KCC First Quarter 2023 – Opening the year with another record quarter
Image: Engebret Dahm, CEO Klaveness Combination Carriers
Oslo, 5 May 2023: Klaveness Combination Carriers ASA (“KCC”) opens 2023 with another record quarter, with EBITDA of USD 41.0 million and EBT of USD 28.2 million yielding a return on equity on an annualized basis of 37% [1]. A flourishing tanker market, solid contract base, and expected continued strengthening of the dry bulk market position KCC on a strong footing for 2023, says CEO Engebret Dahm.
KCC delivered the highest ever TCE-earnings for both the CLEANBU and CABU fleet in Q1 2023. Average CLEANBU TCE earnings ended at $45,911/day [3], a substantial increase from Q4 2022 due to a strong tanker market and 91% of capacity trading in tanker mode. Average CABU TCE earnings for Q1 2023 ended at $31,466/day [3], a solid increase from Q4 2022 due to strong earnings from caustic soda freight contracts, despite weaker dry bulk markets in the quarter.
Q2 2023 is set to be another strong quarter for KCC with an expected solid increase in CABU TCE-earnings and continued high, albeit lower CLEANBU TCE-earnings. The outlook for CABU TCE-earnings in Q2 2023 is in the range of $34-35,000/day [2] driven by high and well-paying fixed-rate contract coverage for shipment of caustic soda and higher dry bulk earnings. The Q2 2023 earnings guidance for the CLEANBUs is in the range of $31,500-33,500/day [2]. While the CLEANBUs also benefit from a stronger dry bulk market, a lower share of tanker trading in Q2 2023 has negative earnings effect due to a continued large difference between tanker and dry bulk earnings.
The quarter also saw KCC announce our first freight contract with earnings linked to emissions performance, further strengthening our commitment to offer profitable and cost-effective decarbonization, adds Dahm.
Highlights for first quarter 2023:
Q1 average fleet TCE-earnings [3] of $38,708/day, the strongest ever
Record quarter with Q1 EBT USD 28.2 million and EBITDA USD 41.0 million, +84% and +46% Q-o-Q
High tanker trading for the quarter demonstrates the trading flexibility of the CLEANBU fleet
Carbon pricing mechanism implemented into an existing freight contract
The Board of Directors of KCC declares dividend of USD 0.40 per share (USD 20.9 million in total), up 33% from Q4 2022
[1] Return on equity on an annualized basis is an alternative performance measure (APM) defined and reconciled in Q1 2023 Report, Appendix 1, page 25.
[2] Estimate based on booked cargoes and expected employment for open capacity basis forward freight pricing (FFA)
[3] Average TCE Earnings is an alternative performance measure (APM) defined and reconciled in Q1 2023 Report, Note 2 page 16 and Appendix 1 page 25.
View Q1 2023 Report
View Q1 2023 Presentation
Invitation to presentation of Q1 2023 financial results:
In connection with the release of financial results for the first quarter of 2023, Klaveness Combination Carriers ASA (“KCC”) will hold a webcast presentation at 09:00 CEST on Friday 5 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-q1-2023-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. 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