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Klaveness Combination Carriers
Investor Presentation • Feb 14, 2025
3644_rns_2025-02-14_4f75af49-9771-47f0-bd8f-0a3480752890.pdf
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Fourth Quarter 2024
Disclaimer
This presentation has been prepared by Klaveness Combination Carriers ASA (the "Company") and is furnished to you for information purposes only and may not be reproduced or redistributed, in whole or in part, to any other person. Making this presentation available in no circumstances whatsoever implies the existence of a commitment or contract by or with the Company, or any of its affiliated entities, or any of its or their respective subsidiaries, directors, officers, representatives, employees, advisers or agents (collectively, "Affiliates") for any purpose. The presentation does not constitute or form part of any offering of securities, and the contents of this presentation have not been reviewed by any regulatory authority.
The presentation should not form the basis for any investments nor be deemed to constitute investment advice by the Company including its affiliates or any of their directors, officers, agents, employees or advisers. An investment in the Company's securities involves risk, and several factors could cause the actual results, performance or achievements that may be expressed or implied by statements and information in this presentation differ materially from those expressed or implied in this presentation. By attending or reading the presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you must make your own independent assessment of the information contained in the presentation after making such investigations and taking such advice as may be deemed necessary.
In particular, any estimates, projections, opinions or other forward-looking statements contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should make its own verifications in relation to such matters. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this presentation or on the completeness, accuracy or fairness thereof.
This presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements reflect current views about future circumstances, not historical facts, and are sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this presentation (including assumptions, opinions and views of the Company or opinions cited from third party sources) are subject to risks, uncertainties and other factors that may cause actual results, events and developments to differ materially from those expressed or implied by these forward looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot assure you that our future results, level of activity, performance or achievements will meet these expectations. None of the Company, any of its parent or subsidiary undertakings, or any such person's officers, directors, or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors, nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments described herein.
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The information and opinions contained in this document are provided as at the date of this presentation and may be subject to change without notice. Except as required by law, neither the Company nor any of its affiliates undertake any obligation to update any forward-looking statements or other information herein for any reason after the date of this presentation or to conform these statements to actual results or to changes in our expectations or publicly release or inform of the result of any revisions to these forward-looking statements which the Company or any of its affiliates may make to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events.
This presentation speaks as of February 2025. Neither the delivery of this presentation nor any further discussions by the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not intend to, or will assume any obligation to, update this presentation or any of the information included herein.
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Redefining dry bulk and product tanker shipping
CABU introduced in 2001-17
CLEANBU introduced in 2019-21
KCC's main value drivers :
E F F I C I E N C Y
D I V E R S I F I C A T I O N
F L E X I B I L I T Y
Substantially lower ballast and carbon footprint than standard vessels
Exposed to both dry bulk and product tanker markets
Optionality to shift capacity to the highest paying market
Agenda
Introduction / performance overview
Market review and commercial update
Financial update
Sustainability efforts
Market outlook
Commercial outlook and summary
Solid outperformance in softer freight markets in Q4 2024
- EBITDA of USD 20.2 million and EBT of USD 8.6 million
- Both segments outperformed the standard markets
- Quite stable CABU TCE earnings of \$28,988/day (-\$700/day Q-o-Q) supported by high caustic soda shipment volume
- CLEANBU TCE earnings of \$28,027/day (-\$10,600/day Q-o-Q) due to weaker markets, less optimal trading and IFRS 15 effects
- More than 90%3 of CABU wet capacity (caustic soda solution) secured for 2025, implying continued efficient trading in 2025
Highlights Q4 2024 KCC TCE earnings (\$/day)1,2
6
1) TCE earnings \$/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for
the Q4 2024 report. 2) Standard tonnage assume one-month advance cargo fixing/"lag". Standard tonnage for bulk carriers are calculated averages of Panamax and Kamsarmaxearnings weighted by CABU and CLEANBU onhire days respectively. Standard tonnage for product tankers are calculated averages of MR and LR1 earnings weighted by CABU and CLEANBU onhire days respectively. Multiples are calculated by dividing KCC average TCE earnings on standard tonnage for bulk carriers and product tankers. Source: Clarksons Securities and Clarksons SIN 3) Contract coverage includes one small fixed-rate caustic soda contract (2 cargoes) concluded with subjects not yet lifted.
