Cool Company Ltd. Q2 2024 Business Update
Cool Company (NYSE:CLCO) reported its Q2 2024 results, generating total operating revenues of $83.4 million, down from $88.1 million in Q1 2024. Net income decreased to $26.51 million from $36.81 million in Q1. The company achieved an average Time Charter Equivalent (TCE) of $78,400 per day, up from $77,200 in Q1. Adjusted EBITDA was $55.7 million, compared to $58.5 million in Q1.
Key highlights include securing a 14-year charter with GAIL (India) for one of two new MEGA LNG carriers under construction, completing three drydocks, and declaring a quarterly dividend of $0.41 per share. CoolCo's fleet utilization improved to 99% in Q2 from 95% in Q1. The company expects a moderate increase in TCE rate and revenues for Q3 2024.
Cool Company (NYSE:CLCO) ha riportato i risultati del Q2 2024, generando ricavi operativi totali di 83,4 milioni di dollari, in calo rispetto a 88,1 milioni di dollari nel Q1 2024. Il reddito netto è diminuito a 26,51 milioni di dollari da 36,81 milioni di dollari nel Q1. L'azienda ha raggiunto un valore medio equivalente di Time Charter (TCE) di 78.400 dollari al giorno, in aumento rispetto a 77.200 dollari del Q1. L'EBITDA rettificato è stato di 55,7 milioni di dollari, rispetto a 58,5 milioni di dollari nel Q1.
I punti salienti includono l'assicurazione di un contratto di 14 anni con GAIL (India) per uno dei due nuovi mezzi MEGA LNG in costruzione, il completamento di tre drydock e la dichiarazione di un dividendo trimestrale di 0,41 dollari per azione. L'utilizzo della flotta di CoolCo è migliorato al 99% nel Q2, rispetto al 95% nel Q1. L'azienda prevede un moderato aumento del tasso TCE e dei ricavi per il Q3 2024.
Cool Company (NYSE:CLCO) reportó sus resultados para el Q2 2024, generando ingresos operativos totales de 83,4 millones de dólares, una disminución con respecto a 88,1 millones de dólares en el Q1 2024. El ingreso neto disminuyó a 26,51 millones de dólares desde 36,81 millones de dólares en el Q1. La empresa logró un equivalente de tarifas de tiempo de chárter (TCE) promedio de 78,400 dólares por día, en comparación con 77,200 dólares en el Q1. El EBITDA ajustado fue de 55,7 millones de dólares, en comparación con 58,5 millones de dólares en el Q1.
Los puntos destacados incluyen asegurar un contrato de 14 años con GAIL (India) para uno de los dos nuevos buques MEGA LNG en construcción, completar tres diques secos y declarar un dividendo trimestral de 0,41 dólares por acción. La utilización de la flota de CoolCo mejoró al 99% en el Q2 desde el 95% en el Q1. La empresa espera un aumento moderado en la tasa TCE y los ingresos para el Q3 2024.
쿨 컴퍼니 (NYSE:CLCO)는 2024년 2분기 실적을 발표하며 총 운영 수익이 8,340만 달러로, 2024년 1분기의 8,810만 달러에서 감소했다고 보고했습니다. 순이익은 1분기의 3,681만 달러에서 2,651만 달러로 감소했습니다. 회사는 평균 일일 시간 용선 금액(TCE)을 78,400달러로 기록했으며, 이는 1분기의 77,200달러에서 증가한 수치입니다. 조정된 EBITDA는 1분기의 5,850만 달러에 비해 5,570만 달러였습니다.
주요 하이라이트로는 인도 GAIL과의 14년 계약 체결, 건설 중인 두 개의 MEGA LNG 선박 중 하나의 제안, 세 번째 드라이독 완료 및 주당 0.41달러의 분기 배당금 선언이 포함됩니다. 쿨코의 함대 이용률은 2분기 99%에서 1분기 95%로 개선되었습니다. 회사는 2024년 3분기에 TCE 금액과 수익이 소폭 증가할 것으로 예상하고 있습니다.
Cool Company (NYSE:CLCO) a annoncé ses résultats pour le 2ème trimestre 2024, générant des revenus d'exploitation totaux de 83,4 millions de dollars, en baisse par rapport à 88,1 millions de dollars au 1er trimestre 2024. Le revenu net a diminué à 26,51 millions de dollars contre 36,81 millions de dollars au 1er trimestre. L'entreprise a réalisé un équivalent de temps de location moyen (TCE) de 78 400 dollars par jour, en hausse par rapport à 77 200 dollars au 1er trimestre. L'EBITDA ajusté était de 55,7 millions de dollars, contre 58,5 millions de dollars au 1er trimestre.
