Cool Company Ltd. Q4 2024 Business Update
Cool Company (CLCO) reported Q4 2024 financial results with total operating revenues of $84.6 million, up from $82.4 million in Q3 2024. Net income increased to $29.41 million from $8.11 million in Q3, primarily due to mark-to-market gains in interest rate swaps.
Key Q4 metrics include average Time Charter Equivalent Earnings of $73,900 per day and Adjusted EBITDA of $55.3 million. The company took delivery of newbuild vessel Kool Tiger and refinanced its syndicated bank facility into a $570 million reducing revolving credit facility, extending maturity to 2029.
No dividend was declared due to insufficient market rates. The company maintains strong liquidity with $288 million available and a firm backlog exceeding $1 billion. Current market challenges include low spot rates, reaching historic lows of $2,750 per day by quarter-end, due to newbuild deliveries and delays in new LNG supply.
Cool Company (CLCO) ha riportato i risultati finanziari del quarto trimestre 2024 con ricavi operativi totali di 84,6 milioni di dollari, in aumento rispetto a 82,4 milioni di dollari nel terzo trimestre 2024. L'utile netto è aumentato a 29,41 milioni di dollari rispetto a 8,11 milioni di dollari nel terzo trimestre, principalmente a causa dei guadagni da mark-to-market nei contratti di swap sui tassi di interesse.
I principali indicatori del quarto trimestre includono una media di guadagni equivalenti da Time Charter di 73.900 dollari al giorno e un EBITDA rettificato di 55,3 milioni di dollari. L'azienda ha ricevuto la nuova nave Kool Tiger e ha rifinanziato la sua linea di credito bancaria sindacata in un prestito rotativo di 570 milioni di dollari, estendendo la scadenza fino al 2029.
Non è stato dichiarato alcun dividendo a causa di tassi di mercato insufficienti. L'azienda mantiene una solida liquidità con 288 milioni di dollari disponibili e un solido portafoglio ordini che supera il miliardo di dollari. Le sfide attuali del mercato includono tassi spot bassi, che hanno raggiunto minimi storici di 2.750 dollari al giorno entro la fine del trimestre, a causa delle consegne di nuove navi e dei ritardi nella fornitura di nuovo gas naturale liquefatto.
Cool Company (CLCO) reportó los resultados financieros del cuarto trimestre de 2024 con ingresos operativos totales de 84,6 millones de dólares, un aumento respecto a 82,4 millones de dólares en el tercer trimestre de 2024. La utilidad neta aumentó a 29,41 millones de dólares desde 8,11 millones de dólares en el tercer trimestre, principalmente debido a ganancias de mark-to-market en swaps de tasas de interés.
Las métricas clave del cuarto trimestre incluyen un promedio de ganancias equivalentes de Time Charter de 73,900 dólares por día y un EBITDA ajustado de 55,3 millones de dólares. La compañía recibió la entrega del nuevo buque Kool Tiger y refinanció su línea de crédito bancaria sindicada en un crédito rotativo de 570 millones de dólares, extendiendo el vencimiento hasta 2029.
No se declaró dividendo debido a tasas de mercado insuficientes. La compañía mantiene una sólida liquidez con 288 millones de dólares disponibles y un firme backlog que supera los mil millones de dólares. Los desafíos actuales del mercado incluyen tasas spot bajas, alcanzando mínimos históricos de 2,750 dólares por día al final del trimestre, debido a las entregas de nuevos buques y retrasos en el suministro de nuevo gas natural licuado.
Cool Company (CLCO)는 2024년 4분기 재무 결과를 보고하며 총 운영 수익이 8,460만 달러로, 2024년 3분기의 8,240만 달러에서 증가했다고 발표했습니다. 순이익은 3분기의 811만 달러에서 2,941만 달러로 증가했으며, 이는 주로 이자율 스왑의 시장가치 상승에 기인합니다.
4분기의 주요 지표로는 하루 평균 시간 차터 동등 수익이 73,900달러, 조정된 EBITDA는 5,530만 달러입니다. 이 회사는 신조 선박 Kool Tiger의 인도를 받았으며, 2029년까지 만기를 연장하는 5억 7천만 달러의 회전 신용 시설로 은행 신디케이트 대출을 재융자했습니다.
