iso4217:USD iso4217:USD xbrli:shares 213800ZFB2MQM3JA6K52 2025-01-01 2025-12-31 213800ZFB2MQM3JA6K52 2024-01-01 2024-12-31 213800ZFB2MQM3JA6K52 2025-12-31 213800ZFB2MQM3JA6K52 2024-12-31 213800ZFB2MQM3JA6K52 2024-12-31 ifrs-full:IssuedCapitalMember 213800ZFB2MQM3JA6K52 2024-12-31 ifrs-full:SharePremiumMember 213800ZFB2MQM3JA6K52 2024-12-31 ifrs-full:TreasurySharesMember 213800ZFB2MQM3JA6K52 2024-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 213800ZFB2MQM3JA6K52 2024-12-31 ifrs-full:ReserveOfChangeInValueOfForwardElementsOfForwardContractsMember 213800ZFB2MQM3JA6K52 2024-12-31 ifrs-full:RetainedEarningsMember 213800ZFB2MQM3JA6K52 2025-01-01 2025-12-31 ifrs-full:IssuedCapitalMember 213800ZFB2MQM3JA6K52 2025-01-01 2025-12-31 ifrs-full:SharePremiumMember 213800ZFB2MQM3JA6K52 2025-01-01 2025-12-31 ifrs-full:TreasurySharesMember 213800ZFB2MQM3JA6K52 2025-01-01 2025-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 213800ZFB2MQM3JA6K52 2025-01-01 2025-12-31 ifrs-full:ReserveOfChangeInValueOfForwardElementsOfForwardContractsMember 213800ZFB2MQM3JA6K52 2025-01-01 2025-12-31 ifrs-full:RetainedEarningsMember 213800ZFB2MQM3JA6K52 2025-12-31 ifrs-full:IssuedCapitalMember 213800ZFB2MQM3JA6K52 2025-12-31 ifrs-full:SharePremiumMember 213800ZFB2MQM3JA6K52 2025-12-31 ifrs-full:TreasurySharesMember 213800ZFB2MQM3JA6K52 2025-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 213800ZFB2MQM3JA6K52 2025-12-31 ifrs-full:ReserveOfChangeInValueOfForwardElementsOfForwardContractsMember 213800ZFB2MQM3JA6K52 2025-12-31 ifrs-full:RetainedEarningsMember 213800ZFB2MQM3JA6K52 2023-12-31 ifrs-full:IssuedCapitalMember 213800ZFB2MQM3JA6K52 2023-12-31 ifrs-full:SharePremiumMember 213800ZFB2MQM3JA6K52 2023-12-31 ifrs-full:TreasurySharesMember 213800ZFB2MQM3JA6K52 2023-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 213800ZFB2MQM3JA6K52 2023-12-31 ifrs-full:ReserveOfChangeInValueOfForwardElementsOfForwardContractsMember 213800ZFB2MQM3JA6K52 2023-12-31 ifrs-full:RetainedEarningsMember 213800ZFB2MQM3JA6K52 2023-12-31 213800ZFB2MQM3JA6K52 2024-01-01 2024-12-31 ifrs-full:IssuedCapitalMember 213800ZFB2MQM3JA6K52 2024-01-01 2024-12-31 ifrs-full:SharePremiumMember 213800ZFB2MQM3JA6K52 2024-01-01 2024-12-31 ifrs-full:TreasurySharesMember 213800ZFB2MQM3JA6K52 2024-01-01 2024-12-31 ifrs-full:ReserveOfCashFlowHedgesMember 213800ZFB2MQM3JA6K52 2024-01-01 2024-12-31 ifrs-full:ReserveOfChangeInValueOfForwardElementsOfForwardContractsMember 213800ZFB2MQM3JA6K52 2024-01-01 2024-12-31 ifrs-full:RetainedEarningsMember
Annual Report
2025
Redefining efficiency and sustainability in
tanker and dry bulk shipping
Klaveness Combination Carriers ASA - Annual Report 2025
Contents

Introduction | 3 |  | Board of Directors’ reports | 1 5 |  | Financials | 91
Letter from the CEO | 3 |  | Key developments 2025 | 15 |  | Consolidated f inancial statements | 91
About KCC | 5 |  | 2026 priorities | 15 |  | Notes to the consolidated financial statements | 95
Performance highlights | 8 |  | Financial results | 15 |  | Financial statements of the parent company | 114
The KCC share | 10 |  | The business | 16 |  | N otes to financial statements of the parent company | 118
Board of Directors | 12 |  | Market development and outlook | 17 |  | Responsibility statement | 122
Management | 13 |  | Risk review and risk management | 18 |  | Auditor’s report on financial statements | 123
|  |  | Board development | 18 |  | Auditor’s report on environmental KPIs and GHG accounts | 126
|  |  | Sustainability statement | 19 |  |  |
|  |  | General information | 20 |  |  |
|  |  | Environmental information | 34 |  |  |
|  |  | Social information | 60 |  |  |
|  |  | Governance information | 77 |  |  |
|  |  | Signatures from the Board of Directors and CEO | 85 |  |  |
|  |  | Corporate Governance Report | 86 |  |  |

3.
Klaveness Combination Carriers ASA - Annual Report 2025
Letter from the CEO
Building resilience and growth
opportunities in
unpredictable markets
2025 has been a good year for KCC despite geopolitical and partly market headwinds. Throughout the year,
the KCC fleet has maintained its strong safety track record and favorable vetting performance. Business
development across KCC’s business has progressed well, further strengthening our resilience and long-term
growth potential.
The shipping industry witnessed an unprecedented level of
geopolitical risks in 2025 with escalating trade disputes
adding to the ongoing wars in Ukraine and unrest in the Red
Sea. Uncertainties stemming from the proposed USTR-port
fees on Chinese built vessels negatively impacted CLEANBU
trading for the first three quarters of the year. The final USTR
wording presented in October, however, left our CLEANBU
business unaffected.
Market developments and performance
Despite a weak start to the year, both the dry bulk and
tanker markets demonstrated resilience in the face of
elevated geopolitical uncertainty. The product tanker
market improved during spring and ended the year on a
strong note, supported by a historically strong crude tanker
market. The dry bulk market exceeded weak expectations,
with spot earnings in the second half of 2025 reaching their
highest levels since the dry bulk boom in 2021-2022.
Progress across CABU and CLEANBU
We have successfully prepared the CABU business for the
upcoming CABU fleet growth, with delivery of three CABU
newbuildings scheduled in 2026. TCE-earnings of the CABU-
fleet in 2025 ended at the third-highest level since the
establishment of KCC in 2018. The caustic soda contract
backlog for 2026 has been substantially increased by
booking around 20% more caustic soda contract cargoes to
Australia compared with 2025, as well as concluding a 32-
month caustic soda contract of affreightment (COA) with
Norsk Hydro majority owned Alunorte.
KCC’s oldest CABU vessel, MV Barcarena, was successfully
taken through her 25-year docking and life extension
program in Q4 2025 and will start service the COA with
Alunorte in March 2026.
4.
Klaveness Combination Carriers ASA - Annual Report 2025
We also made good progress in the CLEANBU business
“With a strong balance sheet,
diversified market exposure
and a flexible business
model, KCC is well prepared
to handle uncertainty and
capitalize on market
opportunities.”
Engebret Dahm, CEO
during 2025. Growth in the CLEANBU customer base
continued, and we now serve some of the world’s largest
and most demanding oil companies and oil traders.
This reflects the broad market acceptance of the CLEANBU
fleet as a high-quality solution for clean petroleum trades.
We continue to focus on securing the remaining difficult-to-
win customers while delivering further improvements in
trading efficiency and flexibility of the CLEANBU fleet.
Strengthening the operating model
2025 also marked the first year under KCC’s new operational
model following Torvald Klaveness’ sale of Klaveness Ship
Management (KSM) to OSM Thome at year-end 2024. The
start of the new technical management agreement between
KCC and KSM, now owned by OSM Thome, as well as the
integration of KSM’s project department and commercial
operation department into KCC has progressed well.
Together, the new model has strengthened the quality of
KCC’s operation and our ability to grow the business.
Sustainability and ESG commitments
The unexpected postponement of the IMO decarbonization
regulations in October was a setback for the shipping
industry. Despite these regulatory headwinds, KCC remains
committed to delivering significant reductions in the carbon
footprint of our services.
We will continue to do this through a strong focus on
improving trading efficiency and by making smart
investments in innovative operational and energy efficiency
initiatives across the fleet.
KCC also remains firmly committed to building its business
to the highest Environment, Social and Governance (ESG)
standards and to implementing these standards through
how we work every day and engage with our stakeholders.
Outlook for 2026
KCC has had a solid start to 2026, supported by the positive
momentum in the product tanker market and a seasonally
strong dry bulk market.
While optimism is present in both markets, the outlook
remains uncertain given ongoing geopolitical instability, and
the associated market risks. With a strong balance sheet, the
combination of fixed rate and floating rate contract
coverage, the diversified market exposure, and the flexibility
and efficiency of KCC’s business model, we continue to be
well positioned to manage challenges and capitalize on
market opportunities in the year ahead.
5.
Klaveness Combination Carriers ASA - Annual Report 2025
About Klaveness
Combination Carriers
Kla veness Combination Carriers is the world leader in
combination carriers, owning and operating nine CABU
and eight CLEANBU vessels, following the delivery of one
newbuilding in February 2026. Two additional CABU
vessels are scheduled 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 CO 2 per transported ton compared
to standard tanker and dry bulk vessels in current and
targeted combination trading patterns.
6.
Klaveness Combination Carriers ASA - Annual Report 2025
Developing and operating the world’s most efficient shipping
solution
Example of conventional trading vs. KCC’s combination trading
7.
Klaveness Combination Carriers ASA - Annual Report 2025
Strategy 2025-2030: Redefining efficiency and sustainability in
tanker and dry bulk shipping