Parmi les points saillants, on trouve la conclusion d'un contrat de 14 ans avec GAIL (Inde) pour l'un des deux nouveaux porte-gaz MEGA LNG en construction, l'achèvement de trois dockings et la déclaration d'un dividende trimestriel de 0,41 dollar par action. L'utilisation de la flotte de CoolCo a progressé à 99% au 2ème trimestre contre 95% au 1er trimestre. L'entreprise s'attend à une légère augmentation du taux TCE et des revenus pour le 3ème trimestre 2024.
Cool Company (NYSE:CLCO) hat seine Ergebnisse für das zweite Quartal 2024 bekannt gegeben und einen Gesamtbetriebserlös von 83,4 Millionen Dollar erzielt, ein Rückgang von 88,1 Millionen Dollar im ersten Quartal 2024. Der Nettogewinn sank auf 26,51 Millionen Dollar von 36,81 Millionen Dollar im ersten Quartal. Das Unternehmen erzielte einen durchschnittlichen Zeitcharteräquivalent (TCE) von 78.400 Dollar pro Tag, ein Anstieg von 77.200 Dollar im ersten Quartal. Das bereinigte EBITDA belief sich auf 55,7 Millionen Dollar, verglichen mit 58,5 Millionen Dollar im ersten Quartal.
Zu den wichtigsten Highlights gehören der Abschluss eines 14-Jahres-Vertrags mit GAIL (Indien) für eines der beiden neuen MEGA LNG-Tankschiffe im Bau, der Abschluss von drei Dockungen und die Erklärung einer quartalsweisen Dividende von 0,41 Dollar pro Aktie. Die Flottenauslastung von CoolCo verbesserte sich im zweiten Quartal auf 99% im Vergleich zu 95% im ersten Quartal. Das Unternehmen erwartet einen moderaten Anstieg des TCE-Satzes und der Einnahmen für das dritte Quartal 2024.
- Secured a 14-year charter with GAIL (India) for one of the new MEGA LNG carriers
- Average TCE increased to $78,400 per day in Q2 from $77,200 in Q1
- Fleet utilization improved to 99% in Q2 from 95% in Q1
- Declared a quarterly dividend of $0.41 per share
- Expects moderate increase in TCE rate and revenues for Q3 2024
- Total operating revenues decreased to $83.4 million in Q2 from $88.1 million in Q1
- Net income declined to $26.51 million in Q2 from $36.81 million in Q1
- Adjusted EBITDA decreased to $55.7 million in Q2 from $58.5 million in Q1
Insights
CoolCo's Q2 2024 results show a mixed performance. While total operating revenues decreased to
The 14-year charter secured with GAIL for one of the new MEGA LNG carriers is a significant positive, providing long-term stability. However, the
The
The LNG market is showing interesting dynamics. High European gas inventories are shifting trade routes, increasing long-haul voyages to Asia. This trend is positive for CoolCo as it supports ton-mile demand and potentially higher charter rates. The underrepresentation of LNG carriers in the Atlantic Basin ahead of winter could lead to increased volatility and potentially higher spot rates.
The company's strategy of securing medium-term charters while maintaining some flexibility for 2025-26 is prudent, given the anticipated market tightening due to new LNG volumes coming online. The transition away from legacy steam turbine vessels in the industry favors modern fleets like CoolCo's, potentially leading to improved utilization and rates for their vessels.
However, the current flat chartering market and geopolitical uncertainties pose short-term challenges. The company's focus on securing additional coverage for 2024-25 while maintaining flexibility demonstrates a balanced approach to market risks and opportunities.
CoolCo's investment in technology upgrades, particularly the LNGe specification retrofit for one of their vessels, is a strategic move. This
The company's modern fleet, contrasted with the
However, the 43-day drydock for upgrades represents significant downtime. While necessary for long-term competitiveness, it impacts short-term revenues. The subsequent improvement in drydock efficiency (down to 20-21 days) demonstrates learning and optimization in their upgrade process, which should benefit future operations and minimize revenue loss during maintenance periods.
