Cool Company Ltd Q4 2024 Earnings Report
Key Takeaways
Cool Company Ltd. generated total operating revenues of $84.6 million in Q4 2024, with a net income of $29.4 million. Adjusted EBITDA came in at $55.3 million, slightly higher than Q3 2024. Despite lower charter rates, strong term charters and cost efficiencies supported profitability. The company opted not to declare a dividend due to prevailing market conditions.
Total operating revenues reached $84.6 million, up from $82.4 million in Q3 2024.
Net income surged to $29.4 million, benefiting from a mark-to-market gain on interest rate swaps.
Adjusted EBITDA increased to $55.3 million from $53.7 million in Q3 2024.
No dividend declared due to lower spot charter rates and economic breakeven concerns.
Cool Company Ltd Revenue
Cool Company Ltd EPS
Forward Guidance
Cool Company Ltd. expects the LNG shipping market to stabilize as new liquefaction projects come online in 2025, but near-term rates remain under pressure.
Positive Outlook
- Majority of fleet on term charters ensures revenue stability.
- Long-term charter rates remain strong despite spot market weakness.
- Liquidity remains robust with $288 million at year-end 2024.
- Expansion in LNG projects expected to tighten vessel supply-demand balance.
- Fleet upgrades, including LNGe specifications, could enhance employment opportunities.
Challenges Ahead
- Spot charter rates remain below economic breakeven for open vessels.
- New vessel deliveries are impacting short-term LNG shipping demand.
- Older steam turbine vessels continue to weigh on market rates.
- No dividend declared due to financial conservatism.
- Increased competition from newly built vessels entering the market.