Klaveness Combination Carriers

Quarterly Report • May 7, 2024

First Quarter 2024

HIGHLIGHTS

• EBT of USD 26.0 million and EBITDA of USD 37.6 million for Q1 2024
• All-time high Q1 TCE earnings (\$40,514/day)
• Highly efficient combination trading for the CABUs with ballast 8%
• Continued high share of CLEANBU capacity employed in tanker trades (75%)
• Increased carbon intensity (EEOI 6.9) driven by CLEANBU speed and less efficient trading
• Off-hire higher than expected mainly due to extended dry dockings
• KCC Board of Directors declares dividend of USD 0.35 per share (~USD 21.2 million in total)

"Our Q1 performance demonstrates both the high efficiency and high flexibility in KCC's business model. The CABUs delivered highly efficient operations with only 8% ballast and strong and stable earnings, while we utilized the flexibility of the CLEANBU fleet employing 75% of the CLEANBU capacity in tanker trades to take benefit of the remarkably strong tanker market."

- Engebret Dahm, CEO Klaveness Combination Carriers ASA

Average CABU TCE earnings (\$/day)1

Average CLEANBU TCE earnings (\$/day)1

Profit/(loss) after tax (MUSD)

¹ Average TCE earnings \$/day, Return On Capital Employed (ROCE) and Return On Equity (ROE) are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM1Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q1 2024 report.

> FINANCIAL PERFORMANCE

(USD '000)	Q1 2024	Q4 2023	Q1 2023	2023
Net revenues from vessel opera�ons	53 365	53 110	55 369	196 805
EBITDA	37 599	36 536	40 981	134 947
Profit/(loss) for the period	25 980	25 892	28 236	86 899
Earnings per share (USD)	0.43	0.43	0.54	1.52
Total assets	623 700	628 041	650 770	628 041
Equity	366 358	361 698	306 072	361 698
Equity ra�o1	59%	58%	47%	58%
ROCE annualised1	20%	19%	21%	17%
ROE annualised1	28%	29%	37%	24%
	Q1 2024	Q4 2023	Q1 2023	2023
Average TCE \$/day1	40 514	36 823	38 708	34 983
OPEX \$/day1	9 007	8 909	7 888	8 602
On-hire days	1 317	1 442	1 430	5 626
Off-hire days, scheduled	130	10	0	178
Off-hire days, unscheduled	9	19	10	37
% of days in combina�on trades2	80%	87%	81%	85%
U�lisa�on3	90%	95%	98%	95%

FIRST QUARTER

Net profit after tax for the first quarter ended at USD 26.0 million in line with previous quarter and down from USD 28.2 million in Q1 2023. EBITDA for the period ended at USD 37.6 million, slightly higher than Q4 2023. Less on-hire days was offset by stronger TCE rates for the fleet Q-o-Q.

Other income this quarter relates to insurance compensation from settled claims. Operating expenses were in line with last quarter, while service fee decreased by USD 0.5 million/-26% Q-o-Q mainly due to higher year-end provisions last quarter. Salaries, other administrative expenses and depreciations were in line with last quarter. Net finance cost increased by USD 0.9 million/29% Q-o-Q mainly due to negative FX effects.

CAPITAL AND FINANCING

Cash and cash equivalents ended at USD 60.0 million by the end of Q1 2024, a decrease of USD 8.0 million from year-end 2023. The decrease was mainly driven by repayments on a revolving credit facility in addition to the ordinary cash flow items such as EBITDA, working capital changes, dry docking CAPEX, debt service and dividends.

Total equity ended at USD 366.4 million, an increase of USD

4.7 million from year-end 2023. The Q-o-Q change was mainly driven by EBT of USD 26.0 million, partly offset by dividends of USD 21.2 million paid during the quarter. The equity ratio ended at 58.7% per end of Q1 2024, up from 57.5% at year-end 2023.

Interest-bearing debt was USD 230.4 million at the end of Q1 2024, down USD 16.6 million from year-end 2023 mainly due to ordinary debt repayments and lower drawdowns on revolving credit facilities. The Group had per end Q1 2024 USD 120.0 million available and undrawn under a long-term revolving credit facilities and USD 8.0 million available and undrawn under a 364-days overdraft facility, the latter falling due in December 2024.

EVENTS AFTER THE BALANCE SHEET DATE

In the Annual General Meeting on 23 April 2024, Marianne Møgster was appointed as a new board member for Klaveness Combination Carriers ASA. Marianne Møgster replaced Winifred Patricia Loum Johansen.

On 6 May 2024, the Company's Board of Directors declared to pay a cash dividend to the Company's shareholders of USD 0.35 per share for the first quarter 2024, in total approximately USD 21.2 million.

3 Utilisation = (Operating days less waiting time less off-hire days)/operating days.

¹ Alternative performance measures (APMs) are defined and reconciled in the excel sheet "APM1Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q1 2024 report.

² % of days in combination trades = number of days in combination trades as a percentage of total on-hire days. A combination trade starts with wet cargo (usually caustic soda or clean petroleum products), followed by a dry bulk cargo. A combination trade is one which a standard tanker or dry bulk vessel cannot perform. The KPI is a measure of KCC's ability to operate our combination carriers in trades with efficient and consecutive combination of wet and dry cargos versus trading as a standard tanker or dry bulk vessel. There are two exceptions to the main rule where the trade is a combination trade: Firstly, in some rare instances a tanker cargo is fixed instead of a dry bulk cargo out of the dry bulk exporting region where KCC usually transports dry bulk commodities. E.g., the vessel transports clean petroleum products to Argentina followed by a veg oil cargo instead of a grain cargo on the return leg. Secondly, triangulation trading which combines two tanker voyages followed by a dry bulk voyage with minimum ballast in between the three voyages (e.g., CPP Middle East-Far East +CPP Far East Australia +Dry bulk Australia-Middle East) are also considered combination trade.