시장 금리가 불충분하여 배당금은 선언되지 않았습니다. 이 회사는 2억 8,800만 달러의 유동성을 유지하고 있으며, 10억 달러를 초과하는 확고한 백로그를 보유하고 있습니다. 현재 시장의 도전 과제는 새로운 선박 인도와 새로운 LNG 공급 지연으로 인해 분기 말까지 하루 2,750달러로 역사적 최저치에 도달한 낮은 스팟 요금입니다.
Cool Company (CLCO) a publié les résultats financiers du quatrième trimestre 2024 avec des revenus d'exploitation totaux de 84,6 millions de dollars, en hausse par rapport à 82,4 millions de dollars au troisième trimestre 2024. Le bénéfice net a augmenté à 29,41 millions de dollars contre 8,11 millions de dollars au troisième trimestre, principalement en raison des gains de mark-to-market sur les swaps de taux d'intérêt.
Les indicateurs clés du quatrième trimestre incluent un revenu moyen équivalent de charter à temps de 73 900 dollars par jour et un EBITDA ajusté de 55,3 millions de dollars. L'entreprise a reçu la livraison du nouveau navire Kool Tiger et a refinancé sa facilité de crédit bancaire syndiquée en une facilité de crédit renouvelable de 570 millions de dollars, prolongeant l'échéance jusqu'en 2029.
Aucun dividende n'a été déclaré en raison de taux de marché insuffisants. L'entreprise maintient une forte liquidité avec 288 millions de dollars disponibles et un carnet de commandes ferme dépassant 1 milliard de dollars. Les défis actuels du marché incluent des taux spot bas, atteignant des niveaux historiquement bas de 2 750 dollars par jour à la fin du trimestre, en raison des livraisons de nouveaux navires et des retards dans l'approvisionnement en GNL.
Cool Company (CLCO) berichtete über die finanziellen Ergebnisse des 4. Quartals 2024 mit einem Gesamtbetriebserlös von 84,6 Millionen Dollar, ein Anstieg von 82,4 Millionen Dollar im 3. Quartal 2024. Der Nettogewinn stieg auf 29,41 Millionen Dollar von 8,11 Millionen Dollar im 3. Quartal, hauptsächlich aufgrund von Marktgewinnen bei Zins-Swaps.
Wichtige Kennzahlen für das 4. Quartal umfassen durchschnittliche Time Charter Equivalent Earnings von 73.900 Dollar pro Tag und ein bereinigtes EBITDA von 55,3 Millionen Dollar. Das Unternehmen nahm die Lieferung des neuen Schiffes Kool Tiger entgegen und refinanzierte seine syndizierte Bankeinrichtung in eine 570 Millionen Dollar umfassende revolvierende Kreditfazilität, die bis 2029 verlängert wurde.
Es wurde keine Dividende erklärt, da die Marktzinssätze unzureichend sind. Das Unternehmen hält eine starke Liquidität mit 288 Millionen Dollar verfügbar und einem soliden Auftragsbestand von über 1 Milliarde Dollar. Aktuelle Marktherausforderungen umfassen niedrige Spotpreise, die bis zum Quartalsende historische Tiefststände von 2.750 Dollar pro Tag erreicht haben, bedingt durch die Lieferungen neuer Schiffe und Verzögerungen bei der neuen LNG-Versorgung.
- Revenue increased to $84.6M in Q4 from $82.4M in Q3
- Net income surged to $29.41M from $8.11M quarter-over-quarter
- $570M refinancing secured with improved terms and extended maturity
- Strong liquidity position of $288M
- Firm backlog exceeding $1B across fleet
- Dividend payments suspended due to insufficient market rates
- Spot rates hit historic low of $2,750/day
- TCE earnings declined to $73,900/day from $81,600/day in Q3
- Fleet utilization dropped to 92% from 98% in Q3
- New vessel Kool Tiger operating at loss in spot market
Insights
CoolCo's Q4 2024 results reveal a company strategically weathering severe market headwinds while positioning for an anticipated recovery. Despite historically depressed spot rates, the company delivered modest operational improvements with revenues increasing to
CoolCo's financial restructuring represents the quarter's most significant development. By refinancing into a
The decision to suspend dividends signals management's realistic assessment of market conditions and prioritization of balance sheet strength. With spot rates below economic breakeven levels (
The LNG shipping market is experiencing a perfect storm of negative factors: newbuild deliveries (30 ships in Q4 alone) arriving ahead of their intended LNG projects, reduced ton-mile demand due to European-centric trading patterns, and absence of seasonal arbitrage opportunities. However, structural catalysts for recovery are emerging:
- Approximately 50 MTPA of new LNG production (representing a
12% increase) coming online throughout 2025 - Accelerating obsolescence of steam turbine vessels (27 currently idle, up from 22 in Q3)
- Sharp decline in new vessel orders creating favorable medium-term supply dynamics
CoolCo's vessel upgrade strategy, particularly the LNGe specifications with reliquefaction capabilities, appears to be delivering operational benefits that could provide competitive advantages as charterers increasingly favor efficient vessels. The strong performance of the upgraded Kool Husky suggests these investments may generate both incremental revenue and improved employment prospects.
