KLAVENESS COMBINATION CARRIERS ASA
Sector unknown·KCC · Oslo Børs·Fiscal year to 31/12/2024
Exposure profile
Derived from what the company itself writes. Empty directions mean the report doesn't mention themes of that type.
In their own words
Grouped by theme, from the management review in the annual report. A · The company itself is a verbatim quote, B · From the report is without a verified quote.
Oil
Raw materials and inputs
DriverNegative impact: weakens
“Main risks next 12 months CLEANBU commercial and technical performance Acceptance and/or exemptions are required in relation to the CLEANBU vessels from clients and terminals where policies may require clean petroleum products (CPP) as the last cargo or the three last cargoes to avoid cargo contamination or where policies may exclude the use of combination carriers like the CLEANBU vessels. Should the Group not obtain the relevant acceptances or exemptions from clients or terminals, this may have a material adverse effect on the operations of the CLEANBU vessels and consequently the Group's operations and results.”
Annual report 2024A · The company itself
DriverPositive impact: strengthens
“There was also a positive development in the CLEANBU trading with the important trade from Middle East to South America resuming during the spring of 2024 after close to a year’s interruption due to the large import volumes of Russian diesel to the South American market during this 11-months period.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Transition risks mainly relate to effect of reduced demand for the Group’s services and the risk of stranded assets and new regulations as the global fleet moves to low-carbon fuels.”
Annual report 2024A · The company itself
Market
“8x CLEANBU LR1 product tanker and Kamsarmax dry-bulk vessel CLEANBU (Clean Petroleum Product-Bulk) vessels mainly transport Clean Petroleum Product (CPP) from Middle East/ India, Far East or US Gulf to South America or other dry-bulk export hubs and dry-bulk commodities on the return.”
Annual report 2024A · The company itself
Market
“The CLEANBU business delivered the highest TCE-earnings and results since the inception of this business in 2019.”
Annual report 2024A · The company itself
Market
“Due to the continued large earnings difference between the product tanker and dry bulk markets in most of 2024, the fleet maintained a high share of trading in the tanker markets partly through triangulation trading and substituting dry bulk cargoes with vegetable oils cargoes.”
Annual report 2024A · The company itself
Market
“The key customers for the CLEANBUs are large oil and petrochemical companies and trading companies, many with investment grade ratings.”
Annual report 2024A · The company itself
Chains out: this strengthens Plastics and polymers
Shipping and logistics
End markets
DriverNegative impact: weakens
“Main risks next 12 months Weak freight rates and changes in trade flows commodities, caustic soda, or clean petroleum products can significantly impact the Group’s financial performance.”
Annual report 2024A · The company itself
StrategyPositive impact: strengthens
“Higher asset utilization compared to standard vessels due to two laden legs, giving a higher number of revenue days.”
Annual report 2024A · The company itself
StrategyPositive impact: strengthens
“There are technical, operational, and commercial risks that the new vessels may not perform as intended, potentially affecting their earnings capacity and market value. In addition, the construction phase carries risks related to delays, cost overruns, and quality issues at the shipyard. Supply chain disruptions, labour shortages, unforeseen technical challenges or sanctions could impact delivery timelines and vessel specifications.”
Annual report 2024A · The company itself
Market
“8x CABU + 3x Newbuilds1 MR product tanker and Panamax dry-bulk vessel CABU (Caustic Soda- Bulk) vessels mainly transport Caustic Soda Solution from Far East to Australia, and dry-bulk commodities on the return.”
Annual report 2024A · The company itself
Market
“8x CLEANBU LR1 product tanker and Kamsarmax dry-bulk vessel CLEANBU (Clean Petroleum Product-Bulk) vessels mainly transport Clean Petroleum Product (CPP) from Middle East/ India, Far East or US Gulf to South America or other dry-bulk export hubs and dry-bulk commodities on the return.”
Annual report 2024A · The company itself
Chains in: Carbon tax and ETS prices weakens, Global trade volumes strengthens, Fuel strengthens
Agriculture and food production
End markets
Market
“8x CABU + 3x Newbuilds1 MR product tanker and Panamax dry-bulk vessel CABU (Caustic Soda- Bulk) vessels mainly transport Caustic Soda Solution from Far East to Australia, and dry-bulk commodities on the return.”
