Cool Company (CLCO) Q1 2025 earnings summary

Executive summary

• Q1 2025 operating revenue rose to $85.5 million from $84.6 million in Q4, supported by newbuild GAIL Sagar's delivery and long-term charter, and strong backlog coverage despite market pressure.

• Achieved average TCE of $70,600/day, slightly down from Q4 due to repositioning and drydockings, but cost management remained strong with opex trending down.

• Net income dropped to $9.1 million from $29.4 million in Q4, mainly due to mark-to-market swap losses and higher operating expenses.

• Kool Tiger maintained near-continuous spot market employment, while Kool Husky and Kool Glacier secured new charters after LNGE upgrades.

• Share repurchase program initiated, with 692,180 shares bought at an average price of $5.59, reducing share count by 1.3%.

Financial highlights

• Q1 2025 revenue: $85.5 million; adjusted EBITDA: $53.4 million; net income: $9.1 million, impacted by swap losses.

• Average daily TCE: $70,600 (down from $73,900 in Q4); adjusted EBITDA margin: 62%.

• Operating income: $34.6 million, a decrease from Q4; total net debt: $1,294 million with an average interest rate of ~5.7%.

• Cash and cash equivalents: $135.4 million; total available liquidity: $256 million at quarter-end.

• Shareholder equity at March 31, 2025: $771.0 million.

Outlook and guidance

• LNG shipping market expected to tighten as new supply projects come online and older vessels retire, supporting demand and ton-mile growth.

• Contract coverage for 2025 is 83% of vessel days, with 72% for 2026 and 63% for 2027.

• Focus remains on securing additional term contract coverage and maintaining a prudent long-term view amid spot market weakness.

• Management expects improved EBITDA as the dry dock program concludes and market rebalances.

• Anticipates positive ton-mile impact as LNG flows normalize between Europe and Asia.