produced at a relatively low breakeven cost and could replace shorter-haul iron ore going forward.

Alexander Saverys: The Simandou iron ore, particularly, is being produced at a relatively low break-even cost and could replace shorter-haul iron ore going forward. We have tried to list some of the break-even costs of some mines on the right side of the slide. If that iron ore would be replaced by cheaper Simandou iron ore, you could get a kicker of 7% in ton-miles for the Capesize fleet. So Africa is definitely something to watch, and particularly Simandou and the effects in the next couple of years. I wanted to say a word about the El Niño as well. We have two slides on El Niño, and I am sure my colleague, Joris, can talk to you about that for a little bit longer than what I will do now.

Speaker #2: We have tried to list some of the break-even costs of some mines on the right side of the slide. If that iron ore would be replaced by cheaper Simandou iron ore, you could get a kickback of 7% and ten miles for the Capesize fleet.

Speaker #2: So Africa is definitely something to watch, and particularly Simandou and the effects in the next couple of years. I also wanted to say a word about El Niño as well.

Speaker #2: We have two slides on El Niño, and I'm sure my colleague Joris can talk to you about that for a little bit longer than what I will do now.

Speaker #2: But what we wanted to do here is to show that, based on previous experience and the El Niño phenomenon in 2023 and 2024, we could see a positive effect for the dry bulk market and particularly for the Panamax fleet in dry bulk.

Alexander Saverys: What we wanted to do here is to show that based on previous experience, and the El Niño phenomenon in 2023 and 2024, we could see a positive effect for the dry bulk market and particularly for the Panamax fleet in dry bulk. There are basically three dynamics. On the one hand, less water in the Panama Canal could limit the transits. Typically, Panamaxes carry low-value commodities and cannot compete in the auction system to go through the Panama Canal with the container vessels, and therefore do not transit anymore, and therefore have to reroute and have a longer distance. There is a grain kicker to the dry bulk market as well, thanks to El Niño, where short-haul grain trades, for instance, Australia, where it is hotter and drier, produce less grain, are being replaced by longer-haul grain, for instance, from South America, where better crops are being grown.

Speaker #2: And it's basically three dynamics . On the one hand , less water in the Panama Canal could limit the transits . Now , typically , Panamax is carry low value commodities and cannot compete in the auction system to go through the Panama Canal with the container vessels and therefore don't transit anymore , and therefore have to reroute and have a longer distance .

Speaker #2: There is a grain kicker to the dry bulk market as well , thanks to El Nino , where short haul grain trades , for instance , Australia , where it's hotter and drier , produce less grain , are being replaced by longer haul grain .

Speaker #2: For instance , from South America , where better crops are being grown . And then there's another one on the call where hotter weather leads to a higher electricity demand .

Alexander Saverys: Then there is another one on the coal, where hotter weather leads to higher electricity demand. Obviously, on coal, we also have the impact of Hormuz. All combined, we think that El Niño could have a slight positive effect on the dry bulk market and Panamax in particular. We try to show this and prove this with this slide here, where you can basically just see the effect of the May 2023 to May 2024 last El Niño and what it has an effect on rates, and basically rates doubled, even tripled over the space of six months. Moving to tankers and Euronav. Dashboard on our VLCCs and Suezmaxes. We have five VLCCs, four on the water, one that will deliver towards the end of this year. We have 15 Suezmaxes.

Speaker #2: And obviously on coal, we also have the impact of Hormuz. So, all combined, we think that El Niño could have a slight positive effect on the dry bulk market.

Speaker #2: And Panamax is in particular . And we try to show this and prove this with this slide here where you can basically see the effect of the May 2023 to May 2024 .

Speaker #2: Last El Nino and what it has an effect on rates and basically rates doubled , even tripled over the space of six months Moving to tankers and euronav Dashboard on our Vlccs and suezmaxes , we have five Vlccs , four on the water , one that will deliver towards the end of this year .

Speaker #2: We have 15 Suez Maxes . You can see the results that we achieved in the second quarter above $120,000 in Q2 . For VS already so far fixed in Q3 .

Alexander Saverys: You can see the results that we achieved in Q2 above $120,000 in Q2 for VLCCs. Already so far fixed in Q3, the same number. On our Suezmaxes, we reached a rate of $123,000. We are slightly below $120,000 Q3 to date. So stellar numbers, very good numbers. Obviously, we have sold some vessels. The new sales are the Donoussa and the Bristol. We have delivered as well VLCCs to their new owners in Q2. You can see all the capital gains that we did there, which I mentioned in the introduction. When you look at the dashboard and all the specific indicators, one stands out, of course, it is the oil supply from OPEC countries year-on-year, which is significantly down. I will highlight some more details in the next couple of slides. First, talk about the order book.

Speaker #2: The same number on our Suez Maxes . We reached a rate of $123,000 . We are slightly below 120 000 Q3 to date , so stellar numbers , very good numbers .

Speaker #2: Obviously, we have sold some vessels. The new sales are the And the Bristol, but we have delivered as well VLCCs to their new owners in the second quarter.

Speaker #2: And you can see all the capital gains that we did there , which I mentioned in the introduction . When you look at the dashboard and all the specific indicators , one stands out , of course , it's the oil supply from OPEC countries .

