Cool Company Ltd. Q3 2024 Business Update
Cool Company (NYSE:CLCO) reported Q3 2024 financial results with total operating revenues of $82.4 million, slightly down from $83.4 million in Q2. Net income decreased to $8.11 million from $26.51 million, primarily due to losses in mark-to-market interest rate swaps. The company achieved average Time Charter Equivalent Earnings of $81,600 per day, up from $78,400 in Q2. Notable events include the delivery of newbuild vessel Kool Tiger, completion of scheduled drydocks, and approval for refinancing of $570 million bank facility. The company declared a $0.15 per share quarterly dividend and approved a $40 million share repurchase program.
Cool Company (NYSE:CLCO) ha riportato i risultati finanziari del terzo trimestre 2024, con ricavi operativi totali di 82,4 milioni di dollari, leggermente inferiori rispetto ai 83,4 milioni di dollari del secondo trimestre. L'utile netto è diminuito a 8,11 milioni di dollari da 26,51 milioni di dollari, principalmente a causa delle perdite derivanti da swap di tasso d'interesse mark-to-market. L'azienda ha ottenuto un guadagno medio equivalente a Time Charter di 81.600 dollari al giorno, in aumento rispetto ai 78.400 dollari del secondo trimestre. Tra gli eventi degni di nota ci sono la consegna della nuova nave Kool Tiger, il completamento dei dock di manutenzione programmati e l'approvazione del rifinanziamento di un prestito bancario di 570 milioni di dollari. L'azienda ha dichiarato un dividendo trimestrale di 0,15 dollari per azione e ha approvato un programma di riacquisto di azioni da 40 milioni di dollari.
Cool Company (NYSE:CLCO) informó los resultados financieros del tercer trimestre de 2024 con ingresos operativos totales de 82,4 millones de dólares, ligeramente por debajo de los 83,4 millones de dólares del segundo trimestre. La renta neta disminuyó a 8,11 millones de dólares desde 26,51 millones de dólares, principalmente debido a pérdidas en swaps de tasas de interés mark-to-market. La compañía logró un promedio de Ganancias Equivalentes de Tiempo Charter de 81,600 dólares por día, un aumento desde 78,400 dólares en el segundo trimestre. Los eventos notables incluyen la entrega del nuevo barco Kool Tiger, la finalización de los diques secos programados y la aprobación para el refinanciamiento de una línea de crédito bancaria de 570 millones de dólares. La empresa declaró un dividendo trimestral de 0,15 dólares por acción y aprobó un programa de recompra de acciones de 40 millones de dólares.
Cool Company (NYSE:CLCO)는 2024년 3분기 재무 결과를 보고했으며, 총 운영 수익은 8,240만 달러로, 2분기의 8,340만 달러에서 약간 감소하였습니다. 순이익은 811만 달러로 감소했으며, 2,651만 달러에서 줄어든 주된 원인은 시장가치 평가에 따른 금리 스왑 손실 때문입니다. 이 회사는 하루 평균 시간 차터 동등 수익이 81,600 달러로, 2분기의 78,400 달러에서 증가했습니다. 주요 이벤트로는 새로 건조된 선박 Kool Tiger의 인도, 예정된 드라이독 완료, 및 5억 7천만 달러 규모의 은행 대출 재융자 승인이 포함됩니다. 회사는 주당 0.15달러의 분기 배당금을 선언하고 4천만 달러의 자사주 매입 프로그램을 승인했습니다.
Cool Company (NYSE:CLCO) a rendu compte de ses résultats financiers pour le troisième trimestre 2024, avec des revenus d'exploitation totalisant 82,4 millions de dollars, légèrement en baisse par rapport à 83,4 millions de dollars au deuxième trimestre. Le bénéfice net a diminué à 8,11 millions de dollars contre 26,51 millions de dollars, principalement en raison de pertes sur des swaps de taux d'intérêt à la valeur de marché. L'entreprise a réalisé un bénéfice moyen équivalent au temps de location de 81 600 dollars par jour, en hausse par rapport à 78 400 dollars au deuxième trimestre. Parmi les événements notables figurent la livraison du nouveau navire Kool Tiger, l'achèvement des docks secs prévus et l'approbation du refinancement d'une facilité bancaire de 570 millions de dollars. L'entreprise a déclaré un dividende trimestriel de 0,15 dollar par action et a approuvé un programme de rachat d'actions de 40 millions de dollars.
