Klaveness Combination Carriers

Earnings Release • Oct 30, 2024

Third Quarter 2024

HIGHLIGHTS

• Q3 2024 EBITDA of USD 32.6 million (Q2 2024: USD 36.2 million) and EBT of USD 21.7 million (Q2 2024: USD 25.1 million)
• Both KCC's segments outperformed the dry bulk and product tanker markets in the quarter
• Quite stable CLEANBU TCE earnings of \$38,673/day (Q2 2024: \$39,093/day), despite significantly weaker spot markets
• CABU TCE earnings of \$29,668/day (Q2 2024: \$37,656/day) impacted by a weaker MR-tanker market and temporary lower caustic soda volume
• Record low carbon intensity (EEOI 6.1) driven by limited ballasting and high cargo intake (Q2 2024: 6.9)
• Q3 dividend of USD 0.30 per share amounting to USD 18.1 million (Q2 2024: USD 0.30 per share), marking the 24th consecutive quarterly dividend distribution

"KCC delivered strong results in the quarter amid more challenging markets with substantially weaker product tanker markets. Our CLEANBU vessels returned to more efficient combination trading, positively impacting earnings and emission performance, and both segments outperformed the standard dry bulk and product tanker markets."

• Engebret Dahm, CEO Klaveness Combination Carriers ASA

Average CABU TCE earnings (\$/day)¹

EBITDA (MUSD)

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 "APM3Q2024" published on the Company's homepage () Investor Relations/Reports and Presentations under the section for the Q3 2024 report. 2 Clarksons, MR (CABU) and LR1 (CLEANBU) tanker multiple calculated based on assumption of one-month advance cargo fixing/«lag»

> FINANCIAL PERFORMANCE

(USD '000)	Q3 2024	Q2 2024	Q3 2023	YTD 2024	YTD 2023
Net revenues from vessel operations	48 768	52 303	43 796	154 437	143 714
EBITDA	32 557	36 168	27 912	106 324	98 411
Profit after tax	21 687	25 081	16 311	72 795	61 007
Earnings per share (USD)	0.36	0.41	0.27	1.20	1.09
Total assets	614 451	644 404	627 676	614 451	627 676
Equity	370 113	369 722	353 401	370 113	353 401
Equity ratio1	60%	57%	56%	60%	56%
ROCE annualised1	17%	18%	13%	19%	16%
ROE annualised1	23%	27%	18%	26%	23%
	Q3 2024	Q2 2024	Q3 2023	YTD 2024	YTD 2023
Average TCE \$/day1	34 052	38 376	32 214	37 555	34 353
OPEX \$/day1	9 315	9 270	8 961	9 198	8 510
On-hire days	1 432	1 363	1 360	4 112	4 183
Off-hire days, scheduled	38	89	108	257	168
Off-hire days, unscheduled	2	4	4	15	17
% of days in combination trades2	86%	77%*	89%	81%	85%

*% of days in combination trades for Q2 2024 adjusted from 81 % to 77 % compared to Q2 2024 reporting

THIRD QUARTER

EBITDA and Profit after tax for the third quarter ended at USD 32.6 and USD 21.7 million respectively, down from USD 36.2 million and USD 25.1 million previous quarter. Fleet average TCE earnings for the quarter were approximately \$4,300/day lower than in Q2 2024 mainly due to lower CABU TCE earnings impacted by lower caustic soda volumes in the quarter and a weaker product tanker market. Compared to same quarter last year, the financial results strengthened considerably with an increase in EBITDA of 17% and Profit after tax of 33% due to both higher earnings and less off-hire.

Operating expenses increased by USD 0.2 million/2% Q-o-Q mainly due to timing effects for procurement. Service fee, wages and other administrative expenses increased by USD 0.4 million/15% Q-o-Q mainly due to salary adjustments and changes to bonus provisions. Depreciations were in line with last quarter. Net finance cost decreased by USD 0.2 million/6% Q-o-Q mainly due to a gain on terminated cross-currency interest rate swaps.

CAPITAL AND FINANCING

Cash and cash equivalents ended at USD 51.3 million by the end of Q3 2024, a decrease of USD 31.9 million from end of June 2024. The decrease was mainly driven by the repayment of the remaining part of the KCC04 bond issue (USD 20.8 million) in addition to the ordinary cash flow items. The KCC04 bond issue was refinanced in Q3 2023 and Q2 2024.

Total equity ended at USD 370.1 million at the end of Q3 2024, quite flat from end of Q2 2024. Profit after tax of USD 21.7 million was offset by dividends of USD 18.1 million paid during the quarter and other comprehensive income of negative USD 3.2 million. The equity ratio ended at 60.2% per end of Q3 2024, up from 57.4% at the end of Q2 2024 mainly due to lower total assets following the KCC04 bond repayment.

Interest-bearing debt was USD 225.6 million at the end of Q3 2024, down USD 23.1 million from end of Q2 2024 mainly due to repaid bond debt in addition to ordinary debt repayments. The Group had per end of Q3 2024 USD 125.0 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

On 29 October 2024, the Company's Board of Directors declared to pay a cash dividend to the Company's shareholders of USD 0.30 per share for the third quarter 2024, in total approximately USD 18.1 million. The dividend equals 92% of adjusted cash flow to equity (ACFE) for the quarter, in line with the company's policy to distribute quarterly dividends of at least 80% of the ACFE (see slide 40 in Q3 Presentation for details).

^{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 (drybulk) voyages followed by a dry bulk (tanker) 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.

¹ Alternative performance measures (APMs) are defined and reconciled in the excel sheet "APM3Q2024" published on the Company's homepage () Investor Relations/Reports and Presentations under the section for the Q3 2024 report.