Continuing dividend payments
1) Close 13th February 2025, USDNOK Norges Bank 2) Adjusted Cash Flow to Equity (ACFE) is an alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report).
2024 - another fantastic year for KCC
| Strong financial results |
Building business resilience | Pioneering low carbon shipping | |
|---|---|---|---|
| Record high TCE earnings1 35 368 USD/day |
Highest ever CABU caustic soda shipments to Australia 46 cargoes |
Continuing the energy efficiency investment program 2 suction sails to be installed on a CABU III newbuild |
|
| Optimizing performance and shareholder value 23% 16% ROE1 ROCE1 |
Further expansion of CLEANBU customer approvals and customer base 5 3 New approvals2 New customers |
Keeping carbon intensity stable while getting the best out of an exceptional tanker market 6.6 EEOI |
1) ROE, ROCE and TCE earnings \$/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report. 2) New approvals are potential customers that have approved the vessels/concept but have not yet employed the vessels
Agenda
Introduction / performance overview
Market review and commercial update
Financial update
Sustainability efforts
Market outlook
Commercial outlook and summary
Weaker dry bulk and product tanker markets
TCE earnings development \$/day1
1) Source: Clarksons Securities and Clarksons SIN
Increasing earnings premium to the standard markets
Quarterly KCC fleet TCE earnings1 vs. standard tonnage2
• Outperforming standard product tankers by 1.5 and standard dry bulk vessels by 2.6 in Q4 2024
11
1) TCE earnings \$/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report.
2) Standard tonnage assumes one-month advance cargo fixing/"lag". Standard tonnage for bulk carriers are calculated averages of Panamax and Kamsarmax earnings weighted by CABU and CLEANBU onhire days respectively. Standard tonnage for product tankers are calculated averages of MR and LR1 earnings weighted by CABU and CLEANBU onhire days respectively. Source: Clarksons Securities and Clarksons SIN
CABU TCE supported by higher CSS1 volume
(\$/day)
% of days in tanker and dry bulk trades2 % days in combination trades & ballast Quarterly TCE earnings3
12
1) CSS = Caustic Soda Solution 2) Estimate for Q1 2025 based on guiding
3) TCE earnings \$/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report.
CLEANBU rates impacted by weaker markets, less optimal trading and IFRS
1) Estimate for Q1 2025 based on guiding
2) TCE earnings \$/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report. * % of days in combination trades for Q2 2024 adjusted from 63% to 56% compared to Q2 2024 reporting
Agenda
Q-o-Q EBITDA decrease driven by lower CLEANBU TCE earnings and more dry-dockings
EBITDA Q4 2024 compared to Q3 2024 (USD millions)
Q4 2024 Income Statement
| USD thousand (unaudited accounts) | Q4 2024 | Q3 2024 | Quarterly variance | ||
|---|---|---|---|---|---|
| Net revenues from operations of vessels | 37 504 | 48 768 | (23.1) % | Q4 2024 | Q3 2024 |
| Other income | - | 540 | n.a. | Earnings per share1 | Earnings per share1 |
| Operating expenses, vessels | (14 470) | 5.5 % | \$0.14 | \$0.36 | |
| (13 712) | Dividend per share2 | Dividend per share2 | |||
| SG&A | (2 842) | (3 039) | (6.5) % | \$0.10 | \$0.30 |
| EBITDA | 20 192 | 32 557 | (38.0) % | ROCE3 | ROCE3 |
| 8% | 17% | ||||
| Depreciation | (7 805) | (7 588) | 2.9 % | ROE3 | ROE3 |
| EBIT | 12387 | 24 969 | (50.4) % | 10% | 23% |
| Net financial items | (3 772) | (3 282) | 14.9 % | ||
| Profit after tax | 8 615 | 21 687 | (60.3) % |
1) Basic earnings per share. Calculated basis 60 451 948 for Q3 2024 and 60 264 144 for Q4 2024 (average total shares adjusted for treasury shares) 2) Dividend for Q4 2024 approved 13 February 2025 and to be distributed in Q1 2025 3) ROCE/ROE is based on annualized EBIT/Profit after tax for the quarter. ROE and ROCE are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report.
