KCC First Quarter 2024 – Strong validation of the combination carrier concept value
Image: Engebret Dahm, CEO Klaveness Combination Carriers
Oslo, 7 May 2024: Klaveness Combination Carriers (“KCC”) reports another quarter of solid financial performance with historically high efficiency for the CABU fleet and high tanker trading of the CLEANBU vessels. KCC delivered EBT of USD 26.0 million (Q4 2023: USD 25.9 million) and EBITDA of USD 37.6 million (Q4 2023: USD 36.5 million), supporting continued high dividend distribution of USD 0.35 per share/USD 21.2 million in total for the quarter.
CEO Engebret Dahm comments: “Our Q1 performance demonstrates both the high efficiency and high flexibility in KCC’s business model. The CABUs delivered highly efficient operations with only 8% ballast and strong and stable earnings, while we utilized the flexibility of the CLEANBU fleet employing 75% of the CLEANBU capacity in tanker trades to take benefit of the remarkably strong tanker market.”
KCC owns and operates 16 combination carriers built for transportation of both wet and dry bulk cargoes. The vessels are operated in trades where they efficiently combine dry and wet cargoes with minimum ballast, capitalizing on imbalances in trade flows.
All-time high TCE earnings for the fleet ($40,514/day [1]) in Q1 2024 (Q4 2023: $36,823/day [1]) were driven by a strong product tanker market supported by robust dry earnings in addition to high trading efficiency for the CABU fleet. Average TCE earnings for the CABUs were $34,824/day [1] and $46,593/day [1] for the CLEANBUs. However, in total 139 off-hire days for the fleet impacted the financial results negatively. 130 days were related to two dry dockings that were delayed for a total of 23 days in addition to 9 unscheduled off-hire days.
KCC continues to provide shareholder value with a dividend for the quarter of USD 0.35 per share/USD 21.2 million in total. On a running basis over the last 4 quarters, KCC has paid out an aggregated amount of USD 72.5 million in total dividend.
The carbon intensity (EEOI) of the KCC fleet increased Q-o-Q and compared to 2023. The CLEANBU fleet EEOI was up 17% Q-o-Q, outweighing the CABU fleet’s 4% reduction from improved combination trading. Increased CLEANBU emissions intensity was driven mainly by temporary effects of operation at higher speeds and increased ballast to take benefit of the strong tanker market in the quarter.
With strong CABU contract coverage secured for 2024 and expected continued strong product tanker markets having positive effects on both the CABU and the CLEANBU fleet, the CABU TCE earnings guiding [2] for Q2 2024 is $36,000-37,000/day and $37,500-40,500/day for the CLEANBUs.
Highlights for First Quarter 2024:
EBT of USD 26.0 million (Q4 2023: USD 25.9 million) and EBITDA of USD 37.6 million (Q4 2023: USD 36.5 million) for Q1 2024
All-time high Q1 TCE earnings ($40,514/day) (Q4 2023: $36,823/day)
Efficient combination trading for the CABUs (ballast 8 %)
Continued high share of CLEANBU capacity employed in tanker trades (75%)
Increased carbon intensity (EEOI 6.9) driven by CLEANBU speed and ballast
Off-hire higher than expected due to extended dry dockings and unscheduled off-hire
KCC Board of Directors declares dividend of USD 0.35 per share (~USD 21.2 million in total)
[1] TCE earnings $/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet “APM1Q2024” published on the Company’s homepage Investor Relations/Reports and Presentations under the section for the Q1 2024 report. The address to the Company’s homepage is www.combinationcarriers.com.
[2] Estimate based on booked cargoes and expected employment for open capacity basis forward freight pricing (FFA).
View Q1 2024 Report
View Q1 2024 Presentation
Invitation to presentation of Q1 2024 financial results
In connection with the release of financial results for the first quarter 2024, Klaveness Combination Carriers ASA (“KCC”) will hold a webcast presentation at 09:00 CEST on Tuesday 7 May.
To follow the webcast live go to www.combinationcarriers.com/investor-relations or copy and paste the following link to your browser: https://www.combinationcarriers.com/kcc-q1-2024-financial-results.
Questions for the Q&A session can be submitted in writing through the webcast solution during the presentation. About Klaveness Combination Carriers ASA
About Klaveness Combination Carriers ASA
KCC is the world leader in combination carriers, owning and operating eight CABU and eight CLEANBU combination carriers with three CABU vessels under construction for delivery in 2026. KCC’s combination carriers are built for transportation of both wet and dry bulk cargoes, being operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast. Through their high utilization and efficiency, the vessels emit up to 40% less CO2 per transported ton compared to standard tanker and dry bulk vessels in current and targeted combination trading patterns.
For further queries, please contact:
Engebret Dahm, CEO
Telephone: +47 957 46 851
Liv Dyrnes, CFO & Deputy CFO
Telephone: +47 976 60 561