KCC's fleet of 16 vessels are under technical management of Klaveness Ship Management AS ("KSM"), a company owned by KCC's majority shareholder Rederiaksjeselskapet Torvald Klaveness ("RASTK"). In October 2024, RASTK entered into an agreement with OSM Thome ("OSMT"), a world-leading ship management company, to sell its shares in KSM.

In connection with this sale, shipowning subsidiaries of KCC has entered into new ship management agreements with KSM under ownership of OSMT for its current fleet and newbuildings. In the discussions with OSMT, it has been critical to protect KCC's and KSM's unique competency of operating combination carriers, to safeguard continuity in the operation of KCC's fleet and to protect the integrated operational model based on the close co-operation between KSM and KCC. Under the new ship management agreement with KSM/OSMT, the existing team of ship managers and marine superintendents will continue working exclusively for KCC.

Importance has also been placed on maintaining and protecting the crew pool securing the same dedicated crew onboard KCC's fleet.

Currently, KSM in addition to technical management provides commercial operations and technical project services to KCC. The latter two functions will not be part of the sale and these positions will become a part of the KCC organization.

The new structure and agreements will be effective 1 January 2025.

> THE CABU BUSINESS

	Q3 2024	Q2 2024	Q3 2023	YTD 2024	YTD 2023
Average TCE \$/day1	29 668	37 656	37 134	33 934	34 291
OPEX \$/day1	8 521	8 882	7 963	8 620	7 413
On-hire days	735	680	632	2 095	2 032
Off-hire days, scheduled	-	45	100	84	140
Off-hire days, unscheduled	1	3	4	13	12
% of days in combination trades2	88%	98%	94%	94%	91%
Ballast days in % of total on-hire days4	12%	13%	10%	10%	12%

Average TCE earnings per on-hire day for the CABU vessels ended at \$29,668/day in Q3 2024 which is down approximately \$8,000/day from the record strong Q2 2024 as the fleet experienced a lower number of caustic soda shipments this quarter as well as a weaker MR-tanker market from the end of Q2 2024 and through Q3 2024, negatively impacting the index-linked caustic soda contracts. However, the CABU fleet traded efficiently with 88% combination trading and 12% ballast for the quarter. TCE earnings for the CABU fleet were slightly above the spot market for standard MR⁵ tankers in the third quarter (multiple 1.1).

Compared to Q3 2023, TCE earnings in Q3 2024 decreased by approximately \$7,500/day mainly due to a ~10% points lower share of days in tanker trades and less efficient trading.

Average operating expenses of \$8,521/day for the third quarter were down approximately \$360/day from the previous quarter and up approximately \$560/day compared to Q3 2023 mainly due to timing effects of procurement.

The CABU fleet had one unscheduled off-hire day in Q3 2024 and no scheduled off-hire.

> THE CLEANBU BUSINESS

	Q3 2024	Q2 2024	Q3 2023	YTD 2024	YTD 2023
Average TCE \$/day1	38 673	39 093	27 938	41 315	34 412
OPEX \$/day1	10 110	9 659	9 959	9 776	9 606
On-hire days	697	683	727	2 017	2 152
Off-hire days, scheduled	38	44	9	173	28
Off-hire days, unscheduled	1	1	-	2	6
% of days in combination trades2	84%	56%*	84%	67%	79%
Ballast days in % of total on-hire days4	11%	18%	17%	17%	18%

*% of days in combination trades for Q2 2024 adjusted from 63 % to 56 % compared to Q2 2024 reporting

The CLEANBU fleet maintained strong TCE earnings in Q3 2024 which ended at \$38,673/day, down approximately \$400/day from last quarter despite a significantly weaker product tanker spot market in the quarter relative to Q2 2024. The strong TCE earnings were backed by high trading efficiency with 84% combination trading and 11% ballast for the quarter. Average TCE earnings for the CLEANBU fleet outperformed the spot market for standard LR1⁵ tanker vessels in the third quarter (multiple 1.3).

Compared to Q3 2023, the TCE earnings were up approximately \$10,700/day, due to both a stronger product tanker market and stronger dry bulk markets.

Average operating expenses for the CLEANBU vessels ended at \$10,110/day, up approximately \$450/day from the previous quarter and up approximately \$150/day compared to the same quarter last year mainly due to somewhat higher maintenance cost this quarter.

The CLEANBU fleet had 38 scheduled off-hire days in Q3 2024 related to dry-docking of two vessels which entered yard in September 2024. Total off-hire days for these two vessels are expected to be 49 and 58 days, respectively, in total 25 days longer than expected in the Q2 Report mainly due to extreme weather and and change of yard.

1 Alternative performance measures (APMs) are defined and reconciled in the excel sheet "APM3Q2024" published on the Company's homepage () Investor Relations/Reports and Presentations under the section for the Q3 2024 report.

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

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

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

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.

> MARKET DEVELOPMENT

Average Market Rates with One Month Lag	Q3 2024	Q2 2024	Q3 2023	YTD 2024	2023
P5TC dry bulk earning \$/day	15 000	17 000	10 400	15 800	12 600
Average MR Clean tanker earnings \$/day	27 500	35 500	23 700	32 400	31 500
Average LR1 tanker earning \$/day	30 900	41 700	28 800	40 500	39 100
Fuel price USD/mt	610	630	600	620	620

The average Panamax dry bulk earnings decreased from ~\$17,000/ day in Q2 2024 to an average of ~\$15,000/day in Q3 2024 (one month lagged average)¹ . The negative development is primarily rooted in a weak trans-Atlantic market, where particularly coal demand has been lacking. Panama Canal normalization which led to additional inflow of vessels meeting the decent front haul demand as well put pressure on rates. Towards the end of the quarter there was also a notable decline in East Coast South America demand for vessels, as the South American soybean season moved towards its end and lost competitiveness against the cheap US grains. The Pacific market was the outlier as it delivered well through the quarter driven by continued strong Chinese and Indian coal demand.