CLEANBU growth |  | CABU expansion |  | Innovative concepts |  | Leadership in sustainability |  | Value creation
Grow the CLEANBU business based on strong market foundations |  | Take the CABU business into a new chapter - growing market share and diversifying to new regions |  | Explore new combination carrier concepts |  | Capitalize on market-leading position in low-emission shipping being a “Smart Leader” |  | Prioritize shareholder returns – ambition to deliver the best risk-adjusted return in shipping

For more details on KCC’s new
strategy for 2026-2030, please see
the presentation from our Capital
Markets Day 2025 on our website.
8.
Klaveness Combination Carriers ASA - Annual Report 2025
Performance highlights
Share buy-back program
2024: USD 1.2m
2025: USD 6.6m
Y-o-Y change 2024-2025: -8%
2025 target: 5.8

26 278 | 7% | 9% | 55% | 0.6
TCE earnings USD/day 1 | ROCE 1 | ROE 1 | Equity ratio 1 | Lost time injury frequency (LTIF)2 Target: 0.5

1) Average TCE earnings $/day, ROCE, ROE and equity ratio are alternative performance measures (APM) which are defined and reconciled in the excel sheet “APM4Q2025” published on the Company’s homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations
under the section for the Q4 2025 report.
2) LTIF is injury leading to loss of productive work time, number of injuries.
* EEOI (Energy Efficiency Operational Index) is defined by IMO and represents grams CO2 emitted per transported ton cargo per nautical mile for a period of time (both fuel consumption at sea and in port included).
9.
Klaveness Combination Carriers ASA - Annual Report 2025
Key events 2025
1 Adjusted cash flow to equity (ACFE) = EBITDA – interest cost – ordinary debt repayments – maintenance CAPEX. ACFE is an Alternative Performance Measures (APMs) which are defined and reconciled in the excel sheet “APM4Q2025” published on the Company’s homepage
(www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2025 report.
10.
Klaveness Combination Carriers ASA - Annual Report 2025
The KCC share
KCC aims to be an attractive investment for shareholders by delivering the best
risk-adjusted return in dry bulk and tanker shipping, supported by consistent
quarterly dividends of minium 80% of adjusted cash flow to equity 1 and long-term
share appreciation.

| NOK 4.7 bn KCC’s market capitalisation as at 31 December 2025
| USD 0.285 dividend per share for 2025
| 5,072 shareholders as of 31 December 2025
| 59,508 thousand shares

Share price, total return and volume traded
Source: Euronext Oslo Børs, Bloomberg
Share performance
The Klaveness Combination Carrier share is listed on Oslo Børs under the ticker code KCC. As of year-end 2025,
KCC had 59,508,231 issued shares (31.12.2024: 60,458,231 shares), trading at a year-end closing price of NOK
79.20 per share (31.12.2024: NOK 74.50), valuing KCC at approximately NOK 4.7 billion at year end (31.12.2024:
NOK 4.5 billion). All shares have equal rights and are freely transferable. Per year-end 2025, KCC owns a total
of 218,078 treasury shares, corresponding to 0.37% of the total number of issued shares.
In 2025, the average daily trading volume on Oslo Børs was approximately NOK 5.1 million (31.12.2024: NOK
9.9 million). The highest closing share price during the year was NOK 82, while the lowest closing price was
NOK 56.5.
The year-end closing price represent an increase of 6% compared to year-end 2024. KCC’s total shareholder
return (TSR) in 2025, including reinvestment of dividends, was 11%.
11.
Klaveness Combination Carriers ASA - Annual Report 2025
Shareholder composition
At year-end 2025, KCC had 5,072 shareholders (31.12.2024: 4,504). Non-Norwegian investors owned 18%
(31.12.2024: 22%) of the outstanding shares.
Rederiaksjeselskapet Torvald Klaveness was the largest single shareholder, holding 54.68% of the shares
(31.12.2024: 53.82%).
Top 20 shareholders of December 31 2025

# | Shareholder | # Shares Dec 2025 | % Ownership Dec 2025
1 | Rederiaksjeselskapet Torvald Klaveness | 32 537 608 | 54.68%
2 | EGD Shipping Invest AS | 3 650 000 | 6.13%
3 | Hundred Roses Corporation | 2 382 283 | 4.00%
4 | VPF Sparebank 1 Norge Verdi | 1 934 224 | 3.25%
5 | J.P. Morgan SE (nominee) | 1 798 745 | 3.02%
6 | J.P. Morgan SE (nominee) | 1 696 043 | 2.85%
7 | Goldman Sachs & Co. LLC (nominee) | 1 450 000 | 2.44%
8 | Landkreditt Utbytte | 794 573 | 1.34%
9 | Kontrari AS | 525 000 | 0.88%
10 | Surfside Holding AS | 410 000 | 0.69%
11 | Hausta Investor AS | 367 620 | 0.62%
12 | Skandinaviska Enskilda Banken AB (nominee) | 300 000 | 0.50%
13 | Kristian Falnes AS | 254 945 | 0.43%
14 | Nordnet Livsforsikring AS | 218 814 | 0.37%
15 | Klaveness Combination Carriers ASA | 218 078 | 0.37%
16 | Skeie kapital AS | 200 000 | 0.34%
17 | Interactive Brokers LLC (nominee) | 185 303 | 0.31%
18 | Johs. Hansen & Co AS | 181 257 | 0.30%
19 | Cortex AS | 172 847 | 0.29%
20 | Verdipapirfondet Equinor Aksjer NO | 170 000 | 0.29%
Owner list top 20 total | 49 447 340 | 83.09%

