(Reuters) – Belgian oil tanker group CMB Tech said on Thursday its profit sunk 76% in the fourth quarter amidst slow tanker and dry bulk markets, although it still beat market expectations aided by the disposal of some older vessels.
The group, formed after Euronav’s takeover of Compagnie Maritime Belge last year, reported a net gain of $0.48 per share for the final quarter of 2024, compared to $2.01 a year earlier. Analysts were expecting $0.21 per share on average, LSEG’s ​IBES data showed.
CMB Tech is continuing to carry out its long-term strategy of rejuvenating and optimizing its fleet, as the sale of four older Suezmax vessels offset an otherwise weak quarter.
“After a strong start to 2024, tanker spot rates have retreated to lower levels, failing to gain momentum during the traditionally stronger Q4 period,” it said in a statement.
The company expressed caution on its outlook for the Suezmax segment, where the order book has grown significantly, with an order book to fleet ratio of 16.6%, more than double that of the very large crude carriers (VLCCs) division.
CMB Tech’s shares have lost around a quarter of their value since the U.S. election, as President Donald Trump’s pledges to end the Ukraine and Gaza wars could put an end to a period of higher tanker rates, as companies charged top dollar to transport oil and gas over longer routes.
For the container segment, the group expects a gradual easing in freight market conditions from what was seen in 2024, after attacks by Yemen’s Houthis in the Red Sea were seemingly halted after a Gaza ceasefire deal came into effect last month.
(Reporting by Enrico Sciacovelli in Gdansk, editing by Milla Nissi)
