Oslo-listed Klaveness Combination Carriers ASA (KCCK) reported record quarterly earnings for Q2 2026, driven by surging tanker rates amid Middle East trade disruptions. The company posted EBITDA of $38.5 million, up 31% from Q1, while profit after tax rose 33% to $20.8 million. First-half profit totaled $36.3 million, exceeding the full-year 2025 result of $33.4 million.
The company maintained operations outside the Arabian Gulf throughout the Middle East crisis, which began in February 2026. Product tanker rates spiked to unprecedented levels in early 2026, with LR1 tanker rates exceeding $90,000 per day before moderating to around $40,000 by July. Clean petroleum product exports from the Arabian Gulf collapsed 79% year-over-year from March to July 2026, while Northeast Asian exports declined 18% and US exports rose 16%.
Net revenue from vessel operations increased 11% quarter-over-quarter to $52.1 million, a 53% surge year-over-year. Time Charter Equivalent (TCE) earnings averaged $37,782 per day across the fleet, up from $33,432 in Q1. CLEANBU fleet TCE reached $42,243 per day, near-record levels, while CABU fleet TCE rose to $34,076 per day. The company approved a Q2 dividend of $0.30 per share, up from $0.25 in Q1, representing a 100% payout of adjusted cash flow to equity.
Fleet operations reflected the market shift, with CLEANBU vessels allocating 71% of days to clean petroleum products, 15% to vegetable oils, 10% to dry bulk, and 4% to caustic soda solution. Combination trade days dropped to 42%, while ballast days surged to 32%. The company expanded its customer base to 47 total customers, including 23 CLEANBU-specific clients and 24 additional approved charterers.
Balance sheet metrics showed net interest-bearing debt rising to $280 million from $219 million, though the NIBD/EBITDA ratio improved to 2.4x from 3.1x. Book equity increased to $382 million, maintaining a stable 50% equity ratio. The company completed a $200 million refinancing for its CLEANBU fleet, featuring a six-year tenor and a Term SOFR margin of +1.65%.
Management highlighted the resilience of operations amid disruptions, noting the "strong commitment and support shown by the crew during their stay inside the Middle East Gulf and the exit through the Hormuz Strait." The company guided Q3 2026 TCE earnings to $33,500–$34,500 per day for CABU vessels and $36,500–$38,500 per day for CLEANBU vessels, with 88% of total capacity booked.