Q2 Highlights and Subsequent Events
-
Generated total operating revenues of
$83.4 million $88.1 million -
Net income of
$26.5 $36.8 -
Achieved average Time Charter Equivalent Earnings ("TCE")2 of
$78,400 $77,200 -
Adjusted EBITDA2 of
$55.7 million $58.5 million - Secured a 14-year charter with GAIL (India) Limited during Q2 for one of the two state-of-the-art MEGA LNG carriers currently under construction at Hyundai-Samho (the "Newbuilds");
- Completed our first drydock in Q2 in 43 days and subsequently finished two more drydocks in a timely manner in Q3 2024, taking 21 and 20 days respectively. A fourth drydock, which includes LNGe upgrade, is scheduled for completion in Q4 2024 and is expected to take 45 days;
- Secured a one-year time charter agreement for a TFDE vessel starting in Q3 2024 with an energy major and participating in two formal processes for Kool Tiger, our other MEGA LNG carrier currently under construction; and
-
Declared a quarterly dividend of
$0.41
Richard Tyrrell, CEO, commented:
“During Q2 and the early part of Q3, CoolCo has taken advantage of the seasonally quieter months to complete drydocks and secure additional forward charter cover for both the relative short term and the long term. Our TCE performance for the second quarter increased to
CoolCo navigated the flat chartering market since our last reporting through a back-to-back 12-month charter that increased its backlog to
We look forward to taking delivery of our two state-of-the-art newbuilds later this year, one of which has already secured a 14-year time charter to service the fast-growing Indian LNG market. Following our recent chartering activity, our fleet is now largely fixed through the medium term. We are focused on securing additional coverage for our limited charter market exposure in 2024-25, while maintaining the flexibility to benefit from the substantial market tightening we anticipate as vast new LNG volumes come online in 2025-26. Due to full charter coverage and improved drydock performance, we expect a moderate increase in TCE rate and time and charter voyage revenues for the third quarter compared to the second quarter.”
Financial Highlights
The table below sets forth certain key financial information for Q2 2024, Q1 2024, Q2 2023, 1H 2024 and for the six months ended June 30, 2023 (“1H 2023”).
(in thousands of $, except average daily TCE) |
Q2 2024 |
Q1 2024 |
Q2 2023 |
1H 2024 |
1H 2023 |
Time and voyage charter revenues |
76,401 |
78,710 |
82,071 |
155,111 |
173,239 |
Total operating revenues |
83,372 |
88,125 |
90,316 |
171,497 |
188,965 |
Operating income |
41,361 |
44,097 |
45,484 |
85,458 |
97,506 |
Net income 1 |
26,478 |
36,812 |
44,646 |
63,290 |
114,778 |
Adjusted EBITDA2 |
55,679 |
58,541 |
59,894 |
114,220 |
127,708 |
Average daily TCE2 (to the closest |
78,400 |
77,200 |
81,100 |
77,800 |
82,500 |
LNG Market Review
The average
The combination of very high European gas inventories and strong commodity pricing has resulted in a sharp reduction in shipping from the US Gulf into
The combination of geopolitical uncertainty and an oscillation of charter market strength between East and West continues to stretch the LNG carrier fleet even during the seasonally quieter months. With the winter season ahead, the disposition of the global fleet is increasingly skewed towards the Pacific Basin, setting the stage for increased volatility if typical seasonal conditions prevail following two consecutive mild winters.
Operational Review
CoolCo's fleet continued to perform well with a Q2 fleet utilization of
Business Development
The chartering of one of CoolCo’s two Newbuilds sets a strong foundation for the second Newbuild and CoolCo continues to be in discussions with potential charterers regarding its employment of its other newbuild vessel, which is part of two formal bidding processes. CoolCo is also developing leads for its other vessel redelivering late in the second half of 2024.
Financing and Liquidity
At the end of Q1 2024, the Company closed the upsize of the existing
As of June 30, 2024, CoolCo had cash and cash equivalents of
Overall, the Company’s interest rate on its debt is currently fixed or hedged for approximately
Corporate and Other Matters
As of June 30, 2024, CoolCo had 53,702,846 shares issued and outstanding. Of these, 31,254,390 shares (
In line with the Company’s variable dividend policy, the Board has declared a Q2 dividend of
Outlook
The LNG carrier charter market remains divided between the highly variable spot market and the more stable time charter market. With the spot market dominated by sub-lets and steam turbine carriers, while more modern tonnage owned by independent owners, such as CoolCo, prioritize term charters, where prevailing rates remain within a narrower and materially higher range.
