Klaveness Combination Carriers ASA: Strong Q1 2020 TCE earnings and increasing tanker market coverage amidst mounting COVID-19 uncertainties
Oslo, 7 April 2020: Klaveness Combination Carriers (“KCC”) announces its daily TCE-earnings for the first quarter of 2020 and updated market coverage ahead of investor call 7 April 15:00 Hours.
CABU TCE earnings ended at $20,283/d and CLEANBU TCE earnings improved to $20,932/d in Q1 2020 on the back of a strong tanker market and despite weak dry bulk and fuel markets and increasing operational impact of the COVID-19 virus-situation. Outlook Q2 is positive for both vessel classes.
In the current COVID-19 situation our first priority is to secure the health and safety of our crew and we have initiated a number of virus protection measures to protect the crew and ensure no virus outbreak on board our vessels.
To further improve KCC’s robustness amidst increasing COVID-19 uncertainties, KCC has increased tanker market coverage in the current strong tanker market. One CLEANBU vessel has been fixed on a 3-6 months TC, around 25% of the CLEANBU fleet’s “wet” capacity have been fixed for 2nd half of 2020 through derivatives and a 3 years caustic soda COA to Australia have been concluded. Furthermore, KCC is taking a number of additional mitigating actions to conserve cash by postponing dockings and non-critical investments and evaluating cost cutting initiatives.
KCC has a strong balance sheet and cash position making KCC robust to tackle increasing COVID-19 risks and likely negative impact on all shipping markets and operational disruptions.
Engebret Dahm, CEO Klaveness Combination Carriers ASA, says:
«We are pleased to report the best quarterly CABU TCE-earnings since 2015 and improving CLEANBU TCE-earnings in Q1-2020 in the current difficult COVID-19 situation. In addition, we are pleased to have increased tanker market coverage in the current strong tanker market by concluding one 3-6 months time-charter, tanker market derivate coverage for 2H 2020 and a 3 years caustic soda contract to Australia. With additional initiated mitigating actions including initiatives to reduce risks of a COVID-19 contagion to our vessels and postponement of docking and non-critical investments, KCC is robust for likely increasingly difficult market and operational conditions.
CABU and CLEANBU TCE earnings USD/day for Q1 2020 are alternative performance measures (APM) which are further described and reconciled in the following presentation on page 14.
For further queries, please contact:
Engebret Dahm, CEO Telephone +47 22 52 62 62
Liv Dyrnes, CFO Telephone +47 22 52 61 51
About Klaveness Combination Carriers ASA:
KCC is the world leader in combination carriers, owning and operating nine CABU and three CLEANBU combination carriers with another five CLEANBU combination carriers on order for scheduled delivery in the period 2020 - 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. 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.
