CoolCo (CLCO) completed their registration to trade on NYSE
The company shares started trading on 03/17/23. The following week the company completed plans to sell an existing LNG tanker (Golar Seal)
Should re-read their last earnings report - under $1B market cap makes this seem like a reasonable entry point
The Q4 2022 report–
Cool Company Ltd. Q4 2022 Business Update | Coolco (coolcoltd.com)
At year-end 2022, the company had abt $1.25B in debt, or slightly more than $100M per vessel. With the Golar Seal debt of $88M repaid, the debt per vessel would bump up slightly. But not really too extreme given a mix of TFDE and 2-stroke vessels in the fleet. Very nice rates of $120K daily on at least 2 vessels. Would Q4 2022 of $90M annualized be too extreme? Maybe, maybe not. Assuming loss of revenue from sold vessel, let me lower the run-rate. Lets say $70M quarterly, would be $280M. So CLCO is priced @ < 2.4X revenue.
One of the $120K three-year charters starts in 2023. Will CLCO exercise the newbuild options? I see a very low probability of them not. So there is further upside there. Good insider ownership group - Eastern Pacific Shipping (almost 50%) and great net margins (> 40%)
I think I can convince myself to, at least, initiate a position. It certainly is off-the-radar since they started trading in the middle of bank run fears.
Mentioned in another thread-
The charter rates for the SPV acquisition can be found in CLCO Q3 report. There was about 3.7 years of coverage (excluding options) @ ~$70K daily per vessel. There is also a vessel with a $140K daily rate.
That was enough data to propel me to a CLCO nibble.
Seems like it was the Ofer family/EPS that bought out the last of GLNG’s CLCO stake (8.3%). That means they are now majority owners (58.2%) If a big whale came along, would they do a deal to take CLCO private? I suppose that’s possible, but seems like there were a couple of opportunities to do so prior e.g. when CLCO sought equity for the SPVs. Besides, EPS with a majority stake, doesn’t need a whale. Also, EPS already owned the 4 SPVs prior to the new equity raise.
Will have to wait and see how things play out.