Klaveness Combination Carriers ASA (KCC) delivered a strong improvement on results for second quarter 2021 with a 66% higher adjusted EBITDA than in the first quarter and increases dividends by 50% from the last quarter. With the completion of KCC’s newbuilding program this quarter, KCC is set to benefit from a continued strong dry bulk market and an approaching recovery in the tanker market, says CEO Engebret Dahm.

With the delivery of the last CLEANBU newbuilding at the end of May, KCC now has its full fleet of 17 combination carriers on water, vessels built to transport both wet and dry bulk cargoes. The fleet cuts CO2 emissions by 30-40% compared to standard dry bulk and tanker vessels by efficiently combining dry bulk and tanker cargoes, with minimum time without cargo onboard

– We see an increased focus from customers on cutting emissions from their ocean freight, and we are experiencing increased customer acceptance of our combination carriers’ capability to reduce inefficiencies and cut carbon emissions. This was an important trigger for the recent conclusion of the landmark shipment contract for our CLEANBU fleet with a major international tanker vessel charterer, says Dahm.

Highlights

• Average TCE earnings increased by 20% from first to second quarter being 1.6-2.9 times higher than standard tanker vessel earnings
• 66% increase in adjusted EBITDA Q-o-Q ending the quarter at USD 15.3 million and EBT of USD 3.5 million, driven by stronger dry bulk market and improved CABU trading efficiency
• The last CLEANBU newbuild was delivered in May 2021 increasing KCCs fleet to 17 vessels
• The Board of Directors declares dividends of USD cents 4.5 per share total USD 2.16 million for Q2

The delivery of the last and eighth CLEANBU newbuild in May marks the start of a new chapter for KCC, it will improve our earnings base and increase our dividend capacity going forward, says Dahm.