Earnings period | Dividend amount (USD) | Dividend per share (USD) | Ratio ACFE 1 (%)
2019 | 2.7 | 0.060 | N/A
2020 | 5.8 | 0.120 | 43%
2021 | 11.0 | 0.220 | 67%
2022 | 52.9 | 1.010 | 97%
2023 | 72.3 | 1.250 | 86%
2024 | 63.5 | 1.050 | 94%
2025 | 16.9 | 0.285 | 87%

Source: Verdipapirsentralen (VPS)
For the purpose of this overview, shareholder accounts registered under the same beneficial owner have been consolidated and presented
as a single shareholder.
Dividend
KCC’s dividend policy is to distribute, on a quarterly basis, a minimum 80% of the adjusted cash flow to equity
(ACFE 1) after debt service and maintenance costs as dividends to its shareholders. Distributions are made
provided that all known and future capital and debt commitments are accounted for, and that the company’s
financial position remains acceptable. New investments will normally be subject to a separate equity raise.
In De cember 2024, KCC initiated a share buy-back program, which was completed in first quarter 2025. The
program resulted in the repurchase of 1,200,000 shares, corresponding to a total transaction value of
approximately USD 7.9 million, whereof 1,004,157 shares were repurchased for a total of USD 6.6 million in
2025 . 950,000 of the shares were redeemed in June 2025.
For the financial year 2025, KCC paid total dividends of USD 0.285 per share, corresponding to an aggregate
distribution of USD 16.9 million and 87% of the adjusted cash flow to equity.
KCC’s historical divi dends
1. Adjusted cash flow to equity (ACFE) = EBITDA – interest cost – ordinary debt repayments – maintenance CAPEX. ACFE is an Alternative
Performance Measures (APMs) which are defined and reconciled in the excel sheet “APM4Q2025” published on the Company’s homepage
(www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2025 report.
12.
Klaveness Combination Carriers ASA - Annual Report 2025
Board of Directors

| Ernst A. Meyer |  | Magne Øvreås |  | Brita Eilertsen |  | Marianne Møgster |  | Gøran Andreassen |
| Chair of the Board |  | Board member and member of the Audit Committee |  | Board member and Chair of the Audit Committee |  | Board member |  | Board member |
| Rederiaksjeselskapet Torvald Klaveness (majority owner of KCC) |  | EGD Shipping Invest AS (second largest shareholder of KCC) |  | Independent |  | Independent |  | Rederiaksjeselskapet Torvald Klaveness (majority owner of KCC) |
| • Norwegian National • Male, 1969 • Elected Chair in 2022 • Current Board period: 2024-2026 |  | • Norwegian National • Male, 1972 • Elected to Board in 2018 • Current Board period: 2024-2026 |  | • Norwegian National • Female, 1962 • Elected to Board in 2022 • Current Board period: 2024-2026 |  | • Norwegian National • Female, 1974 • Elected to Board in 2024 • Current Board period: 2024-2026 |  | • Norwegian National • Male, 1972 • Elected to Board in 2022 • Current Board period: 2024-2026 |
| Experience Current: • President and CEO of Rederiaksjeselskapet Torvald Klaveness Former: • COO Torvald Klaveness • SVP Offshore Classification, DNV Global • SVP and Regional Manager, DNV Asia • Early career in Statoil Shipping/Navion |  | Experience Current: • CEO of EGD Shipholding AS • Board positions in Argentum, the Norwegian Ship Owners Association (Deep Sea), Norwegian Hull Club and Mohn Drilling AS Former: • CEO of Utkilen AS • Management consultant in Cardo Partners and the Boston Consulting Group |  | Experience Current: • Board positions in Appear, Pareto Bank, Axactor and C World Wide Former: • Investment banking in SEB Enskilda and Orkla Finans • Management consulting in Touche Ross Mgmt Consultants (Deloitte) • Various board positions |  | Experience Current: • Executive Vice President Marine and Asset Operations in DOF • Board positions in the Norwegian Ship Owners Association and Norwegian Hull Club Former: • Experience from several other managerial roles in DOF Group • Finance roles in Equinor and Norsk Hydro • Various board positions |  | Experience Current: • Chief Stategic Investment Officer of Torvald Klaveness • Board positions in Norwegian Hull Club and ScoutDI Former: • Senior Partner at OMP Capital • Partner at HitecVision, where he served on the Board of multiple portfolio companies • Partner at Clarksons Platou • Several positions in DNV and Aker Solutions |
| Education • Master of Science in Naval Architecture and Marine Engineering from the Norwegian University of Science and Technology (NTNU) |  | Education • Master of Science in Naval Architecture from the Norwegian University of Science and Technology (NTNU) and ENSTA Paris |  | Education • Degree in business from the Norwegian School of Economics (NHH) • Certified Financial Analyst (CFA) |  | Education • Master of Finance from the Norwegian School of Economics (NHH) |  | Education • Master of Science in Mechanical Engineering from the Norwegian University of Science and Technology (NTNU) |
| Number of Shares held: 5 000 |  | Number of Shares held: Indirectly: Owns 9.9% of EGD Shipping Invest AS which holds 3 650 000 shares |  | Number of Shares held: 2 000 |  | Number of Shares held: 0 |  | Number of Shares held: 4 300 |

13.
Klaveness Combination Carriers ASA - Annual Report 2025
Management

| Engebret Dahm |  | Liv H. Dyrnes |  | Geir Frode Abelsen |  | Snorre Blix |  | Anne Mette Hansen |  | Håkon Moltubakk |
| CEO |  | CFO and Deputy CEO |  | Chief Operating Officer |  | VP, Global Head of CLEANBU Chartering |  | VP, Global Head of CABU Chartering |  | VP, Head of Strategy and Business Development |
| • Norwegian National • Male, 1965 • CEO since 2018 • Oslo based |  | • Norwegian National • Female, 1980 • CFO since 2018 • Oslo based |  | • Norwegian National • Male, 1968 • COO since 2025 • Oslo based |  | • Norwegian National • Male, 1973 • Held position since 2023 • Oslo based |  | • Danish National • Female, 1982 • Held position since 2024 • Singapore based |  | • Norwegian National • Male, 1988 • Held position since 2024 • Oslo based |
| Experience Current: • CEO of KCC Former: • Chair of the Oslo Shipowners Association • Head of Combination Carriers and various roles in the Torvald Klaveness Group • CEO of Norwegian Car Carriers AS • Roles in Credit Agricole CIB in Paris |  | Experience Current: • CFO and Deputy CEO of KCC • Board positions in Utkilen, Sperre Air Power and Neuver Maritime Former: • Various board positions • CFO of Rederiaksjeselskapet Torvald Klaveness and other finance roles within the Torvald Klaveness Group • Analyst Shipping, Offshore and Logistics in DNB Bank |  | Experience Current: • COO of KCC • Board position in Stainless Former: • Head of Technical Operations in Hoegh Autoliners • COO in Navig8 group • COO Eitzen Chemical |  | Experience Current: • VP, Global Head of Cleanbu Chartering of KCC Former: • VP, Combination Carriers Atlantic • Held various commercial and chartering roles in the Torvald Klaveness Group for over 20 years |  | Experience Current: • VP, Global Head of Cabu Chartering of KCC Former: • Held various commercial and chartering roles for the CABU segment in the KCC Group for over 10 years • Held various chartering roles for the Danish shipowner Norden after completing their shipping trainee program |  | Experience Current: • VP, Head of Strategy & Business Development of KCC Former: • Held various roles within finance, treasury, risk management and investor relations in the KCC and Torvald Klaveness Group for over 10 years |
| Education • Degree in Business from the Norwegian School of Economics (NHH) |  | Education • Master of Science in Finance from the Norwegian School of Economics (NHH) |  | Education • Master of Science in Naval Architecture and Marine Engineering from the Norwegian University of Science and Technology (NTNU) |  | Education • Master in Business Administration from ESCP Business School and the Norwegian School of Management BI • Bachelors in Maritime Business with Logistics from the University of Plymouth |  | Education • Business degree from Business college in Denmark |  | Education • Master of Science in Business and Economics from BI Norwegian Business School |
| Number of Shares held: 53 032 |  | Number of Shares held: 13 000 |  | Number of Shares held: 2 000 |  | Number of Shares held: 19 275 |  | Number of Shares held: 20 650 |  | Number of Shares held: 6 642 |