Speaker #2: Year on year, which is significantly down. But I will highlight some more details in the next couple of slides. First, let's talk about the order book.

Speaker #2: It is big, and it is growing. You can see here, year per year, on VLCCs. And it also encompasses what is on order: 370 versus 250 Suezmaxes.

Alexander Saverys: It is big, and it is growing. You can see here, year per year on VLCCs and our Suezmaxes, what is on order. 370 VLCCs, 250 Suezmaxes. This is a very, very large order book, which is not going to be an issue this year. As from next year, in 2027, 2028, we will get a delivery of one VLCC or Suezmax every 2 days, which eventually could lead to an oversupply. Even though we know there is still an aging fleet, when you look at the old vessel numbers, they are now inferior to the order book, whereas over the last 4, 5 years, it was the opposite. So order book something to watch for the next couple of years. On the demand side, we have analyzed what happened with seaborne crude.

Speaker #2: This is a very , very large order book which is not going to be an issue this year , but as from next year , in 2027 , 2028 , we will get a delivery of one V or Suez Max every two days , which eventually could lead to an oversupply .

Speaker #2: Even though we know there is still an aging fleet, when you look at the old vessel numbers, they are now inferior to the order book.

Speaker #2: Whereas over the last four or five years, it was the opposite. So, order book—something to watch for the next couple of years.

Speaker #2: On the demand side, we have analyzed what happened with seaborne crude. What we can see is that, between January 2026 and June 2026, we went from 31 million barrels per day to 22.3 million barrels per day, and it's very interesting to see where the reduction came from.

Alexander Saverys: What we can see between January 2026 and June 2026, we went from 31 million barrels per day to 22.3 million barrels per day. It is very interesting to see where the reduction came from. All in all, when you look at the total lost export volumes to the different major destinations, you come to a number of 8.5 million spread out. China, 4.3 million barrels lost. India, 1.8. Japan, 600,000 barrels. The US, close to 400,000 barrels. The rest of the world, 400,000 barrels. What is interesting is that the Chinese lost imports is basically a combination of less volumes from the Middle East, but also less volumes from other places in the world. Whereas you see that the other destinations, they surely have lost volumes from the Middle East, but they have actually increased their exports from other places in the world.

Speaker #2: All in all, when you look at the total lost export volumes to the different major destinations, you come to a number of 8.5 million spread out.

Speaker #2: China , 4.3 million barrels lost . India 1.8 , Japan 600,000 barrels . The US close to 400,000 barrels , and the rest of the world 400,000 barrels .

Speaker #2: What is interesting is that the Chinese lost import is basically a combination of less volumes from the Middle East , but also less volumes from other places in the world , whereas you see that the other destinations , they surely have lost volumes from the Middle East , but they have actually increased their exports from other places in the world .

Speaker #2: And the reason we're saying this is that China is the single reason that we have not seen the barrel of oil at a much higher price than we have seen.

Alexander Saverys: The reason we are saying this is that China is the single reason that we have not seen the barrel of oil at a much higher price than we have seen. They have basically single-handedly balanced the supply and demand story in oil by controlling it, thanks to their massive reserves. You can actually see here how the stockpiles of China have been evolving, and how it allows them to be picky on when they decide to import, depending on the price and depending on how they position themselves geopolitically. We believe that the power of OPEC as a producing block is now in the oil markets, moving even more to China as a big buyer, and the numbers show it.

Speaker #2: They have basically single handedly balanced the supply and demand story in oil by controlling it , thanks to their massive reserves . And you can actually see here how the stockpiles of China have been evolving and how it allows them to be picky on when they decide to import , depending on the price and depending on how they position themselves geopolitically , we believe that the power of OPEC as a producing bloc is now in the oil markets , moving to even more to China as a big buyer .

Speaker #2: And the numbers show it. And actually, you see this on this slide as well, where you see that the non-Chinese Asian importers have very quickly increased their imports above the levels that we saw last year.

Alexander Saverys: And actually, you see this on this slide as well, whereas you see that the non-Chinese Asian importers have very quickly increased their imports above the levels that we saw last year. China is still way below the levels that they had last year or at the beginning of the year. This is really something to watch, because as the situation in the Middle East normalizes, it will be very interesting to see how quickly China will start restocking or whether they will wait for lower prices. Moving to the container markets. As I said, the exposure of our company on containers is not very high. I think the one thing I can say about the container markets is that it has been much better performing than what we would have expected.

Speaker #2: China is still way below the levels that they had last year . At the beginning of the year . And this is really something to watch because as a situation in the Middle East normalizes , it will be very interesting to see how quickly China will start restocking or whether they will wait for lower prices Moving to the container markets , as I said , the exposure of our company on containers is not very high .

Speaker #2: I think the one thing I can say about the container markets is that they have been performing much better than what we would have expected.

Speaker #2: This Red Sea unwinding has been delayed, meaning that more vessels are rerouting via Africa, which means more vessels are needed. Volumes have actually also been better than expected.