Annual report 2024A · The company itself
Market
“The CABU fleet also demonstrated strong performance in 2024 with the highest number of caustic soda shipments to date increasing further KCC’s market share in the Australian market.”
Annual report 2024A · The company itself
Market
“The CABUs kept up the industry leading trading efficiency with only 11% ballast and 94% trading in combination trades for the year.”
Annual report 2024A · The company itself
Chains in: Grain and agricultural commodities mixed effect, Climate change and extreme weather weakens, Grocery retail and private label weakens
Aluminium
Raw materials and inputs
Market
“CABU caustic soda contracts The Group is, to a certain degree, dependent on a limited number of key customers and renewal of key/material contracts with these customers, particularly related to caustic soda transportation. Lack of renewal of such contracts and unfavourable changes in trade flows and volumes may adversely affect the Group’s earnings and financial position.”
Annual report 2024A · The company itself
Market
“The key customers for the CABUs are mainly some of the world’s largest aluminium companies, many of them with investment grade rating.”
Annual report 2024A · The company itself
Energy efficiency
Technology
StrategyPositive impact: strengthens
“Moving forward, the Group faces due diligence risk as it considers new investments in energy efficiency. Being an early adopter of certain measures, there is a lack of large-scale testing prior to installation, introducing an element of risk.”
Annual report 2024A · The company itself
StrategyPositive impact: strengthens
“KCC remains committed to our pledge of considerably cutting the carbon footprint of our service and we have continued to roll out several innovative energy and operational efficiency measures on our fleet during 2024. This includes the large retrofit of an air lubrication system and a shaft generator on two vessels, and the decision to install two suction sails on one of the three CABU III newbuilds delivering in 2026.”
Annual report 2024A · The company itself
Chains in: Carbon tax and ETS prices strengthens, EU climate and energy policy strengthens
Geopolitical uncertainty
Macro
DriverNegative impact: weakens
“Geopolitical risks arising from territorial and other disputes between countries, war, political instability, terrorism, piracy and trade wars might impact the trading pattern and market levels. These risks could lead to higher costs for KCC, including crew expenses and insurance premiums, while also affecting revenue through market disruptions and trade restrictions.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“These fluctuations are influenced by imbalances in supply of vessel capacity, demand for global seaborne transportation of commodities as well as different types of disruptions, such as sanctions, tariffs and close down of trade areas.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“KCC successfully navigated through extremely volatile markets and geopolitical instability and demonstrated the strength of KCC’s business model with its flexible fleet of combination carriers.”
Annual report 2024A · The company itself
DriverPositive impact: strengthens
“The product tanker market had a very strong start to 2024 and kept up well during the spring and early summer, partly driven by trade disruptions following the hostilities in the Red Sea.”
Annual report 2024A · The company itself
Chains out: this strengthens Defence budgets, strengthens Energy security, strengthens Tariffs and trade policy, weakens Global trade volumes, strengthens Sea freight and freight rates, weakens Reconstruction of Ukraine
EU climate and energy policy
Regulation
DriverNegative impact: weakens
“Due to stricter environmental regulations and customer requirements, older tonnage is in danger of both being re-rated and has a higher risk of being detained and losing competitiveness to more modern tonnage. The consequences can be lower utilization due to more waiting time, risk of increased discounts and in worst case not being accepted by some customers.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“Impact of a low- carbon future with introduction of emission regulations, zero-emission vessels and lower demand for transportation of fossil fuels A move to a low-carbon economy can potentially have material negative impact on the Group through several ways: • Emerging propulsion technologies and fuels might negatively affect the competitiveness of the Group’s existing fleet, potentially leading to lower revenue and/or impairment of vessel values. The increasing diversity of alternatives also heightens the risk of selecting the wrong technology. • New regulations can lead to material cost related to upgrades and retrofits to comply with regulations and/or material impairment of operational flexibility and/or operational limitations.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“• Increased pressure on financial institutions to incentivize reduction in CO₂ emissions and new regulations, such as the EU taxonomy, could reduce and restrict access to capital, increase cost of capital, and raise breakeven levels for the Group. • The demand for the transportation of fossil fuels could be materially impacted, reducing demand for dry bulk and product tanker vessels. • New customer requirements related to sustainability and carbon emissions could negatively affect the Group’s competitive position. • New carbon pricing regulations, such as the EU ETS, along with FuelEU Maritime, which aim to reduce the carbon intensity of maritime fuels, may result in higher operating costs.”
