Oslo-listed Klaveness Combination Carriers has logged “solid” earnings in a historically strong fourth quarter — and expects to set more records this year.
The Norwegian owner of vessels that carry both wet and dry cargoes said 2023 had been its best-ever year.
“In a year of sudden trade changes and extreme market volatility, KCC’s fleet proved its mettle,” the company added.
“Through the fleet’s high trading efficiency and flexibility, KCC again managed to get the best out of both the product tanker and dry bulk markets,” KCC said.
Net profit in the final three months reached $25.9m, compared to $15.3m a year ago.
Revenue grew to $77m from $73m.
The annual result was $86.9m, an increase of $26.1m or 43% from 2022.
Average time charter equivalent earnings for the fleet ended at $36,823 per day in the fourth quarter.
The Cabu caustic soda and dry bulk vessels hit $36,110, with the oil product and dry cargo Cleanbu vessels on $37,537.
This was driven by high freight rates on the fixed-rate caustic soda contracts and robust dry bulk earnings, coupled with a substantially stronger product tanker market.
KCC is guiding the Cabu ships at $32,000 to $33,000 per day in the first three months. Close to 100% of wet Cabu capacity has been fixed for 2024.
Daily earnings for the Cleanbu vessels are estimated at between $48,000 and $50,000.
Strong start to 2024
The strong start to the year in the product tanker market is expected to result in record high profit for these carriers, KCC said.
Due to the large earnings difference between the dry bulk and the product tanker markets, the Cleanbu fleet is expected to maintain a higher share in tanker trades at around 60% to 70% over the next quarters, the owner added.
Chief executive Engebret Dahm said: “Both the Cabus and Cleanbus delivered some of our highest TCE earnings to date, getting the most out of a substantially stronger product tanker market in the fourth quarter.”
“After a solid start to the new year, KCC is on course to deliver another exciting quarter in Q1 2024,” he added.
The owner is paying a dividend of $0.35 per share, or $21.1m in total.
Cash and cash equivalents ended the year at $68.1m, up $3.9m during the quarter.
The year also saw clear progress on decarbonisation ambitions, with significant headway made on KCC’s energy efficiency programme and a marked improvement in carbon intensity, with a 6% reduction from 2022.
