CoolCo to benefit from rise in rates after Q3 slip
Bermudian-based Cool Company Ltd, the liquefied natural gas shipping company, has reported third-quarter net income of $39.2 million, a drop from $44.6 million in the second quarter of the year.
The company said the decrease was primarily owing to lower unrealised mark-to-market gains on its interest-rate swaps.
CoolCo generated total operating revenues of $92.9 million in the quarter, compared with $90.3 million in the prior quarter.
The board has declared a dividend for Q3 of $0.41 per share, to be paid to shareholders of record on December 7.
Richard Tyrrell, the chief executive, said: "In the third quarter, we benefited from strong operational performance, a seasonal uplift on our variable rate contract and the fleet’s fixed-rate, medium and long-term charter coverage.
“Additionally, we took measured exposure to the charter market in the form of one vessel that we chose to deploy directly in the spot market while waiting for the right term opportunity. The net result was a sequentially higher [time charter equivalent] level at $82,400 per day.”
He added: “While not currently reaching the levels seen in the months following the Russian invasion of Ukraine, rates in the early fourth quarter have settled in at levels above historic norms for both the industry and for the CoolCo fleet. This provides us upside on legacy contracts as they renew and scope to maintain TCE performance.”