The product tanker market fell back markedly in third quarter. Average LR1 tanker earnings ended at approximately \$30,900/day and MR tankers at approximately \$27,500/day in Q3 2024, compared to \$41,700/day and \$35,600/day for the two segments in Q2 2024² .

The softer Q3 earnings were driven by several factors. Firstly, the tanker demand was hit by both weaker oil demand and weak refinery margins. For example, Chinese oil consumption declined by estimated 0.13mnbbl year-over-year in Q3 according to EIA³ . Secondly, competition from crude tankers cleaning up to do CPP rounds due to the comparatively weak crude market increased supply substantially in the third quarter. Nonetheless, disruptions in the Red Sea and the resulting increased ton-mile of routing vessels around the Cape of Good Hope continued to support overall product tanker demand and earnings were still at healthy levels compared to historical averages.

Caustic soda prices increased compared to Q2 2024 across regions. Producer outages in the US has tightened the market. Firm alumina prices imply high utilization and caustic soda demand from the alumina refinery industry.

Brent crude oil prices weakened from USD 87 per barrel at the end of June 2024 to USD 72 per barrel at the end of September 2024. Average fuel oil price (VLSFO) ended at USD 610/mt (one month lagged) in Q3 2024, a decrease of 3% Q-o-Q.

1 Source: Baltic Dry as of October 2024 (All series lagged by one month to reflect advance cargo fixing)

2 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)

3 EIA, STEO October 2024

> HEALTH, SAFETY AND ENVIRONMENT

Health, Safety and Envionment	Q3 2024	Q2 2024	Q3 2023	YTD 2024	YTD 2023	TARGET
Lost Time Injury Frequency (LTIF)5	0.0	1.1	0.0	0.4	0.0	<0.5
High-risk potential accidents	0	0	2	0	2	0
# of spills of the environment	0	0	0	0	0	0

KCC had zero Lost Time Injury Frequency, no High-risk potential accidents and no spills to the environment in Q3 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	Q3 2024	Q2 2024	Benchmark Q3	Last 12 months	2023	TARGET 2026
CO2-emissions per ton transported cargo per nautical mile (EEOI) (grams CO2/(tons cargo x nautical miles))2,6	6.1	6.9	9.3	6.5	6.5	5.3
Average CO2 emission per vessel year (metric tons CO2/vessel-year)	19 200	19 000	n.a	19 100	18 700	16 900
% of days in combination trades	86%	77%*	n.a	82%	85%	85%
Ballast days in % of total on-hire days	11%	16%	34%	13%	14%	10%

*% of days in combination trades for Q2 2024 adjusted from 81 % to 77 % compared to Q2 2024 reporting

The carbon intensity of the KCC fleet improved significantly to reach 6.1, the lowest level ever achieved for a quarter. This was driven by a 19% Q-o-Q drop in CLEANBU EEOI, caused by the high vessel utilization as ballast share for the CLEANBU fleet dropped from 18% in Q2 2024 to 11% in Q3 2024 and average cargo weight when laden increased from 63kt to 67kt. This is mainly explained by substantially higher combination trading, leading to less ballast time, following a significant narrowing of the difference between the product tanker market and the dry bulk market. Higher cargo intake due to higher lotsizes in dry bulk trading had also positive effect on the reported CLEANBU EEOI.

Compared to the CLEANBU fleet's drop in emissions intensity, CABU fleet EEOI was very stable achieving 6.3 in Q3, around the same range as the previous four quarters (6.3-6.4).

The most important factor driving "Average CO2 emission per vessel year" is how much time vessels spend sailing at sea, which was stable Q-o-Q, rising slightly from 59.6% to 60.0%.

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

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.

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 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.

> OUTLOOK

While both the tanker and dry bulk markets are fundamentally strong with a predictable and historically attractive supply side, the current geopolitical and macroeconomic landscape create shortand medium-term uncertainties and risks. On one hand, disruptions caused by the Red Sea situation and the war in Ukraine drive tonnemile demand in both markets and these disruptions are unlikely to be resolved in the foreseeable future. However, a continued or deepening slowdown in China could dampen global oil demand and demand for coal and iron ore, signalling a potential period of weaker global demand growth for both dry bulk and tanker shipping.

The product tanker market, however, looks likely to strengthen towards the end of the year driven by seasonality and expected lower competition from crude tankers. Demand in the dry bulk market having less seasonal support in the fourth quarter looks likely to moderate relative to the latest quarters.

The Red Sea situation and the 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.

For the CABU segment, the caustic soda cargo volume has increased in Q4 2024 compared to Q3 2024, resulting in a better balance between dry and wet cargoes and more efficient combination trading in the quarter. However, a weaker product tanker market to date in Q4 have a negative impact on the CABU Q4 TCE earnings compared to Q3. Based on the current 75% of the CABU days fixed and assuming forward freight pricing (FFA)³ for open days, the CABU TCE earnings guidance for Q4 2024 is \$28,000-29,000/day. The expected number of CABU on-hire days in Q4 2024 is 680. One CABU vessel will dry-dock in Q4 2024 with an estimated 54 days off-hire in Q4.

The annual caustic soda contract renewal discussions are ongoing, and contracts covering most of the CABU fleet's tanker capacity for 2025 are targeted to be booked before the end of the year. The fixed-rate contract earnings are likely to remain at high levels for 2025.

For the CLEANBU segment, market development over the last quarter, in which tanker markets have declined significantly, incentivize combination trading. Based on current fixed days equal to 62% of fleet capacity and assuming FFA³ for the open days, TCE earnings guidance for the CLEANBU fleet is \$31,000-33,000/day. One CLEANBU vessel is employed on time charter until February 2025, secured in early 2023. The estimated split of dry and wet trading for Q4 2024 is 29%/71% and the expected number of CLEANBU on-hire days is 650. Two ongoing CLEANBU dry-dockings will be completed in Q4 with an estimated total of 84 days off-hire in the quarter.

