CMB.Tech Q1 Profit Triples as Tanker Rates Jump After Hormuz Disruption
Strong Financial Performance Driven by Market Disruption
By Mathias de Rozario and Jerome Terroy
Profit Surge and Market Reaction
May 19 (Reuters) - Belgian tanker company CMB.Tech said on Tuesday its core profit more than tripled in the first quarter, as the closure of the Strait of Hormuz curtailed available shipping tonnage, driving a sharp spike in spot freight rates.
Shares of the large, diversified maritime company with a fleet of about 250 ships rose more than 5% in early Brussels trading. They have gained almost 70% since the start of 2026.
CMB.Tech's earnings before interest, taxes, depreciation and amortization (EBITDA) soared to $558.3 million, compared with $158.4 million a year ago.
CEO Statement on Market Conditions
"We are reaping the benefits of a red-hot tanker market through a mix of sales of older vessels at stellar prices, a historically high spot market and the addition of lucrative long-term charters," CEO Alexander Saverys said in a statement.
Impact of Strait of Hormuz Disruption
Disruption of shipping flows through the Strait of Hormuz has temporarily removed a meaningful portion of the VLCC (Very Large Crude Carrier) and Suezmax fleets from effective supply.
Brokerage Perspective
"CMB.Tech is benefiting from the disruptions created by the closing of the Strait of Hormuz, both directly through higher shipping rates and indirectly through the sale of vessels at very high prices," brokerage Degroof Petercam said in a note to investors.
Capital Gains from Vessel Sales
The company recorded a capital gain of about $267 million from vessel sales delivered to buyers during the quarter.
Spot Earnings and Future Outlook
Average spot earnings for VLCC tankers doubled from a year ago to $70,204 per day, while Suezmax average spot earnings more than doubled to $91,849 per day.
The company expects spot results to be even stronger in the second quarter than in the first.
Contract Backlog and Investor Returns
Its contract backlog grew to $3.26 billion thanks to the addition and extension of time charters for Suezmax vessels.
CMB.Tech, however, warned that the current "Goldilocks" conditions may not last amid global trade uncertainty and the growing order book.
It plans to propose an interim cash distribution of $0.64 per share to investors.
(Reporting by Mathias de Rozario and Jerome Terroy in Gdansk, editing by Milla Nissi-Prussak)