While near-term conditions remain challenging, CoolCo's
CoolCo's Q4 results highlight an LNG shipping market experiencing unprecedented disruption, with spot rates plummeting to historic lows of
The root causes of the current market weakness are multifaceted:
- Supply surge: 30 newbuild vessels delivered in Q4 alone, with many initially ordered for specific LNG projects that aren't yet operational
- Compressed shipping distances: Europe's cold winter and high gas prices (TTF at
$14.11/MMBtu by quarter-end) have concentrated LNG flows to shorter Atlantic routes - Absence of typical seasonal demand catalysts: No East-West arbitrage or contango-driven floating storage materialized
Despite these challenges, CoolCo's term charter coverage has provided substantial insulation, with only the newly-delivered Kool Tiger and Kool Glacier exposed to spot rates during the quarter. This protected portfolio approach explains how the company maintained relatively stable financial performance despite market turmoil.
The company's vessel upgrade strategy represents a critical technological pivot. The LNGe specification upgrades include high-capacity sub-cooling systems that increase cargo capacity by
The LNG production landscape is entering a transformative phase, with approximately 50 MTPA of new capacity (equivalent to roughly 70-80 vessel loads per month) coming online throughout 2025. This
The accelerating obsolescence of steam turbine vessels represents a important supply-side catalyst, with 27 such vessels (nearly
While near-term market conditions remain challenging, the combination of surging LNG production, diminishing newbuild orders, and accelerating steam turbine obsolescence creates a compelling case for market normalization by late 2025 or early 2026.
Q4 Highlights and Subsequent Events
-
Generated total operating revenues of
$84.6 million $82.4 million -
Net income of
$29.4 $8.1 -
Achieved average Time Charter Equivalent Earnings ("TCE")2 of
$73,900 $81,600 -
Adjusted EBITDA2 of
$55.3 million $53.7 million - Took delivery of newbuild vessel, Kool Tiger, from the shipyard in October under a ten-year sale and leaseback financing arrangement and employed her on spot voyages whilst a long-term charter is pursued;
-
Refinanced the existing syndicated bank facility into a
$570 million $123 million -
Upsized existing
$520 million $200 million - Dividend not declared, whilst prevailing market rates are insufficient to cover economic breakeven on open vessels.
Richard Tyrrell, CEO, commented:
“Sustained high LNG prices in
The Kool Husky, our first vessel to be upgraded to LNGe specifications including reliquefaction capabilities, has completed a number of voyages since exiting the yard in the quarter with excellent results. This positive early experience supports our belief that these upgrades will not only have the potential to add incremental revenues but also improve our overall employment prospects and potential for repeat business.
Much of the current vessel supply imbalance is a function of numerous newbuilds being sublet into the spot market while they await startup on the liquefaction projects they were built to service. These sublets will weigh less on the market over the course of 2025 as Plaquemines, Corpus Christi, LNG Canada and other smaller projects bring substantially more LNG onto the market. Simultaneously, with steam-turbine and other less efficient vessels coming off their initial long-term charters, and expected to fall out of the schedules, and get laid-up, the scene is set for rate normalization from current depressed levels. Moreover, with many new LNG projects in the pipeline at advanced stages, we believe there is a clear trajectory towards a substantial re-tightening of supply and demand for shipping.
