KCC Third Quarter 2023 – Solid value creation in seasonally weaker markets
Image: CABU vessel MV Ballard in Kwinana, Australia October 2023 with Silverstream air lubrication system in operation
Oslo, 31 October 2023: Klaveness Combination Carriers (“KCC”) reports a continued strong financial performance for the third quarter of 2023, with EBT of USD 16.3 million and EBITDA of USD 27.9 million. The results were supported by record high CABU TCE earnings.
Average TCE earnings for the fleet ended at $32,214/day [1] for the third quarter. Average TCE earnings for the CABUs hit a record $37,134/day [1], a solid increase over Q2 driven by high caustic soda volumes and earnings, and efficient trading. Average TCE earnings for the CLEANBUs ended at $27,938/day [1], the decrease from Q2 reflected the seasonally weaker tanker and dry bulk markets.
The quarter also marked further progress on KCC’s commitment to deliver cost-effective decarbonization to our customers, with the CABU vessel MV Ballard successfully completing installation of an air lubrication system in combination with shaft generator and other energy efficiency measures. This is expected to improve fuel consumption by around 15%.
“KCC continued its strong value creation through seasonally weaker markets in Q3, a testament to our resilient business model. Looking to the fourth quarter, we anticipate an uptick in earnings and profitability driven by stronger product tanker and dry bulk markets and strong trading and operational efficiency”, adds CEO Engebret Dahm.
CABU TCE earnings guiding [2] for Q4 2023 is $34,500-35,500/day and $32,000-34,000/day for the CLEANBUs.
Highlights for Third Quarter 2023:
EBT of USD 16.3 million and EBITDA of USD 27.9 million
Record high CABU TCE earnings, slightly lower CLEANBU TCE earnings Q-o-Q
Seasonally weaker tanker and dry bulk markets
NOK 500 million sustainability-linked bond issue secured
Energy efficiency measures installed on MV Ballard delivering estimated 15% lower fuel consumption
The Board of Directors of KCC declares dividend of USD 0.25 per share (USD 15.1 million in total)
[1] TCE earnings $/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet “APM3Q2023” published on the Company’s homepage Investor Relations/Reports and Presentations under the section for the Q3 2023 report. The address to the Company’s homepage is www.combinationcarriers.com.
[2] Estimate based on booked cargoes and expected employment for open capacity basis forward freight pricing (FFA).
Invitation to presentation of Q3 2023 financial results
In connection with the release of financial results for the third quarter of 2023, Klaveness Combination Carriers ASA (“KCC”) will hold a webcast presentation at 09:00 CET on Tuesday 31 October.
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-q3-2023-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 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.
For further queries, please contact:
Engebret Dahm, CEO
Telephone: +47 957 46 851
Liv Dyrnes, CFO
Telephone: +47 976 60 561