Cool Company (NYSE:CLCO) hat die Finanzzahlen des dritten Quartals 2024 veröffentlicht, mit gesamten Betriebserlösen von 82,4 Millionen Dollar, geringfügig niedriger als die 83,4 Millionen Dollar im zweiten Quartal. Der Nettogewinn sank auf 8,11 Millionen Dollar, verglichen mit 26,51 Millionen Dollar, hauptsächlich aufgrund von Verlusten aus Mark-to-Market-Zins swaps. Das Unternehmen erzielte durchschnittliche Time Charter Equivalent Earnings von 81.600 Dollar pro Tag, ein Anstieg von 78.400 Dollar im zweiten Quartal. Zu den bemerkenswerten Ereignissen gehören die Übergabe des Neubaus Kool Tiger, der Abschluss geplanter Trockendocks und die Genehmigung für die Refinanzierung einer Bankfazilität von 570 Millionen Dollar. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,15 Dollar pro Aktie und genehmigte ein Aktienrückkaufprogramm in Höhe von 40 Millionen Dollar.
- Secured refinancing approval for $570M facility with $120M additional borrowing capacity
- Average TCE earnings increased to $81,600/day from $78,400/day in Q2
- Strong fleet utilization maintained at 98%
- Approved $40M share repurchase program
- Successfully completed drydocks ahead of schedule
- Net income declined 69% to $8.11M from $26.51M in Q2
- Operating revenues decreased to $82.4M from $83.4M in Q2
- Adjusted EBITDA declined to $53.7M from $55.7M in Q2
- Reduced quarterly dividend payment
- Experiencing weaker rates in short-term market for available vessels
Insights
CoolCo's Q3 2024 results reveal mixed performance with
The secured refinancing of their
The company faces near-term headwinds from weak spot rates and newbuild oversupply, but maintains strong contract coverage with 10 of 12 vessels on long-term charters, limiting exposure to current market weakness.
The LNG shipping market is experiencing significant structural changes. Current weak spot rates (
A critical industry shift is underway with 233 steam turbine vessels facing obsolescence. This represents
Strategic vessel upgrades to LNGe specifications and high fleet utilization of
Q3 Highlights and Subsequent Events
-
Generated total operating revenues of
$82.4 million $83.4 million -
Net income of
$8.1 $26.5 -
Achieved average Time Charter Equivalent Earnings ("TCE")2 of
$81,600 $78,400 -
Adjusted EBITDA2 of
$53.7 million $55.7 million - Took delivery of newbuild vessel, Kool Tiger, from shipyard in October which was repositioned in the Atlantic Basin for spot market employment on an interim basis until a long-term charter is secured;
- Completed drydocks for two vessels during Q3 2024, taking around 21 days and ahead of schedule. Subsequent to the Quarter, a drydock for another vessel was completed, which included LNGe upgrades;
-
Obtained commercial bank approval for a refinancing of our
$570 million $120 million -
Declared a quarterly dividend of
$0.15 -
Subsequent to Quarter end, the Board approved a share repurchase program of up to
$40 million
Richard Tyrrell, CEO, commented:
“Our contracted fleet and efficient dry-docking enabled us to reach the upper end of TCE guidance for the third quarter, despite a soft market backdrop that is expected to impact us in the fourth quarter. While we work to secure their long-term employment, the newly delivered Kool Tiger and the available Kool Glacier are currently subject to weaker rates in the short-term market. However, by design, our backlog from our remaining 10 vessels and one newbuild vessel, set for delivery in January, limits our exposure.