2024: 6% Y-o-Y decline in EBITDA due to more drydocking and higher costs
EBITDA 2024 compared to 2023 (USD millions)
Y-o-Y increase in OPEX and scheduled off-hire
Off-hire
OPEX (\$/day)
| Q3 2024 | Q4 2024 | 2023 | 2024 | |
|---|---|---|---|---|
| On-hire days | 1 432 | 1 315 | 5 626 | 5 427 |
| Scheduled off-hire | 38 | 151 | 178 | 408 |
| Unscheduled off-hire | 2 | 6 | 37 | 21 |
1 Comments
- Operating expenses, vessels increased by USD 4.6 million/ 9% Yo-Y
- Inflation
- Maintenance
- Crew
- Limited unscheduled off-hire in 2024 with in total 21 days, 1.3 days per vessel
- Scheduled off-hire of 408 days in 2024 related to six drydockings including retrofit projects and delays
- Seven vessels scheduled for dry-docking in 2025, see slide 42 for more details
1) OPEX \$/day is an alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report.
2024 Income Statement
| 2024 | 2023 | Variance | ||
|---|---|---|---|---|
| 191 940 | 196 805 | (2.5) % | 2024 | 2023 |
| 817 | Earnings per share1 | Earnings per share1 | ||
| \$1.35 | \$1.52 | |||
| Dividend per share2 | Dividend per share2 | |||
| (11 447) | (11 621) | (1.5) % | \$1.05 | \$1.25 |
| ROCE3 | ROCE3 | |||
| 16% | 17% | |||
| (30 444) | (31 842) | (4.4) % | ROE3 | ROE3 |
| 96 072 | 103 105 | (6.8) % | 23% | 24% |
| (14 662) | (16 206) | (9.5) % | ||
| 81 410 | 86 899 | (6.3) % | ||
| (54 794) 126 516 |
(50 237) 134 947 |
9.1 % (6.2) % |
1) Basic earnings per share. Calculated basis 56 996 430 for 2023 and 60 397 369 for 2024 (average total shares adjusted for treasury shares) 2) Including dividend approved in fiscal year 3) ROCE/ROE is based on annualized EBIT/Profit after tax for the quarter. ROE and ROCE are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report.
Balance sheet
| USD thousand (unaudited accounts) | 31 Dec 2024 | 30 Sep 2024 | Quarterly variance | ||
|---|---|---|---|---|---|
| ASSETS | |||||
| Non-current assets | |||||
| Vessels | 493 341 | 493 291 | 50 | ||
| Newbuilding contracts | 19 170 | 18 718 | 452 | ||
| Other non-current assets | 4 540 | 4 512 | 27 | ||
| Current assets | |||||
| Other current assets | 39 027 | 46 606 | (7 579) | Q4 2024 | Q3 202 |
| Cash and cash equivalents | 56 139 | 51 324 | 4 815 | ||
| Total assets | 61222216 | 614 451 | (2 235) | Equity ratio1 | Equity rat |
| EQUITY AND LIABILITIES | 58.8% | 60.2% | |||
| Equity | 359 866 | 370 113 | (10 247) | ||
| Non-current liabilities | |||||
| Mortage debt | 128 559 | 124 626 | 3 933 | ||
| Long-term financial liabilities | 4 529 | 32 | 4 498 | ||
| Long-term bond loan | 70 625 | 75 802 | (5 178) | ||
| Current liabilities | |||||
| Short-term mortage debt | 25 199 | 25 199 | |||
| Short-term bond loan | |||||
| Other current liabilities | 23 439 | 18 680 | 4 759 | ||
| Total liabilities | 2523351 | 244 339 | 8 012 | ||
| Total liabilities and equity | 61222216 | 614 451 | (2 235) |
Q4 2024 Cash Flow
Comments
- Positive working capital change in Q4 following a negative change of USD 11.8 million in Q3 2024
- CAPEX split
- Dry-dock and technical upgrade: USD 5.8 million
- Energy efficiency measures: USD 2.1 million
- Newbuild costs: USD 0.5 million
- Dry-docking and newbuilding schedule 2025, see slide 42 and 43
- Actively using the revolving credit facilities (RCF) to adjust cash balance
- Share buyback program initiated 13 December 2024. Program finalized 10 February 2025 with 1.2 million shares purchased 13 Dec 2024 – 10 Feb 2025 of in total USD 7.9 million
Debt maturity profile
Debt maturities1 (USD million)
Instalments Balloon Bond*
Steel cut first CABU III newbuild 21 January 2025
22
1) The NOK 800 million bond issue (KCC05) has been fixed through cross-currency swaps at 10.6475
Agenda
Introduction / performance overview
Market review and commercial update
Financial update
Sustainability efforts
Market outlook
Commercial outlook and summary
EEOI off target in 2024, ending at similar levels to 2023
Y-o-Y change was mainly driven by...
