KCC: Fourth Quarter 2023 Business Update
Image: MV Baru in New York, USA
Oslo, 16 January 2024: Klaveness Combination Carriers ("KCC" or the "Company") preliminary CABU and CLEANBU TCE earnings for fourth quarter 2023 ended at $/day 36,110 and $/day 37,537 respectively. Fleet average TCE earnings for the quarter ended at $/day 36,823, approximately $/day 4,600 higher than in Q3 2023 and approximately $/day 3,050 above the mid-point in the guiding range.
The CABU fleet continued to deliver historically strong TCE earnings in Q4 2023, albeit approximately $/day 1,000 lower than the record high earnings in Q3 2023. In Q4 2023 as in Q3, the CABUs benefited from high freight rates on the fixed-rate caustic soda (“CSS”) contracts and stronger dry bulk earnings, but a somewhat weaker operational efficiency had a negative impact compared to the previous quarter. CABU TCE earnings for Q4 were approximately $/day 1,100 above the mid-point in the guiding range mainly due to longer duration on CSS voyages leading to fewer days in a lower paying dry bulk market.
The CLEANBU TCE earnings increased approximately $/day 9,600 from Q3 2023 to Q4 2023 mainly due to a stronger product tanker market and supported by a stronger dry bulk market. CLEANBU TCE earnings for Q4 were approximately $/day 4,550 higher than the guiding range mid-point mainly due to a considerable strengthening of the US Gulf tanker market where KCC had several vessels in position.
Based on the escalating situation in the Red Sea area, KCC has decided to not trade any of its vessels through the Red Sea until the situation improves. The CABUs do not trade in the area, while the CLEANBUs from time-to-time transits through the Red Sea. The decision is expected to have limited impact on KCC business activities and financial performance.
TCE earnings guiding for Q1 2024 will be published in KCC’s 2023 Fourth Quarter Report on Friday 16 February 2024.
| TCE earnings ($/on-hire days) | Q4 2023 Preliminary | Q4 2023 Guiding* | Q3 2023 Actual | 2023 Preliminary |
|---|---|---|---|---|
| CABU | 36,110 (722) | 34,500 - 35,500 (734) | 37,134 (632) | 34,742 (2,754) |
| CLEANBU | 37,537 (721) | 32,000 - 34,000 (710) | 27,938 (727) | 35,214 (2,872) |
| Fleet | 36,823 (1,442) | 33,000 - 34,500 (1,444) | 32,214 (1,360) | 34,983 (5,626) |
*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 “APM4Q2023” published on the Company’s homepage Investor Relations/Reports and Presentations under the section for the Q4 2023 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.
