KCC: Third Quarter 2024 Business Update
Oslo, 8 October 2024: Klaveness Combination Carriers’ ("KCC" or the "Company") preliminary CABU and CLEANBU TCE earnings for third quarter 2024 ended at $/day 29,668 and $/day 38,673 respectively. Fleet average TCE earnings for the quarter ended at $/day 34,052, approximately $/day 4,300 lower than in Q2 2024, and approximately $/day 1,900 higher than high end of the guiding range ($/day 30,700-32,200).
CABU TCE earnings for Q3 2024 were approximately $/day 650 above the high end of the guiding range due to stronger than expected earnings for index-linked caustic soda contracts. The CABU TCE earnings in the quarter were down approximately $/day 8,000 from the record strong Q2 2024 as the fleet experienced a somewhat lower number of caustic soda shipments this quarter as well as a weaker MR-tanker market from the end of Q2 and through Q3 2024 negatively impacting the index-linked caustic soda contracts. The CABU fleet maintained its high trading efficiency with 88% combination trading and 11% ballast for the quarter.
The CLEANBU fleet maintained strong TCE earnings in Q3 2024 (down approximately $/day 400 from Q2 2024) despite a significantly weaker product tanker spot market in the quarter relative to Q2 2024. CLEANBU TCE earnings ended approximately $/day 3,200 higher than the high end of the guiding range due to several smaller effects including somewhat higher than expected tanker spot earnings, a positive IFRS15 effect (periodisation effect from ballast voyages) and positive effects of changes to voyage schedules. Trading efficiency for the CLEANBU fleet was high in Q3 2024 with 87% combination trading and 12% ballast.
Actual number of on-hire days were six days lower than the guiding for third quarter. The six days are related to dry-docking of one CLEANBU vessel.
KCC’s Third Quarter Report 2024 will be published on 30 October 2024.
| TCE earnings ($/on-hire days) | Q3 2024 Preliminary | Q3 2024 Guiding* | Q2 2024 Actual |
|---|---|---|---|
| CABU | 29,668 (735) | 28,000-29,000 (734) | 37,656 (680) |
| CLEANBU | 38,673 (697) | 33,500-35,500 (704) | 39,093 (683) |
| Fleet | 34,052 (1,432) | 30,700-32,200 (1,438) | 38,376 (1,363) |
*Estimate based on booked cargoes and expected employment for open capacity basis forward freight pricing (FFA)
TCE earnings $/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet “APM3Q2024” published on the Company’s homepage Investor Relations/Reports and Presentations under the section for the Q3 2024 Report. The address to the Company’s homepage is www.combinationcarriers.com.
For further queries, please contact:
Engebret Dahm, CEO, Telephone +47 957 46 851
Liv Dyrnes, CFO, Telephone +47 976 60 561
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.