With expected lower rate differences between the dry bulk and tanker markets going forward KCC's combination carriers are expected to prove its superior value creation through its combination trading and look set to deliver premium earnings relative to standard dry bulk and product tankers.

The Board of Directors of

Klaveness Combination Carriers ASA

Oslo, 29 October 2024

Chair of the Board Board member Board member

Ernst A. Meyer Gøran Andreassen Magne Øvreås

Marianne Møgster Brita Eilertsen Engebret Dahm

Board member Board member CEO

1 EIA STEO October 2024

2 Clarksons Research Oil and Tanker Trades Outlook October 2024

3 Source: Klaveness and Baltic Exchange as of October 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.

INCOME STATEMENT

		Unaudited		Unaudited		Audited
USD '000	Notes	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Freight revenue	3	63 644	57 794	186 883	190 586	247 542
Charter hire revenue	3	9 084	7 437	32 809	19 851	39 624
Total revenue, vessels		72 728	65 230	219 692	210 437	287 166
Voyage expenses		(23 960)	(21 434)	(65 257)	(66 724)	(90 362)
Net revenues from operation of vessels		48 768	43 796	154 437	143 714	196 805
Other income	3	540	-	817	-	-
Operating expenses, vessels		(13 712)	(13 190)	(40 324)	(37 171)	(50 237)
Group commercial and administrative services	10	(1 449)	(1 233)	(4 048)	(3 578)	(5 403)
Salaries and social expenses		(1 079)	(1 010)	(3 153)	(2 923)	(4 086)
Tonnage tax		(43)	(44)	(126)	(125)	(198)
Other operating and administrative expenses		(467)	(407)	(1 277)	(1 507)	(1 933)
Operating profit before depreciation (EBITDA)		32 557	27 912	106 324	98 411	134 947
Depreciation	4	(7 588)	(7 929)	(22 639)	(24 387)	(31 842)
Operating profit after depreciation (EBIT)		24 969	19 983	83 685	74 024	103 105
Finance income	7	2 385	4 940	4 694	8 741	7 533
Finance costs	7	(5 667)	(8 612)	(15 584)	(21 757)	(23 739)
Profit before tax (EBT)		21 687	16 311	72 795	61 007	86 899
Income tax expenses		-	-	-	-	-
Profit after tax		21 687	16 311	72 795	61 007	86 899
Attributable to:
Equity holders of the Parent Company		21 687	16 311	72 795	61 007	86 899
Total		21 687	16 311	72 795	61 007	86 899
Earnings per Share (EPS):
Basic earnings per share		0.36	0.27	1.20	1.09	1.52
Diluted earnings per share		0.36	0.27	1.20	1.09	1.52

STATEMENT OF COMPREHENSIVE INCOME

	Unaudited		Unaudited	Audited
USD '000	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Profit/ (loss) of the period	21 687	16 311	72 795	61 007	86 899
Other comprehensive income to be reclassified to profit or loss
Net movement fair value on cross-currency interest rate swaps (CCIRS)	2 965	(9 042)	(840)	(3 126)	2 100
Reclassification to profit and loss (CCIRS)	(3 424)	5 737	(415)	(1 007)	(6 044)
Net movement fair value on interest rate swaps	(2 441)	408	(2 613)	184	(2 245)
Net movement fair value bunker hedge	(265)	413	(193)	433	126
Net movement fair value FFA futures	-	43	-	176	247
Net other comprehensive income to be reclassified to profit or loss	(3 165)	(2 441)	(4 061)	(3 340)	(5 816)
Total comprehensive income/(loss) for the period, net of tax	18 522	13 871	68 734	57 667	81 083
Attributable to:
Equity holders of the Parent Company	18 522	13 871	68 734	57 667	81 083
Total	18 522	13 871	68 734	57 667	81 083

STATEMENT OF FINANCIAL POSITION

ASSETS	Unaudited	Audited
Notes USD '000	30 Sep 2024	31 Dec 2023
Non-current assets
Vessels 4	493 291	497 072
Newbuilding contracts 5	18 718	17 591
Long-term financial assets 6	4 350	6 325
Long-term receivables	162	107
Total non-current assets	516 521	521 095
Current assets
Short-term financial assets 6	1 937	1 699
Inventories	12 568	12 123
Trade receivables and other current assets	32 028	24 942
Short-term receivables from related parties	72	110
6 Cash and cash equivalents	51 324	68 071
Total current assets	97 930	106 947
TOTAL ASSETS	614 451	628 041

EQUITY AND LIABILITIES	Unaudited	Audited
Notes USD '000	30 Sep 2024	31 Dec 2023
Equity
Share capital	6 977	6 977
Share premium	202 949	202 852
Other reserves	6 726	10 722
Retained earnings 8	153 460	141 147
Total equity	370 113	361 698
Non-current liabilities
Mortgage debt 6	124 626	154 835
Long-term financial liabilities 6	32	657
Long-term bond loan 6	75 802	66 897
Total non-current liabilities	200 460	222 388
Current liabilities
Short-term mortgage debt 6	25 199	25 199
Short-term financial liabilities 6	77	328
Trade and other payables	18 087	17 052
Short-term debt to related parties	387	1 179
Tax liabilities	130	196
Total current liabilities	43 879	43 954
TOTAL EQUITY AND LIABILITIES	614 451	628 041

