Axel Styrman

Axel Styrman asked about the potential influence of removing U.S. sanctions on Russian oil on the tanker market, how Guinea iron ore volumes replacing Australian exports might affect the bullish outlook for large dry bulk carriers, and CMB.TECH's target optimal financing structure and leverage after the newbuilding program is delivered.

Answer

CEO Alexander Saverys stated that the impact of potential US sanctions removal on Russian oil is uncertain, but theoretically could be negative for tankers. He explained that Guinea volumes replacing Australian exports, especially with R&R volumes going to China on Chinese ships, could be net positive for dry bulk due to longer ton miles. CFO Ludovic Saverys indicated a target of 50% loan-to-value throughout the cycle, aiming to reach this after the newbuilding program delivery (mostly by end of 2026), and plans to replace more expensive debt with inexpensive financing. He also reiterated a fully discretionary dividend policy.

Axel Styrman, Head of Research Norway and Head of Shipping at Kepler Cheuvreux, asked about the potential impact of removing U.S. sanctions on Russian oil on the tanker market, the influence of Guinea iron ore volumes replacing Australian exports on the dry bulk market, and CMB.TECH's target optimal financing structure and leverage post-newbuilding program. He also inquired about a potential fixed payout ratio or explicit dividend policy.

Answer

CEO Alexander Saverys stated that the impact of unwinding Russian oil sanctions is uncertain but could theoretically be negative, though practical factors are complex. He believes Guinea volumes replacing Australian exports would likely be net positive for dry bulk due to longer ton-miles. CFO Ludovic Saverys indicated a target optimal loan-to-value of 50% post-newbuilding program, focusing on replacing expensive debt with inexpensive financing, and reiterated a fully discretionary dividend policy to maintain flexibility.

Axel Styrman of Kepler Cheuvreux asked if the projected growth in iron ore volumes from Africa in 2026-2027 is expected to replace existing volumes from other regions. He also inquired if the company would consider share buybacks, given the stock's trading discount to its net asset value.

Answer

CEO Alexander Saverys explained that the new iron ore volumes would likely be additive to the market if conditions are supportive, but could replace other volumes if the market is weak, with the iron ore price being a key determinant. CFO Ludovic Saverys stated that while share buybacks are a tool, the current focus is on post-merger integration and allowing the market to recognize the company's value, though buybacks remain a possibility.

Axel Styrman requested an explanation for the year-over-year increase in Selling, General & Administrative (SG&A) expenses.

Answer

CFO Samantha Xu attributed the rise in SG&A largely to accrued bonus-related expenses within the Product Services division. She noted this was a direct result of the year-on-year improvement in realized trading results, which was also observed in Q1 2025.

Analyst Axel Styrman asked about BW LPG's contingency plans for its Chinese-built vessels if the U.S. imposes tariffs, and requested an explanation for a positive charter hire expense on the P&L.

Answer

CEO Kristian Sørensen stated it was hard to speculate on a legislative proposal but noted the company's commercial platform provides flexibility to employ vessels outside the U.S. market. He added that such a tariff would be highly disruptive to the entire shipping industry. CFO Samantha Xu explained the positive charter hire expense was due to off-hire income related to one vessel.

Axel Styrman of Kepler Cheuvreux questioned whether BW LPG plans to significantly ramp up activity in its Product Services division now that it is substantially growing its VLGC fleet.

Answer

Kristian Sørensen, an executive, stated that there are no current plans to further expand the Product Services division on a contract basis beyond the extension of the Enterprise contract that was announced in the previous quarter.

Axel Styrman from Kepler Cheuvreux questioned whether BW LPG intends to ramp up activity in its Product Services division to match the significant growth of its VLGC fleet.

Answer

Executive Kristian Sørensen clarified that following the recent extension of the Enterprise contract announced last quarter, there are no current plans to further expand the Product Services division on a contractual basis.