Klaveness Combination Carriers Minor model adjustments
We have adjusted our estimates following the company’s business update and our latest near-term rate forecasts. Pre-announced Q3 TCE earnings were above the somewhat muted guidance, and leave us 8% above consensus on EBITDA (the full Q3 report is due prior to market open on 30 October). However, we have reduced our Q4 EBITDA estimate by ~20% on our lowered rate assumptions for product tankers and mid-sized bulkers, reflecting recent rate movements. Hence, we have trimmed our 2024e EBITDA by 2% and 2025e by 1%, but raised 2026e by 1%. We do not consider these changes to be material, and we have not changed our BUY recommendation. We have edged up our target price to NOK145 (144).Klaveness Combination Carriers AS is a Norway-based fleet operator. The Company owns and operates combination carriers that can switch between dry and wet cargo shipments. Its fleet consists of approximately nine CABU (caustic soda/bulk carrier) vessels with the capacity to transport from approximately 72,500 deadweight tonnage (DWT) up to approximately 80,500 DWT of caustic soda solution (CSS), floating fertilizer (UAN) and molasses, as well as all form of dry bulk commodities. Furthermore, the Company has newbuilding orders for CLEANBU (clean petroleum/bulk carrier) vessels that in addition to transporting caustic soda and dry bulk products can also transport clean petroleum products. The Company's vessels operate on international trade routes, mainly in the Far East, the Middle East, Australia, Brazil and North America.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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