Long-term initial charters on legacy steam turbine vessels continue to end, returning these vessels to a charter market that increasingly favors more modern, fuel-efficient tonnage with superior boil-off and environmental profiles. Representing approximately
In contrast to the volatility and uncertainties of the near-term market, we believe longer-term sector prospects remain strongly supported by the pipeline of new liquefaction projects that have already reached Final Investment Decision (FID) and are set to increase the total volume of LNG on the water by more than
1 Net income for Q2 2024 includes a mark-to market gain on interest rate swaps amounting to |
2 Refer to 'Appendix A' - Non-GAAP financial measures and definitions, for definitions of these measures and a reconciliation to the nearest GAAP measure. |
Forward Looking Statements
This press release and any other written or oral statements made by us in connection with this press release include forward-looking statements within the meaning of and made under the “safe harbor” provisions of the
The forward-looking statements in this document are based upon management’s current expectations, estimates and projections. These statements involve significant risks, uncertainties, contingencies and factors that are difficult or impossible to predict and are beyond our control, and that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Numerous factors could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements including:
- general economic, political and business conditions, including sanctions and other measures;
- general LNG market conditions, including fluctuations in charter hire rates and vessel values;
- changes in demand in the LNG shipping industry, including the market for our vessels;
- changes in the supply of LNG vessels;
- our ability to successfully employ our vessels;
- changes in our operating expenses, including fuel or cooling down prices and lay-up costs when vessels are not on charter, drydocking and insurance costs;
- compliance with, and our liabilities under, governmental, tax, environmental and safety laws and regulations;
- risk related to climate change, including climate-change or greenhouse gas related legislation or regulations and the impact on our business from physical climate-change related to changes in weather patterns, and the potential impact of new regulations relating to climate change and the potential impact on the demand for the LNG shipping industry;
- changes in governmental regulation, tax and trade matters and actions taken by regulatory authorities;
-
potential disruption of shipping routes and demand due to accidents, piracy or political events and/or instability, including the ongoing conflicts in the
Middle East ; - vessel breakdowns and instances of loss of hire;
- vessel underperformance and related warranty claims;
- our expectations regarding the availability of vessel acquisitions;
- our ability to procure or have access to financing and refinancing;
- continued borrowing availability under our credit facilities and compliance with the financial covenants therein;
- fluctuations in foreign currency exchange and interest rates;
- potential conflicts of interest involving our significant shareholders;
- our ability to pay dividends;
- information system failures, cyber incidents or breaches in security;
- adjustments in our ship management business and related costs; and
-
other risks indicated in the risk factors included in our Annual Report on Form 20-F for the year ended December 31, 2023 and other filings with and submission to the
U.S. Securities and Exchange Commission.
The foregoing factors that could cause our actual results to differ materially from those contemplated in any forward-looking statement included in this report should not be construed as exhaustive. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
As a result, you are cautioned not to place undue reliance on any forward-looking statements which speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.
Responsibility Statement
