Klaveness reveals two crew were infected with COVID-19

Klaveness Combination Carriers reported that two crew members on board one of its CABU vessels had been infected with COVID-19 virus.

The infection cases were confirmed in July, the company revealed in its Q2 earnings report.

The confirmed positive persons were signed off and isolated until no longer being infectious, the company said. After consistent negative results from repetitive COVID-19 testing of the entire crew and complete cleaning and the disinfection of the vessel’s accommodation, the vessel recommenced trading in early August after 14 days off-hire.

Klaveness said that the total financial effect on the Q3 2020 results from this incident will likely be around $ 0.4 million including loss from the re-let of the caustic soda cargo, off-hire, rescheduling and additional costs relating to the crew.

“It continues to be difficult to make crew changes, get ship managers, service personnel and vetting inspectors on board. It has also been necessary to deviate vessels to get supplies on board and make crew changes, leading to off-hire and additional costs,” the company said, adding that so far these factors have had a limited impact on the company’s operation and earnings.

The ship owner said that despite significant efforts like deviation of five vessels to Manila Bay for changes of Filipino crew, only around 53% of normal scheduled Filipino crew change have been possible since the start of the COVID-19, while 90% of planned crew changes for Europeans have succeeded.

Klaveness Combination Carriers reported a net profit after tax for Q2 ended of $ 8.4 million compared to a loss of $ 1.9 million for the same period last year and up from $ 4.3 million in Q1 2020.

Adjusted EBITDA for the first half 2020 ended at $ 28.7 million, up from $ 9.9 million in first half 2019, mainly driven by CLEANBU TCs secured in a strong tanker market, a substantially higher caustic soda volume for the CABU vessels and two more vessels on water.

When it comes to off-hire days, the company will have two CABU vessels undergo periodic drydocking in 2020 to install ballast water management systems. As part of its decarbonization measures, KCC’s plans to invest in fuel-saving silicone antifouling coating as well as an ultrasonic protection system to protect propellers from marine growth.

The earnings outlook for the second half of 2020 is positive for both the CABU and CLEANBU fleet albeit at a lower level than reported for the first half of 2020, Klaveness believes.

As disclosed, the outlook is supported by secured COA and TC contracts, partly secured at strong tanker market levels in Q1/Q2 2020, and a stronger dry bulk market.

The earnings report shows that 79% of the operational tanker market exposure for 2H 2020 has been secured (70% fixed rate) and 27% for 1H 2021 (15% fixed rate).