CMB.Tech's core profit more than tripled in the first quarter as the closure of the Strait of Hormuz curtailed available shipping tonnage, driving a sharp spike in spot freight rates. The company's fleet of about 250 ships has seen shares rise over 5% in early Brussels trading, with gains of almost 70% since the start of 2026.
The surge in tanker rates is largely due to the removal of VLCC and Suezmax fleets from effective supply through the Strait of Hormuz. This disruption has created a shortage of shipping capacity, leading to higher earnings for CMB.Tech's tankers.
CMB.Tech's earnings before interest, taxes, depreciation and amortization (EBITDA) soared to $558.3 million, compared with $158.4 million a year ago. The company's capital gain from vessel sales delivered to buyers during the quarter was about $267 million.
The average spot earnings for VLCC tankers doubled from a year ago to $70,204 per day, while Suezmax average spot earnings more than doubled to $91,849 per day. These increased earnings have contributed significantly to CMB.Tech's profit surge.
CMB.Tech expects spot results to be even stronger in the second quarter than in the first. The company's contract backlog grew to $3.26 billion thanks to the addition and extension of time charters for Suezmax vessels.
However, CMB.Tech warned that the current 'Goldilocks' conditions may not last amid global trade uncertainty and the growing order book. The company plans to propose an interim cash distribution of $0.64 per share to investors.
The tanker market boom has been driven by a combination of factors, including sales of older vessels at stellar prices, a historically high spot market, and lucrative long-term charters. CMB.Tech's CEO Alexander Saverys said that the company is reaping the benefits of this red-hot market.
CMB.Tech's success in the tanker market highlights the importance of shipping companies adapting to changing global trade conditions. As the Strait of Hormuz continues to disrupt shipping flows, companies like CMB.Tech are poised to benefit from the increased demand for their services.
The disruption of shipping flows through the Strait of Hormuz has created a perfect storm for CMB.Tech.
