Shares of CMB.Tech (CMBT) climbed sharply on Tuesday, gaining 12.15% to close at €14.58 on Euronext Brussels, following the release of a robust first-quarter earnings report and a planned shareholder distribution. The Belgian shipping group posted a net profit of $368.8 million for the three months ended March 31, a significant leap from $40.4 million in the same period last year, driven by elevated tanker rates, profitable vessel sales, and steady dry-bulk market conditions.
Earnings per share came in at $1.27, compared to $0.23 a year earlier. EBITDA more than tripled to $558.3 million from $158.4 million. The company attributed the strong performance to a favorable market backdrop, including high VLCC and Suezmax spot rates, as well as gains from the sale of vessels. First-quarter VLCC spot rates averaged $70,204 per day, more than double the $35,101 recorded in the prior year, while Suezmax rates reached $91,849 per day, up from $41,391.
In addition to the earnings beat, CMB.Tech announced a proposed distribution of $0.64 per share, comprising a $0.20 interim dividend and a $0.44 payment from the share premium reserve. The payout is subject to approval at the annual general shareholders' meeting scheduled for May 21 and other Belgian corporate formalities. The news marked a return of cash to shareholders, reinforcing investor confidence.
CEO Alexander Saverys described the current environment as a "Goldilocks moment," citing favorable timing for vessel orders, strategic deals, and firm markets. However, he cautioned that the favorable conditions may not persist indefinitely, particularly if the Strait of Hormuz reopens, which could lead to a sharp correction in tanker rates. "The market could break either way," Saverys said, noting that while some investors anticipate a surge in restocking demand, others may misjudge the speed at which tankers can return to service.
The company's contract backlog expanded to $3.26 billion, supported by a new five-year Suezmax time charter and extensions for two additional Suezmax charters. Vessel sales contributed significantly to the quarter's results, with capital gains of approximately $267.4 million from the delivery of six VLCCs and two Capesize dry-bulk ships to new owners. CMB.Tech expects additional gains in the second quarter from the sale of two more VLCCs and one Suezmax vessel.
Despite the positive momentum, analysts noted that some of the earnings boost was tied to one-off vessel sales rather than recurring freight income. The planned dividend also remains pending regulatory and shareholder approval, meaning payouts are not yet guaranteed. If the Strait of Hormuz reopens, an influx of available tanker capacity could pressure rates, potentially undermining the sustainability of current earnings levels.
On U.S. exchanges, CMB.Tech's American depositary receipts rose $1.81 to $16.87, while tanker sector peers such as Frontline, DHT Holdings, and International Seaways traded lower in New York, underscoring that Tuesday's rally was company-specific rather than sector-wide. CMB.Tech maintains its primary listing on Euronext Brussels, with secondary listings on the New York Stock Exchange (CMBT) and Euronext Oslo Børs (CMBTO).