This winter's market is expected to be impacted by unfavorable short-term trading dynamics and the delivery of orderbook vessels in the fourth quarter ahead of the new LNG supply they are intended to serve. LNG prices for immediate delivery have remained high, encouraging prompt delivery rather than the contango-driven floating storage that is customary at the onset of winter. Additionally, high prices in
Longer-term, LNG remains the transition fuel of choice with well-established geopolitical credentials that are highly supportive of future development. It is expected that the moratorium on new LNG export projects in the US will soon be relaxed, resulting in material additional shipping demand towards the end of this decade.
CoolCo anticipates that current market conditions will provide growth opportunities, which it intends to seize from a position of strength. We are in the process of refinancing our
In connection with our current drydocking cycle (with 3 dry-dockings either finishing or starting during the third quarter), we have also reduced the quarterly dividend payment in line with our variable dividend policy's parameters and expanded this policy to include a share repurchase program as a capital return alternative, approving a buyback program of up to
Financial Highlights
The table below sets forth certain key financial information for Q3 2024, Q2 2024, Q3 2023, and for the nine months ended September 30, 2024 (“9M 2024”) and 2023 (“9M 2023”).
(in thousands of $, except average daily TCE) |
Q3 2024 |
Q2 2024 |
Q3 2023 |
9M 2024 |
9M 2023 |
Time and voyage charter revenues |
77,745 |
76,401 |
84,523 |
232,856 |
257,761 |
Total operating revenues |
82,434 |
83,372 |
92,901 |
253,931 |
281,864 |
Operating income |
38,948 |
41,361 |
48,336 |
124,406 |
145,844 |
Net income 1 |
8,124 |
26,478 |
39,170 |
71,414 |
153,952 |
Adjusted EBITDA2 |
53,722 |
55,679 |
62,754 |
167,942 |
190,466 |
Average daily TCE2 (to the closest |
81,600 |
78,400 |
82,400 |
79,000 |
82,400 |
LNG and LNG Shipping Market Review
The average
While robust LNG prices would typically support shipping rates in many markets, the lack of associated price volatility has had the opposite effect in this case. Near-term LNG prices in
Despite LNG pricing, capacity for the markets to take on additional cargoes is variable, opening a potential need for shipborne storage, especially in
In addition to these challenging trading dynamics, newbuild deliveries arriving ahead of the LNG supply for which they were ordered are impacting rates. During Q3, 21 ships were delivered, compared to 28 during the first half of 2024. This relative increase in deliveries has not been matched by a corresponding rise in LNG production, which has seen only a
As of September 30, 2024, there were 233 steam turbine-powered vessels, of which 22 are currently idling, according to Clarksons Research. These idled vessels, mostly built in the 2000s and originally chartered on 20-year contracts as prevalent at the time, are expected to be replaced by more modern tonnage as they redeliver over the next few years. With today’s low prevailing charter rates and customers increasingly disfavoring older, less efficient tonnage, this trend is likely to accelerate, which we expect will lead to nearly all steam turbine vessels being idled and scrapped in the relative near term.
Operational Review
CoolCo's fleet maintained strong performance, achieving
Business Development
Chartering activity in the third quarter was subdued and this has extended beyond the end of the Quarter. Long-term charterers have responded by pushing out their requirements in the expectation that nearer-term cargos can be transported with vessels from the spot market.
CoolCo has successfully chartered its one TFDE vessel available in the fourth quarter on a spot voyage and anticipates continuing with similar employment until the vessel enters drydock in early February. This vessel will be upgraded with LNGe specifications and is scheduled to be in the yard for approximately 50 days.
CoolCo’s other available vessel in the quarter is the newly delivered Kool Tiger. She was delivered from the shipyard in October and repositioned to the Atlantic Basin for spot market employment on an interim basis, while pursuing a long-term charter.
Financing and Liquidity
As of September 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
Subsequent to the end of the Quarter, the Company obtained commercial bank approval for a refinancing of its existing
Corporate and Other Matters
As of September 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 Q3 dividend of
The Board has further approved a share repurchase program that authorizes the Company to conduct buy-backs at times when the Company’s common stock trades at a material discount to its Net Asset Value (“NAV”).
