KCC Second Quarter 2024 – Another solid quarter resulting in record half-yearly financial results
Image: Engebret Dahm, CEO Klaveness Combination Carriers
Oslo, 23 August 2024: Klaveness Combination Carriers (“KCC”) reports another solid quarter marked by efficient trading for the CABU fleet with record-high TCE earnings and a strong product tanker market resulting in one of the best CLEANBU quarters in the company’s history. With a dividend of USD 0.30 per share for the quarter, KCC continues to deliver on its dividend policy with high quarterly distributions and high running yield to its shareholders.
CEO Engebret Dahm comments: “Based on robust market conditions and exceptional CABU TCE earnings, KCC delivered strong results in the second quarter 2024 culminating in the best half-yearly results in our history. With our diversified market exposure and fleet flexibility, we are confident in our ability to deliver solid operational and financial performance and attractive quarterly dividends to our shareholders going forward despite the ongoing high volatility in the product tanker market.”
KCC owns and operates 16 combination carriers built for the 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.
Highlights for Second Quarter 2024:
EBITDA of USD 36.2 million for Q2 2024 (Q1 2024: 37.6) and EBT of USD 25.1 million (Q1 2024: 26.0), resulting in record half-yearly financial results
Record CABU TCE earnings of $37,656/day (Q1 2024: $34,824/day) supported by strong MR tanker markets and efficient trading
Continued high CLEANBU TCE earnings of $39,093/day (Q1 2024: $46,593/day) with high share of tanker trading (79%)
Renewal of fixed rate dry bulk contract out of Australia for 2025 with higher volume and rates
Q2 dividend of USD 0.30 per share (~USD 18.1 million in total), bringing total dividends paid since listing in 2019 to USD 185.4 million
Fleet average TCE earnings for the quarter of $38,376/day [1] (Q1 2024: $40,514/day [1]) were driven by a strong product tanker market and robust dry earnings in addition to high trading efficiency for the CABU fleet. The CABU segment delivered record-high average TCE earnings of $37,656/day [1] for the quarter, while CLEANBU TCE earnings ended at $39,093/day [1] one of the best CLEANBU quarters ever. Two vessels completed dry-docking with a total of 89 off-hire days in the quarter.
Quarterly dividend distribution of USD 0.30 per share and in total USD 18.1 million for second quarter is well above the minimum dividend policy level of 80% of the adjusted cash flow to equity [2]. Over the last four last quarters, KCC has distributed an aggregated amount of USD 75.6 million in dividends, and since its listing in 2019, USD 185.4 million.
The carbon intensity (EEOI) of the KCC fleet ended at 6.9, in line with Q1 2024, and was negatively impacted by ballast days for the CLEANBU fleet as chartering decisions were made to take advantage of the strong tanker market. The CABU fleet continued with a high share of combination trading and its EEOI remained in line with the target for 2024.
TCE earnings guidance [3] for Q3 2024 is $28,000-29,000/day for the CABUs and $33,500-35,500/day for the CLEANBUs, somewhat down from a very strong second quarter. The reduction is mainly driven by weaker product tanker markets going into the third quarter and temporarily lower caustic soda cargo volumes for the CABUs for the period caused by uneven distribution of contract shipments over the quarters. Looking further ahead, both the dry bulk and the product tanker markets are expected to remain strong and especially the product tanker market is expected to be highly volatile. KCC, with high efficiency, diversified market exposure and flexibility, is well positioned to deliver strong financial results and attractive dividends to its shareholders.
[1] TCE earnings $/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet “APM2Q2024” published on the Company’s homepage Investor Relations/Reports and Presentations under the section for the Q2 2024 report. The address to the Company’s homepage is www.combinationcarriers.com.
[2] EBITDA, less maintenance CAPEX, less debt service
[3] Estimate based on booked cargoes and expected employment for open capacity basis forward freight pricing (FFA).
View Q2 2024 Report
View Q2 2024 Presentation
Invitation to presentation of Q2 2024 financial results
In connection with the release of financial results for the second quarter 2024, Klaveness Combination Carriers ASA (“KCC”) will hold a webcast presentation at 09:00 CEST on Friday 23 August.
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-q2-2024-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
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
Telephone: +47 976 60 561