Klaveness Combination Carriers (KCC) CMD 2025 summary

Strategic direction and business model

• Focus on redefining efficiency and sustainability in shipping, leveraging combination carrier concepts (CABU, CLEANBU, and future EXBU) to minimize ballast and emissions, outperforming standard vessels in efficiency and earnings.

• Strategy for 2026–2030 centers on expanding the CLEANBU business, growing CABU with newbuilds and new regions, and developing new carrier concepts, with a strong commitment to decarbonization and shareholder returns.

• Emphasis on disciplined, industrial approach, prioritizing risk-adjusted returns, flexibility to adapt to changing trade flows and regulations, and capitalizing on market-leading low-emission shipping.

• Preparation for fleet growth by utilizing favorable newbuilding market windows and considering additional vessel orders based on trade development.

• Growth since IPO in 2019: fleet expanded from 8 to 19 vessels, with further expansion and renewal under consideration based on market conditions.

Sustainability and decarbonization

• Achieved a 20% fleet-wide cut in emissions since 2018, targeting further reductions to 5.1 gCO2/tNM by 2030 without customer/regulatory support, and 4.4 with support.

• CABU and CLEANBU vessels deliver 30–40% lower fuel consumption per transported ton compared to alternatives, with ~10% trading empty versus 30–50% for standard vessels.

• Decarbonization strategy is to be a smart leader, investing where returns are clear, maintaining flexibility for future regulatory or market-driven changes, and positioning for stricter regulations.

• Despite regulatory delays, maintains leadership in energy efficiency, with EEOI significantly lower than industry alternatives, and continues to invest in measures with clear financial returns.

• Customer willingness to pay a premium for low-carbon shipping remains limited, but efficiency and emissions performance strengthen customer relationships and competitive positioning.

Market outlook and business development

• Strong position in the Australian CSS market, growing market share to ~50% for 2024–2025, with further growth potential in Indonesia and Brazil.

• CLEANBU business is unlocking potential in large addressable markets, with increasing customer acceptance and flexibility to deploy capacity in the highest-paying markets.

• Market outlook for 2026 is cautiously optimistic: dry bulk markets have outperformed expectations, with plans to increase fixed-rate contract coverage to 25%-30% next year; tanker markets face higher fleet growth but benefit from flexibility and contract coverage.

• Synergies between CABU and CLEANBU fleets provide operational flexibility, scheduling advantages, and increased leverage in customer negotiations.

• Ongoing focus on optimizing trading, expanding into new markets, and maintaining high utilization and efficiency to drive earnings and resilience.