Alexander Saverys: This Red Sea unwinding has been delayed, meaning that more vessels are rerouting via Africa, meaning more vessels are needed. Volumes have been actually also better than expected. So all in all, container markets are good. But I said this in the previous quarters, we are cautious when we look at the supply and demand going forward because there is still a lot of ships on order. Chemical tankers. Our fleet of 16 vessels, 8 are on the water, another 8 will be delivered. Most of our fleet is fixed on 10-year and 7-year contracts. We have 2 ships operating in a pool. You can see the results there. The chemical market is actually doing relatively okay. We are watching the product tanker markets, whether they will keep up at a certain level or whether they will start eating into the chemical tanker market.

Speaker #2: So all in all , container markets are good . But I've said this in the previous quarters . We are cautious when we look at the supply and demand going forward , because there's still a lot of ships on order Chemical tankers , our fleet of 16 vessels , eight are on the water .

Speaker #2: Another eight will be delivered . Most of our fleet is fixed on ten year and seven year contracts . We have two ships operating in a pool .

Speaker #2: You can see the results there. The chemical market is actually doing relatively okay. We are watching the product tanker markets, whether they will keep up at a level or whether they will start eating into the chemical tanker market.

Speaker #2: But so far , we believe we are in an okay situation . We are watching the order book for 27 and 28 , and then finishing off with a very nice picture of our wind cat , Rotterdam and the offshore wind markets .

Alexander Saverys: But so far, we believe we are in an okay situation. We are watching the order book for 2027 and 2028. Then finishing off with a very nice picture of our Windcat Rotterdam and the offshore wind markets. We have recently fixed 2 of our CSOVs to the offshore oil and gas for 2 years. We are seeing in the CSOV market, it is a market of the wind on the one hand, which is necessitating extra CTVs, extra CSOVs, but where projects have been a little bit slow to materialize over the past 2 years. And a combination of the offshore oil and gas markets, which are actually needing modern vessels and are pulling away some of the wind vessels into their market.

Speaker #2: We have recently fixed two of our series to the offshore oil and gas for two years. We are seeing, in the case of market, it's a market of the wind.

Speaker #2: On the one hand, this is necessitating extra CTVs and extra size fees. But where projects have been a little bit slow to materialize over the past two years, it's a combination of the offshore oil and gas markets, which are actually needing modern vessels and are pulling away some of the wind vessels into their market.

Speaker #2: If you combine both, even with the order books of Kosoves that we are seeing this year, in '27, and in '28, the market is very well balanced and actually the market is quite strong.

Alexander Saverys: If you combine both, even with the order books of CSOVs that we are seeing this year in 2027 and in 2028, the market is very well-balanced, and actually, the market is quite strong. You can see that we achieved some very good rates in Q2 on our CSOVs of $64,000. For Q3, we have already booked two-thirds of our days at $50,000, which, as you can see with the breakeven numbers, are very good and profitable for our Windcat division. That sums up the presentation. There is one point I wanted to mention, which we have not tackled, but we have received quite a few questions about our bonds. As you know, on 14 September, our bond expires. We have decided to repay the bonds from our own cash that we have available. So we intend to repay the bonds on 14 September.

Speaker #2: You can see that we achieved some very good rates in the second quarter on our fees of $64,000 for Q3 . We have already booked two thirds of our days at $50,000 , which as you can see with the break even numbers are a very good and profitable for our wind cat division That sums up the presentation .

Speaker #2: There is one point I wanted to mention, which we have not tackled, but we have received quite a few questions about our bond.

Speaker #2: As you know, on the 14th of September, our bond expires. We have decided to repay the bond from our own cash that we have available.

Speaker #2: So we intend to repay the bond on the 14th of September. We will not refinance the bonds. We will repay it.

Alexander Saverys: We will not refinance the bonds. We will repay it. I would hand over now to Enya for the Q&A.

Speaker #2: I would now hand over to Enya for the Q&A.

Speaker #3: Yes , we will now start with the Q and A session . If you would like to ask a question , please raise your hands .

Enya Derkinderen: Yes. We will now start with the Q&A session. If you would like to ask a question, please raise your hand. Make sure to introduce yourself and unmute before asking your question. If you are unable to unmute, you can also use the Q&A section to ask your question. For telephone participants, please type star five to raise your hand and star six to unmute. If you have any follow-up questions, you can always send an email to Joris. His email address is here and also in the press release. Now we will take the first question that is coming from Frode Morkedal. You can now unmute and ask your question, please.

Speaker #3: Make sure to introduce yourself and unmute before asking your question. If you are unable to unmute, you can also use the Q&A section to ask your question.

Speaker #3: And then for telephone participants , please type star five to raise your hand and star six to unmute . And if you have any , follow up questions , you can always send an email to yours .

Speaker #3: His email address is here, and also in the press release. So now we will take the first question that is coming from the Mercadal.

Speaker #3: You can unmute and ask your question, please.

Speaker #4: Yes . Thank you . Yeah . This is Froda from Clarkston Yes . You started with the bond just to confirm you . That won't impact the dividends .

Frode Mørkedal: Yeah. Thank you. This is Frode from Clarksons. Since you started with the bond, just to confirm, that won't impact the dividends as you see it, hopefully?

Speaker #4: As you see it. Hopefully.

Speaker #2: No, we don't expect this to impact the dividends.

Alexander Saverys: No, we don't expect this to impact the dividends.

Speaker #4: Yeah. So the dividend has been two quarters now with a 50% payout. So that seems like a new trend, as we expected.

