The following is a summary of the Cool Company Ltd. (CLCO) Q4 2023 Earnings Call Transcript:
Financial Performance:
Cool Company Ltd. reported Q4 time and voyage charter revenues of $89.3 million with a record time charter equivalent rate of $87,300 per day.
Total operating revenues for the Q4 were $97.1 million, exceeding previous guidance, with full year time and voyage chartering revenues at $347 million, and total operating revenues were $379 million.
Operating income increased by 14% from Q3 to $55.1 million, while Q4 net income was at $22.4 million.
Costs related to vessel operating were significantly lower than previous quarters, at $16,600 per day per vessel.
CoolCo declared cumulative dividends amounting to $88 million for 2023, with Q4 dividend reported at $0.41 per share, representing a 64% payout of Q4 net income.
The company secured commitments from various banks which will allow the refinancing and upsizing of its current $520 million credit facility.
Business Progress:
The company benefited from increased demand for its shipping services due to disturbances at the Panama Canal and the Red Sea.
CoolCo projects improvement in its rates by the time its next available vessels are up for re-charter, due to expected increases in LNG shipments and longer shipping distances.
A 12-month charter for one of its vessels has been announced post-Q4.
The company announces plans to upgrade its vessel, Husky, to LNGe specs, expecting a shared performance increase with the charterer.
Possibility of vessel retirements due to high maintenance costs amid lower rates.
CoolCo is optimistic about its business expansion in East Asian markets due to the expected increase in LNG demand.
Revenues for 2024 are expected to be committed for 95%, with an average time charter equivalent rate of $76,000 per day per vessel.
More details: Cool Company IR
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