CMB.TECH Quarterly Profits Goes Above Expectations
Belgian oil tanker company CMB.TECH posted third-quarter profit above market expectations on Thursday, powered by a long-term strategy of decarbonization and diversification of its fleet.
"From a supply-side perspective, the outlook for the tanker fleet remains generally favourable for Very Large Crude Carriers (VLCCs)," the group said in a statement.
It cautioned about the Suezmax segment, where the order book has grown significantly, with an orderbook-to-fleet (OB/F) ratio of 16.3%, more than double that of VLCCs.
The group, formed after last year's Euronav-Compagnie Maritime Belge takeover, acknowledged near-term challenges to oil demand growth from headwinds in China and the Middle East.
"Geopolitical risks in the Middle East, especially around the Strait of Hormuz, will remain a key watchpoint," it said.
Many container ships now take a longer route around the Horn of Africa due to attacks by Yemen's Houthi militants in the Red Sea region, which they call solidarity for Palestinians in Gaza.
However, CMB.TECH said it remained cautiously optimistic due to favorable long-term structural factors, particularly in non-OECD Asia, with a focus on India.
"Overall, the CMB.TECH fleet is well-positioned to navigate these evolving global market conditions," it added.
"Our strategy of decarbonization, diversification and optimization of our fleet is in full swing," Chief Executive Alexander Saverys said.
CMB.TECH said its net gains dropped 14.4% to $98.1 million in the period, but exceeded an average forecast of $43.62 million, according to data compiled by LSEG.
(Reuters - Reporting by Dimitri Rhodes; Editing by Sherry Jacob-Phillips and Clarence Fernandez)