Frode Mørkedal: Yeah. So the dividend has been two quarters right now with 50% payout. So that seems like a new trend as we expected. So, yeah. I guess investors should still think 50% of net profit, including vessel sales gains, is the de facto policy. Of course, I understand that you can change it, but seems like a good target.

Speaker #4: So yeah I guess investors should still think 50% of net profit including vessel sales gains is the defacto policy . I of course , I understand that you have like , you know , you can change it , but seems like a good , good target .

Speaker #2: I it seems like a very good target . But as you correctly say , we are not going to change our policy . But look , it's been two quarters where we have tried to achieve that level and depending on our investments , depending on new projects , that might come up , we believe that trying to reward our shareholders at this level is , is a thing we want to continue to do

Alexander Saverys: I think it seems like a very good target. But as you correctly say, we are not going to change our policy. But look, it's been two quarters where we have tried to achieve that level. And depending on our investments, depending on new projects that might come up, we believe that trying to reward our shareholders at this level is a thing we want to continue to do.

Speaker #4: That's very good. Yeah. So, it seems like you're a bit concerned about the tanker order book, and you have sold off ships.

Frode Mørkedal: That's very good. Yeah, so it seems like you're a bit concerned on the tanker order book, and you have sold off ships. So how do you weigh, let's say, and you even sold this modern ship, Suezmax 2014 built, right? Or 2024 built.

Speaker #4: So how do you weigh , let's say you even sold this modern ship Suezmax 2014 built right ? Or 2024 built by before ?

Alexander Saverys: 24, yeah.

Speaker #4: Yeah, yeah. So how do you weigh, you know, continuing to hold on to these ships that make a lot of cash flow versus selling at this time?

Frode Mørkedal: Yeah. So how do you weigh continue holding on to these ships that make a lot of cash flow, versus selling at this time?

Alexander Saverys: Well, Frode, there's always three things you can do. You operate spots, you fix on TC, or you sell your vessel. And we believe that definitely on some of the vessels that we have sold, the price that we sold was something that we should do because of the extreme value that we could create. Does that mean that we will sell even more vessels? No. It's really on a case-per-case basis. We like the tanker market. As you know, we have some charter cover on some of our vessels. We have some very modern assets still in our fleet. But I think, just look at the numbers over the past 30 years. Prices we are seeing today, particularly for some of our VLCCs and Suezmaxes are an opportunity we want to take, and then take some money off the table.

Speaker #2: There are always three things you can do: you operate spots, you fix on PC, or you sell your vessel. We believe that definitely, on some of the vessels that we have sold, the price that we saw was something that we should do because of the extreme value that we could create.

Speaker #2: Does that mean that we will sell even more vessels ? No , it's really on a case by case basis . We like the tanker market .

Speaker #2: As you know, we have some charter cover on some of our vessels. We still have some very modern assets in our fleet.

Speaker #2: But I think , you know , just look at the numbers over the past 30 years , prices we are seeing today , particularly for some of our Vlccs and Suez Maxes , are an opportunity we want to take .

Speaker #2: And then take some money off the table.

Speaker #4: Yeah . Makes sense . And any capital gain you are , that's included in the dividend . That's that's that's very good . Well , just like the last question I had like bigger picture , you know , it seems like some of these Middle East companies that are buying up tankers , you know , to run the shuttle services and , you know , it can pay a lot basically for tanker assets today .

Frode Mørkedal: Yeah, makes sense. Any capital gain that's included in the dividend. That's very good. Just the last question I had, bigger picture. It seems like some of these Middle East companies that are buying up tankers to run the shuttle services, and can pay a lot, basically, for tanker assets today. So how do you feel about the current, let's say, vessel value and potential for further increases?

Speaker #4: So, how do you feel about the current, let's say, vessel value and the potential for further increases?

Speaker #2: I think it's already very high . Can it increase more . It can definitely increase more . I agree with you that some of the Middle East and operators are taking a strategic view where the price they pay for the ship is not as important as having the security of an access to a vessel that can shuttle out their oil .

Alexander Saverys: I think it's already very high. Can it increase more? It can definitely increase more. I agree with you that some of the Middle Eastern operators are taking a strategic view, where the price they pay for the ship is not as important as having the security of an access to a vessel that can shuttle out their oil. It remains to be seen how long this will last, but for the time being, there are still definitely buyers out there that want to buy secondhand tonnage at these kind of prices.

Speaker #2: It remains to be seen how long this will last, but for the time being, there are still definitely buyers out there that want to buy secondhand tonnage at these kinds of prices.

Speaker #5: Yeah .

Frode Mørkedal: Yeah. Which makes sense, of course. If you are one of these guys that can ship out oil from inside the Middle East, you are making more than USD 500,000 per day or something like that, right?

Speaker #4: Which makes sense . Of course , if you are one of these guys that can ship out oil from the inside , the Middle East , you're making more than 500 000 per day or something like that .

Speaker #4: Right ? So obviously the payback on any ship is quite high . And so , you know , you have a group of people that basically sets the price for the whole market .

Alexander Saverys: Yeah

Frode Mørkedal: You have a group of people that basically sets the price for the whole market. That is very interesting dynamics. Anyway, that is all the question I had. Thank you very much.

