425: CMB.TECH Announces Q1 2025 Results, Driven by Golden Ocean Acquisition and Strong Contract Backlog

CMB.TECH reports a profit of USD 40.4 million for Q1 2025 and increases its contract backlog by USD 921 million, boosted by the acquisition of a significant stake in Golden Ocean and new agreements for ammonia-powered vessels.

Summary

• CMB.TECH reported a profit of USD 40.4 million in Q1 2025, compared to a profit of USD 495.2 million in Q1 2024.
• The company's EBITDA for Q1 2025 was USD 158.4 million, down from USD 550.5 million in Q1 2024.
• CMB.TECH increased its contract backlog by USD 921 million, bringing the total backlog to USD 2.94 billion.
• The company acquired Hemen's stake in Golden Ocean and signed a term sheet for a stock-for-stock merger with Golden Ocean.
• Five newbuilding vessels were delivered, and three VLCCs were sold as part of the fleet rejuvenation strategy, generating a capital gain of approximately USD 96.7 million in Q2 and Q3 2025.
• CMB.TECH became the de-facto controlling shareholder of Golden Ocean on March 12, 2025, and Golden Ocean is fully consolidated as a subsidiary in the Group's consolidated accounts.
• Golden Ocean's contribution to the consolidated result from March 12 to March 31 amounted to USD -6.6 million.
• The company signed an agreement with MOL for nine ammonia-powered vessels, with deliveries expected between 2026 and 2029.
• Fortescue and CMB.TECH signed an agreement for an ammonia-powered Newcastlemax, expected to be delivered by the end of next year.

Sentiment

Score: 6

Explanation: While the company is making strategic moves and expanding its low-carbon fleet, the significant drop in profit and EBITDA compared to the previous year tempers the positive outlook.

Positives

• CMB.TECH achieved a profit of USD 40.4 million in Q1 2025.
• The company significantly increased its contract backlog by USD 921 million.
• The acquisition of Hemen's stake in Golden Ocean and the proposed merger with Golden Ocean are strategic moves to become a top dry bulk shipowner.
• The delivery of five newbuilding vessels expands the company's modern fleet.
• Agreements with MOL and Fortescue for ammonia-powered vessels position CMB.TECH as a leader in low-carbon shipping.
• The company is generating significant capital gains from vessel sales as part of its fleet rejuvenation strategy.

Negatives

• The Q1 2025 profit of USD 40.4 million is significantly lower than the Q1 2024 profit of USD 495.2 million.
• EBITDA decreased from USD 550.5 million in Q1 2024 to USD 158.4 million in Q1 2025.
• Golden Ocean's contribution to the consolidated result from March 12 to March 31 was negative, amounting to USD -6.6 million.

Risks

• The consummation of the merger with Golden Ocean is subject to customary conditions, including regulatory approvals and shareholder approval.
• The tanker market faces structural headwinds, including declining Chinese oil demand and potential curtailment of U.S. oil production.
• The container market is sensitive to geopolitical events, such as the Houthi attacks in the Red Sea, and trade policy changes.
• The chemical tanker market is influenced by the availability of swing tonnage from the MR product tanker market.
• The offshore wind market faces a potential CTV supply gap in 2026 and beyond.

Future Outlook

The company anticipates a stronger spot market in the tanker segment due to increased OPEC production and expects the container sector to improve with the resumption of normal volumes and the beginning of peak season.

Management Comments

• Alexander Saverys (CEO) stated that the acquisition of Hemen's stake in Golden Ocean and the proposed merger would propel CMB.TECH to the top of dry bulk shipowners worldwide.
• Alexander Saverys (CEO) mentioned that the company continues to execute its strategy by rejuvenating its fleet and signing long-term contracts for low-carbon ships.
• Alexander Saverys (CEO) noted that if the merger with Golden Ocean is approved, the fleet would grow to more than 250 modern vessels.

Industry Context

The announcement reflects a strategic move towards consolidation in the dry bulk shipping industry, with CMB.TECH aiming to become a leading player through the merger with Golden Ocean; the focus on ammonia-powered vessels aligns with the industry's increasing emphasis on decarbonization and sustainable shipping practices.

Comparison to Industry Standards

• Euronav achieved TCE Q1 2025 of USD 35,101 per day USD/day for the VLCCs, and USD 41,391 per day for the Suezmaxes.
• Bocimar achieved average TCE of USD 18,393 per day in Q1, 41.5% above the Q1 5TC Baltic Capesize Index (USD 12.998 USD /day).
• Bochem achieved TCE Q1 2025 of USD 20,521 per day USD/day (spot pool).
• Windcat CTVs achieved TCE Q1 2025 of USD 2,376 per day (utilization 75.6%).

Management Changes

Stakeholder Impact

• Shareholders of CMB.TECH and Golden Ocean will be impacted by the proposed merger, with potential changes in ownership and share value.
• Employees of both companies may experience changes in roles and responsibilities as a result of the merger.
• Customers will benefit from a larger, more diversified maritime group with a broader range of services.
• Suppliers and creditors will be dealing with a larger entity with potentially greater financial stability.

Next Steps

• The parties aim to enter into definitive transaction agreements, including an agreement and plan of merger, during the second quarter of 2025.
• The parties aim to complete the Merger in the third quarter of 2025.
• CMB.TECH will pursue a secondary listing on the Euronext Oslo Brs following and subject to completion of the Merger.
• Announcement Q2 2025 results on 28 August 2025.

Key Dates

Keywords

CMB.TECH, Golden Ocean, Merger, Ammonia-powered vessels, Contract backlog, Q1 2025 results, Dry bulk, Tankers, Shipping, Fleet rejuvenation