Under the repurchase program, the Company may at its discretion, repurchase outstanding common shares worth up to approximately
The Company is not obligated under the share repurchase program to acquire any particular amount of common shares. The manner, timing, pricing and amount of any repurchases will depend on a number of factors including market conditions, the Company’s financial position and capital requirements, financial conditions, competing uses of cash and other factors. The repurchase program may be initiated, suspended or discontinued at the Company’s discretion at any time and may not be completed in full.
Outlook
With the current charter market weakness being driven by a combination of seasonal factors and a temporary oversupply of vessels that are expected to be absorbed as their related liquefaction projects come online throughout 2025, there remains a material disconnect between conditions and sentiment in the spot and short-term charter markets and those in the more stable, long-term time charter market. Prevailing rates in the long-term market remain within a narrower and materially higher range, reflecting the fundamentals of the LNG shipping sector. While charterers have less interest in near-term deliveries, rates for later start dates remain strong.
In addition to the anticipated 2025 absorption of newbuilds currently operating in the sub-let market, the supply-demand balance of the sector is expected to be materially supported by increasing pressure on legacy steam turbine vessels. Steam turbine vessels, which represent 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 includes a mark-to market loss 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, including whether older steam vessels leave the market as expected;
- 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;
- risks 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 and changes in political leadership in the US and other countries; - vessel breakdowns and instances of loss of hire;
- vessel underperformance and related warranty claims;
- our ability to procure or have access to financing and refinancing and to complete the upsize and/or refinancing of our facilities;
- 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 and repurchase shares;
- information system failures, cyber incidents or breaches in security;
- amounts repurchased under share repurchase programs; 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 nine months ended September 30, 2024, which have been prepared in accordance with accounting principles generally accepted in
November 21, 2024
Cool Company Ltd.
Questions should be directed to:
c/o Cool Company Ltd - +44 20 7659 1111
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 nine months ended |
|||||||||||
(in thousands of $) |
Jul-Sep 2024 |
|
Apr-Jun 2024 |
|
Jul-Sep 2023 |
|
Jan-Sep 2024 |
|
Jan-Sep 2023 |
|||||
Time and voyage charter revenues |
77,745 |
|
|
76,401 |
|
|
84,523 |
|
|
232,856 |
|
|
257,761 |
|
Vessel and other management fee revenues |
767 |
|
|
2,479 |
|
|
3,860 |
|
|
8,169 |
|
|
10,993 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
3,922 |
|
|
4,492 |
|
|
4,518 |
|
|
12,906 |
|
|
13,110 |
|
Total operating revenues |
82,434 |
|
|
83,372 |
|
|
92,901 |
|
|
253,931 |
|
|
281,864 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Vessel operating expenses |
(17,950 |
) |
|
(17,037 |
) |
|
(18,556 |
) |
|
(52,581 |
) |
|
(55,979 |
) |
