Capital Clean Energy Carriers (CCEC) Q3 2024 earnings summary

Executive summary

• Completed strategic pivot to gas transportation, including name change and conversion to C-Corp status in August 2024, and appointed a dedicated investor relations manager.

• Sold or agreed to sell 12 container vessels since March 2023, generating over $600 million in proceeds, with five debt-free vessels expected to generate a book gain of $118.4 million.

• Refinanced LNG/C Attalos and Asklipios, releasing $72.6 million in liquidity and extending maturities to 2031.

• ESG credentials improved, with higher rankings and increased research coverage, expanding from three to six analysts.

• Declared a $0.15 per share dividend for Q3 2024, payable November 15, 2024.

Financial highlights

• Q3 2024 revenue from continuing operations was $106.0 million, up 66% year-over-year, driven by LNG fleet expansion.

• Operating income from continuing operations rose to $57.2 million from $30.5 million year-over-year.

• Net income from continuing operations was $15.8 million, up 216% from $5.0 million in Q3 2023.

• Asset base grew by $1.0 billion since year start, shifting from container to LNG carriers.

• Shareholders' equity as of September 30, 2024: $1,245.4 million, up $70.5 million from December 31, 2023.

Outlook and guidance

• Contracted revenue backlog exceeds $2.6 billion, with over seven years of charter duration and 85% from LNG assets.

• 100% charter coverage for 2024 and 2025, 74% for 2026, with no vessel deliveries until early 2026.

• Pro forma fleet expected to deliver over $630 million EBITDA and $180 million adjusted free cash flow annually upon full delivery.

• Dividend yield projected at 8%-10% if 50% of free cash flow is distributed.

• Focus remains on securing long-term charters for new LNG vessels, with constructive market outlook for 2026-2027.