While rates languish at below economic breakeven on open days, we have not declared a dividend. Our considerable firm backlog of more than
1 Net income 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. |
Financial Highlights
The table below sets forth certain key financial information for Q4 2024, Q3 2024, Q4 2023, FY 2024 and the year ended December 31, 2023 (“FY 2023”).
(in thousands of $, except average daily TCE) |
Q4 2024 |
Q3 2024 |
Q4 2023 |
FY 2024 |
FY 2023 |
Time and voyage charter revenues |
80,764 |
77,745 |
89,319 |
313,620 |
347,081 |
Total operating revenues |
84,567 |
82,434 |
97,144 |
338,497 |
379,010 |
Operating income |
38,544 |
38,948 |
55,051 |
162,949 |
200,893 |
Net income 1 |
29,387 |
8,124 |
22,415 |
100,800 |
176,363 |
Adjusted EBITDA2 |
55,303 |
53,722 |
69,432 |
223,244 |
259,894 |
Average daily TCE2 (to the closest |
73,900 |
81,600 |
87,300 |
77,600 |
83,600 |
1 Net income 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. |
LNG and LNG Shipping Market Review
The average
Contrary to usual seasonal patterns, the quarter featured neither arbitrage between East and West markets, nor contango-driven floating storage. Taken together, this resulted in materially reduced near-term LNG tonne mile demand and downward pressure on the near-term charter market. In addition to these challenging trading dynamics, newbuild deliveries arriving ahead of the LNG supply for which they were ordered are impacting rates. During Q4, 30 ships were delivered, an increase from 21 in Q3 2024. This relative increase in deliveries has not been matched by a corresponding rise in LNG production, which saw only a
Annual LNG production in 2024 was approximately 410 MTPA. In 2025, the run-rate is set to increase by 50 MTPA, or
As of February 21, 2025, there were 233 steam turbine-powered vessels, of which 27 are currently idle or laid up (22 as of September 30, 2024), 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 relatively near term.
Operational Review
CoolCo's fleet maintained strong performance, achieving
Business Development
Chartering activity in the fourth quarter remained subdued. 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.
Nonetheless, CoolCo successfully found employment in the spot market for its one TFDE vessel the Kool Glacier, which became available during the fourth quarter before entering the yard ahead of schedule in late January. This vessel is scheduled to be in the yard for approximately 50 days and will be upgraded with LNGe specifications.
CoolCo’s other available vessel in the quarter was the newly delivered Kool Tiger. She was delivered from the shipyard in October and is currently on spot market employment on an interim basis, whilst a long-term charter is pursued.
The excellent performance of the Kool Husky after its performance upgrade to LNGe specification positions it well for continued or alternative business opportunities on redelivery at the end of the first quarter. The Kool Glacier will be similarly well positioned after its upgrade.
Financing and Liquidity
CoolCo took delivery of Kool Tiger on October 18, 2024 from Hyundai Samho Heavy Industries in the
On November 13, 2024, a drawdown of
On December 13, 2024, we entered into a RRCF of
As of December 31, 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 December 31, 2024, CoolCo had 53,726,718 shares issued and outstanding. Of these, 31,254,390 shares (
Outlook
With the current charter market weakness being driven by a combination of trading 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 long-term charter expectations. While a thin market, prevailing rates for long-term charters 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 relatively 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 depressed near-term market, we believe longer-term 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
