In the first quarter of this year, Cool Company (CoolCo) generated total operating revenues of $98.6 mill, compared to $90.3 mill for 4Q22.
Net income of $70.1 mill in 1Q23, compared to $33.1 mill for the previous quarter and earnings per share were $1.28 for the quarter.
The vessels’ average 1Q23 TCE was $83,700 per day, compared to $83,600 per day for 4Q22.
Adjusted EBITDA was $67.8 mill for 1Q23, compared to $58.6 mill for 4Q22.
Subsequently, on 17th May, 2023, CoolCo announced a new multi-year timecharter agreement for a TFDE vessel starting early 2024 with an energy major.
The company also declared a dividend for 1Q23 of $0.41 per share, to be paid on or around 9th June, 2023 to all shareholders of record as at 1st June, 2023.
CEO Richard Tyrrell commented: “Over the quarters ahead, CoolCo has a clear path to further earnings and dividend growth, punctuated by a series of identifiable milestones - fixing the vessel that becomes available in September 2023, as well as the two vessels available in 2024 that are currently trading at rates well below market levels, and if we exercise the option to acquire two newbuild vessels, adding further earnings backlog by securing charters for those vessels and funding the acquisition of those newbuilds with an optimal mix of debt and cash on hand.
“The term market for modern LNG carriers has demonstrated both strength and stability, reflecting the long-term nature of the LNG business and the sector’s supportive fundamentals. For the few owners with available tonnage, including CoolCo, charterers have remained eager to secure multi-year charters at attractive rates for owners.
“This stands in sharp contrast to the seasonal lows and high volatility of the spot market, which is currently made up almost entirely of sublets, rather than owners with available tonnage.
“CoolCo is in an excellent position to successfully execute our term chartering strategy, realise the latent earnings and dividend growth potential in our newbuild purchase option and vessels on below-market charters, and benefiting from the expanded investor base made possible by our recent NYSE listing.
“Additionally, I would like to highlight the publication of our ESG report for 2022. Last year, the annual efficiency ratio that measures emissions, dropped by 4.5% bringing the total fall since 2019 to 18%, which compares to the IMO target of 6.5%. Our new performance plan includes LNGe upgrades to our TFDE vessels that are expected to reduce our annual efficiency ratio to 6.4 by 2030, a 35% reduction from 2019 levels,” he said.
No dockings
There are no drydockings planned for 2023, with the next drydock expected during 2Q24. Fleet utilisation was 100% for the quarter.
CoolCo also revealed that it was is discussions with multiple potential charterers seeking work for the 2-stroke LNGC newbuildings with anticipated delivery in late 2024, which the company has an option to acquire. With the recent sale of the ’Golar Seal’, the company has sufficient funds available to fund the initial milestones of the newbuilding option (if exercised) on or prior to 30th June, 2023.
The total price of $234 mill for each LNGC is around 10% lower than currently quoted prices for comparable newbuilding that will not deliver until 2027/2028.
Inclusive of $94.4 mill of cash released upon the sale of ’’Golar Seal’, CoolCo had cash and cash equivalents of $240.6 mill as of 31st March, 2023.
