KCC: Business Update
Oslo, 28 December 2023
Q4 TCE earnings
Driven by a strong product tanker market and an improved dry bulk market towards the end of the year, Klaveness Combination Carriers’ ("KCC" or the "Company") TCE earnings for both the CABU segment and the CLEANBU segment will end above the guiding range of $34,500-35,500/day and $32,000-34,000/day for the two segments respectively.
2024 caustic soda solution contracts
The caustic soda solution (“CSS”) contract renewals are progressing as planned, with three contracts of targeted six contracts signed for 2024. The remaining three contracts are expected to be finalized within the first weeks of January 2024.
The cargo volume under the six targeted contracts is in line with the 2023 actual volume and is in total expected to cover the full tanker capacity of the CABU fleet in 2024. Approximately 40% of the cargo volume will be fixed rate, while the remaining 60% will be index linked. The rate level for the fixed rate contracts is at historically strong levels, but somewhat lower than the 2023 contract levels due to a weaker product tanker market over the last months of 2023 compared to the same period last year.
Red sea situation
KCC do not currently have any vessels in the Red Sea area. The CABUs do not trade in this area, while the CLEANBUs from time-to-time transits through the Red Sea. KCC is monitoring the Red Sea situation closely and will continuously evaluate the development. Unless the situation in the Red Sea improves, KCC is unlikely to sail any of its vessels through the area.
TCE earnings for Q4 2023 and an update on the caustic soda solution contract portfolio for 2024 will be published in January 2024, while the Company will present and publish its Q4 2023 report including full year 2023 financials 16 February 2024.
For further queries, please contact:
Engebret Dahm, CEO, Telephone +47 957 46 851
Liv Dyrnes, CFO, Telephone +47 976 60 561
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.