We confirm that, to the best of our knowledge, the interim unaudited condensed consolidated financial statements for the six months ended June 30, 2024, which have been prepared in accordance with accounting principles generally accepted in
August 29, 2024
Cool Company Ltd.
Questions should be directed to:
c/o Cool Company Ltd - +1(441) 295 2244
Richard Tyrrell (Chief Executive Officer & Director) |
Cyril Ducau (Chairman of the Board) |
John Boots (Chief Financial Officer) |
Antoine Bonnier (Director) |
|
Joanna Huipei Zhou (Director) |
|
Sami Iskander (Director) |
|
Neil Glass (Director) |
|
Peter Anker (Director) |
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Statements of Operations |
|
For the three months ended |
|
For the six months ended |
|||||||||||
(in thousands of $) |
Apr-Jun
|
|
Jan-Mar
|
|
Apr-Jun
|
|
Jan-Jun
|
|
Jan-Jun
|
|||||
Time and voyage charter revenues |
76,401 |
|
|
78,710 |
|
|
82,071 |
|
|
155,111 |
|
|
173,239 |
|
Vessel and other management fee revenues |
2,479 |
|
|
4,923 |
|
|
3,757 |
|
|
7,402 |
|
|
7,133 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
4,492 |
|
|
4,492 |
|
|
4,488 |
|
|
8,984 |
|
|
8,593 |
|
Total operating revenues |
83,372 |
|
|
88,125 |
|
|
90,316 |
|
|
171,497 |
|
|
188,965 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Vessel operating expenses |
(17,037 |
) |
|
(17,594 |
) |
|
(18,835 |
) |
|
(34,631 |
) |
|
(37,423 |
) |
Voyage, charter hire and commission expenses, net |
(900 |
) |
|
(1,439 |
) |
|
(877 |
) |
|
(2,339 |
) |
|
(2,376 |
) |
Administrative expenses |
(5,264 |
) |
|
(6,059 |
) |
|
(6,222 |
) |
|
(11,323 |
) |
|
(12,865 |
) |
Depreciation and amortization |
(18,810 |
) |
|
(18,936 |
) |
|
(18,898 |
) |
|
(37,746 |
) |
|
(38,795 |
) |
Total operating expenses |
(42,011 |
) |
|
(44,028 |
) |
|
(44,832 |
) |
|
(86,039 |
) |
|
(91,459 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
41,361 |
|
|
44,097 |
|
|
45,484 |
|
|
85,458 |
|
|
97,506 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Other non-operating income |
— |
|
|
— |
|
|
21 |
|
|
— |
|
|
42,549 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial income/(expense): |
|
|
|
|
|
|
|
|
|
|||||
Interest income |
1,357 |
|
|
1,705 |
|
|
2,791 |
|
|
3,062 |
|
|
4,308 |
|
Interest expense |
(19,180 |
) |
|
(19,678 |
) |
|
(19,863 |
) |
|
(38,858 |
) |
|
(39,348 |
) |
Gains on derivative instruments |
4,065 |
|
|
11,301 |
|
|
16,705 |
|
|
15,366 |
|
|
10,704 |
|
Other financial items, net |
(972 |
) |
|
(480 |
) |
|
(414 |
) |
|
(1,452 |
) |
|
(807 |
) |
Financial expenses, net |
(14,730 |
) |
|
(7,152 |
) |
|
(781 |
) |
|
(21,882 |
) |
|
(25,143 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes and non-controlling interests |
26,631 |
|
|
36,945 |
|
|
44,724 |
|
|
63,576 |
|
|
114,912 |
|
Income taxes, net |
(153 |
) |
|
(133 |
) |
|
(78 |
) |
|
(286 |
) |
|
(134 |
) |
Net income |
26,478 |
|
|
36,812 |
|
|
44,646 |
|
|
63,290 |
|
|
114,778 |
|
Net income attributable to non-controlling interests |
(411 |
) |
|
(238 |
) |
|
344 |
|
|
(649 |
) |
|
(943 |
) |
Net income attributable to the Owners of Cool Company Ltd. |
26,067 |
|
|
36,574 |
|
|
44,990 |
|
|
62,641 |
|
|
113,835 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|||||
Owners of Cool Company Ltd. |
26,067 |
|
|
36,574 |
|
|
44,990 |
|
|
62,641 |
|
|
113,835 |
|
Non-controlling interests |
411 |
|
|
238 |
|
|
(344 |
) |
|
649 |
|
|
943 |
|
Net income |
26,478 |
|
|
36,812 |
|
|
44,646 |
|
|
63,290 |
|
|
114,778 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Balance Sheets |
|
|
At June 30, |
|
At December 31, |
(in thousands of $, except number of shares) |
2024 |
|
2023 |
|
|
|
(Audited) |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
84,362 |
|
133,496 |
Restricted cash and short-term deposits |
1,676 |
|
3,350 |
Intangible assets, net |
— |
|
825 |
Trade receivable and other current assets |
10,146 |
|
12,923 |
Inventories |
879 |
|
3,659 |
Total current assets |
97,063 |
|
154,253 |
|
|
|
|
Non-current assets |
|
|
|
Restricted cash |
463 |
|
492 |
Intangible assets, net |
8,534 |
|
9,438 |