14.
Klaveness Combination Carriers ASA - Annual Report 2025
Board of Directors’ Report
2 LTIF per 1 million working hour. Lost Tim e Injuries (LTIs) are the sum of fatalities, permanent total disabilities, permanent partial disabilities and lost workday cases (injuries leading to loss of productive work time). In line with OCIMF (Oil Companies International Marine Forum).
3 SIF per 1 million working hours. Serious Injury or Fatality Incident (SIF)s are the incidents that has the potential, or actually does, result in a fatal or life-altering injury or illness.
4 EEOI (Energy Efficiency Operational Index) is defined by IMO and represents grams CO2 emitted per transported cargo per nautical mile.
5 Average TCE earnings $/day are an Alternative Performance Measure (APM) defined and reconciled in the excel sheet “APM4Q2025” published on the Company’s homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2025
report.
15.
Klaveness Combination Carriers ASA - Annual Report 2025
Key development 2025
2025 was a special year characterized by volatile freight markets and
heightened geopolitical, trade-policy, and regulatory uncertainty.
Against this backdrop, the Board is satisfied that Klaveness
Combination Carriers ASA (“KCC”, the “Company”, the “Group”)
continued to strengthen the operational and commercial foundations
of its combination carrier business model, while maintaining a
disciplined focus on safety, efficiency, and long-term value creation.
Overall TCE earnings and financial results were impacted by a
substantially weaker underlying product tanker market compared to
the historically strong market conditions experienced in 2024. Also, the
dry bulk market ended overall somewhat weaker than in 2024.
Following a difficult start to the year, the Group’s financial performance
improved through the second half of 2025. This improvement was
supported by more favorable market conditions, increased clarity
around regulatory developments and trade policies, and continued
optimization of trading and operations across both the CABU and
CLEANBU fleets. Average fleet TCE earnings for the year outperformed
the relevant dry bulk and product tanker spot markets, underlining the
value created through efficiency, flexibility, and diversification inherent
in the combination carrier concept.
The CABU fleet continued to trade efficiently in its core trades to/from
Australia supported by high caustic soda contract volumes, high trading
efficiency of 90% of on-hire days in combination trades throughout the
year, and a limited 13% of on-hire days in ballast.
The CLEANBU fleet experienced headwinds early in the year, driven
primarily by uncertainty related to trade tensions and, in particular, the
potential introduction of US port fees for Chinese-built vessels. As
market conditions strengthened and regulatory and trade-related
uncertainty diminished, TCE earnings improved through the year. KCC
progressed in the development of the CLEANBU business in 2025,
including an expanded customer base, additional concept approvals,
and a broader range of cargoes and trading patterns.
The health and safety of the Group’s seafarers and onshore personnel
remain KCC’s highest priority. The Lost Time Injury Frequency 2 (“LTIF”)
for 2025 was 0.6 as the fleet experienced two injuries. This is slightly
above the target of 0.5. The development is monitored and there is high
focus on safety and learning from inspections, incidents and safety
observations. The Group did not experience any serious incidents or
high-risk potential accidents (“SIF”) 3 during the year. Continued
emphasis was placed on experience sharing, both onshore and onboard
vessels, and on improving operational practices to further reduce the
risk of serious accidents.
Environmental performance remained an important focus area for the
Group. No oil spills were recorded in 2025 and KCC continued its efforts
to reduce emissions through improved trading efficiency, voyage
optimization, and investments in energy efficiency measures. Although
the fleet’s carbon intensity (“EEOI”) 4 of 6.1 did not meet the target of 5.8
for the year, it represents an improvement of 7.4% compared to 2024.
Following the sale of Klaveness Ship Management (“KSM”) from Torvald
Klaveness (the majority owner of KCC holding approximately 55% of the
shares) to OSM Thome, new ship management agreements between
KCC and the OSM Thome-owned KSM came into force on 1 January
2025. In connection with the sale, KCC’s organization was strengthened
by employing six technical project and commercial operation resources
to the KCC team that prior to the sale indirectly worked for KCC as part
of the KSM organization.
2026 priorities
Maintaining a strong safety performance continues to be priority
number one.
KCC is well positioned to deliver on its ambition to continue optimizing
the CABU business through growing its caustic soda solution (“CSS”)
market share to Australia and diversifying the CABU trade to new
regions. KCC has secured record-high caustic soda cargo bookings for
2026 and a contract to employ one of the 2001-built vessels for a 32-
months period in a CSS trade into Brazil. A milestone in 2026 will be the
delivery of three CABU newbuilds, which are strategically important for
supporting future growth, improving fleet efficiency and emissions
performance, and strengthening customer service. One main ambition
for the CLEANBU business is to expand trading East of Suez. Unlocking
regular East of Suez trade is important for the CLEANBU business in
terms of growth opportunities, flexibility, and reducing overall risk.
In parallel, KCC aims to solidify and further improve the current
profitable CLEANBU trading West of Suez where a majority part of the
fleet was trading in 2025. This is expected to grow the addressable
market for the CLEANBU business, supporting the potential to grow and
strengthen TCE earnings of the CLEANBU fleet over time .
KCC will maintain its persistent focus on carbon emission reductions.
Given the regulatory environment and customer sentiment, KCC’s
decarbonization strategy is to be a “Smart Leader” on decarbonization
focusing on improving trading and voyage efficiency and investing in
proven, innovative and profitable technologies.
KCC and Klaveness Ship Management (KSM) remain committed to
continuously improve safety and compliance standards across the fleet,
including maintain and improve SIRE vetting performance, port state
control performance and the RightShip DOC rating, avoid vessel
detentions and continue strengthening the onboard safety culture.
Fina ncial re sults
Average TCE earnings 5 of $26,278/day for the fleet in 2025 decreased
approximately $9,100/day/26% compared to 2024 ($35,368/day), while
net revenues from operation of vessels decreased by 25% from USD
191.9 million in 2024 to USD 144.4 million in 2025. The fleet had 68/1%
more on-hire days in 2025 mainly due to the dry-docking program.
Other income of USD 1.1 million in 2025 relates mainly to loss of hire
insurance.
Operating expenses decreased from USD 54.8 million in 2024 to USD
54.1 million in 2025 (-1%) mainly due to lower insurance and spare part
expenses, partly offset by higher crewing expenses. Administrative
expenses for 2025 of USD 11.5 million were up 2% from last year (USD
11.3 million).
EBITDA for 2025 decreased by 37% from USD 126.5 million in 2024 to
USD 79.8 million in 2025.Depreciation for 2025 increased by 14% and
ended at USD 34.7 million as a consequence of completed dry-dockings.
Net finance cost was USD 11.6 million, down by USD 3.1 million/-21%
mainly due to lower interest expenses on debt, positive foreign
exchange effects and capitalization of interest costs on newbuildings.
Profit for the year 2025 was USD 33.4 million, down from USD 81.4
million in 2024, a 59% decrease from a historic strong 2024.
Financial position
Total equity ended at USD 366.1 million at year-end 2025, slightly up
from year-end 2024 (USD 359.9 million). The development Y-o-Y is
mainly explained by profit after tax of USD 33.4 million, negative other
comprehensive income of USD 3.0 million, paid dividends of USD 18.1
million, and net negative effects from share buy back program
announced 13 December 2024 and employee share purchase of USD 6.2
million. The equity ratio ended at 55% per year-end, down from 58.8%
per year-end 2024 due to higher total assets, up from USD 612.2 million
per year-end 2024 to USD 665.3 million per year-end 2025 driven by
increased debt to fund the newbuilding program.
Total interest-bearing debt ended at USD 269.1 million at the end of
2025, up USD 44.7 million from year-end 2024, mainly due to funding of
the newbuildings.
6 Without consolidating shareholders that could be under common control
7 Average TCE earnings $/day are an Alternative Performance Measure (APM) defined and reconciled in the excel sheet “APM4Q2025” published on the Company’s homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2025
report.
8 Clarksons, MR (CABU) and LR1 (CLEANBU) tanker multiple calculated based on assumption of one-month advance cargo fixing/«lag»
16.
Klaveness Combination Carriers ASA - Annual Report 2025
Cash and cash equivalents ended at USD 49.7 million at year-end 2025
against USD 56.1 million as of 31 December 2024. Available long-term
liquidity (cash and cash equivalents and available capacity on long-
term revolving credit facilities) ended the year at USD 117.7 million,
down USD 53.4 million Y-o-Y.
Operating cash flow of USD 83.1 million and net change in interest-
bearing debt including interest- and transaction cost of USD 19.8
million were more than offset by cost of dry-dockings, energy efficiency
measures, and newbuilding costs of in total USD 84.8 million and
dividend payments and share buybacks of in total USD 24.7 million.
KCC, through subsidiaries, had per year-end 2025 USD 68.0 million
available and undrawn under a long-term revolving credit facility and
USD 8.0 million available and undrawn under a 364-days overdraft
facility.
Cash flow
Net cash flow from operating activities was USD 83.1 million in 2025
(2024: USD 136.1 million) mainly driven by EBITDA of USD 79.8 million,
net positive changes in working capital of USD 1.6 million and interest
