Q2 2026 Klaveness Combination Carriers ASA Earnings Call

August 25, 2026

Speaker #1: Q2 2026 financial results presentation. First up on the agenda today will be CEO Ingebrigte Dahm, who will walk you through an overview of the results, followed by CFO and Deputy CEO Liev Dernes, who will give you a look into the financials as well as the sustainability performance.

[Company Representative] (Klaveness Combination Carriers): Q2 2026 financial results presentation. First up on the agenda today will be CEO, Engebret Dahm, who will walk you through an overview of the results, followed by CFO and Deputy CEO, Liv Hege Dyrnes, who will give you a look into the financials as well as the sustainability performance. Then Ingebret will come back on to give you a look into the market as well as the outlook for KCC in the coming quarters. As usual, we will have a dedicated Q&A session at the end of the presentation, so feel free to send through your questions on the chat button that you see on your screen. With that, let's go ahead and get started. Ingebret, you're up.

Speaker #1: And then Ingebrigte will come back on to give you a look into the market, as well as the outlook for KCC in the coming quarters.

Speaker #1: So, as usual, we will have a dedicated Q&A session at the end of the presentation, so feel free to send through your questions using the chat button that you see on your screen.

Speaker #1: So with that, let's go ahead and get started. Ingebrigte, you're up.

Speaker #2: Good morning, and thank you, Haley. So, this quarter has been one of the most extraordinary and operationally challenging quarters for KCC. What's happening in the Middle East has really tested the resilience of our business model, our craftsmanship, and our commitment to our customers.

Engebret Dahm: Good morning, and thank you, Haley. This quarter has been one of the most extraordinary and operationally challenging quarters for KCC. With what's happening in the Middle East, we have really tested the resilience of our business model, our craftsmanship, and our commitment to our customers. I am very proud to say, I believe we have passed all these tests, and I would like to thank the KCC team for excellent work done during this quarter. The quarter has, of course, been influenced, needless to say, what's happening in Middle East. The main fears we had when we met end of April was that we would see effects on the caustic soda shipments on the CABUs to Australia. We feared that lack of feedstock to the chlor-alkali industry would limit shipments of caustic soda to Australia.

Speaker #2: And I'm very proud to say I believe we have passed all these tests. I'd like to thank the KCC team for the excellent work done during this quarter.

Speaker #2: The quarter has, of course, been influenced, needless to say, by what's happening in the Middle East. The main fears we had when we met at the end of April were that we would see effects on the COSIC solar shipments on cars to Australia.

Speaker #2: We fear that a lack of feedstock to the chloride car industry would limit shipments of COSIC Solar to Australia. We also fear that the loss of market in the Middle East—specifically, the Middle Eastern aluminum smelters, who are our Australian customers—would have a negative impact on production and COSIC Solar shipments.

Engebret Dahm: We feared that the loss of the market in the Middle East and the Middle Eastern aluminum smelters of our Australian customers would also have a negative impact on production and caustic soda shipments. None of these concerns materialized during the quarter and to date, and it has shown the large resilience, impressive resilience of the Australian alumina industry in the face of these large geopolitical impacts. The concerns for the CLEANBUs was more in the fact that we, due to the change in trade patterns, we had to allocate capacity into standard tanker trades, and we felt, of course, that this would have negative impact on earnings through suboptimal trading and waiting time. Also this, with one exception, did not materialize, and I think the results we present today bears testimony to this fact.

Speaker #2: None of these concerns materialized during the quarter and to date, and it has shown the impressive resilience of the Australian aluminum industry in the face of these large geopolitical impacts.

Speaker #2: The concerns on the clean boost focus more on the fact that, due to the change in trade patterns, we had to allocate capacity into standard tanker trades.

Speaker #2: And we fear, of course, that this would have had a negative impact on earnings through suboptimal trading and waiting time. Also, this one exception did not materialize, and I think the results we present today bear testimony to this fact.

Speaker #2: So, looking at the second quarter results, we are happy with the performance in light of what has happened around us in the world. We had a strong financial performance and also a strong operational performance.

Engebret Dahm: Looking on the Q2 results, we are happy with the performance in light of what has happened around us in the world. We had a strong financial performance and also a strong operational performance. The earnings results are one of the strongest in KCC's history. We have maintained the highest standards on safety and operational quality with no accidents, no injuries, and no customer complaints. The time charter earnings of the fleet on average ended at $37,782 per day, which is an increase of $4,350 per day, which is in the upper half of the revised guiding of $36,500 to $38,400 per day. The EBITDA ended at $38.5 million, and the result after tax ended at $20.8 million, which is a $9.2 million and $5.2 million increase, respectively, from Q1.

Speaker #2: The earnings results are among the strongest in KCC’s history. We have maintained the highest standards of safety and operational quality, with no accidents, no injuries, and no customer complaints.

Speaker #2: The earnings of the fleet on average under that, $37,782 per day, which is $4,350 per day, which is in the upper half of the revised guiding of $36,500 to $38,400 per day.

Speaker #2: The EBITDA came in at $38.5 million, and the result after tax was $20.8 million, which is a $9.2 million and $5.2 million increase, respectively, from the first quarter.

Speaker #2: The first half profit is $36.3 million, which is higher than the full year 2025 profit of $33.4 million. The Board has decided to distribute a 30 cent dividend per share, which totals $17.9 million.

Engebret Dahm: The H1 profit ended at USD 36.3 million, which is higher than the full year 2025 profit of USD 33.4 million. The board has decided to distribute USD 0.30 dividends per share, which is in total USD 17.9 million, which is USD 0.05 and USD 3 million higher than in Q1. When we met last time, we told you about the Banastar, the cargo vessel that was directly impacted by the conflict in the Middle East. She was discharging alumina in Dubai and was supposed to ship caustic soda back to Australia. In the 4 months since that happened, she was trapped in the Middle East, mostly being alongside Dubai Drydocks during planned maintenance. This was among the safest place we could imagine the ship could be. In the 4 months period, we have had close contact with the crew together with our ship manager.

Speaker #2: Which is half a cent, and, sorry, $0.05 and $3 million higher than in the first quarter. When we met last time, we told you about Banastar, the cargo vessel that was directly impacted by the conflict in the Middle East.

Speaker #2: She was discharging aluminum in Dubai. It was supposed to ship COSIC solar back to Australia. Of the four, trapped in the Middle East, most were alongside Dubai Dry Docks doing plant maintenance.

Speaker #2: This was among the safest places we could imagine the ship could be. In the four-month period, we have had close contact with the crew, together with the ship manager.

Speaker #2: We have made the safety and well-being of our crew our highest priority, and we have repatriated the crew members who wanted to go home.

Engebret Dahm: We have taken the safety and the wellbeing of our crew as our highest priority, and we have repatriated the crew that wanted to go home. After the signing of the U.S.-Iranian Framework for Peace the 17 June 2026, we saw a window of opportunity to get the vessel out. After thorough risk evaluation, including consulting properly with the crew, we booked a slot to take the vessel out with the US NCAGC for a facilitated transit through the southern route, close to the coast of Oman. This happened in the evening the 25 June 2026, and over midnight the 26 June 2026, the vessel was safely out of the Gulf. I would like to extend our thanks to the crew for their commitment and professionalism during the difficult time while the vessel stayed in the Middle East and the transit through the Strait of Hormuz.

