Capital Clean Energy Carriers (CCEC) Q3 2024 earnings summary

Executive summary

• Completed strategic pivot to gas transportation, including name change to Capital Clean Energy Carriers Corp. and conversion to C-Corp status in August 2024.

• Sold or agreed to sell 12 container vessels since March 2021, generating over $600 million in proceeds and focusing on LNG and gas assets.

• Declared a $0.15 per share dividend for Q3 2024, maintaining payout.

• Enhanced ESG ranking, expanded research coverage from three to six analysts, and appointed a dedicated investor relations manager.

• Strategic focus on LNG and multi-gas carriers, with significant investments in 21 newbuild and under-construction vessels.

Financial highlights

• Q3 2024 revenue from continuing operations was $106.0 million, up 66% year-over-year, driven by fleet expansion.

• Net income from continuing operations was $15.8 million, up 216% from $5.0 million in Q3 2023.

• Operating income rose to $57.2 million from $30.5 million year-over-year.

• Asset base grew by $1.0 billion since year start, shifting from container to LNG carriers.

• Shareholders' equity as of September 30, 2024: $1,245.4 million, up $70.5 million from December 31, 2023.

Outlook and guidance

• Contracted revenue backlog exceeds $2.6 billion, with over seven years of charter duration and 85% from LNG assets.

• 100% charter coverage for 2024 and 2025, 74% for 2026, providing strong revenue visibility.

• No vessel deliveries scheduled until early 2026, with capital base expected to consolidate.

• Pro forma EBITDA projected at over $630 million per year upon full fleet delivery, with adjusted free cash flow of $180 million.

• Dividend yield could reach 8%-10% if 50% of free cash flow is distributed.