received of USD 2.1 million. Net cash flow from investments was
negative USD 84.8 million (2024: negative USD 28.3 million) and relates
to dry dock costs for five CABU vessels and three CLEANBU vessels,
investments in technical upgrades and energy efficiency initiatives for
the fleet and capitalized expenses during the year for the three
newbuilds of USD 56.7 million. The cash flow from financing activities
was negative USD 4.7 million (2024: negative USD 119.7 million) mainly
due to dividend distribution of USD 18.1 million, share buybacks of USD
6.6 million, partly offset by total drawdown on debt net of transaction
costs related to refinancing and ordinary debt service of USD 19.8
million.
Dividends
KCC paid USD 18.1 million (2024: USD 78.6 million) in dividends to
shareholders in 2025, equal to USD 0.31 per share (2024: USD 1.30 per
share).
Financing and going concern
KCC’s capital commitments for the next 12 months are fully funded. The
refinancing risk is limited as no debt facilities fall due in 2026 except for
a USD 8 million overdraft facility that is renewed on an annual basis.
A USD 180 million bank facility partly financing the three CABU
newbuildings and refinancing the existing CABU bank facility was
signed on 29 September 2025.
The drawdown on the new loan tranche to refinance the existing CABU
facility was made on 10 October with a net positive cash effect of
approximately USD 10 million. Drawdown on the newbuilding tranches
will be made on delivery of the respective vessels in Q1-Q3 2026. The
newbuilding tranches of in total USD 120 million is a revolving credit
facility covering approximately 60% of delivered cost. The facility has a
20 years age-adjusted repayment profile, 6 years tenor and a margin of
180 bps.
The accounts are reported under the assumption of a going concern.
The Board considers the financial position of the Group at year-end
2025 to be solid and the liquidity to be satisfactory.
Current cash flow, existing and committed debt, and the liquidity
position for the Group are considered sufficient to cover all
commitments over the next 12 months. There have been no major
transactions or events following the closing date that would have a
negative impact on the evaluation of the financial position of Klaveness
Combination Carriers ASA.
Related parties’ transactions
KCC purchases business administration and commercial services
including but not limited to legal, accounting, HR and bunkering from
related parties in the Torvald Klaveness Group. All services are priced
on an arm’s-length basis and related party transactions and services are
included as a recurring item in most of the Audit Committee meetings.
The services are benchmarked on an annual basis and presented to the
Board of Directors annually. See note 19 to the Consolidated Financial
Statements for 2025 for more information on related party transactions.
Due to the sale of Klaveness Ship Management (KSM) from Torvald
Klaveness to OSM Thome effective from 1 January 2025, ship- and crew
management services are no longer related party services.
The parent company
The result for the parent company, Klaveness Combination Carriers
ASA, was a loss after tax of USD 8.3 million for 2025 (2024 profit USD
94.6 million). The loss is proposed covered by other equity.
The Board of Directors has proposed dividends of USD 4.7 million for Q4
2025 which has been booked as a provision in the accounts as per 31
December 2025.
Events after the balance sheet date
On 12 February 2026, the Company’s Board of Directors declared to pay
a cash dividend to the Company’s shareholders of in total USD 4.7
million for fourth quarter 2025 (USD 0.08 per share).
On 6 February 2026, the Group took delivery of the first of three CABU
vessels under construction in China. USD 32.9 million was paid to the
yard in connection with the delivery and a drawdown of USD 40 million
was made on a related bank debt facility.
Th e busines s
KCC’s ambition is to deliver attractive return to the investors through
“Redefining efficiency and sustainability in tanker and dry bulk
shipping.” Based on this, the Company has an ambition to grow its
business by further developing existing and establishing new
combination carrier concepts that fit with the Group’s business
platform. The Group had a fleet of 16 vessels in operation and three
newbuilds at order per year-end 2025. KCC’s registered business
address is Drammensveien 260, 0283 Oslo, Norway.
The shares are listed on Oslo Stock Exchange with ticker KCC. The 20
largest shareholders accounted for approximately 83% 6 of total shares
by year-end 2025, of which the largest shareholder is
Rederiaksjeselskapet Torvald Klaveness with an ownership of 54.7%.
CABU
By year-end 2025, the CABU combination carrier fleet consisted of eight
vessels employed in trades between Far East and Middle East to/from
Australia. In addition, the Group concluded in 2023 a shipbuilding
contract with Jiangsu New Yangzi Shipbuilding Co., Ltd in China, to
build three third generation CABU vessels with delivery in 2026.
CABU TCE earnings 7 decreased by approximately $5,000/day from 2024
to 2025 and ended at $27,700/day in 2025, 1.3 times higher than
average spot earnings for standard MR tankers as reported by brokers 8.
The CABU fleet continued to deliver industry-leading operational
efficiency with days in ballast accounting for a limited 13% of total on-
hire days and the share of days in main combination trades of 90% for
2025.
Caustic soda solution (CSS) contracts of affreightment (COAs) covered
the full wet capacity of the CABU fleet also for 2025. Approximately 3 0%
of the secured contract days for 2025 had fixed freight rates concluded
at strong levels in a historical perspective, although somewhat below
the 2024 level. The remaining 70% of contract days were covered by
index-linked contracts. For 2026 KCC has fixed a record number of CSS
cargoes into Australia, covering the full wet capacity of the CABU fleet
including the newbuildings to be delivered during the year, whereof
approximately 4 0% of the COA volume is fixed-rate and 60% index-
linked. KCC has also secured a CSS contract into Brazil, employing one
of the 2001-built vessels for a 32-month period up to end o f Q3 2028.
9 Source: Baltic Dry (All series lagged by one month to reflect advance cargo fixing)
10 Source: Klaveness Dry Bulk Research
11 Source: Shipping Intelligence Network and Clarkson's Securities; Average LR1 tanker earnings are MEG-Cont and MED-Japan triangulation; All series lagged by one month to reflect
advance cargo fixing)
12 Source: Kpler
13 Clarksons
17.
Klaveness Combination Carriers ASA - Annual Report 2025
Four CABU vessels were dry-docked during 2025, and one additional
vessel completed its dry-docking at the beginning of the year, resulting
in a total of 186 scheduled off-hire days. Two of the vessels completed
the installation of several energy efficiency measures including a retrofit
installation of a shaft generator and an air lubrication system.
Unscheduled off-hire ended at 25 days for 2025, slightly up from 19 days
in 2024.
CLEANBU
The eight CLEANBU vessels in operation service the petroleum and
petrochemical industries trading wet products, mainly Clean Petroleum
Products (CPP), and dry bulk products.
Average TCE earnings 5 for the CLEANBU fleet for 2025 ended at $24,897/
day for the year, down approximately $13,250/day from 2024. The TCE
earnings were impacted by weaker underlying markets and geopolitical
unrest. TCE earnings for the CLEANBU fleet were 1.1 times higher than
the average spot market for standard LR1 6 tanker vessels in 2025.
Number of CLEANBU customers and terminals accepting the vessels
continued to increase throughout 2025. The main trades in 2025 were
shipments of CPP from India to the US East Coast and from the US Gulf,
India and the Middle-East into South America, returning with sugar,
vegetable oils, or grains out of South America.
T he CLEANBU fleet maintained a high share of capacity allocated in wet
trades (58% in 2025 and 67% in 2024) to benefit from a still relatively
stronger product tanker market compared to the dry bulk market.
Trading efficiency improved for the year with share of days in
combination trading increasing from 70% in 2024 to 84% in 2025, and
days in ballast at 15 % in 2025 compared to 17 % in 2024.
Three CLEANBU vessels completed periodic dry-dock in 2025, with a
total of 131 scheduled off-hire days. One of the vessels completed the
installation of several energy efficiency measures including a retrofit
installation of a shaft generator and an air lubrication system. The fleet
had three unscheduled off-hire days in 2025.
Market developments and outlook
Earnings of KCC’s combination carriers are driven by the Panamax/
Kamsarmax dry bulk market, MR and LR1 product tanker markets, and
fuel markets.
Freight rates for shipment of dry bulk commodities and clean
petroleum products are highly volatile and cyclical. The demand for
global seaborne transportation depends on global economic growth,
and in particular, the development of the energy and commodities
markets.
Dry bulk market 9
Average spot TCE earnings for Panamax vessel (P5TC) were
approximately $12,900/day in 2025, down from approximately $14,700/
day in 2024.
The first half of the year was weak, driven by subdued grain and coal
activity and heightened uncertainty following the introduction of US
tariffs in April/May. The Panamax market strengthened into the second
half of the year. Chinese soybean imports from South America increased
in preparation for a full decoupling from US grain supply on the back of
trade tensions between China and the US, resulting in higher ton-mile
demand and limited available tonnage in the Atlantic. An unusually hot
summer in Asia lifted coal demand, while China curbed domestic coal
production to address oversupply and weak coal prices experienced in
the first half of the year, lifting demand for coal imports. China also
maintained record-high iron ore and bauxite imports lifted on Capesize
vessels, leaving a historically high share of coal trade to the Panamax
segment.
Several factors are expected to support the market into 2026. The South
American soybean harvest is expected to increase from last year’s