Speaker #2: After the signing of the US-Iranian framework for peace, on the 17th of June, we saw a window of opportunity to get the vessel out. After thorough risk evaluation, including consulting properly with the crew, we booked a slot to take the vessel out with the US NCAGC for a facilitated transit through the southern route, close to the coast of Oman.

Speaker #2: This happened in the evening of the 25th of June, and over midnight into the 26th of June, the vessel was safely out of the Gulf. I would like to extend our thanks to the crew for their commitment and professionalism during the difficult time in the Middle East, when the vessel stayed in the region and during the transit through the Strait of Hormuz.

Speaker #2: Hormuz and, also, later increased hostilities in the Bab al-Mandeb Strait—the trade flows for both crude and clean petroleum products have changed. And, as mentioned, this has also impacted quite a bit the trading of our clean boost.

Engebret Dahm: With the closure of Strait of Hormuz and also later increased hostilities in the Bab el-Mandeb Strait, the trade flows for both crude and clean petroleum products have changed. As mentioned, this has also impacted quite a bit the trading of our CLEANBU vessels. With the CPP exports out of Arabian Gulf being more or less stopped, it has had ripple effects on exports out of India and North East Asia, which has been one of our main trading hubs. We have, in this situation, used the large flexibility of the CLEANBU fleet to switch the deployment of the fleet to trading as regular tankers and to capture opportunities that we have seen in the tanker market in the quarter. On the map, we see the gray lines are the historical trades of the CLEANBU vessels since the delivery of the ships 7 years ago.

Speaker #2: With the closure of the Strait, CPP exports also arriving at the Gulf have been more or less stopped. It has had ripple effects on exports out of India and Northeast Asia, which has been one of our main trading hubs.

Speaker #2: We have, in this situation, used the large flexibility of the Clean Blue fleet to switch the deployment of the fleet to trading as regular tankers.

Speaker #2: And to capture opportunities that we have seen in the tanker market in the quarter, we have—and as we see here on the map—the gray lines are the historical trades of the Clean News since the delivery of the ships seven years ago.

Speaker #2: And we also show here what we have as part of the opportunities we have taken in over the second quarter. We kept ships trading in the regular trades from the US Gulf to South America.

Engebret Dahm: We also show what part of the opportunities we have taken over Q2. We kept ships trading in the regular trades from US Gulf South to South America. Normally, we have done this as part of a triangular trading. This time, we have used more like your standard tankers going back in ballast. We have made loadings of clean petroleum products in the Red Sea, and we have brought back grains. In the run-up to the conflict and immediate start of the conflict, we have shipped naphtha from US Gulf to Asia. In June, we took a quite unconventional shipment from Antwerp to Sydney in Australia with gasoline, one of the longest sailings we ever had, 45 days sailing. So let's look a bit closer on how the business has been doing in Q2.

Speaker #2: Normally, we do this as part of triangular trading. This time, we have used more of a standard approach, with tankers going back in ballast.

Speaker #2: We have made loadings of clean petroleum products in the Red Sea, and we have brought back grains. In the run-up to the conflict and in the media start of the conflict, we have shipped naphtha from the US Gulf to Asia.

Speaker #2: And in June, we talked to quite an unconventional shipment from Antwerp to Sydney in Australia, with gasoline—one of the longest sailings we have had, 45 days sailing.

Speaker #2: So, let's look a bit closer at how business has been doing in the second quarter. Partly due to the Middle East crisis, the prototanker and trouble markets have been strong, which has supported earnings.

Speaker #2: The tanker markets spiked in February. They kept strong through March and April, but fell back in May and June. But it's partly recovering during the summer and has been firming lately in August.

Engebret Dahm: Partly due to Middle East crisis, the product tanker and dry bulk markets have been strong, which has supported earnings. The tanker market spiked in February. It kept strong through March and April, but fell back in May and June. It partly recovering during the summer and has been firming lately into August. I would like to mention that the regional export volumes have fluctuated quite a bit. We had repeated halting and resuming of trade flows at short notice, which has led to extreme regional earnings volatility. For instance, the Atlantic market went from $93,000 per day in April to less than $6,000 in May. It has been a difficult time to navigate. With the US oil product exports increasing, the loading activity in Atlantic has been paramount and drawn increasing product tanker capacity. It has also paid better than alternative trades.

Speaker #2: I would like to mention that the regional export volumes have fluctuated quite a bit. We had repeated halting and resuming of trade flows at short notice, which has led to extreme regional earnings volatility.

Speaker #2: For instance, the Atlantic market went from $93,000 per day in April to less than $6,000 in May. So, it's been a difficult time to navigate.

Speaker #2: With US oil product exports increasing, the loading activity in the Atlantic has been paramount, and drone-increasing prototanker capacity. It has also paid better than alternative trades.

Speaker #2: The private market has also strengthened during the spring and summer. The P5TC, the average index for CAMSM access, increased from $16,800 per day in March to more than $20,000 per day in May, and has remained stable through the summer.

Engebret Dahm: The dry bulk market has also strengthened during the summer and spring. The P5TC, the average index for Kamsarmaxes increased from $16,800 per day in March to more than $20,000 per day in May and has kept stable through the summer. I would also like to mention that the fuel prices for shipping bunkers have increased tremendously, of course, during the outbreak of the hostilities. It has fallen back, but it is still solidly around 50% higher than the pre-conflict levels, which also supports the earnings of KCC. Looking at the CABUs, it has been another strong quarter for the CABUs, where we got the support from both the strong product tanker and dry bulk markets. But we have had ripple effects from the Middle East conflict that has offset a little bit of the gains we got from the market.

Speaker #2: I would also like to mention that fuel prices for shipping bunkers have increased tremendously, of course, during the outbreak of the hostilities. They have fallen back, but are still solidly around 50% higher than pre-conflict levels, which also supports the earnings of KCC.

Speaker #2: Looking at the car boost, it's been another strong quarter for the car boost, where we got support from both the strong prototanker and dry bulk markets.

Speaker #2: But we have had ripple effects from the Middle East conflict that have offset a little bit of the gains we got from the market.

Speaker #2: We had a couple of cargoes canceled, which were substituted quickly. However, the changes to the shipping program had a negative impact on scheduling and led to longer waiting days at our customers' terminals in Australia.

Engebret Dahm: We got a couple of cargoes canceled, which were substituted quickly, but the changes to the shipping program had negative impact on the scheduling and led to longer waiting days at our customers' terminals in Australia. The changes to the cargo program, the long wait, and on the top, the trapping of the Banastar in the Middle East, led to a very tight fleet situation for KCC in Q2. In order to deliver the service to our customers, we did two ballastings, and we also used clean routes on two caustic soda shipments to ensure that our customers had caustic soda on the tanks at any time. These challenges resulting in the highest ever share of the cargo capacity in tanker trade, in caustic soda trade.

Speaker #2: So, the changes to the cargo program, the long wait, and, on top of that, the trapping of the Banastar in the Middle East led to a very tight fleet situation for KCC in the second quarter.

Speaker #2: In order to deliver the service to our customers, we did two ballastings. We also used Clean Boost on two Corsica shipments to ensure that our customers had Corsica soda on their tanks at any time.

