CMB.TECH announces Q1 2025 results

CMB.TECH (CMBT) reported a Q1 2025 profit of $40.4 million, down from $495.2 million in Q1 2024, with EBITDA at $158.4 million compared to $550.5 million year-over-year; however, the company increased its contract backlog by $921 million to $2.94 billion. Key developments include the acquisition of Hemen's stake in Golden Ocean and a signed term sheet for a stock-for-stock merger between CMB.TECH and Golden Ocean, potentially creating one of the largest dry bulk shipowners globally, alongside agreements for ammonia-powered vessels with Fortescue and MOL.

Analysis

CMB.TECH NV reported a net profit of USD 40.4 million for Q1 2025, a significant decrease from USD 495.2 million in Q1 2024, with EBITDA similarly declining to USD 158.4 million from USD 550.5 million year-over-year. This reduction in profit was primarily driven by substantially lower net gains on the disposal of tangible assets (USD 46.45 million in Q1 2025 versus USD 407.56 million in Q1 2024), while revenue remained relatively stable at USD 235.0 million. Despite the profit decline, the company made substantial strategic progress, increasing its contract backlog by USD 921 million to USD 2.94 billion. Key corporate developments include the acquisition of Hemen Holding Limited's stake in Golden Ocean Group Limited, making CMB.TECH its de-facto controlling shareholder with approximately 49.4% ownership, and the signing of a term sheet for a stock-for-stock merger with Golden Ocean, which would position CMB.TECH as a leading global dry bulk shipowner. Fleet modernization efforts continued with the delivery of five newbuilding vessels and the sale of older vessels, which generated a capital gain of USD 46.25 million in Q1 2025, with further sales expected to yield approximately USD 96.7 million in gains in Q2 and Q3 2025. The company also advanced its commitment to low-carbon shipping through agreements with Fortescue and MOL for ammonia-powered vessels. The consolidation of Golden Ocean from March 12, 2025, significantly impacted CMB.TECH's balance sheet, increasing total assets to USD 8.23 billion and introducing a non-controlling interest of USD 1.34 billion, alongside higher debt levels. Market outlooks vary by segment: tanker markets anticipate benefits from OPEC+ production increases, dry bulk markets are supported by low orderbooks and an aging fleet, while container and chemical segments are navigating specific dynamics, with long-term charters providing some revenue stability for CMB.TECH.

Key Decisions for Investors

• Investors should closely monitor the progress and potential completion of the proposed stock-for-stock merger with Golden Ocean Group Limited, as this transaction would significantly transform CMB.TECH's scale, market position in the dry bulk sector, and financial profile.
• Evaluate the company's execution on its substantial USD 2.94 billion contract backlog, particularly the deployment and long-term chartering of its new ammonia-powered vessels, which are central to its future growth and sustainability strategy.
• Assess the impact of increased financial leverage resulting from the Golden Ocean consolidation and the ongoing capital-intensive fleet renewal program against the backdrop of varied and volatile conditions across the different shipping market segments in which CMB.TECH operates.