Capital Clean Energy Carriers Corp. Q2 FY2026 earnings call

• Dividend & Capital Return: The company declared a 15 cent per share cash dividend, marking the 77th consecutive quarterly cash dividend paid since its 2007 IPO, maintaining dividends as a core value proposition for shareholders. A $20 million share buyback program was also initiated during the quarter. The company is now the largest US-listed LNG shipping company by tonnage, with $2.9 billion in total firm contracted revenues (exceeding $4.3 billion if all charter options are exercised).
• Fleet & Operational Delivery: The company took delivery of four vessels in Q2 2026: two LNG carriers, one handy LPG/LCO2 carrier, and one dual-fuel medium gas carrier (MGC), with an additional MGC delivered in July 2026 post-quarter end. A joint venture for an LNG bunkering vessel was also announced during the quarter. Only two LNG carriers remain scheduled for special survey in August 2026, after which no vessels are scheduled for special survey until 2028; all completed dry docks to date have come in under budget and ahead of schedule. The company fully repaid its €150 million 2021 bond using proceeds from a €250 million 3.75% coupon bond issued in Q1 2026, extending debt maturity at a low cost.
• Balance Sheet & Risk Management: The company holds €269 million in cash. To mitigate interest rate volatility amid sustained high rates, the company executed two zero-cost interest rate collars with three-year tenors for an 800 million notional, capping rates at 4.3% while retaining benefit from future rate declines. Approximately 50% of total company debt is now either fixed-rate or hedged against rising rates. CAPEX for the remaining newbuilding program is fully funded, with remaining CAPEX weighted towards LNG carriers through 2026 and 2027.
• LNG Market Positioning: 3 out of 4 new vessels delivered in Q2 and July 2026 have secured employment; the only open 2026 delivery (Amore Mio I) has already secured 10-year long-term employment starting Q1 2027, and management is confident an attractive bridging charter will be secured before that start date. Of three vessels scheduled for delivery in Q1 2027, one has already secured long-term employment with a supermajor starting 2028. Current LNG market dynamics include long-term structural growth led by expanding US LNG production, shifting trade flows that increase ton-mile demand as more US cargoes head to Asia, and low European gas storage that has kept prices and freight rates elevated ahead of the 2026 winter. Management projects demand for LNG carriers will outpace newbuilding fleet deliveries starting in early 2028, with cumulative scrapping of over 160 vessels expected by 2031.
• MGC/LPG/LCO2 Strategy: The 10-vessel MGC/LPG/LCO2 program is structured to generate immediate cash flow from established LPG markets while holding optionality for future energy transition growth. Two LCO2 carriers have already delivered and are currently operating in LPG trade, one MGC has delivered into 12-month LPG employment, and the program will complete by July 2027. The strategy balances spot and short-term (6-12 month) charter exposure to capture upside from freight rate strength while maintaining base cash flow visibility. The company is a first mover in the liquid CO2 shipping segment, with four of the world's largest 22,000 cubic meter LCO2 carriers, and all new MGC and LCO2 vessels are ammonia-ready to support future low-carbon trade. The LPG market is supported by structural demand growth from emerging economy residential use, petrochemical feedstock demand, and fuel switching, with growing long-haul US exports to Asia tightening tonnage and supporting earnings.

The company did not break out formal segment-level financial results or revenue contribution percentages in the prepared remarks. Aggregate consolidated results for Q2 2026 are as follows: total revenues were $104.9 million, up from $96.7 million in Q2 2025, with the increase driven by a larger average fleet size following new vessel deliveries. Net income from continuing operations was $29 million in Q2 2026, compared to $29.7 million in the year-ago quarter. Total assets grew to $4.7 billion as of end-Q2 2026, up from $4.1 billion at the end of 2025, driven by new fixed asset additions from the newbuilding program. Total shareholder equity stands at $1.5 billion, with a net leverage ratio of approximately 54%. For LNG specifically, the firm contracted revenue backlog is $2.8 billion in firm charters (average remaining duration of 6.5 years), increasing to $4.1 billion if all extension options are exercised (average duration of 9.4 years). For the combined MGC/LPG/LCO2 segment, the company has a 10-vessel investment program totaling 348,000 cubic meters of capacity, with deliveries staged from January 2026 through July 2027.

• Special survey cost guidance is maintained at approximately $5 million per dry dock, with out-of-service time expected to be 20 to 25 days; completed dry docks to date have performed better than this guidance, coming in under budget with less out-of-service time.
• Overall CAPEX funding guidance is maintained: the company confirms it is fully funded for all remaining newbuilding CAPEX, even after accounting for planned financing structures, with excess cash expected to be available following completion of the program.
• No changes to prior long-term fleet delivery or revenue backlog guidance were announced in the call.

• Forward-looking statements about future performance, growth, dividends, vessel employment, market conditions, and project outcomes are inherently uncertain and could differ materially from actual results due to unforeseen risks.
• Sustained higher interest rates pose cash flow and earnings risk, which the company has partially mitigated through hedging but 50% of debt remains unprotected from rate increases.
• Geopolitical conflict in the Middle East creates energy market volatility, uncertain duration of elevated freight rates, and potential for supply disruptions to energy trade flows.
• The emerging liquid CO2 shipping market is unproven at scale, and growth of this segment depends on broader adoption of carbon capture projects that may not materialize as expected.
• LNG and LPG freight markets are cyclical and vulnerable to changes in supply-demand balance, trade flow patterns, and macroeconomic conditions that could negatively impact earnings.

Q: With Middle East conflict impact already priced into forward gas curves through early 2027, how does this match sentiment from charters and shipping appetite over the next 12 months?

A: The current conflict has already driven spot charter rates far above pre-conflict levels: average spot rates year-to-date are $93,000, up from $39,000 last year, as wider price spreads between regional gas markets increase the option value of flexible vessel capacity. The forward curve is backwardated, with all gains tied to the duration of the conflict; as long as the conflict continues, volatility and uncertainty will keep freight rates supported.\n\nQ: Following the LNG bunkering joint venture announcement, how does management view this segment in the broader business, and what are plans for future growth?

A: LNG bunkering is a new, distinct segment for the company, different from core gas shipping, with good long-term growth potential driven by the expanding global fleet of dual-fuel LNG vessels. However, there are only a small number of potential charterers for these vessels, so management will remain cautious and only invest in new assets when firm employment visibility is secured, consistent with the company's standard capital allocation approach. The first JV vessel was contracted specifically to service the CMA CGM dual-fuel fleet, giving clear employment visibility from the start.