Speaker #2: These challenges resulted in the highest ever share of the cargo capacity in tanker trade in the COA soda trade. It also resulted in the lowest ever share of the capacity in combination trades, as we don't count ballast voyages as combination trade.

Speaker #2: And also some of the highest ballast percentage in the history of the car boost. The time charter earnings ended at $34,000, and $76 per day, which is $4,500 higher than in the first quarter.

Engebret Dahm: It also resulted in the lowest ever share of the capacity in combination trades as we do not co- And ballast voyages as combitrade and also some of the highest ballast percentage in the history of the CABUs. The time charter earnings ended at $34,076 per day, which is $4,500 higher than in Q1. We got the benefit of the strong MR tanker market through the floating rate contracts. Although it should be said that the Pacific MR tanker market performed quite weaker compared to the strong Atlantic market. We got a good support on the spot dry bulk shipments of the strong Pacific dry bulk market. We also had positive fuel effects, especially on the dry bulk markets.

Speaker #2: We got the benefit of the strong tanker market through the floating rate contracts. Although, it should be said that the Pacific tanker market performed quite a bit weaker compared to the strong Atlantic market.

Speaker #2: We got good support on the spot dry bulk shipments from the strong Pacific dry bulk market. And we also had positive fuel effects, especially on the dry bulk markets.

Speaker #2: Looking over to the Clean Boost, with all the challenges that we have had out of the Middle East crisis, we are also pleased with the Clean Boost second quarter results, which is the highest ever—fourth highest ever—time charter earnings of our Clean Boost.

Speaker #2: As mentioned, we deployed the fleet in tanker trades after the main combo trades stopped up. As a result, we have in total 86% of the capacity trading in oil product trades and vegetable oil trades.

Engebret Dahm: Looking over to the CLEANBUs, with all the challenges that we have had out of the Middle East crisis, we are also pleased with the CLEANBU Q2 results, which is the fourth highest ever time charter earnings of our CLEANBUs. As mentioned, we deployed the fleet in tanker trades after the main combi trades stopped up. As a result, we have in total 86% of the capacity trading in oil product trades and vegetable oil trades. The share of dry trading decreased to 4%, and the two caustic soda shipments made to Australia accounted for 10% of the capacity. These trading choices are to large effect of the large earnings difference between the dry and the product tanker market. As normal, we allocate capacity to the highest paying markets. With the CLEANBUs mainly out of combi, the combi trading was limited to 42%.

Speaker #2: The share of dry trading decreased to 4%. And the two Corsica soda shipments made to Australia accounted for 10% of the capacity. These trading choices are to a large extent the effect of the large earnings difference between the dry and the prototanker market.

Speaker #2: And as normal, we allocate capacity to the highest-paying markets. With the Clean Boost mainly out of combi, the combi trading was limited to 42%.

Speaker #2: We had long ballasts ending up at 32%, which is one of the longest ballasts we have ever had in history. The time charter earnings ended at $42,243 per day.

Speaker #2: Which is $4,900 per day higher than in the second quarter, which again is a result of the strong tanker market and also our efforts to optimize trading.

Engebret Dahm: We had long ballasts ending up at 32%, which is one of the longest ballasts we ever had in history. The time charter earnings ended at USD 42,243 per day, which is USD 4,900 per day higher than in Q2, which again is a result of the strong tanker market and also our efforts to optimize trading. We have had, during the quarter, extreme volatility in earnings on the various voyages we have performed, everything from USD 140,000 per day down to below USD 5,000 per day. In totality, we are pleased with the performance of the CLEANBUs in the quarter. Liv, you take over.

Speaker #2: We have had, during the quarter, extreme volatility in earnings on the various voyages. We have performed everything from $140,000 per day down to below $5,000 per day.

Speaker #2: So in totality, we are pleased with the performance of the Clean Boost in the quarter. I'll now let you take over.

Speaker #1: Yes, thank you. Then over to the aggregated financials. I’ll start with the EBITDA bridge, comparing Q2 with Q1. EBITDA for Q2 ended at $38.5 million.

Speaker #1: An increase of 31% from last quarter. Ingebrigte has already mentioned that the TCE rates were higher for both segments. For the existing CABU fleet, so that does not include the CABU newbuilds, this had a quarter-over-quarter effect of $2.5 million.

Liv Hege Dyrnes: Yes. Thank you. Over to the aggregated financials. I'll today start with the EBITDA bridge comparing Q2 with Q1. EBITDA for Q2 ended at USD 38.5 million, an increase of 31% from last quarter. Inge-Mat has already mentioned that the TCE rates were higher for both segments. For the existing CABU fleet, that does not include the CABU newbuilds. This had a quarter-over-quarter effect of USD 2.5 million. For the CLEANBUs, the effect was USD 3.1 million. We took delivery of two newbuilds during Q1 and Q2. The EBITDA effect Q on Q for these two vessels were USD 3.6 million positive. We had more off hire in Q2 compared to Q1 for the existing fleet. That partly relates to Banastar. Banastar had in total 109 days off hire in H1 due to the situation in the Middle East, whereof 88 days in Q2.

Speaker #1: For the Clean Boost, the effect was $3.1 million. Then we took delivery of two new vessels during Q1 and Q2. The EBITDA effect quarter-on-quarter for these two vessels was a positive $3.6 million.

Speaker #1: Then we had quite a lot more, or higher, in Q2 compared to Q1. For the existing fleet, that partly relates to Banastar. Banastar had in total 109 days off-hire in the first half due to the situation in the Middle East, whereof 88 days were in Q2.

Speaker #1: In addition, we had four dry dockings ending in Q2: two CABU and two CLEANBU. For one of these dry dockings, we had an extended yard stay due to an issue at the dry docking.

Speaker #1: But this was partly compensated by a lot of our insurance. For the remainder of the year, we will not have any CLEANBU dry dockings, and we have two CABU dry dockings.

Liv Hege Dyrnes: In addition, we had four dry dockings ending in Q2, two CABUs and two CLEANBUs. For one of these dry dockings, we had an extended yard stay due to an issue at the dry docking, but this was partly compensated by loss of hire insurance. For the remainder of the year, we will not have any CLEANBU dry dockings, and we have two CABU dry dockings, included the life extension of Banastar. You can find detailed information about these in the appendix. Quarter-over-quarter, this had a negative effect of USD 4.9 million. Other income, that is loss of hire compensation, both for Banastar, and that relates to both Q1 and Q2 for this vessel, and then it's also loss of hire compensation for the extended yard stay as mentioned. This amounted to a quarter-over-quarter effect of USD 5.4 million.

Speaker #1: This included the life extension of Banastar. You can find detailed information about these in the appendix. But quarter over quarter, this had a negative effect of $4.9 million.

Speaker #1: Other income, that is, loss of hire compensation both for Banastar, and that relates to both Q1 and Q2 for this vessel. And then it's also loss of hire compensation for the extended yard stay, as mentioned.

Speaker #1: The amount to quarter over quarter effect of 5.4 million. Then operating expenses for the existing fleet increased by 1.1 million dollars. Underlying, we saw an increase of approximately 300 dollars per day for the Clean Boost and 400 dollars per day for the car boost.

Speaker #1: But this is mainly one-off, partly related to Banastar in the Middle East, and then several other items for both fleets, but mainly one-off.

