Clement Moulin

Clément Moulin from Midcap Partners followed up on the Capesize charters, asking if the contract rates could be disclosed. He also inquired about CMB.TECH's current stance on adding more long-term coverage for its dry bulk fleet given the forward outlook. Additionally, he asked for clarification on the dividend policy regarding the reported gains from sales in Q1 and Q2.

Answer

CFO Ludovic Saverys stated that the specific rates for the Capesize charters are confidential, but suggested looking at broker reports for five-year Cape rates and adding a premium for CMB.TECH's modern vessels. He confirmed that CMB.TECH is actively looking to add more long-term coverage for its dry bulk fleet to create stable cash flows, but only at attractive rates. Regarding dividends, Saverys clarified that the $0.16 dividend was based purely on Q4 performance. He confirmed the intention to pay a dividend on the $270 million profits from fixed sales in Q1, with the decision to be confirmed in the May earnings release for Q1. He indicated that future dividends would be assessed quarter-by-quarter, with increasing capacity as the newbuild program and bonds are managed.

Clément Moulin followed up on the Capesize charters, asking if the contract rates could be disclosed and what CMB.TECH's current stance is on adding more dry bulk coverage given their forward outlook. He also inquired about the dividend policy regarding the reported gains from sales, specifically if a dividend would be declared for both Q1 and Q2.

Answer

Ludovic Saverys (CFO, CMB.TECH) reiterated that the Capesize charter rates are confidential but suggested analysts could estimate them based on broker reports for modern vessels. He confirmed the company's active interest in securing more long-term dry bulk coverage to create stable cash flows, but not 'at any price.' Ludovic Saverys also clarified that a dividend on Q1 profits from sales is definitely intended and will be decided and confirmed in the May earnings release, with future dividends reviewed quarter-by-quarter based on operational cash flow and new build program completion.

Clement Moulin inquired about the maximum fleet size, for both VLCCs and Suezmaxes, at which Okeanis Eco Tankers could still maintain its premium outperformance. He also asked about the cost delta and strategic implications of dry docking a Suezmax in Turkey versus China.

Answer

CEO Aristidis Alafouzos indicated that while a slightly larger fleet might theoretically still allow for outperformance, the current fleet size is optimal for continued strong results, emphasizing that outperformance also depends on the team and technical management. Regarding dry docking, he estimated Turkey could be $250,000-$500,000 more expensive than China but saves significantly more by avoiding long repositioning voyages from preferred Western trading areas, especially with current Cape routing.