CMB.Tech 'positive' on IMO's new framework, hails ammonia as 'the way forward'

Speaking during the NYSE-listed company’s Q1 2025 earnings presentation, chief executive Alexander Saverys struck an optimistic tone, telling analysts “the glass is half full” and IMO’s proposed measures will accelerate the industry’s shift toward dual-fuel engines.

CMB.Tech has been investing heavily in ammonia over recent years. Since the start of 2025, it has signed a landmark charter agreement with Japanese shipping giant Mitsui OSK Lines for nine ammonia-powered vessels – comprising three Newcastlemaxes and six chemical tankers. Additionally, its dry bulk arm Bocimar agreed a charter deal with mining giant Fortescue for an ammonia-powered Newcastlemax bulk carrier.

The company is expected to take delivery of its first fully fitted ammonia-powered vessel in January next year.

“If you put all the data side by side, the story is clear: if you want to order a ship today, ammonia is the way to go,” said Mr Saverys, adding customers have begun reaching out with interest in vessels that are fully ready with ammonia engines. He also emphasised that for anyone looking to operate an existing vessel today, ammonia “will be the way to go,” with adoption expected by 2032 if the alternative fuel is diesel, and by 2038 if it is LNG.

Mr Saverys clarified CMB.Tech bases its ammonia price forecasts on data from the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. According to this source, ammonia prices are currently estimated at over US$2,000 per tonne on a diesel-equivalent basis. However, CMB.Tech has recently received green ammonia price quotes closer to US$1,000 per tonne.

This could accelerate the projected adoption timelines to as early as 2029 or 2030, with the LNG competition potentially shifting to 2032 or 2033, Mr. Saverys explained.

When asked about the future fuel for mid-sized bulk carriers such as Kamsarmaxes, Mr Saverys reiterated his support for ammonia, though he acknowledged engine options and trade routes still need to be better defined for this segment.

“We do not believe in methanol and LNG in the long term,” he emphasised, adding ammonia for larger vessels and hydrogen for smaller ones hold the greatest potential.

Financial performance and fleet renewal

Following the announcement of its planned merger with Golden Ocean, CMB.Tech reported a Q1 2025 profit of US$40.4M, down from US$495.2M in the same period last year. The 2024 figures were buoyed by significant gains from vessel sales. Revenue held relatively steady, reaching US$235.0M, compared to US$240.4M in Q1 2024.

The company also strengthened its commercial outlook by expanding its contract backlog by US$901.0M, bringing the total to US$2.9Bn.

Fleet renewal remained a priority: CMB.Tech took delivery of five newbuildings and generated a US$46.3M capital gain from the sale of three older vessels. It also divested three VLCCs (built between 2010 and 2012) during the quarter and expects to record an additional US$96.7M in capital gains in Q2 and Q3 2025.

“We relentlessly continue executing our strategy by rejuvenating our fleet and signing long-term contracts for low-carbon ships,” said Mr Saverys.

Golden Ocean merger

Commenting on the proposed merger with Golden Ocean, Mr Saverys said, if approved, the combined company will operate a fleet of more than 250 modern vessels across five shipping brands.

“This will give us all the necessary firepower to continue investing in our fleet and seize opportunities,” he said.

According to the company’s presentation, the fair market value of the group post-merger is estimated at US$11.1Bn.

The parties plan to finalise definitive transaction agreements – including a merger plan – during Q2 2025, with the merger expected to close in Q3 2025. Once completed, Golden Ocean will delist from Nasdaq and Euronext Oslo Børs, while CMB.Tech will remain listed on the New York Stock Exchange and Euronext Brussels, and pursue a secondary listing on the Euronext Oslo Børs.

CMB.Tech currently operates a fleet of more than 160 seagoing vessels, including tankers, bulk carriers, container ships, offshore wind vessels and workboats.