KCC Third Quarter 2023 – Solid value creation in seasonally weaker markets

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.

Image: CABU vessel MV Ballard in Kwinana, Australia October 2023 with Silverstream air lubrication system in operation

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)
Source: Klaveness Combination Carriers