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 and when expected;
- our ability to successfully employ our vessels and the rates we are able to achieve;
- 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;
- the timing and duration of drydocking and whether vessels upgrades deliver expected results;
- the timing of LNG projects coming on line and the impact on supply and demand;
- 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 access to financing and ability to repay or refinance 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 and plans to pay dividends;
- information system failures, cyber incidents or breaches in security; 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 unaudited condensed consolidated financial statements for the year ended December 31, 2024, which have been prepared in accordance with accounting principles generally accepted in
February 27, 2025
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 twelve months ended |
|||||||||||
(in thousands of $) |
Oct-Dec
|
|
Jul-Sep
|
|
Oct-Dec
|
|
2024 |
|
|
2023 |
|
|||
Time and voyage charter revenues |
80,764 |
|
|
77,745 |
|
|
89,319 |
|
|
313,620 |
|
|
347,081 |
|
Vessel and other management fee revenues |
722 |
|
|
767 |
|
|
3,308 |
|
|
8,890 |
|
|
14,301 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
3,081 |
|
|
3,922 |
|
|
4,517 |
|
|
15,987 |
|
|
17,628 |
|
Total operating revenues |
84,567 |
|
|
82,434 |
|
|
97,144 |
|
|
338,497 |
|
|
379,010 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Vessel operating expenses |
(18,489 |
) |
|
(17,950 |
) |
|
(16,804 |
) |
|
(71,070 |
) |
|
(72,783 |
) |
Voyage, charter hire and commission expenses, net |
(2,742 |
) |
|
(1,179 |
) |
|
(1,019 |
) |
|
(6,260 |
) |
|
(4,532 |
) |
Administrative expenses |
(4,952 |
) |
|
(5,661 |
) |
|
(5,372 |
) |
|
(21,936 |
) |
|
(24,173 |
) |
Depreciation and amortization |
(19,840 |
) |
|
(18,696 |
) |
|
(18,898 |
) |
|
(76,282 |
) |
|
(76,629 |
) |
Total operating expenses |
(46,023 |
) |
|
(43,486 |
) |
|
(42,093 |
) |
|
(175,548 |
) |
|
(178,117 |
) |
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
38,544 |
|
|
38,948 |
|
|
55,051 |
|
|
162,949 |
|
|
200,893 |
|
|
|
|
|
|
|
|
|
|
||||||
Other non-operating income |
— |
|
|
— |
|
|
— |
|
— |
|
42,549 |
|
||
|
|
|
|
|
|
|
||||||||
Financial income/(expense): |
|
|
|
|
|
|
||||||||
Interest income |
1,793 |
|
|
1,186 |
|
1,743 |
|
6,041 |
|
|
8,227 |
|
||
Interest expense |
(20,978 |
) |
|
(18,825 |
) |
(20,463 |
) |
(78,661 |
) |
|
(80,190 |
) |
||
Gains/(losses) on derivative instruments |
11,037 |
|
|
(12,485 |
) |
(13,115 |
) |
13,918 |
|
|
7,278 |
|
||
Other financial items, net |
(1,185 |
) |
|
(533 |
) |
(426 |
) |
(3,170 |
) |
|
(1,838 |
) |
||
Financial expenses, net |
(9,333 |
) |
|
(30,657 |
) |
(32,261 |
) |
(61,872 |
) |
|
(66,523 |
) |
||
|
|
|
|
|
|
|
||||||||
Income before income taxes and non-controlling interests |
29,211 |
|
8,291 |
|
|
22,790 |
|
|
101,077 |
|
|
176,919 |
|
|
Income taxes, net |
176 |
|
(167 |
) |
|
(375 |
) |
|
(277 |
) |
|
(556 |
) |
|
Net income |
29,387 |
|
8,124 |
|
|
22,415 |
|
100,800 |
|
|
176,363 |
|
||
Net (income)/loss attributable to non-controlling interests |
(2,034 |
) |
25 |
|
|
(351 |
) |
|
(2,658 |
) |
|
(1,634 |
) |
|
Net income attributable to the Owners of Cool Company Ltd. |
27,353 |
|
|
8,149 |
|
|
22,064 |
|
|
98,142 |
|
|
174,729 |
|
|
|
|
|
|
|
|
||||||||
Net (income)/loss attributable to: |
|
|
|
|
|
|
|
|
||||||
Owners of Cool Company Ltd. |
27,353 |
|
|
8,149 |
|
|
22,064 |
|
|
98,142 |
|
|
174,729 |
|
Non-controlling interests |
