Oslo, May 8, 2025: Klaveness Combination Carriers ASA ("KCC") reported EBITDA of USD 15.0 million and EBT of USD 4.3 million in a seasonally weak dry cargo quarter and a mixed product tanker market. Both shipping segments continued to outperform market benchmarks. Earnings outperformed comparable tanker earnings by 1.2 times and dry cargo rates by 2.7 times [1], underlining the value of KCC's business model.
CEO Engebret Dahm commented: "After a seasonally weak start to the year and high macroeconomic and geopolitical uncertainty, we are optimistic about developments in the coming quarters, supported by the positive outlook for the crude oil tanker market. KCC's robust business model with a diversified market presence, strong contract coverage and the ability to shift capacity between markets positions the company well to weather the continued high level of uncertainty."
KCC owns and operates a fleet of 16 combination carriers. Three newbuildings will arrive in 2026 and are designed for the transportation of liquid and dry bulk cargoes. The vessels will be deployed in trade lanes where they efficiently combine dry and liquid cargoes with minimal ballast, taking advantage of imbalances in trade flows.
Highlights for the first quarter of 2025:
- EBITDA of USD 15.0 million (Q4 2024: USD 20.2 million) and EBT of USD 4.3 million (Q4 2024: USD 8.6 million)
- Both vessel segments outperformed the product tanker and dry cargo markets in the quarter [1]
- CABU TCE profit [2] of USD 22,346 per day (Q4 2024: USD 28,988 per day), impacted by weaker markets and less optimal trading conditions
- CLEANBU TCE profit [2] of $22,449/day (Q4 2024: $28,027/day), impacted by weaker markets
- Dividend in the first quarter of USD 0.035 per share, which corresponds to around USD 2.1 million (Q4 2024: USD 0.10 per share)
- Steel cutting for two out of three new buildings
The decrease in EBITDA and EBT from Q4 2024 to Q1 2025 was mainly due to lower TCE revenues, partially offset by less drydock off-hire and lower expenses Average TCE revenue per on-hire day for the CABU vessels was USD 22,449/day [2] in Q1 2025 (Q4 2024: USD 28,988/day), lower than in Q4 2024, mainly due to a very weak dry cargo market in the Pacific, less capacity trading in wet cargo mode following a hectic caustic soda contract program in Q4 2024 and slightly less efficient trading to service customer requirements. The decrease in CLEANBU TCE revenue [2] from USD 28,027/day in Q4 2024 to USD 22,449/day in Q1 2025 was mainly due to a slightly weaker LR1 product tanker market and significantly weaker dry cargo markets. During the quarter, the trading flexibility of the CLEANBU vessels was actively used to optimize yields. This was done on the one hand by increasing ballasting to carry higher paying CPP shipments and on the other hand by transporting vegetable oils instead of dry bulk from South America.
A milestone was reached in the newbuilding program, which consists of three ships under construction in China: the steel cutting for two of the three ships was completed in the first quarter. The ships are expected to be delivered in the first and third quarters of 2026.
The Board of Directors approves a quarterly dividend distribution of USD 0.035 per share (Q4 2024: USD 0.10 per share). This corresponds to around USD 2.1 million and 135% of adjusted cash flow to equity (ACFE) [2] for Q1 2025 and is therefore well above the minimum level of 80% of the dividend policy.
TCE earnings guidance [3] for Q2 2025 for CABUs is USD 24,000-25,000 per day, supported by stronger markets and more efficient trading in the second quarter to date. The Q2 2025 TCE earnings forecast [3] for the CLEANBUs of USD 21,500-23,500 per day is negatively impacted by geopolitical uncertainty, particularly related to USTR port fees. This led to the decision to temporarily reduce trading in one of KCC's efficient combination trades to/from the US. Following the publication of the revised USTR proposal in mid-April 2025, normal trading with/from the US has resumed. However, KCC is monitoring the situation closely and is preparing to reduce vessel capacity in this trade again, depending on the final wording of the USTR regulation.