> THE CABU BUSINESS

(USD '000)	Q1 2024	Q4 2023	Q1 2023	2023
Average TCE \$/day1	34 824	36 110	31 466	34 742
OPEX \$/day1	8 458	8 784	7 138	7 746
On-hire days	680	722	713	2 754
Off-hire days, scheduled	39	0	0	140
Off-hire days, unscheduled	9	14	7	26
% of days in combina�on trades2	96%	95%	95%	92%
Ballast days in % of total on-hire days4	8%	10%	11%	12%
U�lisa�on3	93%	95%	97%	93%

The CABUs delivered continued solid TCE earnings in Q1 2024 at average \$34,824/day. Compared to Q4 2023, TCE earnings decreased by approximately \$1,300/day mainly due to a slightly lower share of days in tanker trades this quarter. However, earnings were supported by positive effects from the strong product tanker spot market on the index-linked caustic soda contracts, representing 57% of wet days in the quarter.

Compared to same quarter last year, TCE earnings are up approximately \$3,400/day on the back of a substantially stronger dry bulk market compared to Q1 2023. The CABU fleet had 96% of on-hire days in combination trades in the quarter and record low ballast of 8%. TCE earnings for the CABU fleet were in line with the spot market for standard MR5 tankers in the first quarter (multiple 1.0).

Average operating expenses of \$8,458/day for the first quarter were down approximately \$330/day from the previous quarter and up approximately \$1,330/day compared to Q1 2023 mainly due to timing effects of procurement.

The CABU fleet had nine unscheduled off-hire days in Q1 2024 mainly due to additional maintenance on two vessels. One CABU vessel completed regular dry-docking in Q1 2024 with a total of 39 off-hire days, approximately 17 days longer than planned due to increased scope of work/steel renewal.

(USD '000)	Q1 2024	Q4 2023	Q1 2023	2023
Average TCE \$/day1	46 593	37 537	45 911	35 214
OPEX \$/day1	9 556	9 034	8 648	9 458
On-hire days	637	721	717	2 872
Off-hire days, scheduled	91	10	0	37
Off-hire days, unscheduled	0	5	3	11
% of days in combina�on trades2	61%	78%	68%	79%
Ballast days in % of total on-hire days4	23%	14%	18%	17%
U�lisa�on3	87%	98%	99%	97%

> THE CLEANBU BUSINESS

Average CLEANBU TCE earnings per on-hire day ended at \$46,593/day, an increase of approximately \$9,100/day from last quarter and down approximately \$680/day compared to Q1 2023. The increase from last quarter reflects mainly the buoyant product tanker market from mid-December last year following increased disruptions to transits through the Red Sea. A high share of the capacity continued to be employed in tanker trades (75% in Q1 2024, 78% in Q4 2023), while share of days in combination trades was down to 61% for Q1 2024 compared to 78% in Q4 2023. Percentage of days in ballast increased from 14% in Q4 2023 to 23% in Q1 2024 mainly due to two longer ballast voyages to position the vessels for tanker trades. Average TCE earnings for the CLEANBU fleet were in line with the spot market for standard LR15 tanker vessels in the first quarter (multiple 1.0).

Average operating expenses for the CLEANBU vessels ended at \$9,556/day, up approximately \$520/day from the previous quarter and up approximately \$910/day compared to the same quarter last year mainly due to timing effects on procurement and minor claims effects. OPEX per day for Q1 2024 were quite in line with the average for 2023.

The CLEANBU fleet had 91 scheduled off-hire days in Q1 2024 related to dry-docking of one vessel which experienced waiting time and longer off-hire due to unplanned repairs of a damage to the propeller shaft.

2 % of days in combination trades = see definition on page 2

¹ Alternative performance measures (APMs) are defined and reconciled in the excel sheet "APM1Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q1 2024 report.

³ Utilisation = (Operating days less waiting time less off-hire days)/operating days

⁴ Ballast in % of on-hire days = Number of days in ballast /number of on-hire days. Ballast days when the vessel is off-hire are not included.

⁵ Clarksons, MR (CABU) and LR1 (CLEANBU) tanker multiple calculated based on assumption of one-month advance cargo fixing/«lag»

> MARKET DEVELOPMENT

Average Market Rates with One Month Lag	Q1 2024	Q4 2023	Q1 2023	2023
P5TC dry bulk earning \$/day	15 400	15 000	11 000	12 600
Average MR Clean tanker earnings \$/day	34 200	28 000	37 900	31 500
Average LR1 tanker earning \$/day	49 000	36 300	51 400	39 100
Fuel price USD/mt	620	670	630	620

The average Panamax dry bulk earnings increased from ~\$15,000/day in Q4 2023 to ~\$15,400/day in Q1 2024 (one month lagged average). These earnings should be considered particularly strong as Q1 is usually the lowseason. The strong dry bulk market can largely be explained by high ton-mile demand lifting fleet utilization particularly for the Capesize segment where both Brazilian iron ore and Guinea bauxite exports posted very strong growth. The positive Capesize fundamentals also lifted the sentiment in the Panamax segment, which was further supported by continued disruption to both Suez and the Panama Canal and increased South American grain exports. The year-onyear nominal fleet growth at the end of Q1 2024 for the total dry bulk fleet was limited to ~2.9%2.

The product tanker market continued to strengthen from already elevated levels amid trade disruptions and underlying strong market balances. Average spot earnings were at strong levels with LR1 tanker earnings at approximately \$49,000/day and MR tankers at approximately \$34,200/day in Q1 2024, compared to \$36,300/day and \$28,000/day for the two segments in Q4 2023.

