Capital Clean Energy Carriers Corp. Q1 FY2025 earnings call

• Sold two container vessels, raising $472.2 million in net proceeds and recycling capital into gas transportation assets.
• Secured employment for two newbuilding LNG carriers with long-term charters and options.
• Axios II LNG carrier commenced a seven-year bareboat charter with extension options.
• Firm charter backlog increased to $3.1 billion, with average daily time charter equivalent for firm charters around $87,300-$91,150.
• Contracted revenue base boosted by charter extensions and new charters, with counterparty diversity a core strength.
• Cash position solid at $420 million, balance sheet strong, and newbuilding CapEx program underway with $467 million in advances paid.

First quarter 2025 net income from operations was just under $81 million, including a $46.2 million gain from the sale of two container vessels. Net proceeds from the sale of 12 container vessels since December 2023 totaled $472.2 million. The firm charter backlog for LNG carriers increased to $3.1 billion, with an average charter duration of 7.3 years across the fleet and LNG fleet charter backlog of 91 years or $2.8 billion of contracted revenue.

• Firm charter backlog stands at $3.1 billion, with potential to reach $4.5 billion if all options exercised.
• Newbuilding CapEx program of $2.3 billion underway, with financing expectations and excess equity of $105 million considered.
• Expectations of positive fundamentals in longer-term LNG shipping market and visibility into employment prospects and cash flows.

• U.S. port fees proposed by the new Trump administration, with minimal impact currently but monitored closely.
• Tariffs and their potential impact on LNG trade, including effects on real LNG project costs and final investment decisions.
• Uncertainties in LNG shipping market supply and demand balance projections, affected by multiple parameters like vessel scrapping and tonne mile demand.

Q: About CapEx schedule shift, what's the reason?

A: Adjusted CapEx and operational scheduling with partners, some optionality arranged with shipbuilder, related to charter opportunities and asset deployment.

Q: On gas carriers, current discussions and rate perspective?

A: Discussions on liquid CO2, LPG, ammonium carriers with multiple inquiries, but demand more active closer to delivery, defaulting to handysize LPG ammonia carriers.

Q: Charter appetite for longer-term near-term?

A: Opportunistic charters for 2025-2026 to take advantage of front of curve weakness, but longer periods less active currently.

Q: Regas capacity impact on carrier market?

A: Regas capacity in Europe and Asia has multiples to cover liquefaction capacity, no issues foreseen.

Q: U.S. port fees and cost of U.S.-built LNG carriers?

A: U.S.-built ships likely three to four times cost of Korean-built, challenging for shipyards, responsibility on liquefaction operators to use U.S.-built ships