Voyage, charter hire and commission expenses, net |
(1,179 |
) |
|
(900 |
) |
|
(1,137 |
) |
|
(3,518 |
) |
|
(3,512 |
) |
Administrative expenses |
(5,661 |
) |
|
(5,264 |
) |
|
(5,936 |
) |
|
(16,984 |
) |
|
(18,797 |
) |
Depreciation and amortization |
(18,696 |
) |
|
(18,810 |
) |
|
(18,936 |
) |
|
(56,442 |
) |
|
(57,732 |
) |
Total operating expenses |
(43,486 |
) |
|
(42,011 |
) |
|
(44,565 |
) |
|
(129,525 |
) |
|
(136,020 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
38,948 |
|
|
41,361 |
|
|
48,336 |
|
|
124,406 |
|
|
145,844 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Other non-operating income |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
42,549 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial income/(expense): |
|
|
|
|
|
|
|
|
|
|||||
Interest income |
1,186 |
|
|
1,357 |
|
|
2,176 |
|
|
4,248 |
|
|
6,484 |
|
Interest expense |
(18,825 |
) |
|
(19,180 |
) |
|
(20,379 |
) |
|
(57,683 |
) |
|
(59,727 |
) |
(Losses)/Gains on derivative instruments |
(12,485 |
) |
|
4,065 |
|
|
9,689 |
|
|
2,881 |
|
|
20,393 |
|
Other financial items, net |
(533 |
) |
|
(972 |
) |
|
(605 |
) |
|
(1,985 |
) |
|
(1,411 |
) |
Financial expenses, net |
(30,657 |
) |
|
(14,730 |
) |
|
(9,119 |
) |
|
(52,539 |
) |
|
(34,261 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes and non-controlling interests |
8,291 |
|
|
26,631 |
|
|
39,217 |
|
|
71,867 |
|
|
154,132 |
|
Income taxes, net |
(167 |
) |
|
(153 |
) |
|
(47 |
) |
|
(453 |
) |
|
(180 |
) |
Net income |
8,124 |
|
|
26,478 |
|
|
39,170 |
|
|
71,414 |
|
|
153,952 |
|
Net loss/(income) attributable to non-controlling interests |
25 |
|
|
(411 |
) |
|
(340 |
) |
|
(624 |
) |
|
(1,283 |
) |
Net income attributable to the Owners of Cool Company Ltd. |
8,149 |
|
|
26,067 |
|
|
38,830 |
|
|
70,790 |
|
|
152,669 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net (loss)/income attributable to: |
|
|
|
|
|
|
|
|
|
|||||
Owners of Cool Company Ltd. |
8,149 |
|
|
26,067 |
|
|
38,830 |
|
|
70,790 |
|
|
152,669 |
|
Non-controlling interests |
(25 |
) |
|
411 |
|
|
340 |
|
|
624 |
|
|
1,283 |
|
Net income |
8,124 |
|
|
26,478 |
|
|
39,170 |
|
|
71,414 |
|
|
153,952 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Balance Sheets |
|
|
At September 30, |
|
At December 31, |
(in thousands of $, except number of shares) |
2024 |
|
2023 |
|
|
|
(Audited) |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
142,439 |
|
133,496 |
Restricted cash and short-term deposits |
1,676 |
|
3,350 |
Intangible assets, net |
— |
|
825 |
Trade receivable and other current assets |
13,450 |
|
12,923 |
Inventories |
909 |
|
3,659 |
Total current assets |
158,474 |
|
154,253 |
|
|
|
|
Non-current assets |
|
|
|
Restricted cash |
476 |
|
492 |
Intangible assets, net |
7,999 |
|
9,438 |
Newbuildings |
209,206 |
|
181,904 |
Vessels and equipment, net |
1,690,329 |
|
1,700,063 |
Other non-current assets |
7,168 |
|
10,793 |
Total assets |
2,073,652 |
|
2,056,943 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Current portion of long-term debt and short-term debt |
245,427 |
|
194,413 |
Trade payable and other current liabilities |
118,501 |
|
98,917 |
Total current liabilities |
363,928 |
|
293,330 |
|
|
|
|
Non-current liabilities |
|
|
|
Long-term debt |
818,291 |
|
866,671 |
Other non-current liabilities |
77,853 |
|
90,362 |
Total liabilities |
1,260,072 |
|
1,250,363 |
|
|
|
|
Equity |
|
|
|
Owners' equity includes 53,702,846 (2023: 53,702,846) common shares of |
