KCC Fourth Quarter 2021 | Record High Results Deliver More Than Double-dividends and a Positive Outlook for 2022
Image: CLEANBU MV Barramundi
Oslo, 18 February 2022: Klaveness Combination Carriers ASA (“KCC”) delivered record high results for fourth quarter 2021, with EBT of USD 15.1 million and adjusted EBITDA of USD 19.5 million, a 149% increase and a 9% increase Q-o-Q respectively. The results were spurred by strong earnings of the CLEANBU fleet, 94% CLEANBU combination trading, a continued strong dry bulk market, and sales gain from the sale of an older CABU vessel.
The CLEANBU fleet showed its potential in the fourth quarter with large parts of the fleet in efficient combination trading and strong TCE earnings despite a continued weak tanker market and COVID-19 related operational challenges. The CABU fleet also maintained strong earnings in Q4. Based on the record high Q4 EBITDA, profit from the sale of MV Banasol and positive outlook for 2022, dividend for fourth quarter 2021 is USD 0.10 per share, a doubling compared to third quarter 2021, says CEO Engebret Dahm.
The positive outlook for 2022 is based on solid progress for both the CABU and the CLEANBU businesses, and expectations for a continued strong dry bulk market and recovering product tanker market during the year. KCC has also secured a high number of caustic soda bookings for 2022, including a 6-year sustainability-linked contract of affreightment with South32, and has expanded the combination trading pattern and customer acceptance for the CLEANBU fleet, adds Dahm.
Highlights for fourth quarter 2021:
· Average fleet TCE Earnings USD 23,617/day, 2-4 times higher than standard tanker vessel earnings
· EBT USD 15.1 million and Adjusted EBITDA USD 19.5 million, 149% and 9% increase Q-o-Q respectively
· 94% combination trading for the CLEANBU fleet
· Positive effect on profit and loss and cash from the sale of 2001 built CABU MV Banasol
· Raised net USD 24.1 million in equity to fund energy efficiency initiatives
· High booking of caustic soda contracts for 2022 (booked 88% CABU tanker market operational coverage), including the conclusion of a six years COA with South32
· Continued improvement in environmental KPIs
· The Board of Directors declares dividends of USD 0.10 per share total USD 5.2 million for Q4, up from USD 0.045 per share in Q3 2021
APM: Adjusted EBITDA and TCE earnings per on-hire day are alternative performance measures (APM) which are further described and reconciled in the quarterly report for Q4 2021, appendix 1 (page 26).
Invitation to presentation of fourth quarter 2021
In connection with the release of financial results for the fourth quarter of 2021, Klaveness Combination Carriers ASA (“KCC”) will hold a webcast presentation at 09:00 CET on Friday 18 February 2022.
To follow the webcast live go to www.combinationcarriers.com/investor-relations or https://www.combinationcarriers.com/insights-and-news/2022/2/14/kcc-invitation-to-presentation-of-q4-2021-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. 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
Telephone +47 976 60 561