Liv Hege Dyrnes: Operating expenses for the existing fleet increased by $1.1 million. Underlying, we saw an increase of approximately $300 per day for the CLEANBUs and $400 per day for the CABUs. This is mainly one-offs, partly related to Banastar in the Middle East and then several other items for both fleets, but mainly one-offs. Administrative expenses came down by $0.5 million. It is partly related to holiday pay in Norway, so lower salary payments, and it is also lower other administrative expenses. If we then look at some of the other P&L items as well, net revenue from operation of vessels was $52.1 million for Q2, an increase of 11%. This does not include the off-hire compensation of $5.4 million. Profit after tax was $20.8 million, an increase of 33% quarter-over-quarter.

Speaker #1: Administrative expenses came down by $0.5 million. It's partly related to holiday pay in Norway, so lower salary payments, and it also reflects lower other administrative expenses.

Speaker #1: So if we then look at some of the other P&L items as well. Net revenue from operation of vessels was $52.1 million for Q2, an increase of 11%.

Speaker #1: And this does not include the off-hire compensation of $5.4 million. The profit after tax was $20.8 million, an increase of 33% quarter over quarter.

Speaker #1: In addition to the EBITDA effects, profit after tax was also impacted by higher depreciation of $2.1 million. That's related both to the new vessels as well as the finalized dry dockings.

Speaker #1: Net finance costs also increased quarter over quarter by $1.8 million. That's approximately 50% related to the refinancing and 40% related to higher interest cost, as we have a higher debt burden due to the new vessels.

Liv Hege Dyrnes: In addition to the EBITDA effects, profit after tax was also impacted by a higher depreciation of $2.1 million. That is related both to the new builds as well as the finalized dry dockings. Net finance costs also increased Q over Q by $1.8 million. That is approximately 50% related to the refinancing, 40% related to higher interest cost as we have a higher debt burden due to the new builds and a minor negative effect of FX. This resulted in an annualized return on capital employed for Q2 of 14% and a return on equity of 22%. Over to the balance sheet, the equity ratio was stable from Q1 to Q2 at 50%. Equity increased by approximately $5 million. It is driven by a very solid profit after tax, partly offset by dividends and a small negative other comprehensive income for the quarter.

Speaker #1: And a minor negative effect of FX. This resulted in an annualized return on capital employed for Q2 of 14%, and a return on equity of 22%.

Speaker #1: Over to the balance sheet. The equity ratio was stable from Q1 to Q2 at 50%. Equity increased by approximately $5 million. This was driven by a very solid profit after tax, partly offset by dividends and a small negative other comprehensive income for the quarter.

Speaker #1: Net interest-bearing bank debt to EBITDA was 2.4 on a 12-month rolling basis. This is positively impacted by the increased EBITDA, but the underlying ratio is even lower, as this includes the full debt burden for the new vessels, but does not include the full EBITDA for the two new vessels.

Speaker #1: Cash at the end of Q2 was $65 million, compared to $59 million last quarter. Long-term available liquidity was $145 million, an increase of $18 million from last quarter.

Liv Hege Dyrnes: Net interest bearing debt to EBITDA was 2.4 on a 12-month rolling basis. This is positively impacted by the increased EBITDA, but the underlying ratio is even lower as this includes full debt burden for the new builds. It does not include full EBITDA for the two new builds. Cash by the end of Q2, $65 million, compared to $59 million last quarter, and long-term available liquidity, $145 million, an increase from last quarter of $18 million. The $18 million is positively impacted by the very strong operating cash flow. We had very limited working capital changes for the quarter, and it is also positively impacted by higher debt or available debt capacity, both due to the refinancing and due to the new build deliveries. You might have noticed in Q2 that we released a press release regarding the closing of a $200 million senior bank facility.

Speaker #1: The $18 million is positively impacted by the very strong operating cash flow. We had very limited working capital changes for the quarter, and it's also positively impacted by higher debt, or available debt capacity, both due to the refinancing and due to the newbuild deliveries.

Speaker #1: You might have noticed in Q2 that we released a press release regarding the closing of a $200 million senior bank facility. This is refinancing of one facility following June 2028 and one part of one facility following June next year.

Speaker #1: As you can see on the graph here, in 2027 we still have a small balloon payment of $9 million related to one Clean Boost vessel.

Speaker #1: This was made compared to the existing facilities: improved margin, repayment profile, extended tenure, as well as removal of one financial covenant. So after the refinancing, we have two larger bank facilities, one for the Car Boost and one for the Clean Boost, in addition to the $9 million following June next year.

Liv Hege Dyrnes: This is refinancing of one facility falling due in 2028 and part of one facility falling due next year. As you can see on the graph here, in 2027, we still have a small balloon payment of $9 million related to one CLEANBU vessel. This was made on improved overall terms compared to the existing facilities, improved margin, repayment profile, extended tenor, as well as removal of one financial covenant. After the refinancing, we have two larger bank facilities, one for the CABUs and one for the CLEANBUs, in addition to the $9 million falling due next year. We have four unencumbered vessels built between 2001 and 2005. We have, over the last year, optimized the bank debt portfolio, and I would say there are limited improvement potential going forward now, but I think we have a very strong financing package now.

Speaker #1: And we have unencumbered vessels built between 2001 and 2005. We have, over the last year, optimized the bank debt portfolio, and I would say there is limited improvement potential going forward now.

Speaker #1: But I think we have a very strong financing package now. Then lastly, on the financials—dividends. As Ingeborg mentioned, 30 cents per share for the quarter, $17.8 million in total.

Speaker #1: That equals 100% of the adjusted cash flow to equity, so well above the minimum threshold in the policy. On an EPS basis, it's equal to 86%, and dividend yield based on close yesterday and on an annualized basis is close to 11%.

Speaker #1: So, this increase in dividends is definitely supported by the very solid EBITDA improvement, and it's despite the increase in maintenance capex, which was quite high at close to $8 million for the quarter.

Liv Hege Dyrnes: Then lastly, on the financials dividends, as Ingebrigt mentioned, $0.30 per share for the quarter, $17.8 million in total. That equals 100% of the adjusted cash flow to equity, so well above the minimum threshold in the policy. On an EPS basis, it equals 86% and dividend yield, based on close yesterday and on an annualized basis, close to 11%. This increase in dividends is definitely supported by the very solid EBITDA improvement, and it is despite the increase in maintenance CapEx, which was quite high at close to $8 million for the quarter. But we know that this element is volatile between quarters. This ends our or not ends, but this continues our unbroken dividend record that we have had since the listing in 2019. So dividends every quarter, and in total, $266 million distributed. Then a brief comment related to the carbon intensity for the quarter.

Speaker #1: But we know that this element is volatile between quarters. So this ends our or not ends, but this continues our unbroken dividend record that we've had since the listing in 2019.

Speaker #1: So, dividends were paid every quarter, with a total of $266 million distributed. Then, a brief comment related to the carbon intensity for the quarter: as expected, it increased in Q2.

Speaker #1: So, the EOI for the fleet was 8, up from 6.5 in Q1. Year to date, that was 7.2. And in the graph to the right, you can see the main drivers behind the increase.