record. In addition, the US–China trade agreement is expected to
support a resumption of US soybean exports to China. Global iron ore
supply is set to expand, primarily driven by the ramp-up of the
Simandou project in Guinea and iron ore future prices indicate that
demand will absorb this additional supply, despite a more uncertain
outlook for the Chinese economy and possibly increasing trade barriers
affecting Chinese steel exports. China has also signalled that it will
maintain relatively subdued domestic coal production, supporting the
coal market balance.
The dry bulk fleet is expected to grow by around 3% in 2026, while the
Panamax segment is estimated to grow by 5-6%, reflecting limited
scrapping 10. However, the fleet is ageing which is likely to constrain
effective utilization.
Commodity availability is expected to increase in 2026, supporting
freight demand. The timing of demand growth remains uncertain, as
high commodity supply provides buyers with increased flexibility in
managing procurement. Elevated geopolitical risks may also impact
trade flows and market volatility. Overall, the market appears broadly
balanced, with a constructive outlook for 2026, although volatility is
expected to remain elevated.
Product tanker marke t 11
Average product tanker TCE earnings fell back significantly in 2025
compared to the previous year. MR and LR1 product tanker rates were
in average $20,700/day and $22,500/day respectively, compared to
$28,600/day and $35,600/day in 2024.
The product tanker market started the year on a weak note. In the first
half of 2025 clean tankers experienced lower demand and clean
product ton-miles declined by 7.6% in the first half of 2025 while clean
product volumes declined by 3.8%. Over the second half of 2025
demand improved markedly and year-over-year clean product ton-mile
ended the year down 4% while clean product volumes ended down
0.8% 12.
Several factors contributed to a volatile environment for product
tankers during the year. Rerouting of vessels from the Red Sea via the
Cape of Good Hope continued to give some support to ton-mile
demand but was partly offset by lower long-haul CPP shipment
volumes. Earnings spiked during the Twelve Day War as market
participants feared oil and product flows out of the Arabian Gulf would
be disrupted. The rate spike faded as tensions alleviated and ended in a
ceasefire. Ongoing attacks on Russian oil and refining infrastructure
reduced product exports, leading to a decline in Russian gasoil/diesel
imports to South America, which were replaced by supplies from the US
Gulf, MEG/India, and Asia.
On the supply side the product tanker fleet grew by an estimated 5.5%
in 2025 according to Clarksons. Whilst fleet growth was significant
compared to recent history, a strong crude tanker market incentivized
owners to trade in the crude market. CPP volumes carried by VLCC and
Suezmax vessels fell by around 16% year-over-year and the share of LR2
product tankers trading dirty increased from 46% in the start of 2025 to
54% in the start of 2026 13.
18.
Klaveness Combination Carriers ASA - Annual Report 2025
2026 started on a strong note with TCE earnings well above average
2025 levels. A combination of strong crude oil volumes, decent crack
spreads and growth in refinery runs suggest demand growth for
tankers. Risks to the outlook include accelerated fleet growth,
normalization of trading through the Red Sea and Suez Canal and a
possible resolution to the Russian war in Ukraine. On the supply side a
combination of strong crude trade and potential stricter sanctions
enforcement resulting in oil trade shifting from sanctioned to
“mainstream” tankers give downside protection for product tankers as
some coated tankers switch from clean to dirty trading and
cannibalization from uncoated tankers recedes.
Risk r eview and risk ma nagement
It is important for the Board of Directors that the right risk-reward
assessment is made and that internal control routines are sufficient.
The main risks related to KCC are discussed with the Audit Committee
and the Board of Directors several times each year including, when
relevant, risks related to specific projects. Risks are identified and
assessed based on a probability and impact matrix and mitigating
actions are outlined for the risks that have a risk scoring above or close
to the risk appetite. Risks related to technical operation of the vessels
and crew safety are assessed, monitored, and handled by the ship
manager, Klaveness Ship Management AS, with the support of KCC.
Below is a list of some of the principal risks KCC has identified that may
affect operations, financial position, reputation and, ultimately, the
share price, with focus on the next 12 months:
• Volatile freight rates and unfavorable changes in trade flows and
volumes, whether due to structural shifts or events such as
geopolitical conflicts and supply chain disruptions, continue to pose
a risk related mainly to revenues.
• Vintage vessels carry higher operational and technical risk,
potentially resulting in increased off-hire, higher costs, and negative
effects on customer relationships.
• Owning and operating vessel concepts that are not standard such as
the CLEANBUs entail commercial and technical risks, including but
not limited to establishing and maintaining trades and a brand in the
clean petroleum market, and obtaining acceptance and/or
exemptions from clients and terminals to operate in combination
trades where the vessels trade consecutively with dry bulk and clean
petroleum product cargoes.
• The Group is scheduled to take delivery of three newbuild vessels in
2026. These newbuilds carry initial technical and operational risk,
including potential challenges related to commissioning and
commercial phase-in.
• The Group is an early adopter of energy efficiency technology, and
success depends on cost-effective execution and performance
meeting expectations.
In a longer-term perspective, the current assessment includes, but is
not limited to, the following risks:
• Global economic growth and the impact on energy and commodity
markets.
• Geopolitical risk impacting global trade patterns and vessel
operations.
• Potential recycling of vessels as part of the fleet will turn 25 over the
next years.
• Uncertainty related to the competitiveness of key industries KCC are
dependent on, such as the Australian alumina industry.
• Access to capital to fund further development of the Group.
• Impact of artificial intelligence on customers, markets and
operations.
• Impact of a low-carbon future including emission regulations, zero-
emission vessels, and lower demand for transportation of fossil fuels.
A description of the main risks can be found in note 16 to the
consolidated financial statements for 2025. Identified impacts, risks and
opportunities for sustainability reporting is described in the
sustainability statement. The risk picture will change over time.
KCC has no exposure to Russia or Belarus and do not conduct any
business with companies owned or controlled by Russian or Belarusian
interests. Further, KCC has exempted all Russian ports, in addition to
the war zone in the Black Sea and does not transport cargoes
originating from Russia.
KCC decided in early January 2024 to not trade any vessels through the
Red Sea until the war-like situation in the area improves. The CABU s
have historically not traded in the area, while the CLEANBU s, have
transited through the Red Sea on occasion prior to 2024. The decision
to not transit had no or limited direct impact on KCC’s business
activities and financial performance in 2025. As of the date of this
report, KCC has not started to trade in or transit the Red Sea again.
During 2025, merchant vessels operating in the Arabian/Persian Gulf
and Gulf of Oman continued to face security risks from regional
tensions, including state-related interference, harassment, and seizure.
Reports included close approaches and monitoring by military and
paramilitary units. GPS interference and AIS spoofing also continued,
necessitating enhanced navigational awareness. While piracy levels in
the area remained below historic peaks, the overall security
environment required vigilance. KCC monitors the security situation in
the Middle-East following increased tension between the US and Iran.
Den Norske Krigsforsikring for Skib classified the hijack and kidnap-for-
ransom threat in the Western Indian Ocean as moderate throughout
2025, applicable to waters up to 600 nautical miles from the Somali
coast, following an upgrade from low to moderate in November 2024.
The security situation in the Singapore Strait worsened in 2025, with the
highest number of reported robberies in 19 years. The perpetrators
mainly target engine spares and stores, but their activities continue to
pose risks to crew safety and navigation.
KCC together with KSM take precautionary measures when trading in/
through exposed areas and no approaches or boarding attempts were
reported from KCC vessels in 2025.
Boa rd developm ent
The Board of Directors conducted eight meetings in 2025, whereof four
mainly related to quarterly reports, with an attendance of 100%. The
Audit Committee held five meetings. The Board of Directors consists of
five members, whereof two are women. There were no changes to the
Board of Directors in 2025. The Company’s Officers and Directors are
covered by Rederiaksjeselskapet Torvald Klaveness’ Commercial
Management Liability Insurance with AXA covering e.g. the Company’s
Officers' and Directors' acts, errors, and omissions on specified terms
and conditions, and with limitations.
The Board of Directors has established an annual plan prior to the start
of each year. It includes recurring topics such as strategy review,
business planning, risk and compliance oversight, health and safety and
financial and ESG reporting. High on the Board’s agenda in 2025 was
assessing KCC’s strategy and establishing an updated strategy for the
next 5-year period, continued optimization of both the CABU and the
CLEANBU businesses and assessment and handling of the geopolitical
situation.
19.
Klaveness Combination Carriers ASA - Annual Report 2025
Sustainability
Statement

