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Third quarter 2020: Environmentally friendly deep-sea vessels achieve superior earnings compared to standard vessels

Thursday, 19 November 2020 | 13:00

Klaveness Combination Carriers ASA (KCC) delivered a positive EBITDA of 9,8 million US dollar in the third quarter of 2020, and a positive bottom line of 1,3 million US dollar. –Considering the weaker tanker market, two vessels in dry dock and negative COVID-19 effects, we are satisfied with the results of the quarter, says CEO Engebret Dahm.

KCC has a fleet of 14 combination carriers on water and 3 newbuildings under construction which are built to combine both tanker and dry bulk cargoes.

– The high efficiency of our combination carriers, minimizing ballast between the wet and dry bulk cargoes, creates a win-win-win solution for our customers, the environment and our company, says Engebret Dahm. KCC’s solutions reduce the CO2 emissions by 30-40 % compared to a standard tanker and dry bulk vessels in the same trading pattern and enable large cuts in the carbon emissions from our customers supply chains. As the results from the third quarter demonstrate, KCC delivers superior earnings and profitability when compared to standard dry bulk and tanker vessels.

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

• TCE earnings more than double of standard tankers

• Adjusted EBITDA of USD 9.8 million for the quarter despite weaker tanker market, dry docking of two vessels and COVID-19 effects

• Dividend payments maintained at USD 0.03 per share (total USD 1.44 million) for Q3

• Expansion of the trading pattern of KCC’s new CLEANBU vessels with two new combination trades

• Successful tap issue of NOK 200 million under existing senior unsecured bonds

– We believe there are exciting business opportunities in being at the forefront of developing low carbon transportation solutions to our customers.

KCC recently signed the Sea Cargo Charter together with 14 of the world’s largest shipping customers where the signatories have committed to a standardized reporting of the CO2 emissions from shipping and a benchmarking against IMO’s emission reduction trajectory up to 2030/2050.

– We believe the value of offering low carbon transportation solutions will substantially increase going forward when customers track, report and purposely work to reduce carbon emissions from their shipping activities, says Engebret Dahm

– This is just one of several initiatives we are working on right now, to actively move towards a decarbonization of the shipping industry, says Dahm.

APM: Adjusted EBITDA, CABU and CLEANBU TCE earnings per on-hire day are alternative performance measures (APM) which are further described and reconciled in the quarterly report for Q3 2020, note 11 (page 24-25).
Source: Klaveness Combination Carriers

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