Kristof Samoy

Kristof Samoy, Associate Director of Equity Research at KBC Securities, questioned CMB.TECH's fuel choice for potential newbuild orders, specifically if they would consider LNG-ready vessels alongside ammonia/H2, and the impact of the IMO's decision on their H2 industry and infra business plan. He also asked about changes in miners' attitudes towards long-term charters for decarbonized vessels.

Answer

CEO Alexander Saverys reiterated CMB.TECH's strong conviction in ammonia as the preferred decarbonization fuel, citing technological advancements and increasing availability/cost reduction of green ammonia molecules. He stated that the IMO decision doesn't slow down their H2 business plan but would have accelerated it, noting varied reactions from customers regarding long-term charters.

Kristof Samoy asked whether CMB.TECH would consider LNG-ready vessels for new builds or remain focused on ammonia/H2, the impact of the IMO decision on the H2 industry and infra business plan, and how the IMO decision has affected miners' appetite for long-term charters.

Answer

CEO Alexander Saverys reaffirmed CMB.TECH's conviction in ammonia as the preferred decarbonization fuel due to technology advancements and increasing availability/cost reduction of green ammonia molecules, stating they are not currently looking at LNG projects. He noted that while the IMO decision would have accelerated their H2 business plan, it doesn't slow it down, and the impact on customer engagement for long-term charters is mixed, with some continuing and others adopting a wait-and-see approach.

Kristof Samoy from KBC Securities asked for details on the timing of post-merger refinancing, target LTVs, and covenant changes. He also questioned the potential impact of the U.S. presidential election on IMO greenhouse gas rules and the normalized quarterly SG&A run rate for the combined group.

Answer

CFO Ludovic Saverys confirmed that the major refinancing of the Golden Ocean and tanker fleets is complete, with covenants now based on value-adjusted equity. He noted that while SG&A will be lower than the current quarter's figure, it will take time to optimize costs. CEO Alexander Saverys addressed the IMO rules, stating the outcome is uncertain but customer interest in green-fueled ships has not diminished. Mr. Saverys added that stricter IMO rules would be a catalyst for long-term charter opportunities.

Kristof Samoy of KBC Securities inquired about the development timeline for the Namibian ammonia bunker facility, the charter status of the Newcastlemaxes with Fortescue, and the implications of Fortescue's recent green ammonia partnership with COSCO.

Answer

CEO Alexander Saverys detailed three Namibian projects: a local hydrogen station operational by year-end, an ammonia tank terminal with a Final Investment Decision (FID) expected in Q4 2024 or Q1 2025 for a 2028 delivery, and a longer-term ammonia factory project. He confirmed a couple of vessels are on short-term (max 1 year) consecutive voyage charters (CVCs) with Fortescue, but not the entire fleet. Regarding the Fortescue/COSCO deal, Saverys viewed it positively, stating that more industry investment in the ammonia supply chain benefits everyone and does not preclude future collaborations with CMB.TECH.

Kristof Samoy of KBC Securities inquired about the project timeline for the Namibian ammonia bunker facility, the charter status of the Newcastlemax vessels with Fortescue, and the implications of Fortescue's new partnership with COSCO on green ammonia vessels.

Answer

CEO Alexander Saverys detailed three Namibian projects, noting the ammonia tank terminal's Final Investment Decision (FID) is expected in Q4 2024 or Q1 2025 for a 2028 delivery. He confirmed a few Newcastlemaxes are on short-term (max one year) CVCs with Fortescue, not the entire fleet. Regarding the Fortescue-COSCO deal, Saverys viewed it as a positive industry development that validates the ammonia fuel strategy and does not preclude future collaboration, given the market's large scale.