Welcome to the First Quarter twenty twenty one Results Presentation of Clomulus Combination Carriers. I apologize for the small delay in the start. We will, as always, take questions after the presentation, so please write questions on the webcast solution. So KCC we in KCC, we are owners and operators of combination carriers, which are vessels that can ship both dry and wet cargoes. We have two concepts.
We have our caboose, which are transporting caustic soda to our alumina refinery customers in South America and Brazil. And we have our new CleanBUs, which are more versatile ships that also service petrochemical industry, the petroleum industry and the biofuel industry, which have a bigger market and more trading opportunities. More than ever this quarter, we have seen the value of combination carrier concept, which where our earnings depend on three different markets. We have the tanker market is the lowest and weakest market since 2012. The dry market, on the other hand, is the strongest since 2010.
And we have had a good support of the fuel markets. So look on result wise for the quarter, it is a small bump in the road, but we are still satisfied given the market circumstance we had. We are seeing the a weak tanker market. We are seeing the lagged effect of the drybulk market, where we haven't yet seen the positive effect of a strong dry market and also certain operational effects that leads to the lower earnings of both of the carbers and the cleaners in the quarter. So we are around $16,700 per day for the CABUs, which are in the lower range of our guiding from the last quarter.
And the CleanBUs are at close to $18,000 per day, which is the high end of the quarter. The good thing to see here is that we again overperform the standard tankers by $2,600,000 for the caboose and $1,700,000 for the cleaners and matching the dry bulk market. We have the EBITDA is falling with around $1,700,000 and again, is impacted by the weak earnings in the tanker market and the effect it has on both our caboose and cleavers. We have we also see the effects of the delivery of two newbuilds during the quarter and also some COVID-nineteen effects that are lower than the previous quarters. We continue to pay dividends same as the last four quarters.
And we do hope that as the full fleet is delivered coming into end of the second quarter, The dividend potential will increase. And depending on the markets, we hopefully will be able to increase the dividend flow from the second half of the year. Our business model demonstrates strength that answers many of the questions that investors and concerns investors have to the shipping industry. We are our concept is we all have the lowest carbon transportation solution in the market. We provide earnings which are more stable in the markets which are extremely volatile.
And even though we can in some quarters may have a negative result, over time, we show substantially higher earnings time charter earnings and profitability than the standard markets. The focus on decarbonization in the industry is increasing day by day, and I think that illustrates the soneness of our strategy to have to be a leader in low carbon freight in the shipping in drybulk and tanker shipping industry and to provide our customers with the lowest carbon freight in the market and most cost effective freight in the market. Let's show one example from the start up of one trade in the first quarter in The Atlantic. The standard tankers, which are blue and the standard dry bulk ships, which are green, have long ballots before loading the dry cargo, the dry ship in Brazil and the tanker vessel in Europe. The tanker vessel has a slightly lower ballast than the dry ship.
Our ship, this is the exact trade of first clean with the Baru, bringing iron ore from Brazil to Europe and returning enough to the Brazilian petrochemical industry, is more or less no ballast. Comparing the CO2 emission of the CleanBu with the two ships that perform the same transportation work, we see a 35% difference in CO2 emission. And this will become increasingly important as Europe now will implement and include shipping into the emission trading scheme now from 01/23. And the stricter environmental requirements and also including more industries into the emission training scheme has led to increasing costs and prices for emitting carbon emission in Europe. We are seeing that through March and April, prices have increased, and it's no more than doubled what we saw back the fourth quarter twenty twenty.
And people expect most analysts expect this to increase further up to around €100 per tonne. So if we apply these prices to the example from the Atlantic trade, we see that the difference in CO2 emission from our ship and the two ships that perform the same transportation work with the current pricing of the EUA price, it's around $800,000 per year, assuming six shipments back and forth, which one ship can make. If we the price increases to around EUR 100 per tonne, this cost this saving in carbon taxes will increase to $1,800,000 per year per ship, which illustrates the large value these ships are contributing to our customers. To fulfill our strategy to give our customers the most cost efficient carbon decarbonization in shipping and to meet our the targets in our environmental strategy, we have to improve the energy efficiency of our ships and efficiency of our operation and our trading. We have a number of ongoing projects and initiatives that are in the various stages of implementation.
And while we can't spot the effects yet in the first quarter, we are confident with that coming into the second half, we will see the effects of what we're doing to reduce emissions on our fleet. As said, the value of our concept in these extreme markets is proven. And in this and also by the fact we can have earnings depending on three different markets and also to the fact that we can allocate capacity between the markets. We have and looking here at the tanker market, it fell down from the peak during spring last year, had capped at low levels throughout autumn with some ups and downs. Looking at the first quarter, we see low periods with earnings below operating cost levels, a small upturn in March, falling back again now in April.
