KCC Third Quarter 2022 – Another record-breaking quarter and positive outlook

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

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.
Source: Klaveness Combination Carriers ASA