General information | 20
Environmental information | 34
Social information | 60
Governance information | 77
Entity-specified topic: Cyber security | 83

20.
Klaveness Combination Carriers ASA - Annual Report 2025
General
information

ESRS 2 | Basis for preparation | 21
ESRS 2 | Sustainability governance | 22
ESRS 2 | Statement on due diligence | 23
ESRS 2 | Risk management and internal controls over sustainability reporting | 24
ESRS 2 | S trategy, business model and value chain | 25
ESRS 2 | ESG strategy | 26
ESRS 2 | Interest and views of stakeholders | 28
ESRS 2 | Double materiality assessment | 29
ESRS 2 | ESRS index | 31

21.
Klaveness Combination Carriers ASA - Annual Report 2025
ESRS 2
Basis for preparation
// ESRS 2, BP-1, BP-2
Our sustainability statement has been structured in preparation for
compliance with the Corporate Sustainability Reporting Directive
(“CSRD”) and the European Sustainability Reporting Standards
(“ESRS”). Given the amendments to CSRD and updated thresholds
agreed at 1,000 employees and EUR 450 million turnover, KCC is
excluded from future mandatory reporting. Our ambition going
forward will hence be voluntary reporting in line with the simplified
ESRS (set 2) when implemented into Norwegian law. The 2025
reporting builds on last year’s integrated annual report and reflects
our ambition to implement the applicable standards as
comprehensively as possible. The sustainability statement for 2025 has
not been audited, and not all required data points within each
disclosure requirement have been disclosed. KCC will continue to
assess and develop its disclosures in line with the full disclosure
requirements of the ESRS (set 2). We welcome the new standards and
we believe that they will strengthen the work related to sustainability
and ensure more transparent, balanced, and consistent reporting of
data with increased accountability.
The sustainability statement has been prepared on a consolidated
basis in line with the financial reporting. The consolidation of
information is prepared on a 100% basis, as all subsidiaries are directly
or indirectly wholly owned (see note 20 in consolidated financial
statements for detailed list of subsidiaries).
The information covered in the sustainability statement includes both
KCC’s own operations and, where considered material, its upstream
and downstream value chain. This includes consideration of impacts,
risks and opportunities that arise through direct and indirect business
relationships in the value chain: see further details in the section
“Strategy, business model and value chain”. Methodology and
assumptions for estimates used in calculation of GHG emissions are
further described as part of the E1 section. Metrics included in the
sustainability statement for 2025 are in line with 2024, except for waste
metrics in E5. Figures for 2024 are adjusted compared to KCC’s 2024
Annual Report, which were in some cases incorrect due to unit errors
(cubic metres reported as tons) during data aggregation.
Other metrics disclosed last year have not been revised or amended
this year. The 2025 reporting introduces new KPI’s for Biodiversity (see
section E4-5), including comparable figures for 2024.
KCC’s auditor, EY, has for 2025 provided an independent limited
assurance report on the environmental key performance indicators
(“KPIs”) and the Carbon Accounts (in line with the GHG Protocol). The
auditor’s report is included at the back of the Annual Report.
The EU Taxonomy regulation is tied directly to the CSRD
implementation in Norwegian law, hence not applicable to KCC for the
financial year 2025. KCC will evaluate whether to include the EU
Taxonomy disclosures in future reporting on a voluntary basis.
KCC has so far evaluated the first step which is to identify if the
Company’s activities are eligible according to the EU Taxonomy. KCC
owns and operates 16 combination carriers that all fall within the
category: “Sea and coastal freight water transport, vessels for port
operations and auxiliary activities”. 100% of KCC’s economic activity is
identified as eligible based on all three performance indicators:
revenue, operating expenses and capital expenditures. A next step
would be to assess if KCC’s activities are taxonomy aligned, i.e. if the
eligible activities meet the technical screening criteria.
As of 1 January 2025, KCC’s majority owner, Rederiaksjeselskapet
Torvald Klaveness, sold 100% of its shares in Klaveness Ship
Management AS (KSM) to OSM Thome. KSM provides ship
management and crewing services to KCC. Under the new ownership,
most of the existing team of experienced employees in KSM continue
to work exclusively for KCC. Part of the specialized crewing pool
(classed as non-employees under the S1 section) also remain
dedicated to the Klaveness Combination Carrier fleet, and the safety
management system and compliance documents have remained
unchanged through 2025. The change in ownership of KSM has not
resulted in any material changes for the sustainability statement in
2025 compared to last year’s reporting.
22.
Klaveness Combination Carriers ASA - Annual Report 2025
ESRS 2
Sustainability
governance
Sustainability governance model
The General Meeting
The supreme governing body of KCC where shareholders can exercise their rights. At the Annual General Meeting
shareholders consider the annual report, the remuneration report, the election of BoD members and the election of auditor,
changes to the Articles of Association as well as any other agenda items proposed by the Board of Directors or shareholders.
The authority of general meetings is set out in the Company’s Articles of Association available on the Company’s website.
// ESRS 2, GOV-1, GOV-2, GOV-3
Sustainability is an integral part of KCC’s overall strategy, and all
business activities, from daily operations to discussions and decisions
made at Board level. The Board of Directors ensures that appropriate
Board of Directors
Reviews, discusses with management, and approves the strategy, ambitions and business plans including sustainability
topics and management of impacts, risks and opportunities. The Board is updated on sustainability performance at least on a
quarterly basis.
goals and strategies are adopted, that the adopted strategies are
implemented in practice, and that the results achieved are measured
and followed-up. The Board of Directors (BOD) considers
sustainability-related issues when reviewing and guiding KCC’s
strategy and business plans, action plans, and major capital
expenditures.
A new five-year strategy plan for 2026-2030 was resolved by the Board
of Directors in December 2025 and will be reviewed and adjusted on an
Nomination Committee
Responsible for proposing members to the Board of
