Cool Company Ltd. Q4 2024 Business Update
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. |
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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.