Third Quarter 2024

The Board of Directors of

Klaveness Combination Carriers ASA

Oslo, 29 October 2024

Ernst A. Meyer Gøran Andreassen Magne Øvreås

Chair of the Board Board member Board member

Marianne Møgster Brita Eilertsen Engebret Dahm

Board member Board member CEO

STATEMENT OF CHANGES IN EQUITY

Attribute to equity holders of the parent

Unaudited

USD '000	Share capital	Other paid in capital	Treasury Shares	Hedging reserve	Cost of 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	-	-	-	-	-	72 795	72 795
Other comprehensive income for the period	-	-	-	(4 061)	-	-	(4 061)
Employee share purchase (note 8,9)		97	66				163
Dividends	-	-	-	-	-	(60 482)	(60 482)
Equity at 30 September 2024	6 977	202 949	(31)	7 472	(714)	153 460	370 113

Unaudited

USD '000	Share capital	Other paid in capital	Treasury Shares	Hedging reserve	Cost of 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	-	-	-	-	-	61 007	61 007
Other comprehensive income for the period	-	-	-	(3 340)	-	-	(3 340)
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
Dividends	-	-	-	-	-	(51 721)	(51 721)
Equity at 30 September 2023	6 977	202 852	(97)	14 011	(714)	130 372	353 401

Audited

USD '000	Share capital	Other paid in capital	Treasury Shares	Hedging reserve	Cost of 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	-	-	-	-	-	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
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		Unaudited		Audited
USD '000	Notes	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Profit before tax		21 687	16 311	72 795	61 007	86 899
Tonnage tax expensed		43	44	126	125	198
Depreciation	4	7 588	7 929	22 639	24 387	31 842
Amortization of upfront fees bank loans		303	319	887	1 486	1 784
Financial derivatives loss / gain (-)	6	(278)	185	283	303	18
Gain /loss on foreign exchange	7	(189)	187	(287)	318	169
Interest income	7	(1 893)	(4 940)	(4 111)	(8 739)	(7 246)
Interest expenses	7	5 339	7 921	14 409	19 648	21 481
Change in current assets		(7 395)	7 849	(7 493)	14 355	11 985
Change in current liabilities		(4 928)	972	(203)	720	(2 539)
Collateral paid/received on cleared derivatives	6	506	(621)	(64)	136	(186)
Interest received	7	1 893	2 287	4 111	6 088	4 594
A: Net cash flow from operating activities		22 676	38 443	103 092	119 834	148 999
Acquisition of tangible assets	4	(3 350)	(4 068)	(18 859)	(11 479)	(12 843)
Installments and other cost on newbuilding contracts	5	(412)	(17 481)	(1 127)	(17 481)	(17 591)
B: Net cash flow from investment activities		(3 762)	(21 549)	(19 986)	(28 960)	(30 434)
Paid in registered capital increase	8	-	-	-	49 828	49 828
Transaction costs on capital increase		-	-	-	(1 093)	(1 093)
Proceeds from long term incentive plan	8	-	-	102	27	27
Paid in from exercise of warrants		-	501	-	501	501
Transaction costs on issuance of debt	6	-	(714)	(444)	(2 303)	(2 303)
Repayment of mortgage debt	6	(6 300)	(6 300)	(30 900)	(157 733)	(164 033)
Drawdown of mortgage debt	6	-	-	-	95 000	95 000
Repurchase bond incl premium (KCC04)	6	(18 259)	(55 478)	(18 259)	(55 478)	(55 478)
Proceeds from new bond issue (KCC05)	6	-	47 112	29 203	47 112	47 112
Interest paid	7	(5 634)	(5 618)	(14 874)	(19 506)	(21 904)
Termination of interest rate derivatives	6	(2 527)	-	(2 502)	4 001	4 001
Dividends		(18 137)	(15 061)	(60 482)	(51 721)	(66 836)
C: Net cash flow from financing activities		(50 857)	(35 558)	(99 853)	(91 365)	(115 179)
Net change in liquidity in the period		(31 943)	(18 663)	(16 747)	(491)	3 386
Cash and cash equivalents at beginning of period		83 267	82 857	68 071	64 685	64 685
Cash and cash equivalents at end of period		51 324	64 194	51 324	64 194	68 071
Net change in cash and cash equivalents in the period		(31 943)	(18 663)	(16 747)	(491)	3 386
Cash and cash equivalents		51 324	64 194	51 324	64 194	68 071
Other interest bearing liabilities (overdraft facility)	6	-	-	-	-	-
Cash and cash equivalents (as presented in cash flow
statement)		51 324	64 194	51 324	64 194	68 071

NOTES

01	ACCOUNTING POLICIES
02	SEGMENT REPORTING
03	REVENUE AND OTHER INCOME
04	VESSELS
05	NEWBUILDINGS
06	FINANCIAL ASSETS AND LIABILITIES
07	FINANCIAL ITEMS
08	SHARE CAPITAL, SHAREHOLDERS AND DIVIDENDS
09	LONG-TERM INCENTIVE PLAN
10	TRANSACTIONS WITH RELATED PARTIES
11	EVENTS AFTER 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 - SEGMENT REPORTING

Operating income and operating expenses per
segment		Q3 2024			Q3 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Total revenue, vessels	36 198	36 530	72 728	32 692	32 539	65 230
Voyage expenses	(14 398)	(9 562)	(23 960)	(9 219)	(12 215)	(21 434)
Net revenues from operations of vessels	21 802	26 968	48 768	23 473	20 323	43 796
Other income	-	540	540	-	-	-
Operating expenses, vessels	(6 271)	(7 441)	(13 712)	(5 860)	(7 330)	(13 190)
Group commercial and administrative services	(663)	(786)	(1 449)	(548)	(685)	(1 233)
Salaries and social expense	(494)	(586)	(1 079)	(449)	(561)	(1 010)
Tonnage tax	(20)	(24)	(43)	(25)	(19)	(44)
Other operating and administrative expenses	(213)	(253)	(467)	(181)	(226)	(407)
Operating profit before depreciation (EBITDA)	14 141	18 418	32 557	16 411	11 500	27 912
Depreciation	(3 470)	(4 117)	(7 588)	(3 489)	(4 439)	(7 929)
Operating profit after depreciation (EBIT)	10 670	14 301	24 969	12 921	7 061	19 983

