Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Klaveness Combination Carriers ASA (FRA:36K) achieved an average time charter equivalent of $22,400 per day, which is at the high end of their guidance range.

• The company outperformed standard markets, achieving 1.2 times the tanker market and 2.7 times the dry market.

• The board decided to distribute dividends of $0.05 per share, amounting to $2.5 million for the quarter.

• Klaveness Combination Carriers ASA (FRA:36K) maintained a solid equity ratio of 57.8%, despite a slight decrease.

• The company is on track with its ambitious carbon intensity target for 2025, with both fleets achieving an EOI of 6.3 for the quarter.

Negative Points

• The company's EBITDA for the quarter was $15 million, down 26% from the previous quarter.

• Profit for the quarter was $4.3 million, a 50% decrease from the last quarter.

• Earnings per share dropped to $0.07 for the quarter.

• The dry market experienced a weak start to the year, impacting overall earnings.

• The company faced challenges in fully benefiting from stronger markets due to lower trading efficiency and changes in trading patterns.

Q & A Highlights

• Warning! GuruFocus has detected 3 Warning Signs with REFR.

Q: How long do you see the five oldest vessels in the fleet being productive and profitable? A: The five oldest ships, built between 2001 and 2007, are expected to operate until they are 25 years old, particularly in the Australia trade. The first ship, Barcelona, will be phased out by early next year. We are exploring new trading areas for these ships, selling them as dry ships, or green recycling. We believe there is potential beyond recycling value for these vessels. (Unidentified_1)

Q: Are the deliveries of the three new builds still on track, and when will they be ready for trading? A: The shipyard is ahead of schedule, and the ships are expected to be delivered 2 to 3 months early. The first ship is likely to be in service by February next year, and the last one by August or September. (Unidentified_1)

Q: Can you provide an update on the financial performance for the quarter? A: EBITDA for the quarter was $15 million, down 26% from the last quarter, mainly due to lower TCEs for both the Kabwe and Klimbo fleets. However, this was partly offset by more on-hire days and lower operating expenses. Net financial costs decreased by 37%, and profit was $4.3 million, down 50% from the last quarter. (Unidentified_2)

Q: What is the outlook for the tanker and dry markets given the current geopolitical climate? A: Despite geopolitical uncertainties, both the tanker and dry markets are expected to remain strong. The oil market appears balanced, and OPEC's decision to increase production is optimistic for the crude tanker market. The dry market is supported by strong grain shipments from South America and potential improvements in the North Atlantic grain season. (Unidentified_1)