Cool Company (CLCO) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating revenues were $82.4 million, with Adjusted EBITDA at $53.7 million and net income of $8.1 million, impacted by a $15.5 million unrealized loss on interest rate swaps.

• Dividend was reduced to $0.15 per share, and a $40 million share buyback program was introduced over 24 months to enhance capital returns.

• Successful refinancing of a $570 million facility extended maturity to late 2029 and added $120 million in borrowing capacity at a lower cost.

• Kool Tiger newbuild delivered in October and repositioned for spot market employment.

• The company maintains a $1.7 billion backlog, providing strong revenue visibility.

Financial highlights

• TCE revenues were $77.7 million, up from $76.4 million in Q2, with average TCE rate increasing to $81,600 per day from $78,400 in Q2.

• Operating income was $38.9 million, down from $41.4 million in Q2, with a 47% operating margin.

• Cash and cash equivalents rose to $142 million, with available liquidity at $200 million including recent funding.

• Net debt per vessel is under $100 million; total contractual debt stood at $1,169.2 million.

• Adjusted EBITDA margin for Q3 2024 was approximately 65%.

Outlook and guidance

• Short-term market remains soft, with spot rates at lows not seen since 2018 and limited 12-month deals.

• Market conditions expected to improve in 2025 as new LNG projects come online and older steam turbine vessels exit the fleet.

• Guidance for Q4 2024 operating revenues is $82–83 million, with average daily TCE expected above $81,000.

• Medium- to long-term LNG demand outlook remains strong, with regulatory and geopolitical factors supportive.