742,366 |
|
735,990 |
Non-controlling interests |
71,214 |
|
70,590 |
Total equity |
813,580 |
|
806,580 |
|
|
|
|
Total liabilities and equity |
2,073,652 |
|
2,056,943 |
|
|
|
|
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Statements of Cash Flows |
|
(in thousands of $) |
Jan-Sep 2024 |
|
Jan-Sep 2023 |
||
Operating activities |
|
|
|
||
Net income |
71,414 |
|
|
153,952 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||
Depreciation and amortization expenses |
56,442 |
|
|
57,732 |
|
Amortization of intangible assets and liabilities arising from charter agreements, net |
(12,906 |
) |
|
(13,110 |
) |
Amortization of deferred charges and fair value adjustments |
2,899 |
|
|
3,228 |
|
Gain on sale of vessel |
— |
|
|
(42,549 |
) |
Drydocking expenditure |
(14,636 |
) |
|
(4,372 |
) |
Compensation cost related to share-based payment, net |
1,640 |
|
|
1,792 |
|
Change in fair value of derivative instruments |
6,356 |
|
|
(13,043 |
) |
Changes in assets and liabilities: |
|
|
|
||
Trade accounts receivable |
5,450 |
|
|
(4,294 |
) |
Inventories |
2,750 |
|
|
(2,961 |
) |
Other current and other non-current assets |
(3,655 |
) |
|
(4,098 |
) |
Amounts due to related parties |
(479 |
) |
|
(1,270 |
) |
Trade accounts payable |
584 |
|
|
22,476 |
|
Accrued expenses |
(7,545 |
) |
|
(6,123 |
) |
Other current and non-current liabilities |
6,096 |
|
|
1,935 |
|
Net cash provided by operating activities |
114,410 |
|
|
149,295 |
|
|
|
|
|
||
Investing activities |
|
|
|
||
Additions to vessels and equipment |
(15,085 |
) |
|
(147,792 |
) |
Additions to newbuildings |
(23,391 |
) |
|
— |
|
Additions to intangible assets |
(132 |
) |
|
(997 |
) |
Proceeds from sale of vessels & equipment |
— |
|
|
184,300 |
|
Net cash (used in) / provided by investing activities |
(38,608 |
) |
|
35,511 |
|
|
|
|
|
||
Financing activities |
|
|
|
||
Proceeds from short-term and long-term debt |
74,848 |
|
|
70,000 |
|
Repayments of short-term and long-term debt |
(72,513 |
) |
|
(164,296 |
) |
Financing arrangement fees and other costs |
(4,830 |
) |
|
(1,892 |
) |
Cash dividends paid |
(66,054 |
) |
|
(65,499 |
) |
Net cash used in financing activities |
(68,549 |
) |
|
(161,687 |
) |
|
|
|
|
||
Net increase in cash, cash equivalents and restricted cash |
7,253 |
|
|
23,119 |
|
Cash, cash equivalents and restricted cash at beginning of period |
137,338 |
|
|
133,077 |
|
Cash, cash equivalents and restricted cash at end of period |
144,591 |
|
|
156,196 |
|
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Statements of Changes in Equity |
|
|
|
For the nine months ended September 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 |
|
— |
|
— |
— |
|
70,790 |
|
70,790 |
|
624 |
71,414 |
|
Share based payments contribution |
|
— |
|
— |
1,773 |
|
— |
|
1,773 |
|
— |
1,773 |
|
Forfeitures of share based compensation |
|
— |
|
— |
(133 |
) |
— |
|
(133 |
) |
— |
(133 |
) |
Dividends |
|
— |
|
— |
— |
|
(66,054 |
) |
(66,054 |
) |
— |
(66,054 |
) |
Consolidated balance at September 30, 2024 |
|
53,702,846 |
|
53,703 |
510,967 |
|
177,696 |
|
742,366 |
|
71,214 |
813,580 |
|
(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 nine months ended September 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 |
|
— |
|
— |
— |
152,669 |
|
152,669 |
|
1,283 |
153,952 |
|
Share based payments contribution |
|
— |
|
— |
1,792 |
— |
|
1,792 |
|
— |
1,792 |
|
Dividends |
|
— |
|
— |
— |
(65,499 |
