Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CMB.Tech NV (CMBT, Financial) reported a strong net profit of $184 million for Q2 2024, contributing to a half-year profit of nearly $680 million.
- The company declared a dividend of $1.15 in Q2, bringing the total dividends for the half-year to $5.72.
- CMB.Tech NV (CMBT) has a substantial contract backlog of approximately $2.1 billion, indicating strong future revenue potential.
- The company successfully completed a share buyback program, acquiring 8 million shares for approximately $126 million.
- CMB.Tech NV (CMBT) is expanding its fleet, with plans to grow from 117 vessels by the end of 2024 to 160 vessels by the end of 2026.
Negative Points
- The company has a significant outstanding CapEx of $2.7 billion, which could impact future cash flows.
- CMB.Tech NV (CMBT) remains heavily exposed to spot market volatility, with 75% of open days for 2024 and 80% for 2025.
- The container market faces challenges with a large order book and mixed demand indicators, potentially impacting future profitability.
- The company is still awaiting final investment decisions on key projects, such as the ammonia tank terminal in Namibia, which could delay potential revenue streams.
- There are ongoing discussions with Exxon about a chemical tanker project, but no firm contracts have been signed yet, creating uncertainty about future business opportunities.
Q & A Highlights
Q: Can you provide an update on the Namibian bunker facility timeline and the involvement of the new Castlemaxes in the Fortescue Charter pool?
A: The hydrogen refueling station in Namibia is expected to be operational by the end of this year. The ammonia tank terminal's FID is anticipated in Q4 or Q1 next year, with delivery around 2028. The ammonia factory project is still in feasibility stages. Regarding the FMG CVC pool, we have a good relationship with FMG, involving short-term charters, but not all six vessels are included.
Q: How does the Fortescue and COSCO collaboration on green ammonia vessels impact CMB.TECH's relationship with Fortescue?
A: The collaboration is a positive development for the industry, promoting ammonia-powered vessels and supply chains. It doesn't exclude CMB.TECH from future dealings with Fortescue or COSCO. The market is large, and more investment in decarbonizing shipping benefits everyone, including CMB.TECH.
Q: There are reports linking CMB.TECH to a 20-ship chemical tanker deal. Can you comment on this?
A: Discussions are ongoing with Exxon regarding a chemical tanker project, but it involves seven ships, not 20. No contracts have been signed yet, and further details will be shared once finalized.
Q: Can you provide any details about the size of the vessels in the Exxon chemical tanker project?
A: We cannot disclose the size of the vessels at this time. More information will be provided once contracts are signed.
Q: What is the current status of the offshore wind market and CMB.TECH's involvement?
A: The offshore wind market is performing well, with good demand indicators. CMB.TECH's CTVs are operating on a mix of spot and time charters, and the third quarter is progressing positively. The CSOVs are not yet fixed but are expected to contribute significantly once operational.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