Annual report 2024A · The company itself
Chains out: this strengthens Circular economy and recycling, strengthens Energy efficiency
Carbon tax and ETS prices
Regulation
DriverNegative impact: weakens
“• Increased pressure on financial institutions to incentivize reduction in CO₂ emissions and new regulations, such as the EU taxonomy, could reduce and restrict access to capital, increase cost of capital, and raise breakeven levels for the Group. • The demand for the transportation of fossil fuels could be materially impacted, reducing demand for dry bulk and product tanker vessels. • New customer requirements related to sustainability and carbon emissions could negatively affect the Group’s competitive position. • New carbon pricing regulations, such as the EU ETS, along with FuelEU Maritime, which aim to reduce the carbon intensity of maritime fuels, may result in higher operating costs.”
Annual report 2024A · The company itself
Chains out: this weakens Shipping and logistics, strengthens Energy efficiency, weakens Cement and building materials
Global trade volumes
Macro
DriverNegative impact: weakens
“The Group is dependent on certain trade flows to obtain efficient combination trading. Production issues at plants, mines, and refineries, regional commodity price differences, and geopolitical conflicts may impact these flows. Unfavourable changes in trade patterns and volumes may adversely affect the Group’s earnings and financial position.”
Annual report 2024A · The company itself
Chains in: Tariffs and trade policy weakens, Geopolitical uncertainty weakens, Business cycle and GDP growth strengthens
Chains out: this strengthens Shipping and logistics
Tariffs and trade policy
Macro
DriverNegative impact: weakens
“Trade restrictions such as tariffs and embargoes have a negative impact on the demand for seaborne transportation.”
Annual report 2024A · The company itself
DriverNegative impact: weakens
“These fluctuations are influenced by imbalances in supply of vessel capacity, demand for global seaborne transportation of commodities as well as different types of disruptions, such as sanctions, tariffs and close down of trade areas.”
Annual report 2024A · The company itself
Chains in: Geopolitical uncertainty strengthens
Chains out: this weakens Global trade volumes
Electricity
Raw materials and inputs
DriverNegative impact: weakens
“KCC’s carbon intensity (EEOI) was 6.6 for the year, at a similar level to 2023, mainly due to higher speed and aging coatings for the CLEANBU fleet.”
Annual report 2024A · The company itself
Chains in: Data centres strengthens, Electrification strengthens
Chains out: this strengthens Power grid expansion
Financial regulation
Regulation
DriverNegative impact: weakens
“• Increased pressure on financial institutions to incentivize reduction in CO₂ emissions and new regulations, such as the EU taxonomy, could reduce and restrict access to capital, increase cost of capital, and raise breakeven levels for the Group. • The demand for the transportation of fossil fuels could be materially impacted, reducing demand for dry bulk and product tanker vessels. • New customer requirements related to sustainability and carbon emissions could negatively affect the Group’s competitive position. • New carbon pricing regulations, such as the EU ETS, along with FuelEU Maritime, which aim to reduce the carbon intensity of maritime fuels, may result in higher operating costs.”
Annual report 2024A · The company itself
Fuel
Raw materials and inputs
DriverPositive impact: strengthens
“Diversified market exposure as the vessels transport both dry-bulk and tanker products and a positive correlation to bunker prices.”
Annual report 2024A · The company itself
Chains out: this strengthens Shipping and logistics, strengthens Aviation and travel
Insurance premiums and reinsurance
Raw materials and inputs
InputNegative impact: weakens
“These risks could lead to higher costs for KCC, including crew expenses and insurance premiums, while also affecting revenue through market disruptions and trade restrictions.”
Annual report 2024A · The company itself
Competitors mentioned in the report
No named competitors in the report.
Financial figures
| Revenue latest fiscal year | 0.28 bn USD |
| Revenue growth vs. the year before, same method | -3.1 % |
| EBITDA reported by the company | N/A |
| Net debt debt incl. leasing minus cash | N/A |
| Diluted EPS per share | 1.35 USD |
Source: annual report (ESEF) A. See the report
Criteria
| Profit | ✓ |
| Growing | ✗ |
| Healthy balance sheet | N/A |
Only the criteria that can be computed from financial statements on this page. The remaining criteria (such as price and dividend) need a share price and are in the analysis.
Figures are in the report's currency (USD), not converted to DKK. Quotes are shown as the company's own words in the report's original language.