Torvald Klaveness’ preliminary result for 2017
Overall, the financial results of Torvald Klaveness improved in 2017 but were still not at a satisfactory level. The tanker market remained subdued, while the dry bulk and container markets strengthened during 2017. Earnings before tax (EBT) for 2017 ended at a loss of USD -2 million. Torvald Klaveness maintained a high solidity and good liquidity in 2017.
The group, consisting of Rederiaksjeselskapet Torvald Klaveness and its subsidiaries, delivered the following consolidated accounts for 2017. All 2016 numbers from continuing operations only (all numbers in USD million):
|Gross operating revenue||339||265|
|Result before tax1)||-2||-90|
|– whereof minority||0||-8|
|– whereof majority||-2||-82|
|Equity ratio (incl. minority)||47%||47%|
1) No impairments in 2017, 2016 impacted by USD 60 million in impairments
Stronger markets resulted in improved results for the container segment and the dry bulk segment compared to 2016. The combination carriers continue to deliver satisfactory results, although impacted by a weak tanker market.
The EBITDA for 2017 was USD 28 million up from USD 12 million in 2016. The combination carriers were the main contributor to the EBITDA. The balance sheet remains solid with a book equity including minority interest of USD 264 million at year-end corresponding to an equity ratio of 47 per cent. Cash and bank deposits ended at USD 107 million year-end 2017 with additional capacity under a long term revolving credit facility of USD 63 million.
Earnings for the combination carriers weakened in 2017, mainly due to a continued weak tanker market and lower transported caustic volumes. Results were nevertheless satisfactory. The company took delivery of one vessel in 2017 and has additional three vessels under construction, with expected delivery in 2018 and 2019.
The container market strengthened during 2017 resulting in significantly less idle days for the Klaveness container vessels compared to 2016. Rates above the general market were still achieved due to the vessels’ fuel efficiency.
In addition to managing own vessels, Klaveness acts as an operator and manages a portfolio of physical and financial contracts linked to the panamax and supramax dry bulk markets. Klaveness also offers commercial management through pools for external owners in the same segments. The first substantial dry bulk market improvement came in April but vanished quickly and only from September did markets experience a solid recovery. The dry bulk chartering and trading activity continued to target five geographic areas and employ data driven decisions. The dry bulk activities generated a net revenue of USD 19 million in 2017, up from USD 11 million in 2016. The total number of operated dry bulk vessels was 129.
Klaveness’ vision is to improve the nature of shipping and the strategy focuses on three core areas; establish a global combination carrier service, build the leading digital operator, and provide useful and intuitive digital services. As a result, Klaveness in 2017 has continued to focus on improving and developing existing and new combination carrier concepts, continued to invest in digital initiatives through Klaveness Digital and roll out new services, and establishing a more data driven approach to trading and chartering activities.
Klaveness’ ship owning activities are organized under the ownership of the subsidiary Klaveness Ship Holding AS. This company is the issuer of the KSH03 bond. Separate consolidated preliminary results for Klaveness Ship Holding have therefore also been published today. In addition to Klaveness Ship Holding, Rederiaksjeselskapet Torvald Klaveness consists of the Chartering and Trading activities, digital services and the pool and management companies.
For questions please contact:
Lasse Kristoffersen, CEO, telephone +47 2252 6238
Oslo, 9 February 2018