The opposite development we see in the blue line with the Panamax dry market coming from low levels during the 2020 due to the COVID-nineteen situation, good levels through most of second half twenty twenty and early twenty twenty one. And by mid February, the market peaked, and we're seeing historically high levels through March and even though in April. Also looking at the fuel prices have increased steadily over the quarter, meaning that we have two of the three markets that we derived earnings from are strong, which gives a good fundamental for our company going forward. Looking at the tanker market, we see the latest EA statistics show that the demand for oil products are still and for oil are still well below the pre COVID level. We see and it seems from the graph that the recovery has flattened a little bit out in the first quarter, but the latest figures from, amongst others, U.
S, where we see a large uptick in air travel and also road traffic suggests that the recovery is underway. Also, destocking of the oil market is continuing with at good pace, And we analysts expect that the stock level should be down to the five year average by this summer, which creates a good basis for also for improving tanker market. Also, the order book is low and little ordering activity in the tanker market, which also again is a good basis for the recovery in the tanker market that we hope can come to force coming into the autumn. The expectations of a better tanker market is reflected in the forward market, where you see to the graph to the left. We have more or less the full capacity of our fleet fixed for second quarter, while we have in total around 40% contract coverage for the fleet second half, of which a little bit more than half is fixed rate coverage.
We expect to increase the contract coverage for the caboose for the caustic soda business during the next months. And we're also discussing contracts for the clean booths with customers. When we look over to the dry market, we see that looking at historical development of the Panamax, we see that the overhang of supply from the trough back in 2015 has been absorbed and there is a rising trend in earnings since then, interrupted by two incidents, this dam disaster in Brazil in 2019 and the COVID effect in the 2020. We also see that demand in the dry market is strong. We see 2020 seasonal development in the black curve has been at the top of the range for the last five years through the year and also see the strength from the start of the market in the first quarter.
The same as in the tanker market, there is little ordering activity in the dry market, but we do expect, given the strength of the market, the ordering to pick up. But again, we are then talking about deliveries from mainly from 2023. Here again, we see the graph to the left, the forward market for Panamax and we see the expectations of a peak in the market in May, but the market remains strong over the both second quarter and second half of the year. We have quite a bit of our capacity fixed for the second quarter. I think we have around 64%, 65% of the dry capacity fixed and for the second quarter.
And if you add the FFA coverage, we are up in 84% and the coverage for second half is around 50% on a fixed rate basis. We have over time shown earnings well above the standard markets, and that is also the case for the car business for the first quarter, where we have results of $16,700 per day, which is down from $18,958 in the fourth quarter. The effects we see are, again, weak tanker market where we had impacting both spot fixtures in caustic soda and also our indexing the caustic soda contracts. We are seeing one operational impact from positioning one ship to dry dock in China from U. S.
And replacing the ship back again to U. S, which accounts for around 15% of the capacity in dry the market sorry, in KCC for this quarter at low levels. And this positioning effect will not happen in the next three quarters. We in addition, we see the lagged effect from the upturn in dry markets, which picked up in the February. More or less no effect is seen in the results of KCC for the first quarter.
These effects will be seen in the second quarter. And here we illustrate again the carve is dry earnings from the third, fourth, first quarter this year and also the booking we have made to date in the second quarter. And we see in totality, we have booked 60% of the planned dry capacity for the carbers in second quarter at levels at close to $23,000 today, which includes the negative effects of the paper the FFAs that are sold. This shows again the extreme strength of the dry market, but also ability to take advantage of the dry market even with fairly high contract coverage. On our team bus, we are continuing to expand the trading and build the business step by step.
And as mentioned, we are very pleased with the start up of our trades in The Atlantic, which looks very promising, and we expect to add more ships there over the second half of the year. We are also expanding the trade to Australia. We have made to date we have fixed to date three shipments that will be on a combination basis with last cargo dry, and we also fixed two newbuilds directly with CPP to Australia. So this is promising development in our two main target markets. The earnings for the CleanBoost close to $18,000 per day in the first quarter, down from $20,850 in the fourth quarter.
Again, we see big effects of the weak dry market and of course, the more volatile Alawan market has effect on the earnings on the cleaners. We have chosen to charter out three ships on a time charter trips, long haul grain shipments from Brazil and from U. S. West Coast to take the benefit of the strong dry market in a very weak tanker market. The last tank, Tom Sharter, which we fixed at the peak of the market in 2020, was to redeliver in early February this year.
So this graph only shows how we allocate capacity between the different markets. We see that the time in combination trade is increasing slightly over the in 2021 compared to last year. But you also see that the medium blue color, which is the tanker market charters, is reduced, while we had increased allocation to the dry market. Our main business is combination trade, and we expect to take back most of the capacity in combination trade within this summer. So then I'll leave it to you, Liv.