Energy efficiency
- Shaft generator and air lubrication retrofits
- Ageing hull coatings
CLEANBU deep dive - combination trading is part of the solution
Positive impact of combination trading on EEOI1
Faster sailing in higher product tanker markets
Agenda
Introduction / performance overview
Market review and commercial update
Financial update
Sustainability efforts
Market outlook
Commercial outlook and summary
Dry bulk and tanker market outlook – risks and opportunities
Trade-wars ? Ukraine peace agreement?
Image: Chip Somodevilla/Getty Images
Tightening sanctions against Iran and Russia?
Image: Office of the Iranian Supreme Leader
Gaza conflict resolution/ normalization of Red Sea situation?
China macroeconomic development – impact of stimulus efforts?
Image: Wang Zhao/AFP/Getty Images
Limited tonne-mile effect of a Red Sea normalization?
Fall in product tanker COGH passage last 5 months implies lower negative tonne-mile effect when Red Sea situation (eventually) normalizes
CPP Cape of Good Hope (COGH) passage vs. Red Sea transits (in mbpd)
Interlinked tanker market - positive support from the crude market
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 - 10 000 20 000 30 000 40 000 50 000 60 000 70 000 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Jan-25 VLCC and Suezmax CPP shipments (mbpd) VLCC spot TCE/d VLCC spot TCE-rate CPP on Suezmax and VLCC LR2 spot earnings TCE \$/d
1) Source: Fearnley Research 2) Source: Clarksons
VLCCs and Suezmaxes have exited CPP-trading1 LR2 shifting to dirty trading2
VLCC and Suezmax CPP shipments in in mbpd vs. VLCC spot TCE-rates Share of LR2s trading dirty vs. LR2 spot TCE earnings USD/day
Strong Brazilian grain season/resumed Chinese grain imports
Strong 2025 Brazilian Grain Season expected1China likely to resume grain imports in 20251
Brazilian Grain Exports monthly 2023-2025 Chinese Grain Imports Million mt Monthly 2023-2025
Strong seasonal support over the next months
Positive seasonal effects in the dry bulk market after early Chinese New Year (CNY)
Panamax Spot Earnings (P5TC_82) \$/day indexed against Chinese New year
Agenda
Introduction / performance overview
Market review and commercial update
Financial update
Sustainability efforts
Market outlook
Commercial outlook and summary
High CABU tanker/caustic soda contract coverage secured for 2025
Split of tanker and dry booking1
% share of fleet as of 12 February 2025
Target increasing CLEANBU contract coverage during 2025
Split of tanker and dry booking1
% share of fleet as of 12 February 2025
*Based on expected contract days under booked COAs 1) Further details for contract coverage – see appendix page 40-41 2) Tanker exposure excludes capacity in vegoil
Seasonally weak dry market hits KCC fleet TCE earnings for Q1 2025
TCE earnings development (\$/day)1
TCE-earnings Q1 2025 to date vs. Q4 2024 (\$/day)1,2
Q4-2024 Q1-2025 to date
Q1 2025 guiding reflects seasonally weak dry markets – upside potential in Q2
Q1 2025 TCE earnings1 guiding vs. actual last two quarters
Estimate based on booked cargoes and expected employment for open capacity basis forward freight pricing (FFA)
1) TCE earnings \$/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report.
Getting the best out of peaking markets – overperforming in "normal" markets
Average KCC TCE earnings1 vs. standard tonnage (\$/day)2
1) TCE earnings \$/day are alternative performance measures (APMs) which are defined and reconciled in the excel sheet "APM4Q2024" published on the Company's homepage (www.combinationcarriers.com) Investor Relations/Reports and Presentations under the section for the Q4 2024 report. 2) Standard tonnage assume one-month advance cargo fixing/"lag". Standard tonnage for bulk carriers are calculated averages of Panamax and Kamsarmax earnings and CABU and CLEANBU onhire days. Standard tonnage for product tankers are calculated averages of MR and LR1 earnings and CABU and CLEANBU onhire days.