During January, earnings increased following the disruption in the Red Sea and the resulting increased ton-mile of routing vessels around the Cape of Good Hope. In the second half of the quarter, product tanker earnings fell back and continued to fall into the second quarter due to long tonnage lists and lackluster activity, according to Clarksons2. Nonetheless, product tanker earnings were still at healthy levels going into the second quarter.

Chinese caustic soda export prices increased compared to Q4 2023 due to higher domestic consumption after the Chinese New Year holiday. The Northeast Asian producers followed suit, and increased export prices in line with other parts of Asia. The US Gulf prices were more or less flat over first quarter 20243.

Brent crude oil prices strengthened from USD 77 per barrel at the end of December 2023 to USD 87 per barrel at the end of March 2024. Average fuel oil price (VLSFO) ended at USD 620/mt (one month lagged) in Q1 2024, a decrease of 7% Qo-Q.

1 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)

2 Clarksons Shipping Intelligence Weekly 12th of April 2024 3 Tecnon OrbiChem

> HEALTH, SAFETY AND ENVIRONMENT

Health and safety KPIs	Q1 2024	Q4 2023	Q1 2023	2023	TARGET
5 Lost Time Injury Frequency (LTIF)	0.0	0.0	0.0	0.0	<0.5
High-risk poten�al accidents	0	0	0	2	0
# of spills to the environment	0	0	0	0	0

KCC had zero Lost Time Injury Frequency, no High-risk potential accidents and no spills to the environment in Q1 2024. The High-risk potential accidents KPI is tracked with the purpose of putting focus on and learning from the potential accident to improve safety.

Environmental KPIs	Q1 2024	Q4 2023	Benchmark Q1	2023	TARGET 2026
CO2-emissions per ton transported cargo per nau�cal mile (EEOI) (grams CO2/(tons cargo x nau�cal miles))2,6	6.9	6.3	9.6	6.5	5.3
Average CO2 emission per vessel year (metric tons CO2/vessel-year)	20,200	18,200	n.a	18,700	16,900
% of days in combina�on trades	80%	87%	n.a	85%	85%
Ballast days in % of total on-hire days	15%	12%	35%	14%	10%

The carbon intensity of the KCC fleet increased Q-o-Q and compared to 2023. The CLEANBU fleet EEOI was up 17% Q-o-Q, outweighing the CABU fleet's 4% reduction from improved combination trading. Increased CLEANBU emissions intensity was driven by operation at higher speeds and increased ballast made to take benefit of the particularly strong tanker market in the quarter.

Excluding the vessels with the highest EEOI in the quarter, Bass and Bangus, EEOI stood at 6.3 for the quarter. Bass is out on time charter, employed solely in tanker trades, and Bangus carried out one long ballast journey in February, to take advantage of the strong tanker market.

Although EEOI reached 6.9 in Q1 2024, the variance between quarters is within the expected range, and the aim is still to reach the target of 6.4 for 2024 overall. By comparison, in 2023 EEOI also reached 6.9 in Q1 2023 and ended at 6.5 overall for the year.

The most important factor driving "Average CO2 emission per vessel year" is how much time vessels spend sailing at sea. Time at sea in percentage of total on-hire time increased from 58% in Q4 2023 to 64% in Q1 2024. This change alone would usually decrease EEOI but was outweighed by speed and ballast increases.

4 % of days in combination trades = see definition on page 2.

6 Benchmark: The EEOI and % ballast for "Benchmark standard vessels" are calculated based on standard vessels (Panamax/Kamsarmax dry bulk vessels, MR-tankers and LR1-tankers) making the same transportation work in the same trades as performed by KCC's CABU and CLEANBU vessels. The EEOI for "Benchmark standard vessels" is calculated as the weighted average of EEOI for the trades performed. There is a degree of uncertainty related to the benchmark values as these are estimated using data from Baltic Exchange and AXS Marine. From Q1 2024 onwards the calculation method for the EEOI has been revised by weighting it based on the transport work instead of the number of voyages in each trade. The change reduces the benchmark of around 0.5 gCO2/tNM in Q1 2024 compared to the previous method.

¹ LTIF per 1 million working hour. Lost Time 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)

² 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).

³ Average CO2 emissions per vessel = total CO2 emissions in metric tons/vessel years. Vessel years = days available – off-hire days at yard. When new vessels are delivered to the fleet, the vessel years are calculated from the date the vessel is delivered.

⁵ Ballast in % of on-hire days = Number of days in ballast /number of on-hire days. Ballast days when the vessel is off-hire are not included.

> OUTLOOK

Irrespective of how the situation in the Red Sea develops, the underlying strong market fundamentals are expected to support product tanker earnings going forward. Oil demand is expected to grow by ~0.9 mbd in 2024 and ~1.4 mbd in 20251, and product tanker demand is expected to outpace supply in 2024. 2025 looks more balanced as delivery of newbuilds will increase following higher ordering over the last year and the possible unwinding of Red Sea disruptions will reduce total ton-mile demand2. However, rates are still expected to be at healthy levels in 2025 compared to historical averages.

Moving forward, the very high Q1 year-on-year growth in dry bulk demand is expected to moderate for the balance of 2024. However, the market is expected to remain positive compared to 2023 levels. There has recently been an uptick in Panamax tonnage transits though Suez which likely will reduce the effect of canal disruption if persisting. Low effective fleet growth supports the market, while Chinese dry bulk demand growth remains the largest risk factor.