Reconciliation of average revenue per on-hire day

(TCE earnings \$/day)		Q3 2024			Q3 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Net revenues from operations of vessels	21 802	26 968	48 768	23 473	20 323	43 796
On-hire days	735	697	1 432	632	727	1 360
Average TCE earnings (\$/day)	29 668	38 673	34 052	37 134	27 938	32 214

Reconciliation of opex \$/day	Q3 2024				Q3 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Operating expenses, vessels	6 271	7 441	13 712	5 860	7 330	13 190
Operating days	736	736	1 472	736	736	1 472
Opex \$/day	8 521	10 110	9 315	7 963	9 959	8 961

NOTE 2 - SEGMENT REPORTING CONT.

Operating income and operating expenses per
segment		YTD 2024			YTD 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Total revenue, vessels	110 557	109 135	219 692	106 432	104 006	210 437
Voyage expenses	(39 462)	(25 794)	(65 257)	(36 755)	(29 968)	(66 723)
Net revenues from operations of vessels	71 096	83 341	154 437	69 677	74 038	143 714
Other income	278	540	817	-	-	-
Operating expenses, vessels	(18 895)	(21 429)	(40 324)	(16 190)	(20 980)	(37 171)
Group commercial and administrative services	(1 897)	(2 151)	(4 048)	(1 558)	(2 019)	(3 578)
Salaries and social expense	(1 478)	(1 676)	(3 153)	(1 273)	(1 650)	(2 923)
Tonnage tax	(67)	(59)	(126)	(47)	(78)	(125)
Other operating and administrative expenses	(599)	(679)	(1 277)	(656)	(851)	(1 507)
Operating profit before depreciation (EBITDA)	48 439	57 887	106 324	49 952	48 460	98 411
Depreciation	(10 513)	(12 126)	(22 639)	(10 070)	(14 317)	(24 387)
Operating profit after depreciation (EBIT)	37 926	45 761	83 685	39 882	34 143	74 024

Reconciliation of average revenue per on-hire day

(TCE earnings \$/day)		YTD 2024			YTD 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Net revenues from operations of vessels	71 096	83 341	154 437	69 677	74 038	143 714
On-hire days	2 095	2 017	4 112	2 032	2 152	4 183
Average TCE earnings (\$/day)	33 934	41 315	37 555	34 291	34 412	34 353

Reconciliation of opex \$/day		YTD 2024			YTD 2023
USD '000	CABU	CLEANBU	Total	CABU	CLEANBU	Total
Operating expenses, vessels	18 895	21 429	40 324	16 190	20 980	37 171
Operating days	2 192	2 192	4 384	2 184	2 184	4 368
Opex \$/day	8 620	9 776	9 198	7 413	9 606	8 510

NOTE 2 - SEGMENT REPORTING CONT.

Operating income and operating expenses per segment			2023
USD '000	CABU	CLEANBU	Total
Total revenue, vessels	145 785	141 380	287 166
Voyage expenses	(50 120)	(40 242)	(90 362)
Net revenues from operations of vessels	95 665	101 139	196 805
Operating expenses, vessels	(22 618)	(27 618)	(50 237)
Group commercial and administrative services	(2 433)	(2 970)	(5 403)
Salaries and social expense	(1 840)	(2 246)	(4 086)
Tonnage tax	(100)	(98)	(198)
Other operating and administrative expenses	(870)	(1 063)	(1 933)
Operating profit before depreciation (EBITDA)	67 804	67 142	134 947
Depreciation	(13 476)	(18 366)	(31 842)
Operating profit after depreciation (EBIT)	54 328	48 776	103 105

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

Reconciliation of opex \$/day	2023
-------------------------------	------

USD '000	CABU	CLEANBU	Total
Operating expenses, vessels	22 618	27 618	50 237
Operating 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	Classification	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Revenue from COA contracts	Freight revenue	48 958	48 115	122 753	140 286	138 880
Revenue from spot voyages	Freight revenue	14 686	9 679	64 130	50 300	108 662
Revenue from TC contracts	Charter hire revenue	9 084	7 437	32 809	19 851	39 624
Total revenue, vessels		72 728	65 230	219 692	210 438	287 166

Other income

USD '000	Classification	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Other income	Other income	540	-	817	-	-
Total other income		540	-	817	-	-

Other income of USD 0.5 million in Q3 2024 consists of compensation from loss of hire insurance.

NOTE 4 - VESSELS

Vessels

USD '000	30 Sep 2024	31 Dec 2023
Cost price 1.1	755 564	742 721
Dry-Docking	8 116	4 959
Energy efficiency upgrade	9 332	7 566
Technical upgrade	1 412	319
Costprice end of period	774 423	755 564
Acc. Depreciation 1.1	258 492	226 650
Depreciation vessels	22 639	31 842
Acc. Depreciation end of period	281 131	258 492
Carrying amounts end of period*	493 291	497 072

*) carrying value of vessels includes dry-docking

16	16
25	25
2 -3	2 -3
Straight-line	Straight-line

Reconciliation of depreciations

USD '000	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Depreciation vessels	7 588	7 929	22 639	24 387	31 842
Depreciations for the period	7 588	7 929	22 639	24 387	31 842

ADDITIONS

Three vessels have completed dry-dock so far in 2024, two CLEANBU vessels will complete dry-dock in Q4 2024 and oneCABU vessel is planned for dry-dock in the last quarter of 2024. Total costs of USD 8.1 million have been recognized year-to-date 2024 (whereof Q3 USD 0.8 million). Technical upgrades of USD 1.4 million (USD 0.3 million in Q3) and energy efficiency upgrades of USD 9.3 million(USD 2.2 million in Q3) 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. Both vessels have completed dry-docking and the full USD 1.4 million is capitalized as of 30 September 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 30 September 2024.