Directors and members of the Nomination Committee,
including to propose remuneration to members of the
Board and the Nomination Committee.
Audit Committee
Responsible for overseeing financial and non-financial
reporting as well as external audits, internal controls and
risk management relating to sustainability and receives
notice of whistleblower incidents.
annual basis going forward. The proposed 2026-2030 strategy builds
on the direction set out in 2021 and the updated overall mission of the
strategy period until 2030 is “Redefining efficiency and sustainability in
tanker and dry bulk shipping”.
Decarbonization remains a key pillar of KCC’s strategy and a central
driver of long-term value creation. KCC’s ambition is to be a “Smart
Leader” in decarbonization, continuing to pursue meaningful
CEO
Main responsible for developing and implementing the
strategy, ambitions and targets and oversee progress,
managing impacts, risks and opportunities and reporting
these to the Board of Directors.
CFO
Main responsible for matters related to governance,
including risk management review process, reporting, ESRS
as well as general compliance work.
emissions reductions through trading efficiency, proven energy-
efficiency measures, and selective use of alternative fuels, while
balancing environmental performance with financial discipline and
long-term competitiveness. While KCC’s overall decarbonization
ambitions remain high, evolving regulatory frameworks, market
conditions, and customer behaviour necessitated a reassessment of
certain targets. Updated short-term and long-term ambitions,
approved by the Board of Directors in December 2025, are further
described in the Climate Change section E1.
23.
Klaveness Combination Carriers ASA - Annual Report 2025
KPIs have been defined for material sustainability topics. Targets,
performance, and action plans are reviewed and reported to the
Executive Management team and to the Board of Directors with
sustainability topics assessed and monitored as part of the Company’s
overall risk review. This is discussed with the Audit Committee (AC) and
the Board of Directors several times every year.
The Board and the Audit Committee have increased their focus on
sustainability reporting through 2024 and 2025 and have been involved
in planning for compliance with CSRD, updates to the regulatory
development for simplifications in CSRD and progress on specific focus
areas for improvements in the 2025 reporting. The Board has
participated in CSRD training in 2024 and the Audit Committee has
discussed and reviewed the updated double materiality assessment
for 2025, including identified impacts, risks, and opportunities in the
value chain. The Audit Committee ensures that objectives, metrics, and
policies related to sustainability are appropriate, reported
transparently, and reviewed regularly in line with statutory
requirements.
The Company’s Corporate Governance policy addresses the framework
of guidelines and principles regulating the interaction between the
Company’s shareholders, the Board of Directors, the CEO, and the
Executive Management team. The policy is based on the Norwegian
Code of Practice for Corporate Governance: see separate Corporate
Governance Report 2025 for more information.
A presentation of all BoD members and their expertise and experience
can be found here and on the Company’s website. In appointing
members to the Board of Directors, it is emphasised that the Board
shall have the required competency to independently evaluate the
cases presented by the Executive Management team as well as the
Company's operation. It is also considered important that the Board
can function well as a body of colleagues and that they meet the
Company’s need for expertise and diversity. The Board currently
consists of five board members , whereof 40% women. Two out of five
(40%) of the Board Members are independent of the Company’s main
shareholders and the majority of the Board Members are independent
of the Company’s material business contacts and Executive
Management.
The Chair of the Board and one additional Board Member are
// ESRS 2 GOV-4
Statement on due
diligence
representatives of the majority shareholder (Rederiaksjeselskapet
Torvald Klaveness). The Chair of the Board, Ernst Meyer is not a senior
executive in the organization. He is the CEO of the majority
shareholder, Rederiaksjeselskapet Torvald Klaveness. The Chair of the
BoD is a member of the Business Ethics Committee that discusses
general business ethics issues and issues related to specific
counterparties.
The Board of Directors has access to the internal Decarbonization
courses by Klaveness Academy. These courses provide an overview of

a) Embedding due diligence in governance, strategy and business model |
Strategy, business model and value chain | 25-27
Sustainability governance | 22
Business conduct policies and corporate culture | 78-81
b) Engaging with affected stakeholders in all key steps of the due diligence |
Stakeholder engagement | 28
Employee survey | 64
Customer engagement | 28, 39
c) Identifying and assessing adverse impacts |
Double Materiality Assessment (DMA) | 29-30
Risk Matrix assessment for crew | 65
KYC procedures | 81
c) Tracking the effectiveness of these efforts and communication |
Employee engagement survey process | 64
KYC procedures | 81
Quarterly and annual reporting of progress (website) |

climate change, how shipping is contributing, and why this industry is
hard to decarbonize. They address key concepts in the energy
transition and relevant fuel alternatives, as well as details related to
different regulations, policies, and framework agreements targeting to
reduce greenhouse gas emissions from shipping, and how/when these
will affect the industry. The program is mandatory for the Board
Member representatives of Torvald Klaveness.
The Board has prepared a Remuneration Report for 2024 and
Remuneration Guidelines approved by the Company’s Annual General
Meeting in April 2023 which are published on the Company's website.
The Remuneration Report for 2025 will be published in line with
regulations and prior to the Annual General Meeting in April 2025. The
remuneration principles are designed to ensure responsible and
sustainable remuneration decisions that support the Company’s
business strategy and progress toward the achievement of goals, long-
term interests, profitability, sustainability, and long-term growth in
shareholder value. The discretionary part of the bonus for the CEO and
the CFO includes Company performance related to sustainability
matters such as health and safety of crew and vessels, and KCC's
decarbonization targets for the period through 2030.
24.
Klaveness Combination Carriers ASA - Annual Report 2025
ESRS 2</