Norway’s Klaveness Combination Carriers has logged a drop in third quarter earnings in seasonally weaker tanker and bulker markets.
But rates for the Oslo-listed company’s Cabu caustic soda and bulk cargo ships hit a record in the period.
The owner said net earnings of $16.3m remained “strong”, but were lower than the $22m recorded a year ago.
Revenue fell to $43.8m from $48.8m as the Cleanbu product carrier and bulk vessels saw rates drop back substantially.
Average time charter equivalent earnings for the fleet ended at $32,214 per day.
Cabu vessels managed $37,134 per day, a solid increase over the $34,500 seen in the second quarter, driven by high caustic soda volumes and more efficient trading.
The figure was 1.5 times higher than for standard MR tankers.
Operating expenses for the ships are $7,963 per day.
The share of days in combination trades rose from 85% to 94% quarter on quarter, with ballast days falling from 16% to 10%
Chief executive Engebret Dahm said: “KCC continued its strong value creation through seasonally weaker markets in Q3, a testament to our resilient business model.”
Uptick expected
“Looking to the fourth quarter, we anticipate an uptick in earnings and profitability driven by stronger product tanker and dry bulk markets and strong trading and operational efficiency,” he added.
Cleanbus ended the quarter at $27,938 per day, down from $29,483 to 30 June, reflecting the seasonally weaker tanker and dry bulk markets, KCC said.
This was in line with LR1 tanker figures, but down from nearly $45,000 last year.
Operating costs are $9,959 per day for these carriers.
KCC expects to increase its customer base further.
Cabu guidance for the fourth period is between $34,500 and $35,500 per day, with Cleanbus expected to achieve in the $32,000 to $34,000 range.
The board is paying a dividend of $0.25 per share, or $15.1m.
Cash and cash equivalents stood at $64m, with interest-bearing debt of $250m.
