Newly Oslo-listed Klaveness Combination Carriers (KCC) has enjoyed a big rate boost from the first fixture of its new Cleanbu ship for both oil products and dry bulk.
The vessel started its first clean/dry combination voyage at the end of May, with earnings reflecting a 150-200% premium relative to standard markets, it said.
The trip to South America targeted a return cargo of grains to the Far East in July.
The first CoA with a leading products importer for the Cleanbu fleet was signed in April.
"Commercial discussions are ongoing with key charterers in other targeted clean petroleum product trades," explained KSS, which listed on the Oslo Stock Exchange in the past week.
But start-up costs for the project hit net earnings in the first quarter, lowering profit to $0.8m from $3.45m in 2018.
Expenses of $0.6m related to extra officers on the Cleanbu ship during take over, stand-by wages from postponed delivery of the first three Cleanbus and training costs for the crew.
There was also a temporary timing effect on caustic soda shipping volumes for its Cabu fleet, together with weak dry bulk markets and negative effects from interest rate derivatives.
Revenue was stable at $13.32m.
Earnings to rise
Average TCE earnings for the combination carrier fleet were $15,877 per day compared to $17,234 per day in the same period last year mainly due to lower caustic soda shipment volume and a historically weak dry bulk market.
This was partly offset by a strong winter spot tanker market, which had positive earnings effects through market-linked caustic soda shipments.
Financial costs were $2.8m in the first quarter of 2019, due to higher interest-bearing debt and differences in fair value changes of unrealised interest rate derivatives between the two.
CEO Engebret Dahm said: "Cabu TCE earnings are expected to be strong in second half of the year based on the recently announced resumption of full production at Alunorte and a solid caustic soda cargo booking.
"2019 is the year of introduction of the Cleanbu concept where start-up costs and initial downtime will have negative effects on KCC’s results.
"The proving of the Cleanbu concept, however, shows solid progress."
