Private Norwegian owner and operator Torvald Klaveness has posted what it calls a “historic” profit for 2023 while retaining plenty of investment firepower.
The owner of Klaveness Combination Carriers (KCC), Klaveness Dry Bulk (KDB) and Klaveness Digital said net earnings last year were $88m, up from $65m in 2022.
Revenue dropped to $434m, from $477m, but voyage expenses fell to $238m versus $307m a year earlier.
Chief executive Ernst Meyer said: “While this has been another good year for Klaveness, we are sobered by the unprecedented global challenges that continue to stress-test the world and our industry.”
At the holding company level, the financial portfolio provides “ample capacity for new strategic investments in the future”, he added.
Financial investments delivered solid returns, Klaveness said.
The group had cash of $145.8m at year-end, with other liquid financial investments of $81.9m.
KDB is an operator and pool manager of around 65 dry bulk vessels in the panamax, kamsarmax and post-panamax segments.
The panamax pool finished the year with 28 ships, down from 30, while Klaveness Chartering operated 41 vessels, up from 27 in the previous year.
The business involves handling cargo contracts of affreightment, time-chartered vessels, and freight and fuel derivatives.
Divisional profit was $4.7m from revenue of $190.8m.
Meyer told TradeWinds: “We believe that close partnerships with our customers, paired with our ability to grow our digital services through our Market Manager platform, will be the fuel for growth in the coming years.”
Panamax earnings still adding to group profit
Group earnings were driven by favourable conditions in the tanker market and good returns on financial investments.
Panamax rates were 37% down from 2022, but still at levels adding to the bottom line.
Dry bulk markets have been stronger than is normally expected, Klaveness said.
“The market is increasingly positively affected by inefficiencies related to restrictions in canal passages both through Panama and Aden/Suez, resulting in longer sailing durations,” it added.
KCC has 16 combi vessels carrying both dry and wet, with three more on order.
Tanker markets are harder to predict, the owner said.
“However, irrespective of the short or medium-term effects of the situation in the Red Sea, the underlying tonne-mile growth is expected to outpace the supply growth throughout the year, resulting in a strong product tanker market for 2024,” Klaveness added.
