CMB.TECH CEO Speaks On Shifting Investor Focus From Asset Values To Sustainable Earnings Power

Capital Link's Trending News Webinar Series featured this week a discussion with Mr. Alexander Saverys, CEO of CMB.TECH (NYSE:CMBT), who shared his views on the company's diversified business model, plans for decarbonization, and his vision for a maritime industry that balances tradition with bold innovation. 

Highlights

• Ammonia and hydrogen are among the most promising future fuels that comply with regulations and do not emit CO2.
• CMB.TECH is bridging the current NAV valuation gap by shifting investor focus from asset values to sustainable earnings power through a diversified business model, leveraging increased liquidity from the Golden Ocean merger and their decarbonization efforts to create long-term shareholder value.
• The company plans on investing in long-term solutions, not waiting for regulations or subsidies, and prioritizing sustainable growth.
• Africa is expected to be the next big thing in shipping as it will inspire new trade routes using more environmentally friendly technologies.

To access the full conversation, please visit the following link:

https://www.youtube.com/watch?v=Zh4CiKwge2Q

The Power of Diversification

Unlike many publicly listed shipping firms that focus on single sectors, CMB.TECH operates across dry bulk, tankers, containers, offshore wind, and more counting 250+ vessels post-merger with Golden Ocean. This approach isn't just about hedging against cyclical downturns. It is about ensuring the company's growth and sustainability for the long term. With over a century in shipping, the Saverys family provides stability as anchor shareholders.

"We look ahead to what ships, engines, and cargo the industry will need in the coming decades. Shipping has long investment cycles, so future proofing is essential. Diversification lets us make the right decisions at the right time, no matter where we are in the cycle" Mr. Saverys explains.

As a result, a key theme of the discussion was the importance of stability and long-term vision in an industry often driven by short-term gains. The company's leadership, with deep roots in shipping, brings a perspective that prioritizes sustainable growth over quick wins.

"Thinking in decades, not quarters, is what allows us to make bold moves,"  Mr. Saverys remarked.

Creating Sustainable Value

The persistent gap between shipping companies’ net asset values (NAV) and their market valuations was a primary discussion topic. Mr. Saverys expressed disappointment with the market’s tendency to value shipping stocks primarily on liquidation value rather than earnings potential or strategic positioning. He noted that NAV represents just the value of ships minus debt and added that this overlooks the value of their operating platforms, technical expertise, and future earnings capacity.

CMB.TECH is taking concrete steps to bridge this gap. The Golden Ocean merger will increase the company’s free float from 8% to 38%, improving liquidity and making the stock more attractive to institutional investors. More fundamentally, Mr. Saverys commented that they want to be valued on their ability to produce earnings and cash flow, not just the appraised value of their vessels.

As disclosed in the recent Capital Markets Presentation in Oslo, post-merger with Golden Ocean, which is expected to close within Q3 2025, CMB.TECH will boast a fleet of 253 vessels with an average fleet age of 6.1 years, a contract backlog of $3 billion, capex commitments of $2.2 billion and a target leverage of 50% throughout the cycle. Also, a Fair Market Value of $11.1 billion, with an NV of around $14.9/share.

Delivering on Zero-Carbon Ambitions

While some shipowners explore biofuels, LNG, or methanol, CMB.TECH is placing its chips on ammonia and hydrogen, the only carbon-free fuels that according to Mr. Saverys align with current emissions targets.

The company is already moving aggressively and is currently overseeing one of the most ambitious newbuilding programs in the industry. There are 46 vessels on order, with the first ammonia-capable ships scheduled for delivery starting in 2026. These include eight bulk carriers and one container ship entering service in 2026, followed by additional vessels through 2027 and 2028. What makes this program particularly noteworthy is that all newbuilds will be equipped to operate on alternative fuels, except in cases where engine technology isn’t yet commercially available, making it cost effective.

When it comes to infrastructure there are challenges as bunkering networks for ships are still underdeveloped. While dedicated ammonia bunkering infrastructure doesn’t yet exist, the global ammonia trade already moves millions of tons annually for industrial use, meaning storage and handling infrastructure exists in many ports worldwide. Mr. Saverys believes early adopters will shape the market, much as they did with LNG. For the initial phase, Mr. Saverys envisions solutions like ship-to-ship transfers using existing LPG carriers, drawing parallels to how LNG bunkering developed gradually as demand increased. 

When it comes to complying with IMO's regulations, it was noted that over relying on them to solve all problems is not the way to go. While acknowledging the importance of IMO policies like those expected from MEPC 83, Mr. Saverys stressed that CMB.TECH's strategy doesn’t depend on regulatory support.  "Our business model must stand on its own," he insists. "If zero-carbon solutions stay three times more expensive than diesel, no subsidy or tax will bridge that gap." Instead CMB.TECH is investing directly in fuel production and engine development, by collaborating with manufacturers like WinGD.

Africa: The Next Frontier

One of Mr. Saverys' most intriguing insights was his bullish outlook on Africa. As its population is expected to grow by 1 billion by 2050, he sees untapped potential in its young workforce, quick technology adoption, economic models, and emerging trade routes.

"They’ll skip some of the mistakes the Western world has made in industrializing, in developing their economies. They will look at decentralized energy production. They have been digital in banking, even before we were in Europe. They will not pull cables everywhere. They will find different solutions, and they will do it better in a more sustainable and cheaper way. Whoever wants to be successful in shipping will at one point need to have an Africa strategy" he concluded.

This content is for informational purposes only and not intended to be investing advice.