KCC closes record year with historically strong quarter
Published by Oliver Kleinschmidt,
Editorial Assistant
Dry Bulk,
Klaveness Combination Carriers (KCC) has reported solid financial performance for 4Q23 with EBT of US$25.9 million and EBITDA of US$36.5 million. The results marked a historically strong quarter for KCC and sealed a record year, with the momentum expected to continue in 1Q24.
In a year of sudden trade changes and extreme market volatility, KCC’s fleet proved its mettle. 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. The year also saw clear progress on decarbonisation ambitions, with significant headway made on KCC’s energy efficiency program and a marked improvement of carbon intensity (EEOI) with a 6% reduction from 2022.
CEO Engebret Dahm commented: “A strong 4Q23 closes a record year for KCC, a year of record profitability and solid strategic progress across the business. 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 quarter four. After a solid start to the new year, KCC is on course to deliver another exciting quarter in 1Q24.”
Average TCE earnings for the fleet ended at US$36 823/day for the fourth quarter. Average TCE earnings for the CABUs hit US$36 110/day and US$37 537/day for the CLEANBUs. The results were 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 in quarter four.
With strong CABU coverage secured for 2024 and record CLEANBU TCE earnings anticipated, the CABU TCE earnings guiding for 1Q24 was US$32 000 - 33 000/day and US$48 000 - 50 000/day for the CLEANBUs.Highlights for 4Q23 and 4Q23:
- EBT of US$25.9 million and EBITDA of US$36.5 million for 4Q23.
- Historically solid fourth quarter TCE earnings.
- Record high 2023 financial result – 17% ROCE and 24% ROE.
- 2023 carbon intensity (EEOI) performance 6% better than 2022.
- Close to 100% of CABU wet capacity secured for 2024.
- KCC Board of Directors declares dividend of US$0.35 per share (~US$21.2 million in total).
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Read the article online at: https://www.drybulkmagazine.com/shipping/16022024/kcc-closes-record-year-with-historically-strong-quarter/
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