CoolCo sees buoyant market and third-quarter profit
Cool Company Ltd, the Bermudian-based liquefied natural gas carrier owner, has reported third-quarter operating income of $36.4 million and net income of $36.8 million.
CoolCo achieved average daily time charter equivalent earnings of $73,200 per day.
The company generated adjusted ebitda of $42.4 million.
CoolCo raised approximately $170 million in a primary equity offering on November 2 to fund the equity consideration for the acquisition of four special-purpose vehicles, each holding one contracted LNG carrier, for an aggregate purchase consideration of approximately $660 million.
The company assumed a $520 million term loan facility secured by the four SPVs on November 10 to finance the balance of the purchase consideration (approximately $500 million outstanding after a principal repayment of approximately $20 million made on November 14).
CoolCo entered into additional option agreements expiring by June 30, 2023 to acquire two LNG carrier new-build contracts with scheduled deliveries in Q1 2025.
It also entered into additional interest-rate hedging arrangements resulting in the $570 million bank facility being fully hedged at an average fixed rate of 3.37 per cent and an average all-in rate of 6.12 per cent.
Richard Tyrrell, the chief executive, said: “I am pleased to see the buoyant market for our LNG carriers feeding through to the financial results. This is a trend that I expect to feed into future quarters with demand expected to remain robust and energy security considerations extending into 2023.
“Additionally, I am pleased that our recent equity offering has enabled us to acquire four well-specified contracted vessels on attractive terms from our principal shareholder, EPS.
“The acquisition increased our owned fleet by 50 per cent in terms of number of vessels, increased our backlog by 100 per cent (excluding options) to 275 per cent (including options), added two vessels with the latest two-stroke technology to the fleet, and provided longer-term charters that complement shorter-term charters in the portfolio.”