Speaker #1: The two main factors were increased ballast and lower cargo weight. This is heavily impacted by the disruptions from the Middle East situation. Ingeborg has already mentioned that we have ballasted more, specifically for the CLEANBU fleet.

Liv Hege Dyrnes: As expected, it increased in Q2. The EEOI for the fleet was 8, up from 6.5 in Q1. Year to date, that was 7.2, and in the graph to the right, you can see the main drivers behind the increase. The two main factors were increased ballast and lower cargo weight. This is heavily impacted by the disruptions from the Middle East situation. Ingebrigt has already been through that we have ballasted more, specifically for the CLEANBU fleet and with less trading efficiency or lower trading efficiency. This also impacts the cargo weight as we have transported more wet than dry this quarter. We do expect this to come down when we reestablish the trading patterns that we usually do.

Speaker #1: And with less trading efficiency, or lower trading efficiency, this also impacts the cargo weight. We have transported more debt than dry this quarter. We do expect this to come down when we reestablish the trading patterns that we usually do.

Speaker #1: So, going forward, we definitely will come closer to the 5.8 target, although that is a very high ambition for 2026 compared to when we see the results for the first half of the year.

Speaker #1: The positive thing here is that we see a positive impact from energy efficiency as well. So that's it from my side. Then, over to you again, Ingeborg.

Speaker #2: Thank you, Liv. So, looking ahead, let's first quickly dive into the outlook for the product tank and dry bulk markets, and how KCC looks to perform over the coming quarters.

Liv Hege Dyrnes: Going forward, we definitely will come closer to the 5.8 target, although that is a very high ambition for 2026 compared to when we see the results for the first half of the year. The positive thing here is that we see a positive impact from energy efficiency as well. So that is it from my side, then over to you again, Ingebrigt.

Speaker #2: With the unpredictable situation in the Middle East, there are large uncertainties about how these markets will develop. But based on our analysis, we believe that we are going to have both strong dry bulk and product tanker markets in the next quarters.

Speaker #2: And that fuel prices will stay high in these quarters. This is likely to be a sweet spot for KCC, where all three markets that decide the earnings of our company will be positive.

Engebret Dahm: Thank you, Liv. Looking ahead, let us first quickly dive into the outlook for the product tanker and dry bulk markets and how KCC looks to perform over the coming quarters. With the unpredictable situation in the Middle East, there are large uncertainties on how these markets will develop. But based on our analysis, we believe that we are going to have both a strong dry bulk and product tanker markets the next quarters, and that fuel prices will stay high in these quarters. This is likely to be a sweet spot for KCC, where all the three markets that decide the earnings of our company will be posted. Looking first on the product tanker market, the events in the Middle East is likely to continue to shape the dynamics of the tanker markets. The three main effects that partly I have mentioned already.

Speaker #2: So, looking first at the product tanker market, the events in the Middle East are likely to continue to shape the dynamics of the tanker markets.

Speaker #2: There are three main effects that have already been partly mentioned. Firstly, CPP exports out of the Arabian Gulf fell substantially over the last quarter.

Speaker #2: U.S. exports picked up. Northeast Asia exports reduced, partly due to the export ban in China and also restrictions on Korean exports. We believe that some of this trend will continue.

Speaker #2: We've seen files with SEA. However, improved oil supply and the highest-ever refining margins look to end up with increased exports in the Pacific, which will strengthen our business.

Speaker #2: Secondly, we have the product tanker market had laden sailing distances. But loss of seaborne products has reduced the tonne-mile in the product tanker market to date this year.

Engebret Dahm: Firstly, the CPP exports out of the Arabian Gulf fell substantially over the last quarter. US exports picked up, Northeast Asia exports reduced, partly due to export ban in China and also restrictions of Korean exports. We believe that some of this trend will continue. We see in the Far East, we see improved oil supply and the highest ever refining margins, which looks to end up with increased exports in the Pacific, which will strengthen our business. Secondly, the product tanker market had laden sailing distances, but the loss of seaborne products have reduced the ton-mile in the product tanker market to date this year. This illustrates the fact of the trade shortfalls that the market had experienced. Thirdly, the substantially increased inefficiencies in the fleet has to date offset the lower ton-mile development. That comes through far longer ballast voyages and longer waiting time.

Speaker #2: So this illustrates the effect of the trade shortfalls that the market has experienced. Thirdly, the substantial increase in efficiencies in the fleet has, to date, offset the lower tonne-mile development.

Speaker #2: And that comes through longer, far longer ballast approaches and longer waiting times. So, looking ahead, the main question remains: will the limited supply of oil products lead to a cap on earnings in the product tanker industry?

Speaker #2: Or will the development of the Middle East crisis continue to lead to substantial inefficiencies in the product tanker market, using a large share of the capacity of the product tanker market?

Speaker #2: Our take on this—and there are uncertainties, for sure—is that the oil market has shown tremendous dynamism and flexibility to deliver more or less the supply that the markets need.

Engebret Dahm: Looking ahead, the main question remains, will the limit to supply of oil products lead to cap of earnings in the product tanker industry? Or will the development of the Middle East crisis continue to lead to substantial inefficiencies in the product tanker market using a big share of the capacity of the product tanker market? Our take on this, and there are uncertainties for sure, is that the oil markets has shown a tremendous dynamism and flexibility to deliver more or less the supply that the markets need. They have found ways. Unfortunately, on the Middle East situation, it doesn't look that there are any peaceful solution at sight, meaning that the markets will continue to be disrupted by the events in the Middle East, continuing to have extensive inefficiencies that in our mind, in totality, will keep the market strong for the next quarters.

Speaker #2: They've found ways. Unfortunately, on the Middle East situation, it doesn't look like any peaceful solution is in sight. Meaning that the markets will continue to be disrupted by the events in the Middle East, continuing to have extensive inefficiencies that, in our mind, in totality will keep the markets strong for the next quarters.

Speaker #2: Looking at the dry bulk markets, the effects of the Middle East situation are less significant on dry bulk markets, but there are still substantial inefficiencies emerging in these markets.

Speaker #2: We had, of course, the Middle East situation with ships waiting outside and inside the Gulf. We have had recent attacks in the Black Sea limiting grain exports out of the Black Sea.

Speaker #2: Strengthening longer-haul dry bulk exports from the Americas. And we have also seen lately the effects of El Niño, leading to restrictions in the Panama Canal.

Speaker #2: Increasing congestion is leading to dry bulk ships passing through the Cape of Good Hope and Cape Horn on their way back and forth to Asia. I would like to mention three effects to look ahead for in the dry market.

Engebret Dahm: Looking on the dry bulk markets, the effects of the Middle East situation is less on dry bulk markets, but there are still substantial inefficiencies coming in the dry bulk markets. We had, of course, the Middle East situation with ships waiting outside and inside the Gulf. We have had recent attacks in the Black Sea, limiting grain exports out of the Black Sea, strengthening longer haul dry bulk exports from the Americas. We also seen lately the effects of El Niño on limit restrictions of the Panama Canal, increasing congestion, leading to dry bulk ships passing through Cape of Good Hope and Cape Horn on the way back and forth to Asia. I would like to mention three effects for looking ahead for the dry market. One, we continue, as we see on the graph here, to get the Panamax market to get support from the Capesize market.