2,034 |
|
|
(25 |
) |
|
351 |
|
2,658 |
|
|
1,634 |
|
|
Net income |
29,387 |
|
|
8,124 |
|
|
22,415 |
|
100,800 |
|
|
176,363 |
||
|
|
|
||||||||||||
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Balance Sheets |
|
|
At December 31, |
|
At December 31, |
(in thousands of $, except number of shares) |
2024 |
2023 |
|
|
|
(Audited) |
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
165,274 |
133,496 |
|
Restricted cash and short-term deposits |
— |
3,350 |
|
Intangible assets, net |
629 |
|
825 |
Trade receivable and other current assets |
7,643 |
|
12,923 |
Inventories |
3,666 |
|
3,659 |
Total current assets |
177,212 |
|
154,253 |
|
|
|
|
Non-current assets |
|
|
|
Restricted cash |
446 |
|
492 |
Intangible assets, net |
7,469 |
|
9,438 |
Newbuildings |
105,668 |
|
181,904 |
Vessels and equipment, net |
1,939,626 |
|
1,700,063 |
Other non-current assets |
12,715 |
|
10,793 |
Total assets |
2,243,136 |
|
2,056,943 |
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Current portion of long-term debt and short-term debt |
141,996 |
|
194,413 |
Trade payable and other current liabilities |
101,734 |
|
98,917 |
Total current liabilities |
243,730 |
|
293,330 |
|
|
|
|
Non-current liabilities |
|
|
|
Long-term debt |
1,163,879 |
|
866,671 |
Other non-current liabilities |
74,027 |
|
90,362 |
Total liabilities |
1,481,636 |
|
1,250,363 |
|
|
|
|
Equity |
|
|
|
Owners' equity includes 53,726,718 (2023: 53,702,846) common shares of |
761,500 |
|
735,990 |
Non-controlling interests |
— |
|
70,590 |
Total equity |
761,500 |
|
806,580 |
|
|
|
|
Total liabilities and equity |
2,243,136 |
|
2,056,943 |
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Statements of Cash Flows |
|
(in thousands of $) |
Jan-Dec
|
|
Jan-Dec
|
||
Operating activities |
|
|
|
||
Net income |
100,800 |
|
|
176,363 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||
Depreciation and amortization expenses |
76,282 |
|
|
76,629 |
|
Amortization of intangible assets and liabilities arising from charter agreements, net |
(15,987 |
) |
|
(17,628 |
) |
Amortization of deferred charges and fair value adjustments |
4,128 |
4,124 |
|
||
Gain on sale of vessel |
— |
|
|
(42,549 |
) |
Drydocking expenditure |
(23,931 |
) |
(4,547 |
) |
|
Compensation cost related to share-based payment, net |
2,013 |
|
|
2,447 |
|
Change in fair value of derivative instruments |
(2,631 |
) |
|
3,306 |
|
Share based payments |
(536 |
) |
(232 |
) |
|
Changes in assets and liabilities: |
|
||||
Trade accounts receivable |
7,672 |
(7,044 |
) |
||
Inventories |
(7 |
) |
(2,668 |
) |
|
Other current and other non-current assets |
(2,695 |
) |
|
(3,864 |
) |
Amounts due to related parties |
(463 |
) |
(1,254 |
) |
|
Trade accounts payable |
(940 |
) |
18,486 |
|
|
Accrued expenses |
(2,928 |
) |
(6,367 |
) |
|
Other current and non-current liabilities |
5,333 |
|
3,724 |
|
|
Net cash provided by operating activities |
146,110 |
198,926 |
|
||
|
|
|
|||
Investing activities |
|
|
|
||
Additions to vessels and equipment |
(26,532 |
) |
|
(13,801 |
) |
Additions to newbuildings |
(160,958 |
) |
(181,287 |
) |
|
Additions to intangible assets |
(132 |
) |
|
(1,344 |
) |
Proceeds from sale of vessels & equipment |
— |
|
184,300 |
|
|
Net cash (used in) / provided by investing activities |
(187,622 |
) |
|
(12,132 |
) |
|
|
|
|
||
Financing activities |
|
|
|||
Proceeds from short-term and long-term debt |
411,347 |
|
110,000 |
|
|
Repayments of short-term and long-term debt (1) |
(257,384 |
) |
(203,130 |
) |
|
Financing arrangement fees and other costs |
(9,960 |
) |
|
(1,892 |
) |
Cash dividends paid |
(74,109 |
) |
|
(87,511 |
) |
Net cash provided by / (used in) financing activities |
69,894 |
|
(182,533 |
) |
|
|
