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Sep 30, 2023
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Cool Company Ltd Q3 2023 Earnings Report
Cool Company Ltd reported a decrease in net income but an increase in operating revenues and Time Charter Equivalent Earnings for Q3 2023.
Key Takeaways
Cool Company Ltd reported total operating revenues of $92.9 million in Q3 2023, an increase from Q2 2023. Net income decreased to $39.21 million, primarily due to lower unrealized mark-to-market gains on interest rate swaps. The company achieved higher average Time Charter Equivalent Earnings of $82,400 per day and declared a dividend of $0.41 per share.
Total operating revenues increased to $92.9 million in Q3 2023 from $90.3 million in Q2 2023.
Net income decreased to $39.21 million in Q3 2023 from $44.6 million in Q2 2023, mainly due to lower unrealized mark-to-market gains on interest rate swaps.
Average Time Charter Equivalent Earnings (TCE) increased to $82,400 per day in Q3 2023 from $81,100 per day in Q2 2023.
A dividend of $0.41 per share for Q3 2023 was declared, to be paid on December 7, 2023.
Cool Company Ltd
Cool Company Ltd
Cool Company Ltd Revenue by Segment
Revenue by Segment
Time & Voyage Charter Revenue
CapyFin.comManagement Fees Revenue
CapyFin.comCharter Agreement Amortization Revenue
CapyFin.com Forward Guidance
The company anticipates continued strong European and Asian demand for LNG, supported by energy security concerns and increasing global LNG supply from new projects. They expect volatility in the LNG market and a continued shift towards modern, efficient vessels due to tightening regulations.
Positive Outlook
- Continued strong European and Asian demand for LNG.
- Increased global LNG supply from projects that have reached Final Investment Decision (FID).
- Newbuilds are positioned as some of the only uncommitted newbuilds available before 2026.
- Elevated newbuild pricing and current interest rates support long-term charter rates and discourage new orders.
- Tightening regulations (IMO CII rules, European carbon pricing) are expected to increase the relative advantage of modern, efficient vessels like CoolCo's fleet.
Challenges Ahead
- Limited term chartering activity ahead of the 2023/24 winter market.
- Limited trading opportunities relying on LNG carriers for floating storage capacity.
- Limited periods of West-East arbitrage.
- Potential for volatility and atypical trading/chartering activity due to Panama Canal constraints and potential gas shortages.
- Older, less efficient steam turbine vessels are expected to face growing competitive pressure and likely heavy scrapping.
Revenue & Expenses
Visualization of income flow from segment revenue to net income