Capital Clean Energy Carriers Corp. Q1 FY2026 earnings call

• Raised €250 million in a Greek bond with 3.75% coupon in Q1.
• Announced innovative transaction with BGN including 10-year time charter for an LNG carrier, boosting LNG revenue backlog to over $2.9 billion.
• Business delivered on 14 vessels during Q1, resulting in net income of $18.3 million after off-hire and special survey costs, and cash dividend of 15 cents per share.
• Broad approval for 20 million share buyback program over next two years.
• 4 LNG vessels reaching fifth year of HQL in 2026, with dry docking costs guidance at $5 million per dry docking, 20-25 days off-hire.
• Cash position at $546 million, up from $296 million in previous quarter, net leverage ratio 45.6%.
• New building deliveries: Amadeus LCO2 multi-gas carrier delivered, three LNG carriers' delivery dates brought forward.
• LNG fleet provides long-term cash flow visibility, BGN transaction secures 10-year time charter with options, generating up to $485.6 million revenues through 2043.
• CAPEX program well supported, funding from internally generated cash flows, asset monetization, and debt financing.
• CCC uniquely positioned with modern tonnage, controlling over 15% of new building vessels, diversified re-delivery profile.

For the first quarter, net income from continued operations was $18.3 million compared to $32.7 million in the same period of the previous year. The company raised an additional €250 million in a Greek bond with a 3.75% coupon. An innovative transaction with BGN included a 10-year time charter for an LNG carrier, boosting LNG revenue backlog to over $2.9 billion. The business delivered on 14 vessels during Q1, resulting in a net income of $18.3 million after off-hire periods and special survey costs, and a cash dividend of 15 cents per share. The company has broad approval for a 20 million share buyback program over the next two years. The LNG fleet has 97 years of contracted backlog at an average TCE rate of approximately $86,400 per day, representing $2.9 billion of contracted revenue, and if all options are exercised, it increases to 136 years or $4.3 billion. The cash position was $546 million, up from $296 million in the previous quarter, with a net leverage ratio of 45.6%.

• Dry docking costs guidance remains $5 million per dry docking, 20-25 days off-hire.
• Expectations to report more on employment of Amadeus and LNG carriers in coming weeks.
• Delivery dates of three LNG carriers brought forward to tap into stronger charter market.
• LNG fleet contracted backlog if all options exercised increases to 136 years or $4.3 billion in contracted revenue.
• CAPEX expected to be mostly weighted toward LNG carriers, with funding supported by internally generated cash flows, asset monetization, and debt financing.

• Geopolitical tensions in the Middle East led to war-risk insurance premiums of $2.7 million, but fully reimbursed by charters and included in revenue.
• Uncertain duration of Qatar's production outage affecting LNG and LNG shipping markets, putting upward pressure on prices and reshaping market dynamics.
• Scrapping rates for older and smaller LNG carriers climbing sharply, with 5 LNG carriers scrapped in Q1 2026 and trend expected to continue with 80-100 steamships removed in next 3-5 years.

Q: How have LNG buyers and diversification impacted charter sentiment around longer-term ton-mile demand?

A: Uncertainty regarding cathartic supplies has led Asian buyers to consider U.S. volumes, structurally increasing ton miles, and the war is beneficial for U.S. volumes in the future.

Q: Are you considering similar opportunistic deals to fix or open new builds versus standard long-term charters?

A: The MIA-1 sale was opportunistic, and if valuation and employment are right, similar deals would be considered.

Q: What drove early delivery of new buildings?

A: To capitalize on improved market conditions due to disruption, working with yards to align construction progress with strengthening market, and to capture the benefit of a strong market.

Q: Surprised rates have held up given Qatari capacity offline?

A: Increase in chartering rates driven by commodity price increase and open ARB supporting higher chartering, with margin still open to support rates.

Q: Has the conflict changed view of non-LNG or LPG market?

A: No, the war has had beneficial impact on LTC ammonia and MTC markets, with fixtures close to $30,000 per day and LPG market strong.

Q: Is the JV with global energy trading firm a precursor to more business?

A: There is potential for more business with BGN, given their presence in LPG and potential in LNG and SPG.

Q: Is coal burning in Asia a structural headwind?

A: Replacement of coal is priced in the forward curve, and margins remain healthy, with structural shift towards greener fuel expected.

Q: Charter market for LCO2 carriers?

A: LCO2 business has longer timeline, vessel trades as SMPG carrier, versatile, with current LPG market strong.