CCEC (name change) Q3 2024 results

Capital Clean Energy Carriers (CCEC) is the new name & ticker for the former Capital Product Partners (CPP). Name & ticker change occurred in late Aug 2024. CCEC announced results on 11/08/24

  • Rev of $106M
  • Net Income $15.8M (adj NI $23.3M)
  • Financing for 2 LNG carriers
  • Declared div of 15c/sh
  • Contracted backlog of $2.6B ($2.3B from LNG fleet)

https://www.capitalcleanenergycarriers.com/static-files/6b5f7886-ff50-45cd-b400-839ef3e3951b

Mid-year company announced newbuild orders for Mid-size gas Carriers and Liquid Carbon Carriers. More than a couple of slides on the plans for the vessels, and this emerging market. Yes - maybe, is my view. I am guessing, those shipping companies that placed orders for vessels with Methanol as a fuel have already started working plans fueling at least two locations (one in Asia, one in Europe). One in North America, but where- East Coast or West Coast?

The pricing for some of CCEC’s LNG newbuilds was on the higher side. LNG vessel pricing has since come down. Slide 10 offers a breakdown of the how the newbuild program will be funded. I notice there is an equity funding gap of $78M. If that’s due to the mid-year order of liquid gas carriers, that’s probably not too big a surprise. Still, it represents a dilution risk somewhere down the road.

I guess, there’s always the remaining three container vessels that could be sold and free up additional cash for the new vessels. But, that would obviously affect cash flow.

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