Klaveness Combination Carriers Fourth quarter 2020: Strong end to 2020 with TCE-earnings 2-3 times the standard tanker market. Continued growth and profitability in environmentally friendly shipping

Oslo - 19 February 2021

Klaveness Combination Carriers ASA (KCC) delivered a positive adjusted EBITDA of USD 11 million in the fourth quarter of 2020, and a positive profite after tax of USD 1.2 million. We are satisfied with the fourth quarter results with TCE-earnings 2-3 times the standard tanker market demonstrating the value of flexibility and diversification of KCCís environmentally friendly shipping solutions, says CEO Engebret Dahm.

KCC has a fleet of 15 combination carriers on water and 2 newbuildings combining transportation of both tanker and dry bulk cargoes.

- Our combination carriers emit 30-40% less CO2 per ton transported compared to standard dry bulk and tanker vessels. This is without doubt the most cost-efficient way for our customers to substantially reduce the CO2 emissions from their transportation work, says Dahm. Going forward, we believe KCCís competitive advantage will become even more important as stricter regulations and customer requirements will drive the decarbonization of maritime transportation.

Klaveness Combination Carriers publishes their results for the fourth quarter today, with the following highlights:

• TCE earnings were 2-3 times higher than standard tankers and almost 2 times higher than standard dry bulk vessels.

• Net revenue from operations of vessels increased 12% compared to last quarter.

• Adjusted EBITDA up USD 1.2 million from last quarter to USD 11.0 million despite overall weaker markets, negative operational effects from COVID-19 and phase-in of two newbuilds delivered in Q3 and Q4.

• Successful conclusion of additional CABU caustic soda shipping contracts and expansion of CLEANBU combi-trading pattern.

• 90 % of planned crew changes performed on schedule.

• The Board of Directors declares dividend payments of USD 0.03 per share (total USD 1.44 million) for Q4.

The results illustrate attractive business opportunities in environmentally friendly, deep-sea transportation.

APM: Adjusted EBITDA and TCE earnings per on-hire day are alternative performance measures (APM) which are further described and reconciled in the quarterly report for Q4 2020, note 11 (page 25-26).

Full report

About Klaveness Combination Carriers ASA:
KCC is the world leader in combination carriers, owning and operating nine CABU and six CLEANBU combination carriers with another two CLEANBU combination carriers on order for scheduled delivery in 2021. KCCís combination carriers are built for transportation of both wet and dry bulk cargoes, being operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast. Through their high utilization and efficiency, the vessels emit up to 40% less CO2 per transported ton compared to standard tanker and dry bulk vessels in current and targeted combination trading patterns.

Klaveness Combination Carriers, press release