Cool Company (CLCO) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $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.

• Average TCE increased to $81,600 per day, driven by a vessel moving to a higher-rate charter.

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

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

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

Financial highlights

• TCE revenues were $77.7 million, up from $76.4 million in Q2, with Q3 2024 operating revenues at $82.4 million.

• Adjusted EBITDA for Q3 2024 was $53.7 million, with a margin of approximately 65%.

• Net income for Q3 2024 was $8.1 million, including a $15.5 million unrealized mark-to-market loss on interest rate swaps.

• Backlog stands at $1.7 billion, providing strong revenue visibility and limiting near-term market exposure.

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

Outlook and guidance

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

• Short-term market remains soft, with spot rates at multi-year lows and limited 12-month deals.

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

• Long-term LNG demand remains robust, with regulatory and geopolitical factors supporting growth.

• LNG remains a favored transition fuel, with anticipated US export project approvals expected to drive shipping demand later in the decade.