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

NOTE 5 - NEWBUILDINGS

(USD '000)	30 Sep 2024	31 Dec 2023
Cost 1.1	17 591	-
Yard installments paid	-	17 205
Other capitalized cost	1 127	386
Net carrying amount	18 718	17 591

The Group had per 30 September 2024 three CABU combination carrier newbuilds on order at Jiangsu New Yangzi Shipbuilding Co., Ltd in China. The contract price is USD 57.4 million per vessel and delivery cost will include costs for change orders, supervision and project management fee, upstoring costs and energy efficiency investments. The expected delivery of the vessels is Q1-Q3 2026.

Instalments of USD 17.2 million were paid as of third quarter 2024. The newbuilds are partly financed through equity raised in 2024 and cash on the balance sheet, and there were no borrowings related to the newbuilds as of 30 September 2024.

NOTE 6 - FINANCIAL ASSETS AND LIABILITIES

In July 2024, KCC exercised the call option to voluntary early redeem all outstanding bonds under the Klaveness Combination Carriers ASA FRN Senior Unsecured NOK 700,000,000 Bonds 2020/2025 (KCC04). KCC has held NOK 508.5 million of the outstanding bonds after a repurchase of the KCC04 bond issue in September 2023. The redemption price was 100.75% of the nominal amount for each redeemed bond plus accrued and unpaid interest. All related swaps are terminated (note 7).

USD '000

Mortgage debt	Description	Inerest rate	Maturity	Carrying amount
DNB/SEB/SRB/SPV Facility**	Term Loan/RCF, USD 190 million	Term SOFR + 2.1 %	June 2028	78 796
Nordea/Credit Agricole Facility*	Term Loan/RCF, USD 60 million	Term SOFR + 2.25 %	March 2027	17 647
Nordea/Danske Facility/*	Term Loan, USD 80 million	Term SOFR + CAS + 2.1 % December 2026		56 058
Capitalized loan fees				(2 676)
Mortgage debt 30 Sep 2024				149 825

* Potential margin adjustments up to +/- 10 bps once every year based on sustainability KPIs.

** Potential margin adjustments up to +/- 5 bps once every year based on sustainability KPIs.

*** CAS= Credit Adjusted Spread. For three months Term SOFR, the CAS is approx 0.26%

The Group has available undrawn long-term revolving credit facilities of USD 125 million and USD 8 million available capacity under a 364 days overdraft facility.

USD '000	Face value		Carrying Amount
Bond loan	NOK'000	Maturity	30 Sep 2024
KCC04	700 000	11.02.2025	76 390
Realized exchange rate gain at buyback
Buyback KCC04 (Q3 2024)	(191 500)		(21 411)
Buyback KCC04 (Q3 2023)	(508 500)		(54 978)
Sum KCC04	-		-
KCC05	800 000	05.09.2028	75 088
Exchange rate adjustment			644
Capitalized expenses			(1 035)
Bond Premium			1 106
Sum KCC05	800 000		75 802
Total bond loan	800 000		75 802

As per 30 September 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 30 September 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 liabilities	30 Sep 2024	30 Sep 2024	31 Dec 2023
Mortgage debt	127 302	127 302	158 201
Capitalized loan fees	-	(2 676)	(3 367)
Bond loan	78 361	75 732	67 777
Bond premium	-	1 106	-
Bond discount	-	-	(82)
Capitalized expenses bond loan	-	(1 035)	(797)
Total non-current interest bearing liabilties	205 663	200 429	221 732
Mortgage debt, current	25 199	25 199	25 199
Total interest bearing liabilities	230 862	225 628	246 931

USD '000

Financial assets	30 Sep 2024	31 Dec 2023
Financial instruments at fair value through OCI
Cross-currency interest rate swap	1 372	1 891
Interest rate swaps	4 868	5 762
Fuel Hedge	-	87
Financial instruments at fair value through P&L
Forward currency contracts	48	285
Financial assets	6 288	8 025
Current	1 937	1 699
Non-current	4 350	6 326

USD '000
Financial liabilities	30 Sep 2024	31 Dec 2023
Financial instruments at fair value through OCI
Cross-currency interest rate swap	108	985
Financial liabilities	108	985
Current	77	328
Non-current	32	657

NOTE 7 - FINANCIAL ITEMS

USD '000

Finance income	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Other interest income	1 893	2 287	4 111	6 087	4 594
Gain on currency contracts	12	-	5	-	285
Gain on terminated cross-currency swaps	291	2 652	291	2 652	2 652
Other financial income	-	-	1	1	1
Gain on foreign exchange	189	-	287	-	-
Finance income	2 385	4 940	4 694	8 741	7 533

USD '000

Finance cost	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Interest expenses mortgage debt	3 056	3 635	8 195	12 262	13 590
Interest expenses bond loan	1 798	1 890	5 099	4 630	5 756
Amortization capitalized fees on loans	303	319	887	1 486	1 784
Other financial expenses	485	2 396	1 115	2 756	2 135
Loss on currency contracts	26	-	288	-	-
Fair value changes interest rate swaps	-	185	-	303	303
Loss on foreign exchange	-	187	-	318	169
Finance cost	5 667	8 612	15 584	21 757	23 739

Other financial expenses of USD 0.5 million in Q3 2024 include commitment fees of USD 0.3 million and USD 0.2 million in costs related to repurchase of KCC04. Other financial income of USD 0.3 million in Q3 is from gain on terminated cross-currency interest rate swaps.

In 2024, 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 18.1 million were paid to the shareholders in September 2024 (USD 0.30 per share). A total of USD 60.5 million in dividends were paid to shareholders during the first three quarters of 2024.

