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The call presented a strong operational and financial quarter: solid net profit, substantial capital gains, meaningful deleveraging, improved liquidity, and strong forward coverage in dry bulk and offshore segments. Management also secured a sizeable, tax-efficient shareholder distribution and highlighted potential for >$1 billion operational free cash flow under favorable market assumptions. Key risks include material remaining CapEx and near-term payment obligations, elevated tanker and dry-bulk orderbooks (medium-term oversupply risk), significant spot exposure (≈80% of days), and market softness in containers and chemicals. Operational disruptions related to Middle East tensions and several one-off income items temper the outlook. On balance, the positives (profitability, deleveraging, contract backlog, vessel sales gains, and robust forward fixing in key segments) outweigh the noted risks.
The call signaled clear guidance to continue deleveraging and returning cash to shareholders while finishing 2026 CapEx and riding a constructive dry‑bulk and near‑term tanker market: Q1 net profit was $368.8m, net finance expenses fell from $113m last quarter to ~$81m, liquidity is just above $0.5bn and adjusted equity/total assets is below the 50% through‑the‑cycle target; the Board approved a $0.64/share distribution ($0.20 interim + $0.44 from share premium, ~70% tax‑exempt), and management reiterated a discretionary policy historically distributing ~50–60% of net profit. Remaining CapEx at end‑April was $1.2bn (≈$184m unfunded) with ~$740m due to shipyards over the next three quarters; Q1 capital gains were $267m with ~$127m expected in Q2. Operational guidance includes ~53,000 ship days in 2026 (80% spot; ~36,000 open dry‑bulk spot days: ~10,000 Kamsarmax, ~26,000 Capes/Newcastle), a contract backlog up ≈$200m (reducing ~$100m/quarter; $1.9bn on dual‑fuel vessels), a +20% market case implying operational free cash flow >$1bn (ex‑sales, ex‑remaining CapEx), and segment rate/fleet datapoints: Newcastlemax Q1 $28k/day and Q2 ~80% fixed at $44k/day; Capesize Q1 $26k and ~75% Q2 fixed at $37k; Kamsarmax/Panamax breakeven ~$14.5k (Q2 ~75% fixed near $20k); VLCC bookings ~80% at $180k/day; Suezmax Q1 ~$91k and Q2 ~$122k; Windcat CSOV Q1 avg $65k (Q2 fully fixed at $62k) and CTV utilization >90% at ~$3.4k/day.
Net profit of $368.8 million in Q1 2026; capital gains booked of $267 million in Q1 with an additional ~$127 million expected in Q2; company notes a scenario where operational free cash flow could exceed $1 billion under current market assumptions (+20% vs plan).
Net finance expenses fell from $113 million to ~$81 million QoQ (≈28% reduction); liquidity at quarter end just above $0.5 billion; equity on total assets is below the 50% through-the-cycle target and the company reached its 50% net loan-to-value objective.
Completed disposals including sales of older vessels (2 Capesizes, 8 VLCCs, Suezmax 'Sienna'); total capital gain related to the sale of six older VLCCs reported at ~$360 million (reflected across Q1/Q2).
Contract backlog increased by roughly $200 million; backlog amortizes ~ $100 million per quarter; $1.9 billion of backlog relates to dual-fuel vessels with predominantly investment-grade counterparties, improving cash flow visibility.
Newcastlemax fleet: Q1 achieved ~$28,000/day and ~80% of days already fixed for Q2 at ~$44,000/day. Capesize fleet: Q1 ~$26,000/day with ~75% of days fixed for Q2 at ~$37,000/day. Kamsarmax/Panamax breakeven ~ $14,500/day with ~75% of Q2 days fixed close to $20,000/day.
Windcat CSOVs averaged ~$65,000/day in Q1 and Q2 is already largely fixed at ~$62,000/day; CTV utilization above 90% earning average ~$3,400/day, supporting strong segment cash generation.
SG&A declined from $51 million in Q4 to $27 million in Q1, reflecting integration and cost optimization progress; margins reduced with banks and expensive bridge financing repaid.
Board approved distribution of $0.64 per share (interim $0.20 plus $0.44 from share premium) — approximately 70% of that distribution will be exempt from withholding tax; management reiterates historical payout range of ~50–60% of net profit as framework.
Good afternoon, everyone, and welcome to the CMB.TECH Q1 2026 Earnings Call. My name is Alexander 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.
Thanks, Alex. As usual, we will start with a high-level overview of our company. We're active in 5 different segments from dry bulk crude tankers, containers, chemicals to offshore energy. 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. We've reduced our CapEx commitments and increased our contract 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. Notable in these figures are obviously our increased revenue, but we have been able to, while the quarter passed, delever quite a bit and reduced our margins with the banks. And so our interest -- our net finance expenses decreased from $113 million from last quarter to $81 million this quarter, delivering a very nice profit. The liquidity of the company end of Q1 stands a little bit above $0.5 billion. And our equity on total assets value adjusted is below 50%, which is our through-the-cycle target. Further zooming in, we have delevered. We are paying dividends, and we're stre...