KCC Third Quarter 2022 – Another record-breaking quarter and positive outlook
Image: Engebret Dahm, CEO Klaveness Combination Carriers ASA
Oslo, 3 November 2022: Klaveness Combination Carriers ASA (“KCC”) reports another record-breaking quarter with EBITDA of USD 34.5 million and EBT of USD 22.0 million. – In the third quarter, the CLEANBU fleet really proved its high earnings capacity driven by 70% capacity trading in a strong product tanker market. Despite macroeconomic headwinds on the horizon, our outlook for Q4 2022 and 2023 remains positive, says CEO Engebret Dahm.
Both segments had a high degree of capacity employed in efficient combination trades, with the CLEANBU vessels performing long-haul tanker trades supporting the very strong TCE earnings of close to 45,000 $/day. The earnings outlook for both the CABU fleet and the CLEANBU fleet remains strong with fourth quarter capacity close to fully booked. Renewal of caustic soda contracts for 2023 has started at TCE earnings more than double compared to 2022. Caustic soda cargo volume is also expected to increase in 2023.
Solid progress in customer acceptance, operational efficiency and booking of index linked CPP contracts bode well for the outlook for the CLEANBU business for 2023.
Highlights for third quarter 2022
Q3 average fleet TCE earnings [1] of 35,915 $/day driven by very strong CLEANBU rates
Above 70% of days in tanker trades for the CLEANBU vessels in a very strong tanker market
Another record quarter with EBT of USD 22.0 million (+36% Q-o-Q) and EBITDA of USD 34.5 million (+30% Q-o-Q)
Four-year contract of affreightment with Alba for transportation of Alumina announced
Started renewal of 2023 caustic soda COAs at more than double TCE rates compared to 2022. Expect higher cargo volume
Board of directors declares dividend of USD 0.30 per share (USD 15.7 million in total), 30% increase from Q2 2022
APM: TCE earnings per on-hire day is an alternative performance measure (APM), further described and reconciled in the quarterly report for Q3 2022, appendix 1 (page 25).
Invitation to presentation of Q3 2022 financial results:
In connection with the release of financial results for the third quarter of 2022, Klaveness Combination Carriers ASA (“KCC”) will hold a webcast presentation at 09:00 CET on Thursday 3 November.
To follow the webcast live go to www.combinationcarriers.com/investor-relations or https://www.combinationcarriers.com/kcc-q3-2022-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, operating 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