On 15 May 2024, employees in the Company purchased in total 20 295 shares in KCC through the Company's LTIP program, where 10 000 shares were purchased by the CEO. The Company used Treasury shares to settle the transactions. In connection to these share purchases, the employees were awarded 60 525 share options in the Company of which 30 000 options were awarded to the CEO. As of 30 September 2024, the CEO, Engebret Dahm, holds 60 000 options in the Company (note 9).

	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Weighted average number of ordinary shares for basic EPS	60 451 948	60 264 590	60 441 777	55 849 948	56 996 430
Share options (note 9)	101 025	67 200	71 137	40 609	43 717
Warrants	-	162 842	-	207 006	155 255
Weighted average number of ordinary shares for the effect of dilution	60 552 973	60 494 632	60 512 914	56 097 563	57 195 402

NOTE 9 - LONG-TERM INCENTIVE PLAN

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 () under "Investor Relations/Reports and Presentations."

On 21 May 2024, employees of the Company purchased in total 20 295 shares in KCC as part of the Company's long term incentive program (of which the CEO, Engebret Dahm, purchased 10 000 of the total shares). The shares were acquired at a price of NOK 85.70 per share. The Q3 effect of the equity settled share-based payment is an increase in equity of USD 0.2 million.

In connection with the share purchases in May 2024, and in accordance with the terms of the LTIP, employees were awarded 60 525 share options in KCC (of which the CEO, Engebret Dahm, was awarded 30 000 share options) at a strike price of NOK 107.10, adjusted for any distribution of dividends made before the relevant options are exercised. The share purchases are partly financed through loans. As of Q3 2024, the CEO, Engebret Dahm, has loans of USD 0.1 million in relation to the share purchase part of the LTIP (Annual Report 2023, note 7).

The fair value of the share options granted on 21 May 2024 was calculated based on the Black-Scholes Merton method. The key assumptions used to estimate the fair value of the share options are set out below:

	Model inputs
Dividend yield (%)	14%
Expected volatility (%)*	28%
Risk-free interest rate (%)**	6.80%
Expected life of share potions (year)	5
Weighted average share price (NOK)	105

*The expected volatility reflects the assumption that the historical shipping industry average is indicative of future trends, which may not necessarily be the actual outcome.

**We used the average five-year Norwegian Government bond risk-free yield-to-maturity rate of 6.8% as of May 2024 as an estimate for the risk-free rate to match the expected five-year term of the share options.

The following table summarizes the option activity as per 30 September 2024:

	Average exercise price	2024	2023
Opening balance beginning of period		40 500	65 280
Granted during the year	NOK 69.5	60 525	40 500
Exercised during the year		-	(65 280)
Forfeited during the year		-	-
Expired during the year		-	-
Closing balance end of period		101 025	40 500

The fair value of the share options granted is calculated to USD 119k, i.e. USD 1.91 per share option. The cost to be recognized in 2024 is USD 12k.

NOTE 10 - TRANSACTIONS WITH RELATED PARTIES

USD '000

Type of services/transactions	Provider1	Price method	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Business adm. services	KAS	Cost + 5%	623	580	1 745	1 461	1 944
Business adm. services	KA Ltd	Cost + 5%	15	20	51	114	139
Business adm. services	KD	Priced as other Cargovalue services	3	-	9	-	5
Commercial services	KAD*	Cost + 7.5%	189	217	445	217	381
Commercial services	KDB	Cost + 7.5%	57	81	153	223	293
Commercial services	KSM	Cost + 7.5%	193	216	650	662	990
Board member fee	KD	Fixed fee as per annual general meeting	-	(6)	(12)	(18)	(24)
Project management	KSM	Cost + 7.5%	368	124	1 007	917	1 674
Total group commercial and administrative services			1 449	1 233	4 048	3 578	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/transactions	Provider1	Price method	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023
Technical mngmnt fee (opex)	KSM	Fixed fee per vessel	1 053	1 002	3 158	3 007	4 117
Crewing and IT fee (opex)	KSM	Fixed fee per vessel	431	377	1 292	1 100	1 496
Board member fee (administrative expenses)	KAS	Fixed fee as per annual general meeting	19	20	58	60	80
Total other services/ transactions			1 503	1 400	4 507	4 167	5 693

NOTE 11 - EVENTS AFTER THE BALANCE SHEET DATE

On 29 October 2024, the Company's Board of Directors declared to pay a cash dividend to the Company's shareholders of USD 0.30 per share for third quarter 2024, in total approximately USD 18.1 million.

KCC's fleet of 16 vessels are under technical management of Klaveness Ship Management AS ("KSM"), a company owned by KCC's majority shareholder Rederiaksjeselskapet Torvald Klaveness ("RASTK"). In October 2024, RASTK entered into an agreement with OSM Thome ("OSMT"), a world-leading ship management company, to sell its shares in KSM.

In connection with this sale, shipowning subsidiaries of KCC have entered into new ship management agreements with KSM under ownership of OSMT for its current fleet and newbuildings. In the discussions with OSMT, it has been critical to protect KCC's and KSM's unique competency of operating combination carriers, to safeguard continuity in the operation of KCC's fleet and to protect the integrated operational model based on the close co-operation between KSM and KCC. Under the new ship management agreements with KSM/OSMT, the existing team of ship managers and marine superintendents will continue working exclusively for KCC.

Importance has also been placed on maintaining and protecting the crew pool securing the same dedicated crew onboard KCC's fleet.

Currently, KSM in addition to technical management provides commercial operations and technical project services to KCC. The latter two functions will not be part of the sale and these positions will become a part of the KCC organization.

The new structure and agreements will be effective 1 January 2025.

There are no other events after the balance sheet date that have material effect on the Financial Statement as of 30 September 2024.