Klaveness Combination Carriers ASA (KCC) has reported an EBITDA of USD 15.0 million and an EBT of USD 4.3 million for the first quarter of 2025. This quarter is traditionally weaker for dry bulk and has seen varied performance in the product tanker market.
Despite these challenges, KCC’s dual-segment vessels have continued to excel, with earnings surpassing standard tanker earnings by 1.2 times and dry bulk rates by 2.7 times, highlighting the effectiveness of KCC’s business strategy. CEO Engebret Dahm expressed optimism regarding the future, particularly for the crude tanker market, even in light of macroeconomic and geopolitical uncertainties.
KCC’s robust business framework, characterized by diversified market exposure, strong contract coverage, and the flexibility to shift vessel capacity, positions the company to navigate ongoing unpredictability effectively. KCC manages a fleet of 16 combination carriers designed for transporting both wet and dry bulk cargoes, with three new vessels expected to arrive in 2026.
These vessels are utilized in trades that maximize efficiency by combining cargo types with minimal ballast, capitalizing on trade flow disparities. Key highlights for Q1 2025 include the reported EBITDA of USD 15.0 million, down from USD 20.2 million in Q4 2024, and EBT decreasing from USD 8.6 million.
The decrease is attributed to lower time charter equivalent (TCE) earnings, impacted by weak market conditions. TCE earnings for CABU vessels were $22,346/day, and for CLEANBU vessels, they were $22,449/day, both lower compared to the previous quarter due to market fluctuations.
In terms of dividends, KCC announced a payout of USD 0.035 per share for Q1 2025, which is significantly above the minimum dividend policy level. Additionally, the company is optimistic about TCE earnings guidance for Q2 2025, anticipating a range of $24,000 to $25,000 per day for CABUs, though geopolitical factors are expected to impact CLEANBU earnings.
Lastly, KCC is set to hold a webcast presentation on May 8, 2025, to detail the financial results and engage with stakeholders.