Speaker #2: One, we continue, as we see on the graph here, to get the Panamax market to get support from the Cape South market after some weak development in the summer of both side shipments out of Guinea.

Speaker #2: We see an expected increase in long-haul iron ore shipments from both sides, particularly shipments out of Guinea. That will be very supportive for front-haul demand.

Speaker #2: And likely to strengthen the Cape South market, which again will have the trickle-down effects on the Panamax market through a higher market share for Panamax in the long-haul coal shipments.

Speaker #2: Secondly, coming into the second half of the year, seasonally the South America grain season starts to soften. And as normal, the markets are quite dependent on good activity in U.S. grain and North American grain exports.

Engebret Dahm: After some weak development in the summer of bauxite shipments out of Guinea, we see an expected increase in long-haul iron ore shipments and bauxite shipments out of Guinea that will be very supportive for the front haul demand and likely to strengthen the Capesize market, which again, will have the trickle-down effects on the Panamax market through a higher market share for Panamax in the long-haul coal shipments. Secondly, coming into the second half of the year, seasonally, the South America grain season starts to soften. As normal, the markets are quite dependent on a good activity in US grain and North American grain exports. Good thing is that we have seen substantial increase in Chinese grain purchases, which is the strongest since 2022. That, we expect will support the Panamax market through the autumn and into the winter.

Speaker #2: The good thing is that we have seen a substantial increase in Chinese grain purchases, which is the strongest since 2022. That, we expect, will support the Panamax market through the autumn and into the winter.

Speaker #2: We see in addition the thirdly, we see in addition positive development on coal shipments, which is partly a substitution of expansive gas with cheaper coal.

Speaker #2: Given the limit of Qatari LNG exports due to the closure of the Strait of Hormuz. In addition, we see El Niño effects in China, where drought has led to a reduction in hydroelectric production, again favoring consumption of coal.

Speaker #2: So this development on coal shipments is also expected to support the Panamax and the dry bulk market over the next quarters. So, let's turn to the other aspects of how we are delivering value to our shareholders over the next quarters.

Engebret Dahm: Thirdly, we see in addition, a positive development on coal shipments, which is partly a substitution of expensive gas with cheaper coal, given the limit of Qatari LNG exports due to the closure of the Strait of Hormuz. In addition, we see El Niño effects in China, where the drought has led to reduction in hydro-electric production, again, favoring consumption of coal. This development on coal shipments is also expected to support the Panamax and the dry bulk market over the next quarters. Let's turn into the other effects of how we are delivering value to our shareholders over the next quarters. Starting off with the contract coverage. Having a solid contract book is important for us to ensure that we keep the ships running in the most efficient combination trades where our ships can create the most value. We do fixed rate and floating rate contracts.

Speaker #2: Starting off with the contract coverage, having a solid contract book—it's an important tool for us to ensure that we keep the ships running in the most efficient combination trades.

Speaker #2: Our ships can create the most value. We do fixed rate and closing rate contracts. The fixed rate contracts to create a floor of fixed rate coverage reducing volatility.

Speaker #2: Looking at the fourth quarter, 2026, on this graph, we see the dry bulk coverage is mainly limited to FFAs, which are constituting around 20% of the dry bulk capacity.

Speaker #2: The rest of the capacity, or the total capacity, is mainly operating in the spot market, but with repeat customers that we have done business with for decades.

Speaker #2: Looking on the tanker side, we have around 55% contract coverage for the fourth quarter—32 percentage points at fixed rate contracts and 23 percentage points at floating rate contracts.

Engebret Dahm: The fixed rate contracts create a flow of fixed rate coverage, reducing volatility. Looking at Q4 2026, on this graph, we see the dry bulk coverage is mainly limited to FFAs, which are constituting around 20% of the dry bulk capacity. The total capacity is mainly operating in the spot market, but with repeat customers that we have done business with for decades. Looking on the tanker side, we have around 55% contract coverage for Q4, 32 percentage point at fixed rate contracts and 23 percentage point floating rate contracts. We are comfortable in totality with this contract coverage for Q4. For 2027, we target the next quarters to increase the capacity beyond the current 28% contract coverage on tankers and 7% contract coverage for dry bulk. We are entering into the traditional contract renewal season. It already started.

Speaker #2: And we are comfortable in totality with this contract coverage for the fourth quarter. For 2027, we target, over the next quarters, to increase the capacity beyond the current 28% contract coverage on tankers and 7% contract coverage for dry bulk.

Speaker #2: We are entering into the traditional contract renewal seasons. It has already started, and the momentum increases into the fourth quarter. We normally succeed in completing the contract negotiations before Christmas.

Speaker #2: The market backdrop for these contract negotiations, with both a strong dry bulk and tanker market, is positive. Our target is to increase the contract coverage on the tanker side to around 60% for next year, with approximately 50% being fixed rate.

Speaker #2: And to increase the dry bulk contract coverage up to around 20%. Continuing to look at how we are working on the clean business.

Speaker #2: We have, despite the disruptions to the oil markets and to combination trading we have had in the second quarter, maintained our medium to long-term strategy for the clean fleet.

Engebret Dahm: The momentum increases into Q4, and we normally succeed to complete the contract negotiations before Christmas. The market backdrop for these contract negotiations with both a strong dry bulk and tanker market is positive, and our target is to increase the contract coverage on the tanker side to around 60% for next year, with around 50% being fixed rate, and to increase the dry bulk contract coverage up to around 20%. Continuing looking at how we are working on the CLEANBU business. We have, despite the disruptions to the oil markets and to the combination trading we have had in Q2, we maintain our medium to long-term strategy for CLEANBU fleet. The CLEANBUs, I would like to remind you, are semi-industrial shipping business.

Speaker #2: The clean boost, I would like to remind you, is a semi-industrial shipping business. We establish combination trades where we combine shipments of clean petroleum products, vegetable oils, and dry bulk cargoes in the most efficient manner.

Speaker #2: To deliver the most value in terms of efficiency to our customers, and to deliver superior earnings over the cycle. We have, over the years, established a number of efficient, high-paying combination trades.

Speaker #2: And we systematically work to add a couple of more trades to improve further efficiency and to also create the groundwork for expanding the clean fleet at the right timing.

Speaker #2: While the combination trades have, in the second quarter and first part of the third quarter, been wholly or partly disrupted, we are seeing some positive development in the trade flows out of India and the FAIS that has enabled us to put some cleaner ships back into the combination trades.

Engebret Dahm: We establish combination trades where we combine shipments of clean petroleum products, vegetable oils and dry bulk cargoes in the most efficient manner to deliver most value in terms of efficiency to our customers and to deliver superior earnings over the cycle. We have, over the years, established a number of efficient, high-paying combination trades, and we systematically work to add a couple of more trades to improve further efficiency and to also create the groundwork for expanding the CLEANBU fleet at the right time. While the combination trades have, in Q2 and first part of Q3, been wholly or partly disrupted, we are seeing some positive development in the trade flows out of India and the Far East that has enabled us to put some CLEANBU ships back into the combination trades. We do hope and expect that this will continue going forward.

Speaker #2: And we do hope and expect that this will continue going forward. But to continue, succeeding with our strategy, we need to continue expanding our customer base and to win over the remaining difficult to difficult to win over customers.

