CMB Tech reported a substantial increase in fourth-quarter earnings, posting a profit before tax of $97 million, a significant jump from $89 million in the same period last year, according to a company statement released Thursday. The shipping company’s revenues reached $589 million, up from $226 million in the fourth quarter of the previous year.
The results exceeded analyst expectations, which, according to Bloomberg, had predicted revenues of $460 million and a profit before tax of $152 million. CMB Tech’s EBITDA (earnings before interest, taxes, depreciation, and amortization) also rose sharply, reaching $322 million compared to $180 million in the prior-year quarter.
The company announced a dividend of $0.16 per share for the quarter, significantly higher than the $0.043 per share anticipated by analysts. CMB Tech CEO Alexander Saverys attributed the strong performance to favorable conditions in both the tank and dry bulk markets. “Tank markets continue to defy gravity driven by changing trade patterns, limited delivery of new vessels and a particularly active tanker operator fueling the fire,” Saverys stated in the quarterly report.
Saverys also noted the continued strength of the dry bulk market throughout the fourth quarter and into the new year. The company capitalized on the strong market by selling older vessels at high prices and securing long-term contracts at favorable rates. “We will use the proceeds to reduce debt, strengthen the balance sheet and pay dividends,” Saverys said.
CMB Tech, which is listed on the Brussels, New York, and Oslo stock exchanges, has a market capitalization of approximately 44 billion Norwegian kroner. The company’s fleet has grown to around 250 ships following its acquisition of dry bulk shipping company Golden Ocean. The company began trading on the Oslo Børs in August of last year following the completion of the Golden Ocean acquisition.
In November, CMB.TECH reported a weaker third quarter but signaled an improved fourth quarter due to rising rates in both the tank and dry bulk markets. The company paid a dividend of $0.05 per share for the third quarter.
