KCC Second Quarter 2025 – Strong CABU performance lifts Q2 results with improved outlook for both segments
Image: Engebret Dahm, CEO Klaveness Combination Carriers
Oslo, 21 August 2025: Klaveness Combination Carriers ASA (“KCC”) reported EBITDA of USD 18.1 million and EBT of USD 6.7 million for the second quarter of 2025. The CABU fleet delivered particularly strong results, outperforming the MR benchmark by a factor of 1.3x [1].
CEO Engebret Dahm commented: “We are pleased to report improved financial performance for the second quarter, reflecting particularly strong CABU TCE earnings, which are expected to improve further in the second half of the year. While the CLEANBU fleet performed in line with LR1 spot markets, we see potential for further trading optimization and improved TCE earnings going forward.”
KCC owns and operates a fleet of 16 combination carriers, with three newbuilds arriving in 2026, built for the transportation of both wet and dry bulk cargoes. The vessels are operated in trades where they efficiently combine dry and wet cargoes with minimum ballast, capitalizing on imbalances in trade flows.
Highlights for Second Quarter 2025:
EBITDA of USD 18.1 million (Q1 2025: USD 15 million) and EBT of USD 6.7 million (Q1 2025: USD 4.3 million).
CABU TCE earnings of $26,365/day (Q1 2025: $22,346/day) outperforming the MR index² by 30%.
CLEANBU TCE earnings of $22,843/day (Q1 2025: $22,449/day) quite flat Q-o-Q.
Q2 2025 dividend of USD 0.05 per share amounting to USD 3.0 million (Q1 2025: USD 0.035 per share).
Efficiency improvements deliver a strong carbon intensity performance with fleet EEOI of 6.2 for the quarter.
Bank financing secured for newbuilds including refinancing of CABU facility at favorable terms.
The 20% increase in EBITDA and 56% increase in profit after tax from Q1 2025 to Q2 2025 were mainly driven by higher CABU TCE earnings. Average TCE earnings per on-hire day for the CABU vessels ended at $26,365/day [2] in Q2 2025, an increase of approximately $4,000/day from the previous quarter, mainly due to more capacity trading in wet mode, stronger dry bulk TCE earnings and improved trading efficiency. The CLEANBU TCE earnings [2] were on average $22,843/day in Q2 2025, a slight increase of approximately $400/day from last quarter. Stronger markets impacted CLEANBU rates positively in Q2 compared to Q1, however, this was offset by somewhat less capacity trading wet, less optimal trading with a higher share of fleet trading East of Suez and negative IFRS effects.
EBITDA and profit after tax for the first half of 2025 were USD 33.1 million and USD 11.0 million, respectively, down 55% and 78% from the same period last year. While expenses decreased slightly compared to last year, net revenue decreased 39% mainly driven by weaker underlying markets.
Several key milestones were reached for the newbuilding program in China, including the keel laying of vessel number one and steel cutting for vessel number three. All three vessels are on track for delivery between Q1-Q3 2026.
The Board of Directors declares a quarterly dividend distribution of USD 0.05 per share (Q1 2025: USD 0.035 per share) amounting to approximately USD 3.0 million, equaling 80% of the Adjusted Cash Flow to Equity (ACFE) for Q2 2025, in line with the minimum level in the dividend policy of 80%.
TCE earnings guidance [3] for Q3 2025 is $29,000-30,000/day for the CABUs, supported by stronger spot markets during the summer and into Q3 and expected further improved trading efficiency. CLEANBU TCE earnings guidance [3] for Q3 2025 of $26,000-28,000/day is also developing positively compared to Q2 2025, supported by stronger spot markets in addition to a more advantageous trading with a higher share of the capacity in West of Suez trades and slightly higher share of the capacity in CPP trading.
[1] Standard tonnage for bulk carriers is calculated averages of Panamax and Kamsarmax earnings weighted by CABU and CLEANBU on-hire days respectively. Standard tonnage for product tankers is calculated averages of MR and LR1 earnings weighted by CABU and CLEANBU on-hire days respectively. Multiples are calculated by dividing KCC average TCE earnings on standard tonnage for bulk carriers and product tankers. Source: Clarksons Securities and Clarksons SIN.
[2] TCE earnings $/day and ACFE are alternative performance measures (APMs) which are defined and reconciled in the excel sheet “APM2Q2025” published on the Company’s homepage Investor Relations/Reports and Presentations under the section for the Q2 2025 report. The address to the Company’s homepage is: www.combinationcarriers.com.
[3] Estimate based on booked cargoes and expected employment for open capacity basis forward freight pricing (FFA).
View: Q2 2025 Report
View: Q2 2025 Presentation
Invitation to presentation of Q2 2025 financial results
In connection with the release of financial results for the Second Quarter 2025, Klaveness Combination Carriers ASA (“KCC”) will hold a webcast presentation at 09:00 CEST on Thursday 21 August.
To follow the webcast live go to: www.combinationcarriers.com/investor-relations or copy and paste the following link to your browser: https://www.combinationcarriers.com/kcc-q2-2025-financial-results.
Questions for the Q&A session can be submitted in writing through the webcast solution during the presentation.
About Klaveness Combination Carriers ASA
KCC is the world leader in combination carriers, owning and operating eight CABU and eight CLEANBU combination carriers with three CABU vessels under construction for delivery in 2026. 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. Through their high utilization and efficiency, the vessels emit up to 40% less CO2 per transported ton compared to standard tanker and dry bulk vessels in current and targeted combination trading patterns.
For further queries, please contact:
Engebret Dahm, CEO
Telephone: +47 957 46 851
Liv Dyrnes, CFO and Deputy CEO
Telephone: +47 976 60 561