Yes, thank you. Then over to EBITDA. Adjusted EBITDA is down 16% from Q4 last year to Q1 this year, and it's mainly driven by the poor tanker market. The Cabo TCE earnings is down approximately $2,200 per day, while on hire capacity is quite stable. As you can see here, that has a negative effect between the two quarters of approximately $2,000,000 Clean Boot TCE earnings down approximately $2,900 per day.
And for a similar fleet to that in Q4, that has a negative impact of approximately $1,200,000 However, you can see here that the CleanBu operating expenses has improved somewhat from Q4 to Q1, and I will revert with some comments related to that. Then we have additional vessel capacity due to the deliveries in Q4 and Q1, and this has a positive impact from Q4 to Q1 of approximately $800,000 So in total, adjusted EBITDA of $9,200,000 for the quarter. The illustration to the right shows the effect of a full fleet on water on an annualized basis based on Q1 results or EBITDA. And then to the far right, you see the effect of a full fleet based on trailing twelve months EBITDA. So here, you see or at least it's an illustration of the range of EBITDA potential.
As mentioned, we have taken delivery of two vessels during the quarter, one in January and one in late March. We will take delivery of the last vessel in late May. And by the July, we expect to have the full fleet in operation. Hence, we will have the effect of the entire Klimbu fleet of eight vessels coming into Q3. We still are impacted by travel restrictions in China related to the newbuild deliveries.
Hence, we still take delivery of the vessels with the Chinese crew, and then we sail to South Korea to change crew. And this impacts the number of days from delivery until start of trading negatively. However, you can see here that for the vessel delivered in January by Jakku, it's down compared to the average last year or slightly down to forty four days, and we expect approximately the same for the vessel that was delivered in March that will start trading in early May and the last vessel coming on in late May. And schedule of hire is down from thirty nine days in Q4 to four days in Q1. COVID related off hire is down from 27 to four days.
So this is quite a large improvement. Partly, we believe that we have become better at scheduling the crew changes. However, there are large uncertainties related to the effects of COVID-nineteen on continued crew changes. Hence, this might increase over the next quarters again, but the April is good so far with very limited unscheduled off hire. Scheduled off hire, forty seven days for Q1.
We had one Kabu vessel coming out of regular dry dock in early January, one Kabu vessel close to completed dry dock in first quarter and then we will have additional three Kabus dry docking in the second half of the year with an estimated thirty to forty days off hire per vessel. Then we as well in Q1 had our first cleanbu in for guarantee repairs, sorry, and we expect approximately sixty days off hire related to this in Q2. Two additional clean booths will go to yard for repairs in second half of the year with an estimated ninety to one hundred and fifty to fifteen, sorry, days off hire. Yes, and I think that's it when it comes to off hire. Operating expenses per day for the Kabu vessels ended at approximately $7,460 per day, quite stable compared to the average for 2020.
As you can see here, the Klimbu operating expenses per day ended at approximately $8,100 per day. This is partly periodization effects between the quarters, and we expect this to come up to an average of approximately the same as in 2020 of around $9,000 per day in total for the year. COVID-nineteen effects of for Q1 was approximately $1,900,000 down from $2,800,000 last quarter. As mentioned, we saw the impact on newbuilds to be quite stable, while both off hire due to deviations as well as costs came down quite considerably. Uncertainty related to this is quite high for the next couple of quarters.
But the trend is at least positive from Q4 to Q1. So despite weaker financial result, the COMBIE concept continues to demonstrate the value of flexibility and diversification. That is reflected through the TCE earnings that are 1.7% to 2.6% higher than the Standard Tankers. As you can see here, earnings before interest and tax ended at $1,300,000 down from $4,700,000 last quarter. And in addition to the mentioned effects on EBITDA, depreciation is up as a consequence of more vessels.
Net financial items, quite stable. Mortgage debt has increased due to delivery of newbuilds. However, we have lower bond debt than in Q4, and we had as well some one offs in Q4 last year related to the settlement of the KCC-three bond. Hence, we had a loss for the quarter of $2,000,000 compared to a profit last quarter of $1,200,000 The cash position is down from approximately $66,000,000 to $36,000,000 and the main drivers are net new build CapEx, dry docking as well as debt service. As you see here, operating cash flow from operations is close to zero, but is impacted by negative working capital changes of around $8,000,000 This mainly relates to temporary effects related to clearing and initial margin for derivatives.
And we expect this to be or the main part to be reversed during the year. Remaining net newbuild CapEx is 6,000,000 and we, in addition, have RCF capacity available related to one of the newbuilds of approximately $5,000,000 and we as well have a short term overdraft facility of $20,000,000 available. Equity ratio came down to 35% following delivery of the new builds, and we expect this to bottom up bottom out during the second quarter. I think that was the summary of the financials for the quarter. And then over to you again, Hengebet.
