KCC: Fourth Quarter 2024 Business Update

15 Jan 2025 07:00 CET

Oslo, 15 January 2025: Klaveness Combination Carriers’ ("KCC" or the "Company")
preliminary CABU and CLEANBU TCE earnings for Q4 2024 ended at $/day 28,988 and
$/day 28,027, respectively. Fleet average TCE earnings for the quarter ended at
$/day 28,527 approximately $/day 1,700 lower than the mid-point of the guiding
range ($/day 29,500-31,000) and approximately $/day 5,500 lower than in Q3 2024.


CABU TCE earnings for Q4 2024 were approximately $/day 500 above the mid-point
of the guiding range mainly due to more capacity in caustic soda trades
supported by a tight contract schedule through the quarter. The CABU fleet
continued to trade efficiently with 91% combination trading and 13% ballasting.
The CABU fleet delivered considerably higher TCE earnings compared to standard
MR tanker vessels in Q4, with a multiple of 1.7*.

Despite weaker underlying product tanker and dry bulk markets in Q4 compared to
Q3, CABU TCE earnings were only down approximately $/day 700 from last quarter
supported by increased caustic soda shipments.

KCC expects to secure the full 2025 caustic soda contract volume for the CABU
fleet during the next weeks. 87% of the volume for 2025 has so far been secured.
Subject to finalization of the remaining two contracts, in excess of 30% of the
full contract volume is expected to be fixed-rate.

CLEANBU TCE earnings for Q4 ended approximately $/day 4,000 lower than the
mid-point of the guiding range due to a considerably weaker product tanker
market compared to the forward market at the time of guiding (effect
approximately $/day 1,200), more than expected ballasting and waiting time for
two vessels after completion of dry-dock (effect approximately $/day 1,800), and
negative IFRS 15** effects (approximately $/day 1,000). However, the CLEANBU TCE
rates were substantially stronger than the LR1 spot tanker rates for the
quarter, with a multiple of 1.4*.

The CLEANBU TCE earnings were down approximately $/day 10,600 from Q3 2024 to Q4
2024 mainly due to weaker markets and less optimal trading (79% combination
trading and 20% ballast).

Actual on-hire days in Q4 were 15 days lower than the guiding due to longer
dry-docking of two CLEANBU vessels.

2024 has been a historically strong year for KCC where TCE earnings matched
product tanker spot earnings at the peak of the market in first half and
considerably outperformed the spot market in a weaker second half. Coming into
2025 with less difference between the product tanker and dry bulk markets, KCC’s
business model with efficient combination trading is expected to deliver
increased earnings premiums compared to the standard markets.

KCC’s Fourth Quarter Report for 2024 will be published on 14 February 2025.

*Clarksons, MR (CABU) and LR1 (CLEANBU) tanker multiple calculated based on
assumption of one-month advance cargo fixing/«lag».

** IFRS15 recognizes revenue based on load-to-discharge and not based on
discharge-to-discharge. No cash effect, but effect om timing of revenue
recognition.

CABU (TCE earnings per on-hire day and on-hire days)
Q4 2024 Preliminary: $/day 28,988 (684 days)
Q4 2024 Guiding range*: $/day 28,000-29,000 (680 days)
Q3 2024 Actual: $/day 29,668 (735 days)
2024 Preliminary: $/day 32,717 (2,779 days)

CLEANBU (TCE earnings per on-hire day and on-hire days)
Q4 2024 Preliminary: $/day 28,027 (631 days)
Q4 2024 Guiding range*: $/day 31,000-33,000 (650 days)
Q3 2024 Actual: $/day 38,673 (697 days)
2024 Preliminary: $/day 38,151 (2,648 days)

Fleet (TCE earnings per on-hire day and on-hire days)
Q4 2024 Preliminary: $/day 28,527 (1,315 days)
Q4 2024 Guiding range*: $/day 29,500-31,000 (1,330 days)
Q3 2024 Actual: $/day 34,052 (1,432 days)
2024 Preliminary: $/day 35,368 (5,427 days)

*Estimate based on booked cargoes and expected employment for open capacity
basis forward freight pricing (FFA)

TCE earnings $/day are alternative performance measures (APMs) which are defined
and reconciled in the excel sheet “APM4Q2024” published on the Company’s
homepage Investor Relations/Reports and Presentations under the section for the
Q4 2024 Report. The address to the Company’s homepage is
www.combinationcarriers.com.

The Company has in relation to this Business Update scheduled a group call with
equity and credit analysts covering KCC. More information about the call,
including date/time and participants is included in the attached presentation.
The presentation includes the material being presented in the meeting.

For further queries, please contact:
Engebret Dahm, CEO, Telephone +47 957 46 851
Liv Dyrnes, CFO, Telephone +47 976 60 561

About Klaveness Combination Carriers ASA:

KCC is the world leader in combination carriers, owning and operating eight CABU
and eight CLEANBU combination carriers with three CABU vessels under
construction for delivery in 2026. KCC’s 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.

More information:
Access the news on Oslo Bors NewsWeb site

636519_20250115 Presentation for group analyst call.pdf