Speaker #4: So that's very interesting dynamics. Anyway, that's all the questions I had. Thank you very much.

Speaker #2: Thank you .

Alexander Saverys: Thank you.

Speaker #3: Thank you. We then move on. Christoph, Samuel, you can now unmute and ask your question. Please.

Enya Derkinderen: Then we move on. Kristof Samoy, you can now unmute and ask your question, please.

Speaker #6: Yes . Good afternoon . Christophe sama . KBC securities . Congrats on , on on on the results . Alexander . Yeah . Seems like the pieces of the puzzle are falling perfectly in place for you guys .

Kristof Samoy: Yes. Good afternoon, Kristof Samoy, KBC Securities. Congrats on the results, Alexander. Seems like the pieces of the puzzle are falling perfectly in place for you guys. I mean, your recycling cash in crude tankers, Golden Ocean acquisition was very well timed, as was the newbuild ordering of the new Capesize. Then I come back again on capital allocation, because you indicate that newbuilds is expensive, steel is expensive. You declared a new cash return of 60%. The loan to value is coming down. You have an across the cycle LTV target of 50%. Could you maybe give a hint for a range at peak or trough asset values where you feel comfortable at being a diversified shipping platform? That would be a first. Then second on bunker fuels.

Speaker #6: I mean , your your recycling , cashing in in crude tankers , Golden ocean acquisition was very well timed . This was the the newbuild ordering of the nukes at Bessemer .

Speaker #6: Yeah . And then I come back again on , on on on on capital allocation because you , you indicate that new builds is expensive .

Speaker #6: Steel is expensive . You declare a new cash return of 60% , belong to value is coming down . You you have an A , the cycle LTV target of , of , of 50% .

Speaker #6: But could you maybe like give a hint for a range at peak or trough asset values where you feel comfortable at being diversified , shipping platform that would be first and then second on , on bunker fuels .

Speaker #6: Could you quantify the impact , if any , on , on , on , on vessel supply to speed reductions in the Drybulk segment that you that you have seen in the market over the past quarter and then as a follow up concerning the situation in the Middle East , is there any risk in a certain region that they will not be , you know , that there will be bunker fuel shortages that could impact your operations ?

Kristof Samoy: Could you quantify the impact, if any, on vessel supply through speed reductions in the dry bulk segment that you have seen in the market over the past quarter? Then, as a follow-up, concerning the situation in the Middle East, is there any risk in a certain region that there will be bunker fuel shortages that could impact your operations? Thank you.

Speaker #6: Thank you .

Speaker #2: Okay . Thanks a lot , Christophe . So first , your question on the target on LTV , we have a target throughout the cycle of 50% .

Alexander Saverys: Okay. Thanks a lot, Christophe. So first your question on the target on LTV. We have a target throughout the cycle of 50%, and your question is, if that significantly improves, will this change your capital allocation strategy, for instance, on dividends or on investments or divestments? I would say that today it is probably a little bit too early to say, because we are only in the second quarter of this very strong market. We would like to see how much legs this market has, before we really want to change our capital allocation strategy. So we will keep a discretionary dividend policy. We will keep on telling you that even though we come at the end of our CapEx program, there could be investments down the line. I am not seeing any obvious ones right now. I have said this in the last quarterly call. New buildings are very expensive.

Speaker #2: And your question is if that's significantly improves , will this change your capital allocation strategy ? For instance on dividends or in or divestments ?

Speaker #2: I would say that today it's probably a little bit too early to say, because we are only in the second quarter of these very strong markets.

Speaker #2: We would like to see how much legs this market has before. We really want to change our capital allocation strategy, so we will keep a discretionary dividend policy.

Speaker #2: We will keep on telling you that, even though we come to the end of our CapEx program, there could be investments down the line.

Speaker #2: I'm not seeing any obvious ones right now . I've said this in the last quarterly call , new buildings are very expensive . I'm not excluding one off new buildings .

Alexander Saverys: I am not excluding One-off new buildings, interesting projects that we could do. But it is too early, Christophe, to basically state something new than we have said in the past. If this changes, if we see after another one or two very strong quarters, more visibility on cash flows into 2027, then we might change it. On the availability of fuels, it is a very good question. You have the general availability in the market, I think is relatively okay. There are some places where fuel availability is more challenging, and there are certain ship owners and operators that have more difficulty accessing their fuel because they do not have the same network than we have. As you know, we are partners with TFG on the bunkering side, and definitely on the CMB.TECH fleet, fuel availability has not been a major issue over the last couple of months.

Speaker #2: You know , interesting projects that we could do . But it's it's too early . Christophe , to basically state something new than we have said in the in the past .

Speaker #2: If this changes , if we see , you know , after another 1 or 2 very strong quarters , more visibility on cash flows into 2027 , then we might we might change it on , on the availability of fuels .

Speaker #2: It's a very good question . You have the general availability in the market . I think is relatively okay . There are some places where fuel availability is more challenging , and there are certain ship owners and operators that have more difficulty accessing their fuel because they don't have the same network than we have .

Speaker #2: As you know , we are partners with TFG on the bunkering side , and definitely on the CMB tech fleet . Fuel availability has not been a major issue over the last couple of months .

Speaker #2: Continuing on to your question on fuel availability in the Middle East , are we expecting big shortages in certain areas ? Again , I can say what I just said on the previous question so far , we think we will find the fuels that are necessary .