Speaker #2: Despite all the geopolitical noise, we have succeeded in expanding our customer base in Q2 2026. In the second quarter, we added one new oil major to the customer acceptance list, which is positive.

Speaker #2: Turning over to the cargo business, we have this year expanded the business from 8 vessels at the start of the year to currently 11 vessels.

Speaker #2: Which in total strengthen the competitiveness and resilience of our cargo business. Took delivery of the Balthazar on the 6th of August—the vessel in the picture.

Engebret Dahm: But to continue succeeding with our strategy, we need to continue expanding our customer base and to win over the remaining difficult to win over customers. Despite all the geopolitical noise, we have succeeded to expand our customer base in 2026. In the Q2, we added one new oil major to the customer acceptance list, which is positive. Turning over to the CABU business, we have this year expanded the business from eight vessels at the start of the year to currently 11 vessels, which in total strengthen the competitiveness and resilience of our CABU business. Took delivery of the Baltazar, the 6 August, the vessel in the picture which marked the completion of our new building project which comprised three ships.

Speaker #2: Which marked the completion of our new building project, which comprised three ships. We have had a smooth execution of this project and strong cooperation with Yongxiang Shipyard.

Speaker #2: And with the capable management of our project team, we have delivered this project on cost and ahead of time. With our new builds, we are pleased with the performance, with a higher cargo intake and extensive energy efficiency measures installed.

Speaker #2: Where the ships deliver a lower carbon footprint and freight cost savings to our customers, and higher earnings to KCC. And we're eager to experience the efficiency of the two huge suction sails we installed on the Balthazar, the first in the KCC fleet.

Speaker #2: We also this month took the decision to extend the operational life of Banastar and take her through the 25-year dry dock and life extension, as we did with her sister ship Barkarena in December last year.

Engebret Dahm: We have had a smooth execution of this project, a strong cooperation with Yangzijiang Shipbuilding Group, and with the capable management of our project team, we have delivered this project on cost before time. On the newbuilds, we are pleased with the performance with a higher cargo intake and extensive energy efficiency measures installed where the ships deliver lower carbon footprint and freight cost savings to our customers, and higher earnings to KCC. We are eager to experience the efficiency of the two huge suction sails we installed on the Baltazar, the first in the KCC fleet. We also this month took the decision to extend the operational life of Banastar and take her through the 25-year dry dock and life extension as we did with her sister ship, Barcarena, in December last year.

Speaker #2: The successful launch of the trade between the US Gulf and Brazil for hydro subsidiary Alunorte has opened opportunities for KCC to expand the trade.

Speaker #2: Based on a new 28- to 36-month contract of affreightment, which covers part of the capacity of the Banastar, we will have no two ships in the trade to Brazil from early 2027.

Speaker #2: We will, the two ships will operate together, where we change the operation from a shuttle service we do today on the Barkarena to more combination trading.

Speaker #2: Adding tribal customers and also new Corsica customers over the coming year. We believe these two vessels, based on solid fixed-rate contract coverage, will deliver solid free cash flow and will also be an important tool for us in our business development in the Americas.

Engebret Dahm: The successful launch of the trade between US Gulf and Brazil for our Hydro subsidiary, Alunorte, has opened up opportunities for KCC to expand the trade. Based on a new 28 to 36-month contract of affreightment, which covers part of the capacity of the Banastar, we will have now two ships in the trade to Brazil from early 2027. The two ships will operate together where we change the operation from a shuttle service we do today on the Barcarena to more combination trading, adding dry bulk customers and also new caustic soda customers over the coming year. We believe these two vessels, based on the solid fixed rate contract coverage, will deliver solid free cash flow and will also be important tool for us in our business development in Americas. So at the end, let's turn to the rate guiding and outlook for the Q3.

Speaker #2: So at the end, let's turn to the rate guidance and outlook for the third quarter. Starting off with the CABUs, we have seen a considerably improved trading performance of the ships in the third quarter.

Speaker #2: In fact, quite a perfect trading with no ballasts and limited waiting days. So we are pleased to guide on a flat time charter earnings in the range of $33,500 to $34,500 per day.

Speaker #2: Based on that, 94% of the capacity is fixed. And this is despite considerably lower MR Tanker rates compared to the boom we experienced in part of the second quarter.

Speaker #2: And also, a somewhat weaker dry bulk market in the Pacific, as specific dry rates normally underperform the average in the third quarter. Looking at the Cleanbu segment, the operational efficiency has also improved, but the main effect comes from the lower but still historically strong product tanker market in the third quarter, compared to the second quarter, where we, as mentioned, had months with booming rates.

Engebret Dahm: Starting up with the CABUs, we have seen a considerably improved trading performance of the ships in the Q3. In fact, quite a perfect trading with no ballasts and limited waiting days. So we are pleased to guide on a flat time charter earnings in the range of $33,500 to $34,500 per day based on that 94% of the capacity is fixed. This is despite considerably lower MR tanker rates compared to the boom we experienced in part of the Q2, and also somewhat weaker dry bulk market in Pacific as specific dry rates normally underperform the average in the Q3.

Speaker #2: At 84% of capacity, the guidance is 36,500 to 38,500 per day, which is 3,700 to 5,700 lower than in the second quarter.

Speaker #2: This is based on 84% of the capacity booked. So the average of 34,500 to 36,300 per day for the fleet shows that the third quarter will be another strong quarter for KCC.

Engebret Dahm: Looking on the CLEANBUs, the operational efficiency is also improved for the CLEANBUs, but the main effect comes from the lower, but still historically strong, product tanker market in Q3 compared to Q2 where we, as mentioned, had months with booming rates. With 84% of the capacity, the guiding is $36,500 to $38,500 per day, which is $3,700 to $5,700 lower than in Q2. This is based on 84% of the capacity booked. The average of $34,500 to $36,300 per day for the fleet shows that Q3 will be another strong quarter for KCC.

Speaker #2: It's important to mention that in the third quarter we have 287 higher hire days, which is due to fleet expansion and also lower docking.

Speaker #2: The real difference in terms of on-hire days is more roughly 160 days, as we in the second quarter had fire insurance payments for around 120 days.

Speaker #2: Which is recorded in the second quarter results under other earnings. So looking ahead, we have, through the second quarter and third quarter, shown that our company is more than the spot market development in the ProTanker and dry bulk markets. It is as much a matter of delivering on our business model and on execution—on what we are doing.

Engebret Dahm: It is important to mention that in Q3, we have 287 on hire days, which is due to the fleet expansion and also lower docking. The real difference in terms of on-hire days is more roughly 160 days, as we in Q2 had off-hire insurance payments for around 120 days, which is recorded in the Q2 results under other earnings. Looking ahead, we have through Q2 and Q3 shown that our company is more than the spot market development in the product tanker and dry bulk markets. It is as much a matter of delivering on our business model and on the execution on what we are doing.

Speaker #2: We are hopeful for the outlook for the next quarters. And based on our business model, with a higher-efficiency, more flexible fleet and our diversification of earnings, we are optimistic for the results.

Speaker #2: And that we continue to deliver higher risk-adjusted returns to our shareholders than most of the standard dry bulk and tanker companies. This is the end of our presentation, and we are now ready for questions.

Speaker #1: Yes, great. So we have quite a few questions that have come through. The first question I'm going to ask now is kind of around Banastar.