The wet capacity of the CABU fleet is close to fully booked for the remaining part of 2024. Approximately 60% of wet contract days are covered by index-linked contracts, while the remaining 40% are fixed-rate contracts. With a continued strong product tanker market into Q2 2024, the high share of index-linked contracts will likely be positive for the CABU TCE earnings in Q2 2024 as in Q1 2024. Based on a current 74% of the CABU days fixed and assuming forward freight pricing (FFA)3 for open days, the CABU TCE earnings guiding for Q2 2024 ends at strong \$36,00037,000/day. Expected number of CABU on-hire days in Q2 2024 are 692. One CABU vessel will dry-dock in Q2 with estimated around 33 days off-hire.

The strong start of the year in the product tanker market is expected to result in continued strong CLEANBU TCE earnings for Q2 2024, however somewhat down from Q1 2024. Based on current fixed days equal to 67% of fleet capacity and assuming forward freight pricing (FFA)3 for the open days, TCE earnings for the CLEANBU fleet in Q2 2024 are expected to end at \$37,500-40,500/day. Expected number of CLEANBU on-hire days are 673. Completion of the ongoing dry-docking of one CLEANBU vessel has been delayed into Q2 2024 with total estimated 54 days off-hire in the quarter for this vessel.

Due to the large earnings difference between the dry bulk and the product tanker markets, the CLEANBU fleet is expected to maintain a higher share in tanker trading at around 70% over the next quarters. One CLEANBU vessel is employed on time charter until February 2025, secured in early 2023.

The Red Sea situation and the high geopolitical tensions in the Middle East have to date had no direct financial impact on KCC as the vessels seldom trade through the Red Sea. The Middle East region is an important trading area for KCC and a potential escalation of the situation involving additional countries in the region might have negative financial and operational impact.

1 EIA STEO April 2024

3 Source: Klaveness and Baltic Exchange as of April 2024. KMAX dry bulk vessel = P5TC, MR tanker = TC7 TCE, LR1 tanker = TC5 TCE, VLSFO = VSLFO Singapore. Forward TC5/TC7 TCE based on TC5/TC7 FFA assessment and forward VLSFO price.

² Clarksons Research Oil and Tanker Trades Outlook March 2024

INCOME STATEMENT

	Unaudited		Audited
USD '000 Notes	Q1 2024	Q1 2023	2023
Freight revenue 3	60 715	75 181	247 542
Charter hire revenue 3	12 824	5 956	39 624
Total revenue, vessels	73 540	81 137	287 166
Voyage expenses	(20 174)	(25 768)	(90 362)
Net revenues from opera�on of vessels	53 365	55 369	196 805
Other income 3	278	-	-
Opera�ng expenses, vessels	(13 114)	(11 359)	(50 237)
Group commercial and administra�ve services 10	(1 355)	(1 163)	(5 403)
Salaries and social expenses	(1 158)	(1 156)	(4 086)
Tonnage tax	(37)	(41)	(198)
Other opera�ng and administra�ve expenses	(379)	(669)	(1 933)
Opera�ng profit before deprecia�on (EBITDA)	37 599	40 981	134 947
Deprecia�on 4	(7 514)	(8 502)	(31 842)
Opera�ng profit a�er deprecia�on (EBIT)	30 085	32 479	103 105
Finance income 7	906	1 845	7 533
Finance costs 7	(5 011)	(6 087)	(23 739)
Profit before tax (EBT)	25 980	28 236	86 899
Income tax expenses	-	-	-
Profit a�er tax	25 980	28 236	86 899
A�ributable to:
Equity holders of the Parent Company	25 980	28 236	86 899
Total	25 980	28 236	86 899
Earnings per Share (EPS):
Basic earnings per share	0.43	0.54	1.52
Diluted earnings per share	0.43	0.54	1.52

STATEMENT OF COMPREHENSIVE INCOME

	Audited
Q1 2024	Q1 2023	2023
25 980	28 236	86 899
(4 459)	(5 193)	2 100
3 551	3 679	(6 044)
380	(1 601)	(2 245)
372	(101)	126
-	120	247
(155)	(3 096)	(5 816)
25 824	25 141	81 083
25 824	25 141	81 083
25 824	25 141	81 083
		Unaudited

STATEMENT OF FINANCIAL POSITION

ASSETS	Unaudited	Audited
USD '000 Notes	31 Mar 2024	31 Dec 2023
Non-current assets
Vessels	4 493 705	497 072
Newbuilding contracts	5 17 948	17 591
Long-term financial assets	6 4 783	6 325
Long-term receivables	105	107
Total non-current assets	516 542	521 095
Current assets
Short-term financial assets	6 2 105	1 699
Inventories	13 408	12 123
Trade receivables and other current assets	31 522	24 942
Short-term receivables from related par�es	80	110
Cash and cash equivalents	60 044	68 071
Total current assets	107 158	106 947
TOTAL ASSETS	623 700	628 041
EQUITY AND LIABILITIES	Unaudited	Audited
USD '000 Notes	31 Mar 2024	31 Dec 2023
Equity
Share capital	6 977	6 977
Share premium	202 852	202 852
Other reserves	10 564	10 722
Retained earnings	8 145 965	141 147
Total equity	366 358	361 698
Non-current liabili�es
Mortgage debt	6 141 760	154 835
Long-term financial liabili�es	6 3 072	657
Long-term bond loan	6 45 766	66 897
Total non-current liabili�es	190 598	222 388
Current liabili�es
Short-term mortgage debt	6 25 199	25 199
Short-term financial liabili�es	6 501	328
Short-term bond loan	6 17 655	-
Trade and other payables	22 193	17 052
Short-term debt to related par�es	1 143	1 179
Tax liabili�es	53	196
Total current liabili�es	66 744	43 954
TOTAL EQUITY AND LIABILITIES	623 700	628 041