Newbuildings |
206,549 |
|
181,904 |
Vessels and equipment, net |
1,685,936 |
|
1,700,063 |
Other non-current assets |
19,150 |
|
10,793 |
Total assets |
2,017,695 |
|
2,056,943 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Current portion of long-term debt and short-term debt |
175,156 |
|
194,413 |
Trade payable and other current liabilities |
106,415 |
|
98,917 |
Total current liabilities |
281,571 |
|
293,330 |
|
|
|
|
Non-current liabilities |
|
|
|
Long-term debt |
827,241 |
|
866,671 |
Other non-current liabilities |
81,938 |
|
90,362 |
Total liabilities |
1,190,750 |
|
1,250,363 |
|
|
|
|
Equity |
|
|
|
Owners' equity includes 53,702,846 (2023: 53,702,846) common shares of |
755,706 |
|
735,990 |
Non-controlling interests |
71,239 |
|
70,590 |
Total equity |
826,945 |
|
806,580 |
|
|
|
|
Total liabilities and equity |
2,017,695 |
|
2,056,943 |
|
|
|
|
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Statements of Cash Flows |
|
(in thousands of $) |
Jan-Jun
|
|
Jan-Jun
|
||
Operating activities |
|
|
|
||
Net income |
63,290 |
|
|
114,778 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||
Depreciation and amortization expenses |
37,746 |
|
|
38,795 |
|
Amortization of intangible assets and liabilities arising from charter agreements, net |
(8,984 |
) |
|
(8,593 |
) |
Amortization of deferred charges and fair value adjustments |
1,876 |
|
|
2,319 |
|
Gain on sale of vessel |
— |
|
|
(42,549 |
) |
Drydocking expenditure |
(8,132 |
) |
|
(4,284 |
) |
Compensation cost related to share-based payment |
1,111 |
|
|
1,197 |
|
Change in fair value of derivative instruments |
(9,119 |
) |
|
(6,446 |
) |
Changes in assets and liabilities: |
|
|
|
||
Trade accounts receivable |
7,578 |
|
|
(3,885 |
) |
Inventories |
2,780 |
|
|
387 |
|
Other current and other non-current assets |
(2,743 |
) |
|
(4,892 |
) |
Amounts due to related parties |
(542 |
) |
|
(1,270 |
) |
Trade accounts payable |
(524 |
) |
|
26,966 |
|
Accrued expenses |
(6,674 |
) |
|
(7,178 |
) |
Other current and non-current liabilities |
3,706 |
|
|
12,236 |
|
Net cash provided by operating activities |
81,369 |
|
|
117,581 |
|
|
|
|
|
||
Investing activities |
|
|
|
||
Additions to vessels and equipment |
(2,744 |
) |
|
(872 |
) |
Additions to newbuildings |
(22,501 |
) |
|
— |
|
Additions to intangible assets |
(132 |
) |
|
(432 |
) |
Proceeds from sale of vessels & equipment |
— |
|
|
184,300 |
|
Net cash (used in) / provided by investing activities |
(25,377 |
) |
|
182,996 |
|
|
|
|
|
||
Financing activities |
|
|
|
||
Proceeds from short-term and long-term debt |
— |
|
|
70,000 |
|
Repayments of short-term and long-term debt |
(57,963 |
) |
|
(144,828 |
) |
Financing arrangement fees and other costs |
(4,830 |
) |
|
(1,892 |
) |
Cash dividends paid |
(44,036 |
) |
|
(43,487 |
) |
Net cash used in financing activities |
(106,829 |
) |
|
(120,207 |
) |
|
|
|
|
||
Net (decrease)/ increase in cash, cash equivalents and restricted cash |
(50,837 |
) |
|
180,370 |
|
Cash, cash equivalents and restricted cash at beginning of period |
137,338 |
|
|
133,077 |
|
Cash, cash equivalents and restricted cash at end of period |
86,501 |
|
|
313,447 |
|
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Statements of Changes in Equity |
|
|
|
For the six months ended June 30, 2024 |
|||||||||||
(in thousands of $, except number of shares) |
|
Number of
|
|
Owners’
|
Additional
|
Retained
|
Owners'
|
Non-
|
Total
|
||||
Consolidated balance at December 31, 2023 |
|
53,702,846 |
|
53,703 |
509,327 |
|
172,960 |
|
735,990 |
|
70,590 |
806,580 |
|
Net income for the period |
|
— |
|
— |
— |
|
62,641 |
|
62,641 |
|
649 |
63,290 |
|
Share based payments contribution |
|
— |
|
— |
1,189 |
|
— |
|
1,189 |
|
— |
1,189 |
|
Forfeitures of share based compensation |
|
— |
|
— |
(78 |
) |
— |
|
(78 |
) |
— |
(78 |
) |
Dividends |
|
— |
|
— |
— |
|
(44,036 |
) |
(44,036 |
) |
— |
(44,036 |
) |
Consolidated balance at June 30, 2024 |
|
53,702,846 |
|
53,703 |
510,438 |
|
191,565 |
|
755,706 |
|
71,239 |
826,945 |
|
