KCC: First Quarter 2025 Business Update
Oslo, 10 April 2025: Klaveness Combination Carriers’ ("KCC" or the "Company") preliminary CABU and CLEANBU TCE earnings for Q1 2025 ended at $/day 22,346 and $/day 22,449, respectively. Fleet average TCE earnings for the quarter ended at $/day 22,400, in the high end of the guiding range ($/day 21,000-22,500).
CABU TCE earnings for Q1 2025 were approximately $/day 850 above the high end of the guiding range, supported by more capacity employed in caustic soda trades. The CABU fleet delivered higher TCE earnings compared to standard MR tanker vessels in Q1, with a multiple of 1.2*.
CLEANBU TCE earnings for Q1 2025 ended quite in line with the mid-point of the guiding range and were stronger than the LR1 spot tanker rates for the quarter, with a multiple of 1.2*.
The CABU and CLEANBU TCE earnings were down approximately $/day 6,650 and $/day 5,600, respectively, from Q4 2024 to Q1 2025. The rate development for CABU was mainly due to a weaker dry bulk market, less optimal trading (81% combination trading and 15% ballast) and lower capacity trading in wet mode, while the CLEANBU rate development mainly was driven by weaker markets.
KCC had 28 less on-hire days in Q1 compared to the guiding as two CABU vessel started drydocking earlier than expected.
It is uncertain how the proposed US tariffs, including the United States Trade Representative’s (USTR) proposed port fees, and potential retaliatory tariffs will impact KCC’s business. 11 out of 16 vessels on water as well as the three newbuilds under construction are built in China. The CABU fleet is not trading to/from the US, while one of the main CLEANBU trades involves US port calls. KCC has no contractual obligations for shipments in this trade and will limit shipments to and from the US until USTR’s regulations concerning Chinese built vessels have been clarified. No other direct effects on KCC’s business have so far been identified and KCC continues to monitor the situation, including potential direct and indirect effects.
KCC’s First Quarter Report for 2025 will be published on 8 May 2025.
*Clarksons, MR (CABU) and LR1 (CLEANBU) tanker multiple calculated based on assumption of one-month advance cargo fixing.
| TCE earnings ($/on-hire days) | Q1 2025 Preliminary | Q1 2025 Guiding* | Q4 2024 Actual |
|---|---|---|---|
| CABU | 22,346 (660) | 20,500 - 21,500 (690) | 28,988 (684) |
| CLEANBU | 22,449 (720) | 21,500 - 23,500 (718) | 28,027 (631) |
| Fleet | 22,400 (1,380) | 21,000 - 22,500 (1,408) | 28,527 (1,315) |
TCE earnings $/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet “APM1Q2025” published on the Company’s web page Investor Relations/Reports and Presentations under the section for the Q1 2025 Report. The address to the Company’s web page is www.combinationcarriers.com.
The Company has in relation to this Business Update scheduled a group call with equity and credit analysts covering KCC. More information about the call, including date/time and participants is included in the attached presentation. The presentation includes the material being presented in the meeting.
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.