37
EFFICIENCY
DIVERSIFICATION
FLEXIBILITY
Best risk-adjusted return in dry bulk/tanker shipping
2019 – 2024 Q4 average annualized quarterly return on invested capital (%)1
FUTURE BOUND
Detailed 2025-2026 contract coverage – wet
Contract coverage (as per 12 February 2025)
CABU: CSS contract coverage
| # of days | 01 25 | Q2-Q4 2025 | 2026 |
|---|---|---|---|
| Fixed rate COA/fixtures in the book | 263 | 293 | 136 |
| Floating rate COA | বা 2 | 623 | ਤੇ ਕੋਰੇ |
| Total contract days | 305 | ਰੀ ਦ | 484 |
| FFA coverage | |||
| Available wet days CABU | 305 | 1 018 | 1 518 |
| Fixed rate coverage | 86 % | 29 % | ರಿ ೫ |
| Floating rate | 14 % | 61 % | 23 % |
| Spot/open | 0 % | 10 % | 68 % |
Total wet contract coverage
| # of days | 01 25 | 02-04-2025 | 2026 |
|---|---|---|---|
| Fixed rate COA/TC/fixtures in the book | 655 | 318 | 136 |
| Floating rate COA | 42 | 883 | ਤੇਖਰੇ |
| Total contract days | 697 | 1 200 | 484 |
| FFA coverage | |||
| Available wet days | 804 | 2 240 | 3 190 |
| Fixed rate coverage | 81 % | 14 % | 4 % |
| Floating rate coverage | 5 % | 39 % | 11 % |
| Spot | 13 % | 46 % | 85 % |
CLEANBU: CPP contract coverage
| # of days | 01 25 | Q2-Q4 2025 | 2026 |
|---|---|---|---|
| Fixed rate COA/TC/fixtures in the book | 392 | 25 | |
| Floating rate COA | 260 | ||
| Total contract days | 392 | 285 | |
| FFA coverage | |||
| Available wet days CLEANBU | 499 | 1222 | 1672 |
| Fixed rate coverage | 79 % | 2 % | 0 % |
| Floating rate | 0 % | 21 % | 0 % |
| Spot | 21 % | 77 % | 100 % |
Detailed 2025-2026 contract coverage – dry bulk
Contract coverage (as per 12 February 2025)
| CABU: dry contract coverage | |||||||||
|---|---|---|---|---|---|---|---|---|---|
CLEANBU: dry contract coverage
| # of days | 01 25 | Q2-Q4 2025 | 2026 |
|---|---|---|---|
| Fixed rate COA/fixtures in the book | 177 | 32 | |
| Floating rate COA | 384 | ||
| Sum | 177 | 416 | |
| FFA coverage | |||
| Available dry days | 219 | 815 | 1 115 |
| Fixed rate coverage | 81 % | ್ನು ೫ % | 0 % |
| Floating rate coverage | 47 % | ||
| Spot | 19 % | 49 % | 100 % |
Total dry contract coverage
Dry docking overview remaining 2024 and preliminary plan for 2025
(CAPEX in USD millions and off-hire in parenthesis)
Depreciations 2025: Following completed DDs in 2024 and 2025, we expect to see an increasingly recognized depreciation cost per quarter from in range 10-25% per quarter throughout 2025 (compared to Q4 2024). On an annual basis we expect depreciation cost for 2025 to be approximately in range 15-20 % higher than 2024.
Scheduled 2025 dry dockings:
| Vessel | Type | Dry docking and other technical upgrades |
Energy efficiency measures | Estimated total cost (off-hire days) |
Timing* |
|---|---|---|---|---|---|
| Balboa** | CABU | 2.7 | 4.6 | 7.3 (57) | Q4 Nov 2024 |
| Bakkedal | CABU | 2.8 | 0.0 | 2.8 (32) | Q1 Mar |
| Baffin | CABU | 2.3 | 4.6 | 6.9 (60) | Q2 Mar-Apr |
| Bangor | CABU | 2.5 | 0.0 | 2.5 (42) | Q2 May |
| Baleen | CLEANBU | 2.5 | 0.0 | 2.5 (37) | Q3 May-Jun |
| Bantry | CABU | 3.2 | 0.0 | 3.2 (42) | Q3 Jun-Jul |
| Bangus | CLEANBU | 2.5 | 4.9 | 7.38 (60) | Q3 Jul-Aug |
| Baiacu | CLEANBU | 2.3 | 4.9 | 7.2 (60) | Q4 Oct-Nov |
| Total 2025 | 20.8 | 19.0 | 39.78 (390) |
*Period indicated is expected quarter in which drydocking will start, off-hire may occur in following period, while costs may occur in previous or following period ** Dry-docking started in Q4 2024. Completed in early January. 11 off-hire days in Q1 2025.