Speaker #1: So now, with Banasar out of the boat, do you have any remaining direct exposure to the Strait of Hormuz, or is the fleet entirely trading outside MEG at this point?

Speaker #2: At the moment, the fleet is—all vessels are trading outside the Arabian Gulf. We have one ship in the Red Sea, but we are not intending to restart any operation into the Arabian Gulf until we see a substantial improvement in the conditions in the region.

Engebret Dahm: We are hopeful for the outlook for the next quarters and based on our business model with a higher efficiency, the more flexible fleet and diversification of earnings, we are optimistic for the results and that we continue to deliver a higher risk-adjusted returns to our shareholders than most standard dry bulk and tanker companies. This ends the end of our presentation, and we are now ready for questions.

Speaker #1: And is the repositioning of Banastar included in your CapEx and off-hire guidance?

Speaker #2: The docking and life extension program that will take place in October and November is included in our guidance. The positioning of the vessel, which will start up in November, is expected to follow the same pattern as we had on the Barkarena, which traded with Corsica into Australia and with alumina from Australia into South America, and with the ballast from South America into Brazil or the US.

[Company Representative] (Klaveness Combination Carriers): Yes, great. We have quite a few questions that have come through. The first questions I am going to ask now are around Banastar. Now with Banastar out of the Gulf, do you have any remaining direct exposure to the Strait of Hormuz, or is the fleet entirely trading outside MEG at this point?

Speaker #2: Sorry, I said South Africa—I mean, meaning that, instead, meaning that we, which gave a positive earnings beyond the bunker and operating cost.

Engebret Dahm: At the moment, the fleet is all vessels are trading outside the Arabian Gulf. We have one ship in the Red Sea, but we are not intending to restart any operation in the Arabian Gulf until we see a substantial improvement in the conditions in the region.

Speaker #2: So that's part of the business plan for doing this life extension, but it's not recorded as such so far.

Speaker #1: Extension of the cargoes affect your fleet-wide EEOI?

[Company Representative] (Klaveness Combination Carriers): Is the repositioning of Banastar included in your CapEx and off-hire guidance?

Speaker #2: We, the—it's clear that we see that the Barkarena, that has firstly had a long ballast from South Africa and also has done more shuttle service from US Gulf to Brazil with a ballast back, has a negative impact on the UI for the company this year.

Engebret Dahm: The docking and life extension program that will take place in October and November is included in our guidance. The positioning of the vessel, which will start up in November, is expected to follow the same pattern as we had on the Barcarena, which traded with caustic soda into Australia and with alumina from Australia into South America, and with the ballast from South America into Brazil or US.

Speaker #2: With the positioning with the Banastar, we will initially have a negative impact, but we expect that by having two ships in the trade between Brazil and the US, we expect the trading efficiency to improve as we will add dry bulk northbound cargoes, which will establish an efficient combination trading and reduce EOI.

[Company Representative] (Klaveness Combination Carriers): South Africa.

Engebret Dahm: Sorry, I said South Africa. Meaning that we which gave positive earnings beyond the bunker and operating cost. That is part of the business plan for doing this life extension, but it is not recorded so far.

Speaker #1: Okay. And a little back to Banastar. Does Iran's sanctioning of Banastar affect you in any way?

Speaker #2: We were surprised to see the news yesterday that the vessel was on the list of Iranians. We do not expect any effect on the trading of the vessel.

[Company Representative] (Klaveness Combination Carriers): Okay, and how does the life extension of the CABU affect your fleet-wide EEOI?

Engebret Dahm: It is clear that we see that the Barcarena that has firstly had a long ballast from South Africa, and also have done more shuttle service from US Gulf to Brazil with a ballast back has a negative impact on the EEOI for the company this year. With the position over the Banastar will initially have a negative impact, but we expect by having two ships in the trade between Brazil and US, we expect the trading efficiency to improve as we will add dry bulk North Bound cargoes, which will establish an efficient combination trading and reduce EEOI.

Speaker #2: She will, as mentioned, trade after ending the current voyage, going to dock and life extension, and she will then be positioned to the US.

Speaker #2: Nowhere close to the Middle East.

Speaker #1: Okay. While the alumina industry in Australia has shown resilience so far, do you expect this to continue if the strait continues to be closed?

Speaker #2: I believe that, from what we understand, we are seeing that better oil supply into the Far East has managed to allow the car industry to produce at the levels desired.

Speaker #2: Securing supply to Australia. We're also seeing that our Australian customers have been able to sell the alumina in new markets, and the fact that global alumina pricing has been stable, or in fact increased, is a good sign that this strategy has been successful.

[Company Representative] (Klaveness Combination Carriers): Okay, and a little back to Banastar. Does Iran's sanctioning of Banastar affect you in any way?

Engebret Dahm: We were surprised to see the news yesterday that the vessel was on the list of Iranians. We do not expect any effect on the trade of the vessel. She will, as mentioned, trade after ending the current voyage, go into dock and life extension, and she will then be positioned to the US, nowhere close to the Middle East.

Speaker #1: Okay. I think we have time for one more question now. So, do you plan to install the wind sails on the other new builds or any of the existing fleet?

Speaker #2: We have to take these investments and projects step by step. So, firstly, we will prove the performance of this equipment and optimized operation on the Balthasar. That will happen during the start-up with the second voyage in September.

[Company Representative] (Klaveness Combination Carriers): Well, the alumina industry in Australia has shown resilience so far, do you expect this to continue also if the strait continues to be closed?

Speaker #2: And we probably use quite a number of months to be comfortable with the performance. We have prepared the two other new builds for later retrofit of these wind sails.

Engebret Dahm: I believe that from what we understand, we are seeing that better oil supply into the Far East has managed the chlor-alkali industry to produce at the levels desired, securing supply to Australia. We have also seen that our Australian customers have been able to sell the alumina in new markets. The fact that global alumina pricing has been stable or in fact increased is a good sign that this strategy has been successful.

Speaker #2: Suction sails and but again it's too early to say whether we will do it. Our hope is that the wind can be a profitable energy efficiency measure and that we could be able to install both on the two new builds on the next new builds that will contract and potentially also on some of the clean booths.

Speaker #2: But that remains to be seen.

[Company Representative] (Klaveness Combination Carriers): I think we have time for one more question now. Do you plan to install the wind sails on the other new builds or any of the existing vessels on the fleet?

Engebret Dahm: We have to take these investments and projects step by step. Firstly, we will prove the performance of this equipment and optimized operation on the Baltazar. That will happen starting up on the second voyage in September and will probably use quite a number of months to be comfortable with the performance. We have prepared the two other new builds for later retrofit of these wind sails, suction sails. But again, it is too early to say whether we will do it. Our hope is that the wind can be a profitable energy efficiency measure and that we could be able to install it both on the two new builds, on the next new builds that we will contract, and potentially also on some of the CLEANBUs. But that remains to be seen.

[Company Representative] (Klaveness Combination Carriers): Okay. I think that is all we have time now for questions. Thank you so much, Liv and Ingebrigt, for a great presentation today.

Browse all earnings call transcripts

Q2 2026 Klaveness Combination Carriers ASA Earnings Call

Request TrialDemo

Klaveness Combination Carriers

Earnings