CoolCo Q3 2024 results

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Announced 11/21

  • Rev of $82.3M
  • Net Income of $8.1M (including losses on market swaps)
  • Avg TCE earnings $81,600 daily
  • Declared Q3 div of 15c/sh
  • Took delivery of newbuild vessel in Oct 2024, and vessel is operating in spot market. In other years, the timing of the new vessel would be great. This year, not so much.
  • Subsequent to qtr end, CLCO mgmt approved a share buy-back. Seems reasonable, given the large div cut is going to likely hit share price.
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Additional color in the article

  • Rates for TFDE-powered vessels went from Q3 start ($62,250 daily) to Q3 end ($46,250 daily). The rate has fallen further, and on Nov 12th ($18,750 daily). CLCO does have a spot trading vessel impacted by this changing price development.
  • New production coming online has lagged newbuild deliveries. The inference from that would be “too many vessels, too few cargos” which does slightly contrast with FLNG mgmt image of fewer “unassigned” newbuilds. I guess that could be reconciled by the possibility of the start-up delays e.g. Gimi FLNG (Greater Tortue). The original timeline had that project COD my mid-year 2024. To my knowledge, still not there.
  • The refinancing package seems like a good debt punt. Gain a couple of years, and move some of the debt out.
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