The Board of Directors of

Klaveness Combination Carriers ASA

Oslo, 6 May 2024

Ernst Meyer

Gøran Andreassen

Magne Øvreås

Chair of the Board

Board member

Board member

Marianne Møgster

Board member

Brita Eilertsen

Engebret Dahm

CEO

Board member

STATEMENT OF CHANGES IN EQUITY

Attributable to equity holders of the parent

Unaudited		Other			Cost of
USD '000	Share capital	paid in capital	Treasury Shares	Hedging reserve	hedging reserve	Retained earnings	Total
Equity 1 January 2024	6 977	202 852	(97)	11 533	(714)	141 147	361 698
Profit (loss) for the period	-	-	-	-	-	25 980	25 980
Other comprehensive income for the period	-	-	-	(155)	-	-	(155)
Dividends	-	-	-	-	-	(21 160)	(21 160)
Equity at 31 March 2024	6 977	202 852	(97)	11 375	(714)	145 965	366 358

Unaudited

		Other			Cost of
USD '000	Share capital	paid in capital	Treasury Shares	Hedging reserve	hedging reserve	Retained earnings	Total
Equity 1 January 2023	6 235	153 732	(147)	17 352	(714)	121 087	297 545
Profit (loss) for the period	-	-	-	-	-	28 236	28 236
Other comprehensive income for the period	-	-	-	(3 096)	-	-	(3 096)
Dividends	-	-	-	-	-	(15 712)	(15 712)
Equity at 31 March 2023	6 235	153 732	(147)	14 255	(714)	133 610	306 972

Audited

		Other			Cost of
	Share	paid in	Treasury	Hedging	hedging	Retained
USD '000	capital	capital	Shares	reserve	reserve	earnings	Total
Equity 1 January 2023	6 235	153 732	(147)	17 352	(714)	121 087	297 545
Profit (loss) for the period	-	-	-	-	-	86 899	86 899
Other comprehensive income for the period	-	-	-	(5 816)	-	-	(5 816)
Private placement May 2023 (note 8)	721	48 619	-	-	-	-	49 340
Warrants (note 8)	21	480	-	-	-	-	501
Employee share purchase (note 8)	-	21	50	-	-	-	71
Share op�ons granted through LTIP	-	-	-	-	-	(2)	(2)
Dividends	-	-	-	-	-	(66 836)	(66 836)
Equity at 31 December 2023	6 977	202 852	(97)	11 533	(714)	141 147	361 698

STATEMENT OF CASH FLOWS

	Unaudited	Audited
USD '000 Notes	Q1 2024	Q1 2023	2023
Profit before tax	25 980	28 236	86 899
Tonnage tax expensed	37	41	198
Deprecia�on 4	7 514	8 502	31 842
Amor�za�on of upfront fees bank loans	288	385	1 784
Financial deriva�ves loss / gain (-) 6	331	60	18
Gain /loss on foreign exchange 7	59	(76)	169
Interest income 7	(901)	(1 769)	(7 246)
Interest expenses 7	4 329	5 643	21 481
Change in current assets	(7 833)	(1 756)	11 985
Change in current liabili�es	5 072	2 251	(2 539)
Collateral paid/received on cleared deriva�ves 6	(388)	120	(186)
Interest received 7	901	1 769	4 593
A: Net cash flow from opera�ng ac�vi�es	35 388	43 407	148 999
Acquisi�on of tangible assets 4	(4 148)	(3 163)	(12 843)
Installments and other cost on newbuilding contracts 5	(357)	-	(17 591)
B: Net cash flow from investment ac�vi�es	(4 505)	(3 163)	(30 434)
Paid in registered capital increase 8	-	-	49 828
Transac�on costs on capital increase	-	-	(1 093)
Paid in long term incen�ve plan 8	-	-	27
Paid in from exercise of warrants	-	-	501
Transac�on costs on issuance of debt 6	-	-	(2 303)
Repayment of mortgage debt 6	(13 300)	(5 539)	(164 033)
Drawdown of mortgage debt 6	-	-	95 000
Repurchase bond incl premium (KCC04)	-	-	(55 478)
Proceeds from new bond issue (KCC05)	-	-	47 112
Interest paid 7	(4 450)	(5 766)	(21 905)
Termina�on of interest rate deriva�ves 6	-	-	4 001
Dividends	(21 160)	(15 712)	(66 836)
C: Net cash flow from financing ac�vi�es	(38 910)	(27 017)	(115 179)
Net change in liquidity in the period	(8 027)	13 227	3 386
Cash and cash equivalents at beginning of period	68 071	64 685	64 685
Cash and cash equivalents at end of period	60 044	77 912	68 071
Net change in cash and cash equivalents in the period	(8 027)	13 227	3 386
Cash and cash equivalents	60 044	79 335	68 071
Other interest bearing liabili�es (overdra� facility)	-	1 423	-
Cash and cash equivalents (as presented in cash flow statement)	60 044	77 912	68 071

NOTES

01	Accoun�ng policies
02	Segment repor�ng
03	Revenue from contracts with customers
04	Vessels
05	Newbuildings
06	Financial assets and liabili�es
07	Financial items
08	Share capital, shareholders and dividends
09	Salaries
10	Transac�ons with related par�es
11	Events a�er the balance sheet date

NOTE 1- ACCOUNTING POLICIES

Corporate information

Klaveness Combination Carriers ASA ("Parent Company"/"the Company"/"KCC") is a public limited liability company domiciled and incorporated in Norway. The share is listed on Oslo Stock Exchange with ticker KCC. The consolidated interim accounts include the Parent Company and its subsidiaries (referred to collectively as "the Group").

