Capital Clean Energy Carriers (CCEC) Q4 2024 earnings summary

Executive summary

• Q4 2024 net income from continuing operations reached $20.8 million, with total net income of $102.3 million including vessel sale gains and a declared dividend of $0.15 per share.

• Completed or agreed to sell up to 12 container vessels since December 2023, generating significant one-off gains and supporting a strategic shift to gas carriers.

• Maintained a 71-quarter streak of cash dividends, returning over $1 billion to shareholders since 2007.

• Initiated an ATM program to improve share liquidity and increased analyst coverage.

• Focused on fleet modernization and expansion, with 16 new gas carriers set for delivery by 2027.

Financial highlights

• Q4 2024 revenues from continuing operations were $105.1 million, up from $64.2 million in Q4 2023.

• Operating income from continuing operations rose to $56.4 million from $26.6 million year-over-year.

• Net income from discontinued operations was $81.4 million in Q4 2024, mainly from vessel sales.

• Total assets increased to $4.1 billion from $3.1 billion at year-end 2023.

• Leverage ratio reduced to 49.2% at Q4 2024 from 52.8% at Q3 2024.

Outlook and guidance

• Delivery of 16 new gas carriers expected between Q1 2026 and Q3 2027, supporting long-term growth.

• Contracted revenue backlog exceeds $2.5 billion, with 86% from LNG assets and an average charter duration of seven years.

• Management expects LNG shipping market to tighten from 2026/2027 as new liquefaction capacity comes online and older vessels retire.

• 2025 charter coverage is 100%, 74% for 2026, and 47% for 2027.

• Long-term charter rates remain robust, with recent fixtures for 10+ years at ~$90,000/day.