Capital Clean Energy Carriers Corp. Q4 FY2025 earnings call

• Contracted 3 latest technology LNG carriers, demonstrating capability to act with conviction and speed. - Welcomed the world's first 22,000 cubic meter liquid CO2 multi-gas carrier, Active, and said goodbye to another container vessel. - Gained CDP accreditation in first submission. - LNG shipping spot market had a robust upturn in Q4 with freight rates touching $100,000 per day. - Finalized sale of 13,700 TEU container vessel, continuing disciplined capital recycling strategy. - Issued 200 million-euro bond, enhancing balance sheet flexibility. - 4 upcoming dry docks for LNG fleet, with key vessels to be delivered in second quarter of 2026. - Secured 3 state-of-the-art LNG carriers with optimized delivery profile. - Successfully raised EUR 250 million through newly issued unsecured bond, using proceeds to refinance and finance newbuilding program.

Net income from continued operations for the quarter was $28.4 million. The company had 14 container carrier sales in 24 months, classifying Buenaventura Express under discontinued operations. The LNG fleet has 90 years of contracted backlog with an average DCE of approximately 86,800 per day ($2.7 billion contracted revenue; increases to 123 years or $3.9 billion if extension options exercised). Contracted 3 latest technology LNG carriers. Welcomed the world's first 22,000 cubic meter liquid CO2 multi-gas carrier, Active, which is on a 6-month charter. Cash position at year end was $296 million, net leverage ratio just short of 49%.

• Funding of newbuilding program well supported, with CapEx mostly weighted towards LNG carriers assuming ~70% debt financing. - Expect to report more on financing of LNG carriers in next quarterly call. - Anticipate LNG shipping market to reach inflection point in late 2027 or early 2028 with demand outpacing vessel supply. - If Middle East situation continues, expect term rates to rise significantly, though exact impact remains to be seen. - For non-LNG carriers, most liquid part is 6 to 12 months TCs, but returns are decent for longer durations if opportunities arise.

• Geopolitical risk in the Middle East, particularly around the Strait of Hormuz, disrupting shipping patterns and energy commodity flow. - Prolonged conflict could lead to increased competition for limited flexible supply, tightening global energy markets and increasing gas prices. - Uncertainty regarding the duration of the conflict in the Middle East and its impact on gas and shipping markets. - Market dynamics and supply-demand balance in the LNG shipping sector can be volatile with many cross currents and moving parts.

Q: Give more color on potential implications of Middle Eastern supplies shutdown on carrier market.

A: Supply from Middle East mainly supplies Asian markets, no way to replace Qatar volumes in Asia, could lead to increased open arbitrars to east and significant rise in term rates if situation continues.

Q: Sense of disposal options for remaining 1 container vessel.

A: Been opportunistic in selling container vessels, last container vessel has long-term charter, good cash flow visibility, but more difficult to sell due to tax equity structure, will be opportunistic with sale.

Q: Capital exposure and effect of spot rate parabolic move.

A: First vessel redelivers in Q3, some newbuilds have employment in place, flexibility to swap, depends on how long Middle East situation lasts, longer it lasts, more companies will secure shipping at higher rates.

Q: Charter rate for Active and delivery schedule of LCO2.

A: Active had first 6 months charter around $21,000 per day, option for extension at $32,000 per day, blended average around $25,000-$26,000 per day. Deliveries of next LCO2 and LPG carrier in late April and early June respectively, rest of delivery schedule remains as previously described.

Q: General tenor of discussions on future deliveries of non-LNG carriers for longer-term charters.

A: Non-LNG market is shorter term, most liquid part is 6 to 12 months TCs, but returns are decent for longer durations if opportunities arise.

Q: Effect of Qatar Energy force majeure on vessels.

A: No effect so far, all charters continue, no vessels in the Gulf.

Q: Remaining newbuild CapEx and bank lines.

A: MDCs and LCO2s already financed, in advanced discussions for remaining LNG carriers, expect more news on financing in next quarter, not financing everything this year to avoid commitment fees