Belgian Oil Tanker Group CMB Tech Reports 76% Drop in Q4 Profit

Belgian oil tanker group CMB Tech announced a significant 76% decline in profit for the fourth quarter, attributed to sluggish tanker and dry bulk markets. Despite the challenging conditions, the company managed to surpass market expectations, aided by the disposal of older vessels.

Formed after Euronav’s acquisition of Compagnie Maritime Belge last year, CMB Tech disclosed a net profit of $0.48 per share for the final quarter of 2024, down from $2.01 in the same period the previous year. Analysts had anticipated earnings of $0.21 per share on average, according to LSEG’s IBES data.

As part of its long-term strategy to modernize and optimize its fleet, CMB Tech sold four older Suezmax vessels during the quarter, mitigating the overall weak performance.

In a statement, the company acknowledged the challenges faced in the tanker market, noting a lack of upward momentum in spot rates during the typically robust Q4 period. Concerns were also raised about the Suezmax segment’s outlook, given a significant increase in the order book, resulting in a fleet-to-order ratio of 16.6%, double that of the very large crude carriers (VLCCs) division.

Following a decline in share value post the U.S. election, CMB Tech expressed caution regarding potential impacts of President Donald Trump’s policies on tanker rates, as his promises to end conflicts in Ukraine and Gaza could alter shipping dynamics.

Looking ahead, the company anticipates a gradual improvement in freight market conditions for the container segment, following a period of uncertainty due to geopolitical tensions. Recent developments, such as the cessation of attacks by Yemen’s Houthis in the Red Sea post a Gaza ceasefire agreement, provide some optimism for market stability.

(Source: Reuters – Reporting by Enrico Sciacovelli in Gdansk, edited by Milla Nissi)