(1) Additional paid-in capital refers to the amount of capital contributed or paid-in over and above the par value of the Company's issued share capital. |
|||||||||||||
|
|
For the six months ended June 30, 2023 |
||||||||||
(in thousands of $, except number of shares) |
|
Number of
|
|
Owners’
|
Additional
|
Retained
|
Owners'
|
Non-
|
Total
|
|||
Consolidated balance at December 31, 2022 |
|
53,688,462 |
|
53,688 |
507,127 |
85,742 |
|
646,557 |
|
68,956 |
715,513 |
|
Net income for the period |
|
— |
|
— |
— |
113,835 |
|
113,835 |
|
943 |
114,778 |
|
Share based payments contribution |
|
— |
|
— |
1,197 |
— |
|
1,197 |
|
— |
1,197 |
|
Dividends |
|
— |
|
— |
— |
(43,487 |
) |
(43,487 |
) |
— |
(43,487 |
) |
Consolidated balance at June 30, 2023 |
|
53,688,462 |
|
53,688 |
508,324 |
156,090 |
|
718,102 |
|
69,899 |
788,001 |
|
(1) Additional paid-in capital refers to the amount of capital contributed or paid-in over and above the par value of the Company's issued share capital. |
||||||||||||
Appendix A - Non-GAAP Financial Measures and Definitions
Non-GAAP Financial Metrics Arising from How Management Monitors the Business
In addition to disclosing financial results in accordance with
Non-GAAP measure |
Closest equivalent
|
Adjustments to reconcile to
|
Rationale for presentation of the
|
Performance Measures |
|||
Adjusted EBITDA |
Net income |
+/- Other non-operating income +/- Net financial expense, representing: Interest income, Interest expense, Gains/(Losses) on derivative instruments and Other financial items, net +/- Income taxes, net + Depreciation and amortization - Amortization of intangible assets and liabilities - charter agreements, net |
Increases the comparability of total business performance from period to period and against the performance of other companies by removing the impact of other non-operating income, depreciation, amortization of intangible assets and liabilities - charter agreements, net, financing and tax items. |
Average daily TCE |
Time and voyage charter revenues |
- Voyage, charter hire and commission expenses, net
The above total is then divided by calendar days less scheduled off-hire days. |
Measure of the average daily net revenue performance of a vessel.
Standard shipping industry performance measure used primarily to compare period-to-period changes in the vessel’s net revenue performance despite changes in the mix of charter types (i.e. spot charters, time charters and bareboat charters) under which the vessel may be employed between the periods.
Assists management in making decisions regarding the deployment and utilization of its fleet and in evaluating financial performance. |
Liquidity measures |
|||
Total Contractual Debt |
Total debt (current and non-current), net of deferred finance charges |
+ VIE Consolidation and fair value adjustments upon acquisition + Deferred Finance Charges |
We consolidate two lessor VIEs for our sale and leaseback facilities (for the vessels Ice and Kelvin). This means that on consolidation, our contractual debt is eliminated and replaced with the Lessor VIEs’ debt.
Contractual debt represents our actual debt obligations under our various financing arrangements before consolidating the Lessor VIEs.
The measure enables investors and users of our financial statements to assess our liquidity and the split of our debt (current and non-current) based on our underlying contractual obligations. |
Total Company Cash |
CoolCo cash based on GAAP measures:
+ Cash and cash equivalents
+ Restricted cash and short-term deposits (current and non-current) |
- VIE restricted cash and short-term deposits (current and non-current) |
We consolidate two lessor VIEs for our sale and leaseback facilities. This means that on consolidation, we include restricted cash held by the lessor VIEs.
Total Company Cash represents our cash and cash equivalents and restricted cash and short-term deposits (current and non-current) before consolidating the lessor VIEs.
Management believes that this measure enables investors and users of our financial statements to assess our liquidity and aids comparability with our competitors.
