The case for & against
Bull & Bear analysis
Bullish
Cool Company Limited (NYSE: CLCO) is a significant player in the liquefied natural gas (LNG) transportation sector, focusing on operating a modern fleet that is strategically positioned to capitalize on long-term charter agreements. The company has recently navigated challenges in a volatile shipping market while securing a substantial backlog, indicating strong demand for its services amidst ongoing global shifts towards more environmentally sustainable energy alternatives.
Bull says
- ↑$1.6 B contract backlog covers 83% of 2025 vessel days
- ↑Fleet modernization lifts average TCE by ~$5,000/day
- ↑LNG demand set to grow from 600 mtpa (2030) to 700 mtpa (2040)
- ↑Liquidity ~$136 M with no debt maturities until mid-2029
- ↑859k shares repurchased under buyback program
- ↑Strong earnings yield, rising 13F ownership and positive momentum
Bear says
- ↓Average TCE dropped to $69,900/day, below break-even levels
- ↓Adjusted EBITDA fell to $56.5 M from $58.5 M on higher expenses
- ↓Geopolitical and regulatory uncertainty threaten LNG shipping
- ↓Dividend suspended to preserve liquidity, flagging shareholder returns
- ↓Interest expenses on new-builds could pressure future profits
- ↓Potential vessel oversupply may further depress charter rates
Earnings Call · Q1 2024 · Mgmt. Guidance
Updated 09-05-2026neutral
Transcript signals
Bull points
- approved dividend of 41 cents per share represents approximately a 91% payout.
- our backlog now includes the newly announced new-builds charter with GAIL. Including extension options, our backlog totals nearly 1.9 billion, equivalent to approximately 64 years of backlog, or an average of close to five years per vessel, which considers all 13 vessels in our fleet, including the currently un-contracted new-builds.
- With last week's new build announcements, the TCE rate from our backlog increased from approximately $76,000 per day per vessel to more than $79,000 per day per vessel, accounting for all exercise options to the maximum extent.
Bear points
- Time and voyage charter revenues for the quarter amounted to 78.7 million, resulting in an average TCE rate of 77,200 per day across our fleet of 11 vessels. This decrease versus last quarter TCE revenues of 89.3 million is primarily due to lower floating and spot rates during the winter season for one of our vessels, and an off-hire period for another vessel as it transitioned from interim work in the spot market to a new one-year charter.
- Operating income for the quarter was 44.1 million, and the 11 million declined from the prior quarter, which was 55.1 million, which is mainly the result of the 10 million reduction in TCE revenues, and some incremental voyage and delivery expenses related to the vessel that transitioned to a new charter.
- As of March 31st, cash and cash equivalents were approximately 106 million, which is a decrease versus the last quarter's cash balance of 133 million, which is mainly due to a new bill milestone payment of 22 million during the quarter.
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