The objectives of the Group are to provide transportation for dry bulk, chemical and product tanker clients, as well as to develop new investment and acquire assets that fit the Group's existing business platform. The Group has eight CABU vessels (see note 4) with capacity to transport caustic soda solution (CSS), floating fertilizer (UAN) and molasses as well as all dry bulk commodities, and three CABU vessels under construction. Further, the Group has eight CLEANBU vessels. The CLEANBUs are both full-fledged LR1 product tankers and Kamsarmax dry bulk vessels.

Accounting policies

The interim condensed financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed financial statements of the Group should be read in conjunction with the audited consolidated financial statements for the year ended 31 December 2023, which have been prepared in accordance with IFRS Accounting Standards, as adopted by the European Union.

Tax

The Group has subsidiaries in various tax jurisdictions, including ordinary and tonnage tax regimes in Norway and ordinary taxation in Singapore. Income from international shipping operations is tax exempt under the Norwegian tax regime, while financing costs are partly deductible. As such, the Group does not incur material tax expenses.

New accounting standards

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the annual consolidated financial statements of the year ended 31 December 2023 except for the adoption of any new accounting standards or amendments with effective date after 1 January 2024. There was no material impact of new accounting standards or amendments adopted in the period.

NOTE 2- SEGMENTS REPORTING

Opera�ng income and opera�ng expenses per

segment		Q1 2024			Q1 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Opera�ng revenue, vessels	36 805	36 735	73 540	36 275	44 863	81 137
Voyage expenses	(13 112)	(7 064)	(20 174)	(13 830)	(11 938)	(25 768)
Net opera�ng revenues from opera�ons of vessels	23 693	29 671	53 365	22 445	32 924	55 369
Other income	278	-	278	-	-	-
Opera�ng expenses, vessels	(6 157)	(6 957)	(13 114)	(5 132)	(6 227)	(11 359)
Group administra�ve services	(636)	(719)	(1 355)	(526)	(638)	(1 163)
Salaries and social expense	(544)	(615)	(1 158)	(522)	(634)	(1 156)
Tonnage tax	(24)	(14)	(37)	(20)	(20)	(41)
Other opera�ng and adm expenses	(178)	(201)	(379)	(302)	(367)	(669)
Opera�ng profit before deprecia�on (EBITDA)	16 432	21 166	37 599	15 942	25 039	40 981
Deprecia�on	(3 605)	(3 909)	(7 514)	(3 319)	(5 183)	(8 502)
Opera�ng profit a�er deprecia�on (EBIT)	12 827	17 257	30 085	12 623	19 856	32 478

Reconcilia�on of average revenue per on-hire day

(TCE earnings \$/day)	Q1 2024			Q1 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Net revenues from opera�ons of vessels	23 693	29 671	53 365	22 445	32 924	55 369
On-hire days	680	637	1 317	713	717	1 430
Average TCE earnings (\$/day)	34 824	46 593	40 514	31 466	45 911	38 708

Reconcilia�on of opex \$/day	Q1 2024			Q1 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Opera�ng expenses, vessels	6 157	6 957	13 114	5 132	6 227	11 359
Opera�ng days	728	728	1 456	720	720	1 440
Opex \$/day	8 458	9 556	9 007	7 128	8 649	7 888

NOTE 2- SEGMENTS REPORTING CONT.

Opera�ng income and opera�ng expenses per

segment			2023
USD '000	CABU	CLEANBU	Total
Opera�ng revenue, vessels	145 785	141 380	287 166
Voyage expenses	(50 120)	(40 242)	(90 362)
Net revenues	95 665	101 139	196 805
Opera�ng expenses, vessels	(22 618)	(27 618)	(50 237)
Group administra�ve services	(2 433)	(2 970)	(5 403)
Salaries and social expense	(1 840)	(2 246)	(4 086)
Tonnage tax	(100)	(98)	(198)
Other opera�ng and adm expenses	(870)	(1 063)	(1 933)
Opera�ng profit before deprecia�on (EBITDA)	67 804	67 142	134 947
Deprecia�on	(13 476)	(18 366)	(31 842)
Opera�ng profit a�er deprecia�on (EBIT)	54 328	48 776	103 105

Reconcilia�on of average revenue per on-hire day

(TCE earnings \$/day)			2023
USD '000	CABU	CLEANBU	Total
Net revenues from opera�ons of vessels	95 665	101 139	196 805
On-hire days	2 754	2 872	5 626
Average TCE earnings per on-hire day (\$/day)	34 742	35 214	34 983

Reconcilia�on of opex \$/day			2023
USD '000	CABU	CLEANBU	Total
Opera�ng expenses, vessels	22 618	27 618	50 237
Opera�ng days	2 920	2 920	5 840
Opex (\$/day)	7 746	9 458	8 602

NOTE 3- REVENUE AND OTHER INCOME

Revenue types

USD '000	Classifica�on	Q1 2024	Q1 2023	2023
Revenue from COA contracts	Freight revenue	35 760	37 923	138 880
Revenue from spot voyages	Freight revenue	24 955	37 259	108 662
Revenue from TC contracts	Charter hire revenue	12 824	5 956	39 624
Total revenue, vessels		73 539	81 137	287 166

Other income

USD '000	Classifica�on	Q1 2024	Q1 2023	2023
Other income	Other income	278	-	-
Total other income		278	-	-

Other income of USD 0.3 million in Q1 2024 consists of compensation from loss of hire insurance.