Alexander Saverys: Continuing on to your question on fuel availability in the Middle East, are we expecting big shortages in certain areas? Again, I can say what I just said on the previous question. So far, we think we will find the fuels that are necessary. You never know, of course, what the future will bring, but there is no specific shortage in a specific area where we go. We normally find our fuels.

Speaker #2: You never know , of course , what the future will bring , but there's no specific shortage in a specific area where we go , we we normally find our fuels .

Speaker #6: Okay. Thank you. That's all from me for now. I'll go back in the queue.

Kristof Samoy: Okay. Thank you. That is all for me for now. I go back in the queue.

Speaker #2: Thanks , Christophe

Alexander Saverys: Thanks, Kristof.

Speaker #3: And the next person is Clément Can you please unmute and ask your question

Enya Derkinderen: The next person is Clement Mullins. Can you please unmute and ask your question?

Speaker #6: Hi, this is [Name] from Investors Edge. I want to follow up on Frodo's question on your stance on tankers, should a peace agreement be reached with Iran?

Clement Mullins: Hi, this is Clement Mullins. I am from Value Investor's Edge. I want to follow up on Frode's question on your stance on tankers. Should a peace agreement be reached with Iran, what do you think would happen with the dark fleet previously involved in that trade? In other words, to what extent would the scrapping of the dark fleet offset the potential impact from new builds on your scenarios?

Climent Molins: Hi, this is Clement Mullins. I am from Value Investor's Edge. I want to follow up on Frode's question on your stance on tankers. Should a peace agreement be reached with Iran, what do you think would happen with the dark fleet previously involved in that trade? In other words, to what extent would the scrapping of the dark fleet offset the potential impact from new builds on your scenarios?

Speaker #6: What do you think would happen with the Dark Fleet? Previously, it was involved in that trade. In other words, to what extent would the scrapping of the Dark Fleet offset the potential impact from new builds on your scenarios?

Speaker #2: Okay, so I'm going to give you my opinion, which you might agree or disagree with. I don't think the Dark Fleet will disappear overnight.

Alexander Saverys: Okay. I am going to give you my opinion, which you might agree or disagree with. I do not think the dark fleet will disappear overnight. I think there is 50 shades of gray now. It is not just a dark fleet and a white fleet. There are very different trades going on now, from totally illegal trades to totally legal trades. All the vessels that are active in these trades will, in my humble opinion, continue to find trades, even if a peace deal with Iran is achieved.

Speaker #2: I think there's 50 Shades of Grey now . It's not just the Dark Fleet and a white fleet . There's very different trades going on now from totally illegal trades to totally legal trades , all the vessels that are active in these trades will , in my humble opinion , continue to find trades , even if a peace deal with Iran is achieved

Speaker #6: Okay . That's helpful . And we've seen a lot of container ship owners ordering new builds in recent months . And but you haven't pulled the trigger .

Clement Mullins: Okay. That is helpful. We have seen a lot of container ship owners ordering new builds in recent months, but you have not pulled the trigger. Could you talk a bit about the reasoning for holding off on additional investments on that space, despite the long-term charters attached to most of these new builds?

Climent Molins: Okay. That is helpful. We have seen a lot of container ship owners ordering new builds in recent months, but you have not pulled the trigger. Could you talk a bit about the reasoning for holding off on additional investments on that space, despite the long-term charters attached to most of these new builds?

Speaker #6: Could you talk a bit about the reasoning for holding off on additional investments in that space, despite the long-term charters attached to most of these newbuilds?

Speaker #2: Very good question. We have not seen an opportunity that's interesting enough for us to move on, but we keep on monitoring what is happening.

Alexander Saverys: Very good question. We have not seen an opportunity that is interesting enough for us to move on, but we keep on monitoring what is happening.

Speaker #6: Okay . Makes sense . And last one from me , I wanted to ask about the time charter design with Fortescue . Could you talk a bit about the underlying dynamics of the contracts ?

Clement Mullins: Okay. Makes sense. Last one from me. I wanted to ask about the time charter you signed with Fortescue. Could you talk a bit about the underlying dynamics of the contracts?

Climent Molins: Okay. Makes sense. Last one from me. I wanted to ask about the time charter you signed with Fortescue. Could you talk a bit about the underlying dynamics of the contracts?

Speaker #2: Yeah . Good question . Clement . And you're not the only one asking . So what we announced again there's a lot of confidential items to to the deal .

Alexander Saverys: Yeah, good question, Clement, and you are not the only one asking. What we announced, there is a lot of confidential items to the deal. What I can say, it is a framework agreement over 12 ships, which is a combination of ammonia-ready vessels, fully fitted ammonia ships, and ships that we will retrofit at a later stage. We are working together with Fortescue within this framework as the vessels deliver and come on the water to see on which periods we will deploy them, at which rates, and whether we will use ammonia on board, yes or no. It is an ongoing process under a framework agreement with Fortescue.

Speaker #2: But what I can say it's a framework agreement over 12 ships , which is a combination of ammonia ready vessels , fully fitted ammonia ships and ships that we will retrofit at a later stage .

