Klaveness Combination Carriers posts $23.6 million in third-quarter after-tax profit
Key Facts
Klaveness Combination Carriers posted earnings before interest, taxes, depreciation and amortization of $40.4 million and after-tax profit of $23.6 million in the third quarter of 2026. The company reported the results in its quarterly statement, citing an improvement in earnings from the previous quarter. After-tax profit rose from $20.8 million in the second quarter, while earnings before interest, taxes, depreciation and amortization increased from $38.5 million. The company attributed the quarterly improvement mainly to more revenue-generating days following the delivery of three new CABU vessels. Fewer vessel off-hire days for dry-dock maintenance also supported results.
The company said quarterly performance also benefited from strong markets and improved trading efficiency, alongside the entry into service of the third and final new CABU vessel. The fleet’s average time charter equivalent, or TCE, earnings were $36,116 per day, compared with $37,782 in the second quarter. In an initial operational update, the company had reported an average of $36,116 per day, within guidance of $34,800 to $36,300 per day. The two fleets had mixed performance during the quarter: daily CABU earnings rose to $34,499, up $423 from the previous quarter. The company attributed this to higher caustic soda earnings, a larger share of earning capacity employed on index-linked contracts, and improved trading efficiency.
By contrast, CLEANBU fleet earnings fell to $38,164 per day, down $4,079 from the second quarter. The company linked the decline to a weaker LR1 product tanker market during the summer, as well as an increase in the share of fleet capacity deployed in the dry bulk market to 22%, from 4% in the previous quarter. Second-quarter results showed that TCE earnings growth in both segments benefited from strong markets and increased wet freight activity. But the company said at the time that disruptions related to the situation in the Middle East had partly constrained trading efficiency. That comparison provides context for the divergent performance of the two fleets in the third quarter, as conditions in the tanker and dry bulk markets changed.
Alongside the earnings announcement, the board approved a quarterly cash distribution of $0.36 per share, totaling $21.4 million. The distribution represents a 20% increase from the previous quarter, according to the company statement. The decision points to a higher amount declared for shareholders alongside an increase in after-tax profit compared with the second quarter. The statement did not provide further details among the available figures on the distribution’s record date or payment date. The company also provided fourth-quarter operating guidance, with separate daily ranges for the CABU and CLEANBU fleets.
Klaveness Combination Carriers expects fourth-quarter daily TCE earnings of between $43,000 and $48,000 for the CABU fleet, and between $57,000 and $67,000 for the CLEANBU fleet. It said 74% of CABU fleet capacity and 50% of CLEANBU capacity are fixed for the period. The chief executive described the guidance as a record and said the company was entering the fourth quarter backed by a booming oil tanker market and robust dry bulk earnings. He added that geopolitical disruptions continue to drive market volatility. The company is negotiating annual contracts and expects to end 2026 with a strong contract book.
The company owns and operates a fleet of 19 combination carriers designed to transport liquid and dry cargoes. In the context of its second-quarter results, the company said the Banastar vessel exited the Strait of Hormuz on June 25, 2026, and that a new contract with Alunorte will extend its operational life beyond 25 years. The fourth-quarter report and 2026 annual report are scheduled for publication on February 19, 2027. This follows fourth-quarter guidance that set daily earnings ranges for each fleet and the shares of capacity fixed. The company had linked the increase in revenue-generating days in the third quarter to delivery of the new CABU vessels and reduced maintenance off-hire.