NOTE 4- VESSELS

Vessels

USD '000	31 Mar 2024	31 Dec 2023
Cost price 1.1	755 564	742 721
Dry Docking	2 623	4 959
Energy efficiency upgrade	1 185	7 566
Technical upgrade	339	319
Costprice end of period	759 712	755 564
Acc. deprecia�on 1.1	258 492	226 650
Deprecia�on vessels	7 514	31 842
Acc. deprecia�on end of period	266 007	258 492
Carrying amounts end of period*	493 705	497 072
*) carrying value of vessels includes dry-docking
No. of vessels	16	16
Useful life (vessels)	25	25
Useful life (dry docking)	2 -3	2 -3
Deprecia�on schedule	Straight-line	Straight-line

ADDITIONS

One CABU vessel completed dry dock in Q1 2024 and one CLEANBU vessel will complete dry dock in Q2 2024. Total costs of USD 2.6 million for these dry docks were recognized in Q1 2024. Technical upgrades of USD 0.3 million and energy efficiency upgrades of USD 1.2 million are related to general improvement of the technical performance of the vessels and energy efficiency initiatives, the latter deducted by grants from ENOVA. KCC has secured in total approximately USD 1.4 million in grants from ENOVA to finance investments in energy saving solutions for one CABU vessel and one CLEANBU vessel, of which USD 1.2 million is capitalized YTD Q1 2024.

IMPAIRMENT

Identification of impairment indicators are based on an assessment of development in market rates (dry bulk, MR tanker, LR1 tanker and fuel), TCE earnings for the fleet, vessel opex, operating profit, technological development, change in regulations, interest rates and discount rate. Rises in interest rates in isolation, increase the discount rate used in the calculation of recoverable amount. As previous sensitivity analysis of recoverable amount shows that the decrease in recoverable amount is unlikely to result in a material impairment loss, as per IAS 36.16, this has not been considered an impairment indicator. Expected future TCE earnings for both CABUs and CLEANBUs, diversified market exposure, development in secondhand prices and the combination carriers' trading flexibility support the conclusion of no impairment indicators identified as per 31 March 2024.

1 ENOVA = A Norwegian government enterprise responsible for promotion of environmentally friendly production and consumption of energy

NOTE 5- NEWBUILDINGS

(USD '000)	31 Mar 2024	31 Dec 2023
Cost 1.1	17 591	-
Yard installments paid	-	17 205
Other capitalized cost	357	386
Net carrying amount	17 948	17 591

The Group had per 31 March 2024 three CABU combination carrier newbuilds on order at Jiangsu New Yangzi Shipbuilding Co., Ltd in China. The contract price is USD 56.7 million per vessel and estimated delivery costs are approximately USD 60 million per vessel. The expected delivery of the vessels is Q1-Q3 2026.

Installments of USD 17.2 million were paid as of first quarter 2024. The newbuilds are partly financed through equity raised in 2023 and cash on the balance sheet, and there were no borrowings related to the newbuilds as of 31 March 2024. Project fees of USD 0.4 million were capitalized during the first quarter 2024.

NOTE 6- FINANCIAL ASSETS AND LIABILITIES

In January 2024, a subsidiary of KCC repaid USD 7 million under a revolving credit facility.

USD '000

Mortgage debt	Descrip�on	Interest rate	Maturity	Carrying amount
DNB/SEB/SRB/SPV Facility**	Term Loan/RCF, USD 190 million	Term SOFR + 2.1 %	June 2028	85 277
Nordea/Credit Agricole Facility*	Term Loan/RCF, USD 60 million	Term SOFR + 2.25 %	March 2027	24 412
Nordea/ Danske Facility/*	Term Loan, USD 80 million	Term SOFR + CAS + 2.1 %	December 2026	60 411
Capitalized loan fees				(3 141)
Mortgage debt 31 March 2024				166 959

The Group has available undrawn long-term revolving credit facilities of USD 120 million and USD 8 million available capacity under a 364-days overdraft facility.

USD'000	Face value		Carrying Amount
Bond loan	NOK'000	Maturity	31 Mar 2024
KCC04	700 000	11.02.2025	76 390
Realized exchange rate gain at buyback			(7 208)
Buyback KCC04 (Q3 2023)	(508 500)		(54 978)
Exchange rate adjustment			3 583
Capitalized expenses			(69)
Bond discount			(63)
Sum KCC04	191 500		17 655
KCC05	500 000	05.09.2028	46 971
Exchange rate adjustment			(532)
Capitalized expenses			(673)
Sum KCC05	500 000		45 766
Total bond loan	691 500		63 420

KCC04 matures in February 2024 and is reclassified to short term liabilities in Q1 2024.

As per 31 March 2024, USD 71k of the Group's total cash balance was classified as restricted cash. The restricted cash consists of employee tax withholding.

The Group is subject to certain financial covenants and other undertakings in financing arrangements. As per 31 March 2024 the Group was in compliance with all financial covenants. For further details on covenants please see the 2023 Annual Report.

NOTE 6- FINANCIAL ASSETS AND LIABILITIES CONT.

USD '000	Fair value	Carrying amount	Carrying amount
Interest bearing liabili�es	31 Mar 2024	31 Mar 2024	31 Dec 2023
Mortgage debt	144 902	144 902	158 201
Capitalized loan fees	-	(3 141)	(3 367)
Bond loan	47 369	46 439	67 777
Bond discount	-	-	(82)
Capitalized expenses bond loan	-	(673)	(797)
Total non-current interest bearing liabil�es	192 270	187 526	221 732
Mortgage debt, current	25 199	25 199	25 199
Bond loan	18 118	17 787	-
Bond discount	-	(63)	-
Capitalized expenses bond loan	-	(69)	-
Overdra� facility (Secured)	-	-	-
Total interest bearing liabili�es	235 587	230 380	246 931

USD '000

Financial assets	31 Mar 2024	31 Dec 2023
Financial instruments at fair value through OCI
Cross-currency interest rate swap	414	1 891
Interest rate swaps	6 474	5 762
Fuel Hedge	-	87
Financial instruments at fair value through P&L
Forward currency contracts	-	285
Financial assets	6 888	8 024
Current	2 105	1 699
Non-current	4 783	6 325