Speaker #2: And we are working together with Fortescue within this framework , as the vessels deliver and come on the water to see on which period we will deploy them , at which rates and whether we will use ammonia on board , yes or no .

Speaker #2: So it's an ongoing process under a framework agreement with Fortescue.

Speaker #6: Makes sense. I'll turn it over. Thank you for taking my questions.

Clement Mullins: Makes sense. I will turn it over. Thank you for taking my questions.

Climent Molins: Makes sense. I will turn it over. Thank you for taking my questions.

Speaker #2: Thank you . Clemens

Alexander Saverys: Thank you, Clement.

Speaker #3: And leading, can you please unmute and ask your question?

Enya Derkinderen: Lirim, can you please unmute and ask your question?

Speaker #7: Yes . Hello . Thank you . First of all , for letting me ask my question . I'm 32 years old . I live in Belgium , and I'm really happy to be investing in CMB tech , which is quietly large scale business .

Lirim Rexhepi: Yes. Hello. Thank you, first of all, for letting me ask my question. I am Lirim Rexhepi. I am 32 years old. I live in Belgium, and I am really happy to be investing in CMB.TECH, which is quietly large scale business. My question is very simple. Would there be an impact or negative impact on the numbers when, for example, Iran and United States come to a peace deal? Thank you.

Speaker #7: So my question is very simple: Would there be an impact or a negative impact on the numbers if, for example, R1 and the United States come to a peace deal?

Speaker #7: Thank you

Speaker #2: Well, thank you for dialing in. Very happy that you are an investor in our company. The impact of a peace deal between Iran and the US is very difficult to assess because you would have to look at what—what does the peace deal mean?

Alexander Saverys: Well, thank you, Lirim, for dialing in. Very happy that you are an investor in our company. The impact of a peace deal between Iran and US is very difficult to assess because you would have to look at what does a peace deal mean, what are the consequences of a peace deal? One of the consequences that you could see is that the Strait of Hormuz opens up, and that tankers can again freely go in and out of the Strait of Hormuz. Many things can happen then. You could see a very positive impact for tanker rates if suddenly China imports a lot more oil to restock their reserves, and then they would send a lot of tankers to the Middle East and ship all that oil to China.

Speaker #2: What are the consequences of a peace deal ? Now , one of the consequences that you could see is that the Strait of Hormuz opens up and that tankers can , again , freely go in and out of the Strait of Hormuz .

Speaker #2: Now , many things can happen . Then you could see a very positive impact for tanker rates . If suddenly China imports a lot more oil to restock their reserves and then they would send a lot of tankers to the Middle East and ship all that oil to China .

Speaker #2: You could actually also see a negative impact if China does not do that . And countries like India , Vietnam , Thailand source their oil from the Middle East because they can go through Hormuz instead of from the Atlantic Basin , the distance the oil will travel to and from is much shorter , which means that you will see less demand for ships .

Alexander Saverys: You could actually also see a negative impact if China does not do that, and countries like India, Vietnam, Thailand source their oil from the Middle East because they can go through Hormuz instead of from the Atlantic Basin, the distance the oil will travel to and from is much shorter, which means that you will see less demand for ships. The answer to your question therefore lies, there is many different aspects to it, but I think predominantly in what will China do. If there is a peace deal between Iran and US, is China going to massively re-import oil and go back to the situation before January 2026, or will they wait and hold off a little bit? In which case, I think you could see the freight market cool off.

Speaker #2: The answer to your question , therefore , lies . There's many different aspects to it , but I think predominantly in what will China do if there is a peace deal between Iran and us ?

Speaker #2: Is China going to massively reimport oil and go back to the situation before January 2026, or will they wait and hold off a little bit?

Speaker #2: In which case, I think you could see the freight market cool off.

Speaker #7: Okay. Thank you for your response.

Lirim Rexhepi: Okay. Thank you for your response.

Speaker #2: Thanks for your question .

Alexander Saverys: Thanks for your question.

Speaker #5: Thanks

Enya Derkinderen: Thank you. Tobbe, you can now unmute and ask your question, please.

Speaker #3: So, you can now unmute and ask a question, please.

Tobbe Steel: Hello. Tobbe Steel from DNB. I was wondering when we expect a lot of new build ships coming to the market for Suezmax and VLCCs. Does it mean that this is market which will become less attractive for Euronav and that it's time to scale back operations in oil tanking markets?

[Unknown Analyst]: Hello. Tobbe Steel from [detesh]. I was wondering when we expect a lot of new build ships coming to the market for Suezmax and VLCCs. Does it mean that this is market which will become less attractive for Euronav and that it's time to scale back operations in oil tanking markets?

Speaker #8: Still from the TED, I was wondering, when we expect a lot of new builds and ships coming to the market for Suezmax and the LCS, does it mean that this is a market which will become less attractive for Euronav?

Speaker #8: And that's why it's time to scale back operations in oil tanking markets.

Speaker #2: Thanks for your question , Tauba . It is clear that when all the vessels deliver and if at the same time a freight rates go down , euronav will make less money than what we are making today .

Alexander Saverys: Thanks for your question, Tobbe. It is clear that when all the vessels deliver, and if at the same time freight rates go down, Euronav will make less money than what we are making today. We are trying to counter that by selling some of our vessels at these rates that we see today, and by trying to take some charter cover, so that when the market corrects, we still enjoy higher rates. The big issue that we have, Tobbe, which I cannot predict, is when will this happen? As we don't know when it will happen, we want to be prudent and make sure that we have done some part of our homework in taking cover before the market turns.

