Q2 2026 Klaveness Combination Carriers ASA Earnings Call Transcript
Key Points
- Strong financial performance with EBITDA of $38.5 million and profit after tax of $20.8 million, both up quarter-over-quarter.
- Fleet time charter earnings increased to $37,782 per day, in the upper half of guidance, driven by strong tanker and dry bulk markets.
- Successfully navigated Middle East disruptions, safely extracting the Banastar from the Gulf and maintaining high safety standards with no accidents or injuries.
- Expanded CABU fleet to 11 vessels with the delivery of newbuilds, including the Banastar, on time and on budget, enhancing competitiveness.
- Increased dividend to $0.30 per share, maintaining an unbroken dividend record since listing, with a high annualized yield of nearly 11%.
- Secured a new 28-36 month contract of affreightment for the Banastar, expanding the US Gulf-Brazil trade and ensuring solid free cash flow.
- Positive market outlook with expectations of strong product tanker and dry bulk markets, supported by high fuel prices, creating a 'sweet spot' for the company.
- Operational challenges from the Middle East conflict led to increased ballast days and reduced trading efficiency, impacting the EEOI.
- The Banastar was trapped in the Middle East for four months, incurring 109 days of off-hire in the first half, negatively affecting earnings.
- CABU fleet faced tight scheduling due to cargo cancellations and longer waiting times at Australian terminals, requiring ballast voyages and CLEANBU support.
- CLEANBU combination trading was limited to 42% of capacity, with long ballasts at 32%, reducing the efficiency of the combination trade model.
- Higher operating expenses for the existing fleet, partly due to one-offs related to Banastar and other items, increased costs.
- Net finance costs increased due to refinancing and higher debt from newbuilds, impacting profitability.
- Carbon intensity (EEOI) increased to 8 in Q2, above the 5.8 target, due to disruptions and lower cargo weight, with expectations of improvement only when trading patterns normalize.
(technical difficulty) -- Q2 2026 Financial Results Presentation. So first up on the agenda today will be CEO, Engebret Dahm, who will walk you through an overview of the results, followed by CFO and Deputy CEO, Liv Dyrnes, who will give you a look into the financials as well as the sustainability performance. And then Engebret will come back on to give you a look into the market as well as the outlook for KCC in the coming quarters. So as usual, we will have a dedicated Q&A session at the end of the presentation. So feel free to send through your questions on the chat button that you see on your screen.
So with that, let's go ahead and get started. Engebret, you're up.
Good morning, and thank you, Haley. So this quarter has been one of the most extraordinary and operationally challenging quarters for KCC. With what's happening in the Middle East, we have really tested the resilience of
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