Norwegian owner Klaveness Combination Carriers (KCC) has finalised a contract for three new next-generation vessels in China.
It has converted a letter of intent agreed in May at Jiangsu New Yangzi Shipbuilding into a firm deal.
The ships represent the next iteration of its Cabu-class combination carriers, which can carry caustic soda solution, floating fertiliser and molasses, as well as all types of dry bulk commodities.
Compared with the existing ships built in 2001 and 2002, the newbuildings are estimated to have 25% to 30% higher earnings capacity and around 35% lower CO2 emissions, due to increased cargo-carrying capacity and substantially lower fuel consumption.
“The newbuilds are key for KCC to position the company for expected growing caustic soda import volumes to Australia, and for meeting its ambitious targets of an approximately 45% reduction in its carbon intensity within 2030 relative to its actual 2018 performance,” the Oslo-listed company said.
Delivery should be between the first and third quarters of 2026, and the equity portion of the investment is fully funded, partly through a private placement of shares worth $50m last month.
TradeWinds reported that the vessels are costing nearly $182m, or $56.4m each.
Clarksons Securities said the price includes a $9m investment for upgrades and energy-efficiency initiatives.
When pre-delivery costs are considered, the total per ship is estimated to be $60.5m, the investment bank added.
To achieve an appealing unleveraged return of 11.5%, the carriers must maintain an average time charter equivalent rate of $27,800 per day throughout their operational lifespan, Clarksons Securities calculated.
“Given the expected 25% improvement in fuel efficiency and cargo capacity over current Cabus, this TCE rate is consistent with historical Cabu earnings,” it added.
“Our calculations indicate a cash breakeven rate of around $20,000 per day, assuming a 7.5% interest rate, a 20-year repayment profile and a $7,800 per day opex.”
This could be met at MR tanker and panamax bulker rates of $14,500 per day, it believes.