USD '000

Financial liabili�es	31 Mar 2024	31 Dec 2023
Financial instruments at fair value through OCI
Cross-currency interest rate swap	3 553	985
Forward currency contracts	20	-
Financial liabili�es	3 573	985
Current	501	328
Non-current	3 072	657

NOTE 7- FINANCIAL ITEMS

USD' 000

Finance income	Q1 2024	Q1 2023	2023
Other interest income	901	1 769	4 594
Gain on currency contracts	5	-	285
Gain on terminated cross-currency swaps	-	-	2 652
Other financial income	-	-	1
Gain on foreign exchange	-	76	-
Finance income	906	1 845	7 533

USD' 000

Finance cost	Q1 2024	Q1 2023	2023
Interest expenses mortgage debt	2 598	4 240	13 590
Interest expenses bond loan	1 450	1 361	5 756
Amor�za�on capitalized fees on loans	288	385	1 784
Other financial expenses	281	41	2 135
Loss on currency contracts	336	-	-
Fair value changes interest rate swaps	-	60	303
Loss on foreign exchange	59	-	169
Finance cost	5 011	6 087	23 739

Other financial expenses of USD 2.1 million in 2023, include premium paid on the repurchase of KCC04 of USD 1.9 million. Loss on currency contracts of USD 0.3 million relates to USD/NOK futures maturing in 2024. In Q1 other interest income from hedged swaps are reclassified to interest expense mortgage debt and interest expenses bond loan. The reclassification has no net effect on the Profit and Loss.

NOTE 8 – SHARE CAPITAL, SHAREHOLDERS AND DIVIDENDS

Dividends of USD 21.2 million were paid to the shareholders in March 2024 (USD 0.35 per share).

	Q1 2024	Q1 2023	2023
Weighted average number of ordinary shares for basic EPS	60 431 653	52 331 922	56 996 430
Share op�ons (note 9)	40 500	26 700	43 717
Warrants	-	229 088	155 255
Weighted average number of ordinary shares for the effect of dilu�on	60 472 153	52 587 710	57 195 402

NOTE 9 - SALARIES

The Board proposed a Long-Term Incentive Plan (LTIP) that was approved by the General Meeting in April 2023. Details on options granted and fair value calculation are described in Annual report 2023, note 17, published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations. All options under the LTIP approved in 2019 were exercised in 2023.

The following table summarizes the option activity as per 31 March 2024:

	Average exercise price	2024	2023
Opening balance beginning of period		40 500	65 280
Granted during the year	NOK 69.5	-	40 500
Exercised during the year		-	(65 280)
Forfeited during the year		-	-
Expired during the year		-	-
Closing balance end of period		40 500	40 500

The fair value of the share options granted is calculated to USD 119k, i.e. USD 1.91 per share option. A cost of USD 8k has been recognized as salaries in first quarter 2024.

NOTE 10 – TRANSACTIONS WITH RELATED PARTIES

Type of services/transac�ons	Provider1	Price method	Q1 2024	Q1 2023	2023
Business adm. services	KAS	Cost + 5%	564	371	1 944
Business adm. services	KA Ltd	Cost + 5%	16	46	139
Business adm. services	KD	Priced as other Cargovalue services	3	-	5
Commercial services*	KAD	Cost + 7.5%	71	-	381
Commercial services	KDB	Cost + 7.5%	57	77	293
Commercial services	KSM	Cost + 7.5%	248	201	990
Board member fee	KD	Fixed fee as per annual general mee�ng	(6)	-	(24)
Project management	KSM	Cost + 7.5%	402	469	1 674
Total group commercial and administra�ve services		1 355	1 163	5 403

Some bunker purchases are done through AS Klaveness Chartering which holds the bunker contracts with suppliers in some regions. No profit margin is added to the transactions, but a service fee is charged based on time spent (cost +7.5%) by the bunkering team in KDB and charged as part of the commercial services from KDB.

*Two employees were transferred from Singapore to Dubai from 1 August 2023. KCC does not have set-up in Dubai and the employees have hence been transferred from a KCC company to a related company in the Torvald Klaveness Group and are hired back by a KCC company at cost + 7.5%. The amount includes salary and employee bonus.

USD' 000

Type of services/transac�ons	Provider1	Price method	Q1 2024	Q1 2023	2023
Technical mngmnt fee (opex)	KSM	Fixed fee per vessel	1 053	1 002	4 117
Crewing and IT fee (opex)	KSM	Fixed fee per vessel	425	363	1 496
Board member fee (administra�ve expenses)	KAS	Fixed fee as per annual general mee�ng	20	20	80
Total other services/ transac�ons			1 498	1 386	5 693

1 Klavness AS (KAS), Klavness Ship Management S (KSM), Klavness Asia Pte.Ltd (KA Ltd), Klavness Dry Bulk AS (KDB), AS Klavness Chartering (KC), Klaveness Asia Pte. Ltd – Dubai Branch (KAD), Klaveness Digital AS (KD)

NOTE 11 – EVENTS AFTER THE BALANCE SHEET DATE

On 6 May 2024, the Company's Board of Directors declared to pay a cash dividend to the Company's shareholders of USD 0.35 per share for first quarter 2024, in total approximately USD 21.2 million.

In the General Meeting on 23 April 2024, Marianne Møgster was appointed as a new board member for Klaveness Combination Carriers ASA. Marianne Møgster replaced Winifred Patricia Johansen.

There are no other events after the balance sheet date that have material effect on the Financial Statement as of 31 March 2024.