Klaveness Combination Carriers (KCC) Q2 2026 earnings summary

Executive summary

• Q2 2026 was marked by extraordinary operational challenges due to Middle East conflicts, but resilience in operations and customer service was maintained, with strong financial and operational performance, including record TCE earnings and EBITDA growth.

• The Banastar vessel, trapped in the Middle East, was safely repatriated after four months, highlighting effective crisis management.

• Fleet expanded to 19 vessels with completion of the CABU newbuilding program, enhancing competitiveness and operational scale.

• Commercial momentum maintained with new contracts and successful navigation of geopolitical risks.

Financial highlights

• Q2 EBITDA reached $38.5 million, up 31% quarter-over-quarter; profit after tax was $20.8 million, up $5.2 million from Q1.

• Net revenue from vessel operations was $52.1 million, up 11% from Q1.

• Dividend of $0.30 per share (totaling $17.8 million), 100% of adjusted cash flow to equity, with an annualized yield close to 11%.

• Cash and cash equivalents at quarter-end were $65.2 million; long-term available liquidity increased to $145.2 million.

• Earnings per share for Q2 2026 were $0.35, up 35% QoQ and 218% YoY.

Outlook and guidance

• Expectation of continued strong dry bulk and product tanker markets in coming quarters, supported by high fuel prices, ongoing Middle East disruptions, and market tightness.

• Q3 time charter earnings guidance: CABUs at $33,500-$34,500/day (94% fixed), CLEANBUs at $36,500-$38,500/day (84% fixed), both reflecting robust performance.

• High contract coverage for Q4 2026, with 79% of dry bulk and 45% of tanker fleet days fixed.

• Targeting increased contract coverage for 2027: 60% for tankers (50% fixed rate), 20% for dry bulk.

• Dry bulk markets expected to strengthen in 2H 2026, with a rebound in bauxite and iron ore shipments and strong US soybean sales.