) |
(65,499 |
) |
— |
(65,499 |
) |
Consolidated balance at September 30, 2023 |
|
53,688,462 |
|
53,688 |
508,919 |
172,912 |
|
735,519 |
|
70,239 |
805,758 |
|
(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 $) |
Jul-Sep 2024 |
|
Apr-Jun 2024 |
|
Jul-Sep 2023 |
|||
Net income |
8,124 |
|
|
26,478 |
|
|
39,170 |
|
Interest income |
(1,186 |
) |
|
(1,357 |
) |
|
(2,176 |
) |
Interest expense |
18,825 |
|
|
19,180 |
|
|
20,379 |
|
Losses/(Gains) on derivative instruments |
12,485 |
|
|
(4,065 |
) |
|
(9,689 |
) |
Other financial items, net |
533 |
|
|
972 |
|
|
605 |
|
Income taxes, net |
167 |
|
|
153 |
|
|
47 |
|
Depreciation and amortization |
18,696 |
|
|
18,810 |
|
|
18,936 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
(3,922 |
) |
|
(4,492 |
) |
|
(4,518 |
) |
Adjusted EBITDA |
53,722 |
|
|
55,679 |
|
|
62,754 |
|
|
For the nine months ended |
||||
(in thousands of $) |
Jan-Sep 2024 |
|
Jan-Sep 2023 |
||
Net income |
71,414 |
|
|
153,952 |
|
Other non-operating income |
— |
|
|
(42,549 |
) |
Interest income |
(4,248 |
) |
|
(6,484 |
) |
Interest expense |
57,683 |
|
|
59,727 |
|
Gains on derivative instruments |
(2,881 |
) |
|
(20,393 |
) |
Other financial items, net |
1,985 |
|
|
1,411 |
|
Income taxes, net |
453 |
|
|
180 |
|
Depreciation and amortization |
56,442 |
|
|
57,732 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
(12,906 |
) |
|
(13,110 |
) |
Adjusted EBITDA |
167,942 |
|
|
190,466 |
|
Average daily TCE |
||||||||
|
For the three months ended |
|||||||
(in thousands of $, except number of days and average daily TCE) |
Jul-Sep 2024 |
|
Apr-Jun 2024 |
|
Jul-Sep 2023 |
|||
Time and voyage charter revenues |
77,745 |
|
|
76,401 |
|
|
84,523 |
|
Voyage, charter hire and commission expenses, net |
(1,179 |
) |
|
(900 |
) |
|
(1,137 |
) |
|
76,566 |
|
|
75,501 |
|
|
83,386 |
|
Calendar days less scheduled off-hire days |
938 |
|
|
963 |
|
|
1,012 |
|
Average daily TCE (to the closest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
For the nine months ended |
||||
(in thousands of $, except number of days and average daily TCE) |
Jan-Sep 2024 |
|
Jan-Sep 2023 |
||
Time and voyage charter revenues |
232,856 |
|
|
257,761 |
|
Voyage, charter hire and commission expenses, net |
(3,518 |
) |
|
(3,512 |
) |
|
229,338 |
|
|
254,249 |
|
Calendar days less scheduled off-hire days |
2,902 |
|
|
3,084 |
|
Average daily TCE (to the closest |
|
|
|
|
|
Reconciliations - Liquidity measures Total Contractual Debt |
|||
(in thousands of $) |
At September 30,
|
|
At December 31,
|
Total debt (current and non-current) net of deferred finance charges |
1,063,718 |
|
1,061,084 |
Add: VIE consolidation and fair value adjustments |
99,054 |
|
97,245 |
Add: Deferred finance charges |
6,472 |
|
5,563 |
Total Contractual Debt |
1,169,244 |
|
1,163,892 |
Total Company Cash
(in thousands of $) |
At September 30,
|
|
At December 31,
|
||
Cash and cash equivalents |
142,439 |
|
|
133,496 |
|
Restricted cash and short-term deposits |
2,152 |
|
|
3,842 |
|
Less: VIE restricted cash |
(1,676 |
) |
|
(3,350 |
) |
Total Company Cash |
142,915 |
|
|
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/20241120414649/en/
c/o Cool Company Ltd - +44 20 7659 1111
Source: Cool Company Ltd.
FAQ
What was Cool Company's (CLCO) revenue in Q3 2024?
How much is CLCO's new share repurchase program worth?
What was CLCO's Q3 2024 dividend payment?
What was Cool Company's (CLCO) fleet utilization rate in Q3 2024?
