Norwegian shipping company Torvald Klaveness managed to improve its financial performance in 2018 after consolidating its combination carrier activities.
Klaveness delivered a profit before tax (EBT) of USD 10.1 million in 2018, compared to a loss of USD 2.1 million seen a year earlier.
EBITDA for 2018 was USD 37 million, up from USD 28 million in 2017. The combination carriers were the largest contributor to the EBITDA, according to the company.
“The financial results of Torvald Klaveness improved in 2018 both due to somewhat improved underlying markets and a more optimal trading pattern and contract composition for the combination carriers,” Klaveness said.
During the year, the company focused on consolidating combination carrier operations under one holding company, Klaveness Combination Carriers AS, and further developing its activities through raising external capital, registering the shares on N-OTC and growing the newbuilding program by three vessels.
In addition, Klaveness has continued to invest in digital initiatives and maintain its position among dry bulk operators and pool managers.
Gross revenues from operation of the company’s vessels ended at USD 317.5 million in 2018, compared to USD 326.6 million in 2017, while net revenue from operation of vessels
ended at USD 89.7 million in 2018, against USD 78 million recorded in 2017.
The combination carriers continued to deliver positive results in 2018. Earnings for the nine vessels on water, the caustic-bulk (CABU) combination carriers, strengthened in 2018, mainly due to somewhat improved dry bulk markets, a more optimal trading pattern, a higher number of caustic soda cargoes and higher bunker fuel prices.
Both the dry bulk market and the container market continued to improve in 2018, however, sentiment in both markets turned negative towards the end of the year. Average container vessel earnings improved in 2018 and the vessels still achieved rates above the general market due to the vessels’ fuel efficiency.
Results for the dry bulk activities were positively impacted by active long and short positions along with market development. However, weather delays and related extended port stays impacted the results negatively, the company explained.