|
|
|||
Net increase in cash, cash equivalents and restricted cash |
28,382 |
|
4,261 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
137,338 |
133,077 |
|
||
Cash, cash equivalents and restricted cash at end of period |
165,720 |
137,338 |
|
||
(1) Repayments of short-term and long-term debt includes |
|||||
Cool Company Ltd. |
|
Unaudited Condensed Consolidated Statements of Changes in Equity |
|
|
For the twelve months ended December 31, 2024 |
|||||||||||||
(in thousands of $, except number of shares) |
|
Number of
|
|
Owners’
|
Additional
|
Retained
|
Owners'
|
Non-
|
Total
|
|||||
Consolidated balance at December 31, 2023 (audited) |
|
53,702,846 |
|
53,703 |
509,327 |
|
172,960 |
|
735,990 |
|
70,590 |
|
806,580 |
|
Net income |
|
— |
|
— |
— |
|
98,142 |
|
98,142 |
|
2,658 |
|
100,800 |
|
Deconsolidation of lessor VIEs (2) |
|
— |
|
— |
— |
|
— |
|
— |
|
(73,248 |
) |
(73,248 |
) |
Restricted stock units |
|
23,872 |
|
24 |
(24 |
) |
— |
|
— |
|
— |
|
— |
|
Share based payments contribution, net of share based payments |
|
— |
|
— |
1,672 |
|
— |
|
1,672 |
|
— |
|
1,672 |
|
Forfeitures of share based compensation |
|
— |
|
— |
(195 |
) |
— |
|
(195 |
) |
— |
|
(195 |
) |
Dividends |
|
— |
|
— |
— |
|
(74,109 |
) |
(74,109 |
) |
— |
|
(74,109 |
) |
Consolidated balance at December 31, 2024 |
|
53,726,718 |
|
53,727 |
510,780 |
|
196,993 |
|
761,500 |
|
— |
|
761,500 |
|
|
For the twelve months ended December 31, 2023 |
||||||||||||
(in thousands of $, except number of shares) |
|
Number of
|
|
Owners’
|
Additional
|
Retained
|
Owners'
|
Non-
|
Total
|
||||
Consolidated balance at December 31, 2022 (audited) |
|
53,688,462 |
|
53,688 |
507,127 |
|
85,742 |
|
646,557 |
|
68,956 |
715,513 |
|
Net income |
|
— |
|
— |
— |
|
174,729 |
|
174,729 |
|
1,634 |
176,363 |
|
Share based payments contribution, net of share based payments |
|
— |
|
— |
2,215 |
|
— |
|
2,215 |
|
— |
2,215 |
|
Restricted stock units |
|
14,384 |
|
15 |
(15 |
) |
— |
|
— |
|
|
|
|
Dividends |
|
|
|
|
|
(87,511 |
) |
(87,511 |
) |
— |
(87,511 |
) |
|
Consolidated balance at December 31, 2023 (audited) |
|
53,702,846 |
|
53,703 |
509,327 |
|
172,960 |
|
735,990 |
|
70,590 |
806,580 |
|
(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. |
|||||||||||||
(2) On November 14, 2024, the Company exercised its option to repurchase Kool Ice and Kool Kelvin. After exercising the repurchase options, the Company no longer held a variable interest in the lessor SPVs and therefore, the Company deconsolidated the lessor SPVs, from its financial results. As a result, the equity attributable to lessor SPVs amounting to |
|||||||||||||
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 US generally accepted accounting principles (US GAAP), this earnings release and the associated investor presentation and discussion contain references to the non-GAAP financial measures which are included in the table below. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business and measuring our performance. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with US GAAP, and the financial results calculated in accordance with US GAAP. Non-GAAP measures are not uniformly defined by all companies, and may not be comparable with similar titles, measures and disclosures used by other companies. The reconciliations of these non-GAAP measures to the closest US GAAP measures should be carefully evaluated.
Non-GAAP measure |
Closest equivalent US GAAP measure |
Adjustments to reconcile to primary financial statements prepared under US GAAP |
Rationale for presentation of the non-GAAP measure |
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.
We believe that this 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.