Newbuild CAPEX overview
Estimated CAPEX1 per vessel (USDm)
| Contract price | 2023 | 2024 | 2025 | 2026 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Name | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| CABU III – 1560 |
USD 57.4m |
5.74 | 5.74 | 8.61 | 5.74 | 31.57 | ||||||||||
| CABU III – 1561 |
USD 57.4m |
5.74 | 5.74 | 8.61 | 5.74 | 31.57 | ||||||||||
| CABU III - 1562 |
USD 57.4m |
5.74 | 5.74 | 8.61 | 5.74 | 31.57 | ||||||||||
| Total | USD 172.2m | 17.22 | 11.48 | 8.61 | 14.35 | 20.09 | 63.14 | 5.74 | 31.57 |
Payment structure
| Milestone payments | Signing | Steel cutting | Keel laying | Launching | Delivery |
|---|---|---|---|---|---|
| % of total contract price | 10% | 10% | 15% | 10% | 55% |
Overview of actual dividend distribution compared to dividend policy
Dividend policy: KCC intends, on a quarterly basis (after the initial investment period 2019-2021), to distribute a minimum 80% of the adjusted cash flow to equity, i.e. EBITDA less debt service and maintenance cost as dividends to its shareholders, provided that all known, future capital and debt commitments are accounted for, and the company's financial standing remains acceptable.
Reconciliation of Adjusted Cash Flow to Equity (ACFE)
| Period | EBITDA+ | Cash interest cost | Ordinary debt repayments |
Dry docking cost including technical upgrades4 |
Adjusted cash flow to equity (ACFE)³ |
Dividends® | Dividends/ACFE |
|---|---|---|---|---|---|---|---|
| 2019 | 25.8 | 10.3 | 13.9 | 6.0 | -4.4 | 2.7 | n.a.7 |
| 2020 | 48.1 | 12.5 | 17.4 | 4.9 | 13.4 | 5.8 | 43% |
| 2021 | 67.1 | 14.7 | 23.6 | 12.4 | 16.4 | 11.0 | 67% |
| 2022 | 107.0 | 17.9 | 24.0 | 10.2 | 54.8 | 52.9 | 97% |
| 2023 | 134.9 | 21.1 | 24.1 | 5.3 | 84.4 | 72.3 | 86% |
| Q1 2024 | 37.6 | 4.4 | 6.3 | 3.0 | 24.0 | 21.2 | 88% |
| Q2 2024 | 36.2 | 4.7 | 6.3 | 5.4 | 19.8 | 18.1 | 92% |
| Q3 2024 | 32.6 | 5.2 | 6.3 | 1.2 | 19.9 | 18.1 | 91% |
| Q4 2024 | 20.2 | 4.2 | 6.3 | 5.8 | 3.8 | 6.0 | 158% |
| 2024 | 126.5 | 18.4 | 25.2 | 15.3 | 67.5 | 63.5 | 94% |
1) 2019-2024: Income Statement, EBITDA
2) 2019-2022, Q1-Q2 2024: Cash Flow Statement, Interest paid. 2023, Q3 2024: Cash Slow Statement, Interest paid adjusted for one-off related to premium paid bond buy-back, see note 8 in Annual Report 2023 and Note 7 in Q3 2024 Report
3) 2019-2020, 2022, Q3 2024: Cash Flow Statement, Repayment of mortgage debt. 2021, 2023, Q1-Q2 2024: Ordinary debt repayment not stated separately in Cash Flow Statement .
4) Normal drydocking and technical upgrades, not included energy efficiency investments. 2019: Note 8, 2020-2023: Note 9, Q1-Q4 2024: Note 4
5) ACFE = EBITDA – cash interest cost – ordinary debt service – dry docking and technical upgrades. KCC believes reconciliation of ACFE provides useful information for KCC's stakeholders to understand dividend payments in context of the Company's dividend policy.
6) Dividend for the relevant quarter, distributed the following quarter
7) Negative ACFE
