Klaveness Combination Carriers ASA: Q1 2019 results


Klaveness Combination Carriers ASA: Q1 2019 results

KCC Generic image.png

Oslo, 29 May 2019: Klaveness Combination Carriers (“KCC”) announces its results for the first quarter of 2019.

-       Loss after tax of USD 0.8 million negatively impacted by start-up costs for the CLEANBU vessels, temporary/timing effects on caustic soda shipping volumes, weak dry bulk markets and negative effects from interest rate derivatives.

-       The first CLEANBU vessel, MV Baru, was delivered in January 2019 and the introduction of the vessel is progressing well. The vessel commenced the first CPP-dry combination voyage in end May with earnings reflecting a 150-200% premium relative to standard markets.

-       The first CoA with a leading CPP importer for the CLEANBU fleet was signed in April.

-       Announced dividend payment of USD 1.4 million for Q1 2019 after paying dividends of USD 1.4 million for Q4 2018.

-       Successful completion of NOK 350 million (~USD 40 million) private placement and listing on Oslo Axess and declaration of options for additional 2 CLEANBU newbuildings for delivery in 2021.

Engebret Dahm, CEO Klaveness Combination Carriers ASA, says:

“KCC first quarter 2019 results reflect temporary lower CABU TCE earnings, partly caused by timing effects. CABU TCE earnings are expected to be strong in second half of the year based on the recently announced resumption of full production at Alunorte and a solid caustic soda cargo booking. 2019 is the year of introduction of the CLEANBU concept where start-up costs and initial downtime will have negative effects on KCC’s results. The proving of the CLEANBU concept, however, shows solid progress. The milestone first CPP shipping contract was signed in April and the first CPP-dry combination voyage was concluded in May with TCE earnings reflecting a 150-200% premium to the standard markets.”

About Klaveness Combination Carriers ASA:

KCC is the world leader in combination carriers, owning and operating currently nine CABU and one CLEANBU combination carriers with another seven CLEANBU combination carriers on order for delivery in the period June 2019 - February 2021. 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. In wet mode the CABUs are designed to carry heavy liquid cargoes, such as caustic soda solution (the “CSS”), while the CLEANBUs are designed to carry both clean petroleum products (the “CPP”) and CSS.

For further queries, please contact:

Engebret Dahm, CEO
Telephone +47 22 52 62 62

Torvald Klaveness