We believe 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 $) |
Oct-Dec
|
|
Jul-Sep
|
|
Oct-Dec
|
|||
Net income |
29,387 |
|
|
8,124 |
|
|
22,415 |
|
Interest income |
(1,793 |
) |
|
(1,186 |
) |
|
(1,743 |
) |
Interest expense |
20,978 |
|
|
18,825 |
|
|
20,463 |
|
Losses/(Gains) on derivative instruments |
(11,037 |
) |
|
12,485 |
|
|
13,115 |
|
Other financial items, net |
1,185 |
|
|
533 |
|
|
426 |
|
Income taxes, net |
(176 |
) |
|
167 |
|
|
375 |
|
Depreciation and amortization |
19,840 |
|
|
18,696 |
|
|
18,898 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
(3,081 |
) |
|
(3,922 |
) |
|
(4,517 |
) |
Adjusted EBITDA |
55,303 |
|
|
53,722 |
|
|
69,432 |
|
|
For the twelve months ended |
||||
(in thousands of $) |
Jan-Dec
|
|
Jan-Dec
|
||
Net income |
100,800 |
|
|
176,363 |
|
Other non-operating income |
— |
|
|
(42,549 |
) |
Interest income |
(6,041 |
) |
|
(8,227 |
) |
Interest expense |
78,661 |
|
|
80,190 |
|
Gains on derivative instruments |
(13,918 |
) |
|
(7,278 |
) |
Other financial items, net |
3,170 |
|
|
1,838 |
|
Income taxes, net |
277 |
|
|
556 |
|
Depreciation and amortization |
76,282 |
|
|
76,629 |
|
Amortization of intangible assets and liabilities - charter agreements, net |
(15,987 |
) |
|
(17,628 |
) |
Adjusted EBITDA |
223,244 |
|
|
259,894 |
|
Average daily TCE
|
For the three months ended |
||||||||||
(in thousands of $, except number of days and average daily TCE) |
Oct-Dec
|
|
Jul-Sep
|
|
Oct-Dec
|
||||||
Time and voyage charter revenues |
|
80,764 |
|
|
|
77,745 |
|
|
|
89,319 |
|
Voyage, charter hire and commission expenses, net |
|
(2,742 |
) |
|
|
(1,179 |
) |
|
|
(1,019 |
) |
|
|
78,022 |
|
|
|
76,566 |
|
|
|
88,300 |
|
Calendar days less scheduled off-hire days |
|
1,056 |
|
|
|
938 |
|
|
|
1,012 |
|
Average daily TCE (to the closest |
$ |
73,900 |
|
|
$ |
81,600 |
|
|
$ |
87,300 |
|
|
|
|
|
|
|
||||||
|
For the twelve months ended |
||||||
(in thousands of $, except number of days and average daily TCE) |
Jan-Dec
|
|
Jan-Dec
|
||||
Time and voyage charter revenues |
|
313,620 |
|
|
|
347,081 |
|
Voyage, charter hire and commission expenses, net |
|
(6,260 |
) |
|
|
(4,532 |
) |
|
|
307,360 |
|
|
|
342,549 |
|
Calendar days less scheduled off-hire days |
|
3,961 |
|
|
|
4,096 |
|
Average daily TCE (to the closest |
$ |
77,600 |
|
|
$ |
83,600 |
|
Reconciliations - Liquidity measures
Total Contractual Debt
(in thousands of $) |
At December 31,
|
At December 31,
|
|
Total debt (current and non-current) net of deferred finance charges |
1,305,875 |
1,061,084 |
|
Add: VIE consolidation and fair value adjustments(1) |
— |
97,245 |
|
Add: Deferred finance charges |
15,815 |
5,563 |
|
Total Contractual Debt |
1,321,690 |
1,163,892 |
Total Company Cash
(in thousands of $) |
At December 31,
|
|
At December 31,
|
Cash and cash equivalents |
165,274 |
|
133,496 |
Restricted cash and short-term deposits |
446 |
|
3,842 |
Less: VIE restricted cash(1) |
— |
|
(3,350) |
Total Company Cash |
165,720 |
|
133,988 |
(1) On November 14, 2024, the Company exercised its option to repurchase Kool Ice and Kool Kelvin. After exercising the repurchase options, the Company no longer held a variable interest in the lessor SPVs and therefore, the Company deconsolidated the lessor SPVs, from its financial results. As a result, no debt or restricted cash held by lessor SPVs is presented as of December 31, 2024. |
|||
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/20250226028683/en/
c/o Cool Company Ltd - +44 20 7659 1111
Source: Cool Company Ltd.
FAQ
What were CLCO's Q4 2024 financial results?
Why did CLCO suspend dividend payments in Q4 2024?
What is CLCO's current liquidity position as of Q4 2024?
What was the impact of CLCO's new $570M revolving credit facility?
How did CLCO's Q4 2024 spot rates perform?