|
Reconciliations - Performance Measures
Adjusted EBITDA
|
For the three months ended |
|||||||
(in thousands of $) |
Apr-Jun
|
|
Jan-Mar
|
|
Apr-Jun
|
|||
Net income |
26,478 |
|
|
36,812 |
|
|
44,646 |
|
Other non-operating income |
— |
|
|
— |
|
|
(21 |
) |
Interest income |
(1,357 |
) |
|
(1,705 |
) |
|
(2,791 |
) |
Interest expense |
19,180 |
|
|
19,678 |
|
|
19,863 |
|
Gains on derivative instruments |
(4,065 |
) |
|
(11,301 |
) |
|
(16,705 |
) |
Other financial items, net |
972 |
|
|
480 |
|
|
414 |
|
Income taxes, net |
153 |
|
|
133 |
|
|
78 |
|
Depreciation and amortization |
18,810 |
|
|
18,936 |
|
|
18,898 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
(4,492 |
) |
|
(4,492 |
) |
|
(4,488 |
) |
Adjusted EBITDA |
55,679 |
|
|
58,541 |
|
|
59,894 |
|
|
For the six months ended |
||||
(in thousands of $) |
Jan-Jun
|
|
Jan-Jun
|
||
Net income |
63,290 |
|
|
114,778 |
|
Other non-operating income |
— |
|
|
(42,549 |
) |
Interest income |
(3,062 |
) |
|
(4,308 |
) |
Interest expense |
38,858 |
|
|
39,348 |
|
Gains on derivative instruments |
(15,366 |
) |
|
(10,704 |
) |
Other financial items, net |
1,452 |
|
|
807 |
|
Income taxes, net |
286 |
|
|
134 |
|
Depreciation and amortization |
37,746 |
|
|
38,795 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
(8,984 |
) |
|
(8,593 |
) |
Adjusted EBITDA |
114,220 |
|
|
127,708 |
|
Average daily TCE
|
For the three months ended |
||||||||||
(in thousands of $, except number of days and average daily TCE) |
Apr-Jun
|
|
Jan-March
|
|
Apr-Jun
|
||||||
Time and voyage charter revenues |
|
76,401 |
|
|
|
78,710 |
|
|
|
82,071 |
|
Voyage, charter hire and commission expenses, net |
|
(900 |
) |
|
|
(1,439 |
) |
|
|
(877 |
) |
|
|
75,501 |
|
|
|
77,271 |
|
|
|
81,194 |
|
Calendar days less scheduled off-hire days |
|
963 |
|
|
|
1,001 |
|
|
|
1,001 |
|
Average daily TCE (to the closest |
$ |
78,400 |
|
|
$ |
77,200 |
|
|
$ |
81,100 |
|
|
|
|
|
|
|
||||||
|
For the six months ended |
||||||
(in thousands of $, except number of days and average daily TCE) |
Jan-Jun
|
|
Jan-Jun
|
||||
Time and voyage charter revenues |
|
155,111 |
|
|
|
173,239 |
|
Voyage, charter hire and commission expenses, net |
|
(2,339 |
) |
|
|
(2,376 |
) |
|
|
152,772 |
|
|
|
170,863 |
|
Calendar days less scheduled off-hire days |
|
1,964 |
|
|
|
2,072 |
|
Average daily TCE (to the closest |
$ |
77,800 |
|
|
$ |
82,500 |
|
Reconciliations - Liquidity measures
Total Contractual Debt
(in thousands of $) |
At June 30,
|
|
At December 31,
|
Total debt (current and non-current) net of deferred finance charges |
1,002,397 |
|
1,061,084 |
Add: VIE consolidation and fair value adjustments |
98,847 |
|
97,245 |
Add: Deferred finance charges |
7,090 |
|
5,563 |
Total Contractual Debt |
1,108,334 |
|
1,163,892 |
Total Company Cash
(in thousands of $) |
At June 30,
|
|
At December 31,
|
||
Cash and cash equivalents |
84,362 |
|
|
133,496 |
|
Restricted cash and short-term deposits |
2,139 |
|
|
3,842 |
|
Less: VIE restricted cash |
(1,676 |
) |
|
(3,350 |
) |
Total Company Cash |
84,825 |
|
|
133,988 |
|
Other definitions
Contracted Revenue Backlog
Contracted revenue backlog is defined as the contracted daily charter rate for each vessel multiplied by the number of scheduled hire days for the remaining contract term. Contracted revenue backlog is not intended to represent Adjusted EBITDA or future cashflows that will be generated from these contracts. This measure should be seen as a supplement to and not a substitute for our US GAAP measures of performance.
This information is subject to the disclosure requirements in Regulation EU 596/2014 (MAR) article 19 number 3 and section 5-12 of the Norwegian Securities Trading Act.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240828946588/en/
c/o Cool Company Ltd - +1(441) 295 2244
Source: Cool Company Ltd.
FAQ
What was Cool Company's (CLCO) revenue in Q2 2024?
How did Cool Company's (CLCO) Q2 2024 net income compare to Q1 2024?
What was Cool Company's (CLCO) average Time Charter Equivalent (TCE) in Q2 2024?
Did Cool Company (CLCO) declare a dividend for Q2 2024?
What significant charter agreement did Cool Company (CLCO) secure in Q2 2024?
