2018 sees improved financial results for Torvald Klaveness

2018 has been an eventful year with focus on consolidating the combination carrier activities under one holding company, Klaveness Combination Carriers AS, and further develop the activities through raising external capital, registering the shares on N-OTC and growing the newbuilding programme by three vessels. In addition, Klaveness has continued to invest in digital initiatives and has maintained its position as one of the leading dry bulk operators and pool managers.

The combination carriers continued to deliver positive results in 2018. Earnings for the nine vessels on water, the CABU (caustic-bulk) combination carriers, strengthened in 2018, mainly due to somewhat improved dry bulk markets, a more optimal trading pattern, a higher number of caustic soda cargoes and higher bunker fuel prices.

Both the dry bulk market and the container market continued to improve in 2018, however, sentiment in both markets turned negative towards the end of the year. Average container vessel earnings improved in 2018 and the vessels still achieved rates above the general market due to the vessels’ fuel efficiency. Results for the dry bulk activities were positively impacted by active long and short positions along with market development. However, weather delays and related extended port stays impacted the results negatively.

EBITDA for 2018 was US$37 million up from US$28 million in 2017. The combination carriers were the largest contributor to the EBITDA. The balance sheet remains solid with a book equity including minority interest of US$318 million at year-end corresponding to an equity ratio of 54%. Cash and bank deposits ended at US$124 million year-end 2018 with additional capacity under a long-term revolving credit facility of US$52 million.

Read the article online at: https://www.drybulkmagazine.com/shipping/27032019/2018-sees-improved-financial-results-for-torvald-klaveness/