Speaker #2: We are trying to counter that by selling some of our vessels at these rates that we see today, and by trying to take some cover—charge or cover.

Speaker #2: So that when the market is correct , we still enjoy higher rates . The big issue that we have , which I cannot predict , is when will this happen ?

Speaker #2: And as we don't know when it will happen, we want to be prudent and make sure that we have done some part of our homework in taking cover before the market turns.

Speaker #8: Okay. Thank you very much.

Tobbe Steel: Okay. Thank you very much.

[Unknown Analyst]: Okay. Thank you very much.

Speaker #5: Thank you

Alexander Saverys: Thank you.

Enya Derkinderen: Okay. We have also received some questions in the Q&A, so we will go to those ones now. First question: What are your expectations for the upcoming IMO meeting?

Speaker #3: We have also received some questions in the Q&A, so we will go to those ones now. First question: what are your expectations for the upcoming IMO meeting?

Alexander Saverys: That's a very good question. Well, let me tell you first what my hope is. I truly hope that the world can come together at the IMO and agree on a clear, simple, and certain framework. The uncertainty surrounding a decarbonization framework is not good for the shipping industry, whether you invest in decarbonized solutions like us or where you don't invest in decarbonized solutions. Uncertainty is not good for business. So I'm hoping that there will be clarity at the next meeting. Now, what my expectations are, I have low expectations. I don't think we should be fooled after the United States put a lot of pressure, together with some other countries last year, to cancel or postpone the deal. I don't think their viewpoint has changed. But we can be surprised to the upside. I do believe there's a big role for China in the discussions.

Speaker #2: That's a very good question . Well , let me tell you first what my hope is . I truly hope that the world can come together at the IMO and agree on a clear and simple and certain framework .

Speaker #2: The uncertainty surrounding a decarbonization framework is not good for the shipping industry. Whether you invest in decarbonized solutions like us, or whether you don't invest in decarbonized solutions, uncertainty is not good for business.

Speaker #2: So I'm hoping that they will be clarity at the next meeting . Now what my expectations are . I have low expectations . I don't think we should be fooled after the United States put a lot of pressure together with some other countries last year to cancel or postpone the deal , I don't think there viewpoint has changed , but we can be surprised to the upside .

Speaker #2: I do believe there's a big role for China in the discussions. There's a big role for Europe to try to see if they can make a coalition of the willing and push through some legislation.

Alexander Saverys: There's a big role for Europe to try to see if they can make a coalition of the willing and push through some legislation. Hoping for the best, low expectations. Let's see what happens in November.

Speaker #2: So, hoping for the best, low expectations. Let's see what happens in November.

Enya Derkinderen: Okay, and then we have two questions on the tankers, so I'll ask them together. First question, if we compare the spot TCE rate you realized in Q2 on your VLCCs seems to be a bit below compared to other tanker names. Is it because the routes you have exposure to, or are there any other factors that could explain the difference? Then the second one, how is CMB.TECH thinking in regards to the mix between TCE and spot exposure?

Speaker #3: And then we have two questions on the tanker role. I'll ask them together. First question, if we compare the spot TCE rate you realized in Q2 on your VLCCs, it seems to be a bit below compared to other tanker names.

Speaker #3: Is it because the routes you have exposure to are, or are there any other factors that could explain the difference? Then the second one, how is the thinking in regards to the mix between DC and spot exposure?

Speaker #5: Yeah .

Alexander Saverys: Yeah. So on the first question, we had some new building deliveries, we had some positioning voyages, which in the second quarter affected our results a little bit. On the split between TCE and spot, it's just a financial exercise. If we can charter out our vessels at good rates, we will do so. If we think being spot will generate more revenue, then we will do so as well. And we've done both. We have fixed some of our Suezmaxes on period business, whilst we've kept some of our VLCCs on the spot market.

Speaker #2: So, on the first question, we had some new building deliveries. We had some positioning voyages, which in the second quarter affected our results a little bit.

Speaker #2: On the split between TCE and and spot . It's just a financial exercise . If we can or if we can charter out our vessels at good rates , we will do so if we think being spot will generate more revenue than than we will do so as well .

Speaker #2: And we've done both. We have fixed some of our Suezmaxes on period business, whilst we have kept some of our VLCCs on the spot market.

Enya Derkinderen: Okay, perfect. I think this concludes the Q&A session.

Speaker #3: Perfect. I think this concludes the Q&A session.

Speaker #2: Thank you very much . Thank you Enya and I would like to thank all the participants to the call for dialing in . As we said before , if you have any follow up questions , don't hesitate to contact my colleague Joris , and he will gladly answer your questions .

Alexander Saverys: Thank you very much. Thank you, Enya. I would like to thank all the participants to the call for dialing in. As we said before, if you have any follow-up questions, don't hesitate to contact my colleague, Joris, and he will gladly answer your questions. Thank you, and see you next time.

Speaker #2: Thank you, and see you next time.

Enya Derkinderen: The meeting will start shortly. Raise hand is disabled. This meeting is no longer being transcribed.