Well, as mentioned, the first quarter was impacted by the very weak tanker market, the lagged effects of from dry market and also a number of operational effects linked among the status of the new events. So despite this, we are pretty happy with the results for first quarter. And looking ahead, it will be a bump in the road for the profitability of KCC. So if we look ahead, take into account what we have fixed for the second quarter and our expectations for remaining positions we have in the second quarter, we can guide substantially up the earnings for the car boost for the second quarter. So we expect earnings to be between 21,000 and $22,000 per day.
On the Clean Bus, we'll see that we see that earnings will we expect to be approximately at the same level as in the first quarter, partly linked to the weak continued weak Alawan tanker market, lower contract coverage than the car boost, but also still phasing effects on the clean boost in that trade. In totality for the company, we see a substantial improvement in earnings in second quarter compared to the first quarter, which ends between 19,600 and $20,600 per day, which is 20 percent to 25% higher than the actual earnings in the first quarter. So we are optimistic for both the second quarter and especially for the second half of the year despite the fact that we believe the tanker market will be weak well into the third quarter and then hopefully will recover coming into the autumn and winter. The dry market has shown tremendous strength now in the since February, and we expect it to remain strong through the quarter. We have the underlying business is doing well.
We expect to increase the contract coverage for the carbers. We expect to improve the trading pattern and trading efficiency of the clean boost. So in totality, we with the delivery of the last clean Bruno in May with a full fleet of water coming into the summer, the outlook for our business is very good. So to repeat again, we have a concept that it provides the lowest carbon emission freight in the tanker and drybulk market in the world. We have far lower volatility in earnings than extremely cyclical markets that we are employed in.
And thirdly, we show a profitability over time that exceeds the standard market. So that was the summary of our presentation. So now we are ready to take questions.
So the first question is question on capital spending going forward. So you mentioned that dividend capacity is set to improve following delivery of the final clean blue vessel in second quarter. Could you elaborate on how you prioritize further fleet expansion and dividend payments going forward?
I think we have no options left in our newbuilding program. And we our priority now is to focus on the ships that are delivering to prove their earning capacity, meaning that we will and then we target to live up to our dividend policy of paying out 80% of the free cash flow to shareholders.
Yes, that was actually the second question, that your goal is still to pay out around 80% of the free cash flow going forward. So just confirm Yes,
confirm that, yes.
The third question is what's your view on newbuild investments for KCC? What's the potential cost of new clean brew? And how is your long term strategy to renew the
fleet? I think we have in our fleet of delivery of the last ship of 17 vessels that is sufficient for the scale of operation of our company. We do see that we have some older cabins that will be which are coming close to the end of the operational life, which will start to recycle coming into 2025, 2026. So that may be the first target, but we still have time to work out a good deal in that sense. So we don't expect anything to happen in the short run.
The clean boots, I guess we probably will use more time, prove that it works, prove that it earns what it should earns before continuing expansion.
Here are two parts of this question, so I'll do the first question first. When reviewing your revenue mix for Q1 this year, 52% of revenue was from COAs versus the historical average of 67%. Should we expect additional COA announcements for the Clean Boost? Or will you take a spot short term market approach to the Clean booze?
I think we have said before that on the clean booze is that as we phase in, we prefer not to have contracts. We want to test out the traits, learning by doing before we do contracts. But we already have one small contract from India to amongst others, Australia, and we expect to add more contracts coming into the second half of the year. So we have an industrial focus where we want to have certain traits that are stable for part of the fleet and then be a bit more opportunistic on the remaining part of the fleet. So yes, you can expect higher contract coverage for the cleaners, but they will mainly be index linked, meaning while more of the contracts for the carbers are fixed rate.
The second question is the Nordea Damske Bank facility matures in under a year. Are you confident in refinancing? And do you have any indications of terms and facility size?
We do not we have not started the refinancing on that yet. But based on our history and our relationship with the banks, yes, we are confident that, that will be refinanced. But I have not any indications on the amount yet.
Question three. With the EU ETS to include shipping emissions from 2023, have any charterers reached out to you to explore potential cooperation?
I think not specifically to the EU requirement. But we as we said before, the fact that the industry is preparing for carbon taxes, which could be in the way of emission trading schemes, they know that they will have to pay for the carbon emissions of their seaborne logistics. And that opens doors to us, and I think it has made customers that we may not have been able to approach open for doing business with us.
Thank you. That was all the questions today.
Okay. Thank you all for joining, and apologies again for being a bit late out. So please contact us should you have any further questions to the results. Thank you.