Klaveness Combination Carriers

Environmental & Social Information • Mar 29, 2022

KCC Annual Report and Sustainability Report 2021: Record financial result and cementing of ESG position

KCC Annual Report and Sustainability Report 2021: Record financial result and cementing of ESG position

Reason for correction: Updated version of the annual report attachments including Annual Report PDF file and ESEF file

Oslo, 29 March 2022: Klaveness Combination Carriers ASA (“KCC”) releases its Annual Report and Sustainability Report for 2021.

”2021 was a year when KCC passed several important milestones including the delivery of KCC’s three last CLEANBU newbuildings, marking the end of KCC’s newbuilding program. While the industry continued to experience operational challenges from increased port congestion and COVID-19 restrictions, our business model continued to prove its strength. With KCC’s vessels operating as both tanker and dry bulk vessels, negative effects from a historically weak product tanker market were offset by positive effects from the strong dry bulk market,” says CEO Engebret Dahm.

Profit after tax was USD 22.6 million for the year 2021, a record financial result.

The CABU fleet delivered the highest TCE earnings since 2015 on the back of high caustic soda volumes and strong dry bulk markets.

The CLEANBU fleet continued its expansion of trading pattern and customer acceptance. A milestone was passed in July 2021 when a clean petroleum product (CPP) contract of affreightment (COA) was secured with one of the industry’s main charterers. Despite an increase in share of days in combination trading and lower ballast percentage, TCE earnings decreased year-on-year due to the stronger tanker market in 2020.

The 2001-built CABU vessel, MV Banasol, was sold as a dry bulk vessel and delivered to new owners in December 2021, with a positive effect on profit and cash.

KCC continued to deliver the most carbon-efficient shipping solution in deep-sea tanker and dry bulk markets, offering the most cost-effective way for customers to decarbonize seaborne transportation. The 2021 Sustainability Report released together with the Annual Report for 2021 highlights:

* Continued focus on protecting the health and wellbeing of our crew during COVID-19 challenges

* The fleet once again delivered an industry leading emission performance. The average carbon intensity (EEOI) for the fleet in 2021 ended at 7.4 unchanged from 2020, while the average CO2 emissions per vessel was 18,800 mt in 2021, 9% lower than the previous year

* Continued drive to align emissions and business performance with a signed sustainability linked contract of affreightment and sustainability linked loan agreement

* Raised USD 25 million to fund energy efficiency measures across KCC’s fleet to further solidify KCC’s carbon efficiency lead

* Shipments of fossil fuels were limited to 17% of total transported cargo

Attached:

2021 Annual Report

2021 Annual Report ESEF-file

2021 Sustainability report

Contact:

Engebret Dahm, CEO Telephone +47 957 46 851

Liv Dyrnes, CFO Telephone +47 976 60 561

Klaveness Combination Carriers ASA:

KCC is the world leader in combination carriers, owning and operating eight CABU and eight CLEANBU combination carriers. KCC’s combination carriers are built for transportation of both wet and dry bulk cargoes, being operated in trades where the vessels efficiently combine dry and wet cargoes with minimum ballast. Through their high utilization and efficiency, the vessels emit up to 40% less CO2 per transported ton compared to standard tanker and dry bulk vessels in current and targeted combination trading patterns.