Capital Clean Energy Carriers (CCEC) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose to $95.5 million from $79.9 million YoY, while net income fell to $12.7 million from $21.1 million, including a $3.5 million vessel impairment.

• Completed a $500.0 million rights offering and a $3.13 billion agreement to acquire 11 latest-generation LNG carriers; two vessels had joined the fleet by early January 2024.

Financial highlights

• Q4 operating income was $40.5 million vs. $37.8 million; total expenses were $55.1 million vs. $42.1 million.

• Adjusted Q4 net income excluding the $3.5 million impairment was $16.3 million; interest expense and finance cost rose to $27.9 million from $18.4 million.

• FY 2023 revenue was $360.6 million vs. $192.4 million, and net income was $47.2 million vs. $125.4 million.

• Total assets were $3.14 billion at Dec. 31, 2023, vs. $2.00 billion a year earlier; partners’ capital was $1,174.9 million vs. $638.4 million.

Outlook and guidance

• Contracted revenue backlog was $3.1 billion as of Jan. 2, 2024; charter coverage was 100% for 2024, 82% for 2025 and 54% for 2026.

• LNG carrier deliveries under the acquisition program are scheduled through Q1 2027; nine additional vessels were expected from Q2 2024 through Q1 2027.

• Conversion from a Marshall Islands limited partnership to a corporation was targeted by June 21, 2024; scheduled LNG carrier deliveries extend through 2027.

• LNG shipping demand from new projects and longer routes was expected to support further carrier demand and newbuild orders for 2027–2028 delivery.