Klaveness Combination Carriers ASA: Q2 2019 results

 

Klaveness Combination Carriers ASA: Q2 2019 results

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Oslo, 26 August 2019: Klaveness Combination Carriers (“KCC”) announces its results for the second quarter of 2019.

Highlights

  • KCC’s CABU fleet continues to deliver earnings well above the standard markets with earnings 1.3 times the MR-tanker market despite seasonally low caustic soda volumes.

  • The successful first CLEANBU wet-dry combination-voyage with earnings of around USD 20,000/day, 1.5 times a standard LR1 tanker, proves the superior earnings capacity of the CLEANBU concept.

  • The second CLEANBU vessel, MV Barracuda was delivered from yard at the end of July and will start combination trading in mid-September after completing the ongoing first tanker voyage.

  • KCC continues its consistent track record of quarterly dividends and has announced dividend payment of USD 0.5 million for Q2-2019.

  • Large “one-off costs” linked to the introduction of the CLEANBUs and the listing of KCC as well as negative effects from interest rate derivatives pulled down KCC’s result to a loss of USD 1.9 million in Q2-2019.

  • - Increased caustic soda volumes, more vessels in combination trade and the recent strengthening of the wet and dry markets are expected to result in significantly increased earnings over the next quarters.

Engebret Dahm, CEO Klaveness Combination Carriers ASA, says:

"We are pleased to report the successful first CLEANBU wet-dry combination voyage with earnings 1.5 times the standard market, proving the superior earnings capacity of our new CLEANBUs. While the CABU fleet continues to perform well in the second quarter, KCC’s results reflect "one-off introduction costs" for the CLEANBUs which are expected to be substantially reduced over the coming quarters. Both CABU and CLEANBU earnings are expected to considerably improve in second half of 2019 based on higher caustic soda contract booking and more CLEANBUs in combination trading."

For further queries, please contact:
Engebret Dahm, CEO,
Telephone +47 22 52 62 62


About Klaveness Combination Carriers ASA:
KCC is the world leader in combination carriers, owning and operating currently nine CABU and two CLEANBU combination carriers with another six CLEANBU combination carriers on order for scheduled delivery in the period September 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 (“CSS”), while the CLEANBUs are designed to carry both clean petroleum products (“CPP”) and CSS.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

 
Torvald Klaveness