OSL$CLCO

Cool Company Ltd · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Cool Company Ltd. reported its second quarter 2024 financial results, highlighting increased TCE earnings and strategic drydock completions.

Cool Company Ltd. reported total operating revenues of $83.4 million and net income of $26.5 million for Q2 2024. The company achieved an average Time Charter Equivalent Earnings of $78,400 per day, an increase from the previous quarter, supported by full quarter contributions from two vessels that recently started higher rate charters.

  • Total operating revenues for Q2 2024 were $83.4 million, a decrease from $88.1 million in Q1 2024.
  • Net income for Q2 2024 was $26.5 million, down from $36.8 million in Q1 2024, primarily due to a reduced unrealized gain on mark-to-market interest rate swaps.
  • Average Time Charter Equivalent Earnings (TCE) increased to $78,400 per day in Q2 2024 from $77,200 per day in Q1 2024.
  • CoolCo secured a 14-year charter with GAIL (India) Limited for one of its newbuild MEGA LNG carriers and completed three drydocks, with a fourth scheduled for Q4 2024.

Headline financials

Total Revenue

$83.4M

Previous: $189M-55.9%
EPS (adj)

$0.41

Previous: $2.12-80.7%
Adjusted EBITDA

$55.7M

No prior period
Time Charter Equivalent

$78.4K

No prior period
Fleet Utilization

99.0%

No prior period
Capital Expenditures

-$9.92M

Previous: $872K-1237.1%
Net Income

$26.5M

Previous: $114M-76.7%
Operating Income

$41.4M

Previous: $97.5M-57.6%
Gross Profit

$502M

Previous: $189M+165.4%

Revenue & EPS history

Cool Company Ltd · Revenue · Quarterly

$83.4M

Q2 2024-55.9%vs Q2 2023
Beat estimate in 7 of 8 quarters(88%)
ActualEstimate

Revenue by segment

Cool Company Ltd · $92.9M total across 3 segments · Q3 2023

  • Time & voyage charter
    $84.5M
  • Charter amortization
    $4.52M
  • Mgmt fee revenue
    $3.86M

Forward guidance

CoolCo anticipates a moderate increase in TCE rate and time and charter voyage revenues for the third quarter compared to the second quarter, driven by full charter coverage and improved drydock performance. The company expects continued market volatility but sees potential for sudden demand from short shipping strategies and increased ton-mile demand due to longer haul LNG shipments.

Tailwinds

  • Moderate increase in TCE rate and time and charter voyage revenues expected for Q3 2024.
  • Full charter coverage and improved drydock performance contributing to positive outlook.
  • Newbuilds expected to be delivered later this year, with one already secured for a 14-year charter.
  • Long-term sector prospects remain strongly supported by new liquefaction projects increasing LNG volumes.
  • Anticipation of increased volatility and demand in the winter market due to global fleet disposition skewed towards the Pacific Basin.

Headwinds

  • Continuing market volatility and geopolitical uncertainty.
  • Seasonally quieter months impacting chartering activity.
  • Reduced unrealized gain on mark-to-market interest rate swaps impacting net income.
  • Legacy steam turbine vessels facing reduced utilization and future prospects.
  • Last drydock scheduled for Q4 2024 includes LNGe upgrade, estimated to cost an additional $15.0 million and 20 days off-hire.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 3 quarterly earnings reports

Historical avg

-1.9%

Avg return

Earnings day

-11.6%

Avg return

5 days after

-8.9%

Avg return

30 days after

25%

1 / 4 earnings

Positive

+0.7%

Q2 2025

Best reaction

-6.1%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025+0.7%-2.0%+15.2%
Q1 2025-2.4%-1.0%+4.9%
Q4 2024-6.1%-23.9%-28.1%
Q3 2024+0.0%-19.6%-27.4%
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q1 2022
Q2 2023
Q1 2023
Q4 2022
Q4 2020
Q4 2021

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