Recently formed LNGC player, Capital Clean Energy Carriers Corp (CCEC) has reported a considerable increase in fourth quarter 2024 net income, due to the addition of five LNGCs.
This increased the average number of vessels to 15 from 10.5 in the same quarter of last year.
Net income was $20.8 mill, compared with $1.1 mill for 4Q23, while the total revenue from continuing operations for the quarter was $105.1 mill, compared to $64.2 mill during 4Q23.
Total expenses from continuing operations for 4Q24, were $48.7 milli, compared to $34.4 mill in 4Q23 (excluding a non-cash impairment charge of $3.2 mill that was recognised in 4Q23 in connection with the sale of the ‘Cape Agamemnon’).
Total vessel operating expenses from continuing operations amounted to $17.7 mill, compared to $11.8 mill in the same quarter of 2023. This rise was mainly due to the net increase in the average number of vessels in the fleet.
The total expenses also included vessel depreciation and amortisation of $24.2 mill, compared to $14.5 mill in 4Q23.
As of 31st December, 2024, total cash amounted to $336.5 mill, which included restricted cash of $22.5 mill, which represents the minimum liquidity requirement under the company’s financing arrangements.
As of the end of December, the company’s total shareholders’ equity amounted to $1,343.0 mill, an increase of $168.1 mill, compared to $1,174.9 mill at the end of the previous December.
This increase reflected total net income from operations of $193.6 mill for the full year 2024, the amortisation associated with the equity incentive plan of $6.9 mill and other comprehensive gain of $1.3 mill relating to the net effect of the cross-currency swap agreement designated as an accounting hedge, partly offset by distributions declared and paid during the period of $33.8 mill.
As at the end of last year, the company’s total debt was $2,598.3 mill before financing fees, reflecting an increase of $810.5 mill compared to $1,787.8 mill in the previous year.
This increase was attributable to (i) the drawdown of $910 mill of bank debt and the drawdown of $134.8 mill under the $220 mill unsecured seller’s credit issued by Capital Maritime & Trading Corp in connection with the acquisition of four LNGCs and (ii) the refinancing of the outstanding debt of three LNGCs, which released $130.2 mill of gross additional liquidity.
On 27th January, 2025, Capital Clean Energy signed an open market sale agreement with Jefferies, under which the company may sell new common shares having an aggregate offering amount of up to $75 mill.
CEO Jerry Kalogiratos, commented: “We continue to make progress on our chosen objective of positioning the company as the premier carrier of gas, including emerging trades from the energy transition.
“The sale of four of our wide beam 5,000 TEU container vessels has been completed, with the last vessel expected to be delivered later in the first quarter of 2025.
“This sale will further solidify our position as a gas-focused platform with built-in growth driven by the delivery of 16 new gas carriers over six quarters, starting in 2026. Importantly, CCEC is largely insulated from current spot market conditions, with our first open newbuilding scheduled for the first quarter of 2026.
“We anticipate that the weakness in the underlying spot and short-term period markets is likely to act as a catalyst for a potentially substantial reduction in older technology LNG vessels in the global fleet. In addition, the new (US) administration’s stated intention to help boost US LNG exports should further support what we expect to be already a tight long-term demand supply picture, when it comes to LNG shipping.
“With the support of a current contracted revenue backlog of more than $2.5 bill, the board and management look forward to expanding CCEC’s profile and narrative to reach a broader and more diversified investor base, " he said.
