The following is a summary of the Cool Company Ltd. (CLCO) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Q3 revenue reached $82.4 million, and adjusted EBITDA was $53.7 million.

• Net income reported at $8.1 million, after accounting for an unrealized $15.5 million negative mark on interest rate swaps.

• Dividend reduced to $0.15 per share, and a $40 million share buyback program was initiated.

Business Progress:

• Refinanced a $570 million facility, enhancing financial flexibility and securing more attractive terms including a 20 basis point cost saving and maturity extension to late 2029.

• Launched a share buyback program and reduced dividend as strategic moves to maximize shareholder value in a potential volatile LNG shipping market.

• Delivered the 'Kool Tiger' and 'Kool Glacier' vessels, now operating in the spot market.

• Backlog stands at $1.7 billion, promising steady future earnings.

Opportunities:

• Anticipated relaxation of moratorium on new LNG export projects in the US could increase shipping demand significantly.

• Seizing potential market opportunities through strategic asset acquisitions or corporate moves amid current market conditions.

• Advanced fleet replacements and retiring steam turbine ships expected to create substantial demand for modern LNG vessels.

• Expansion projects like Corpus Christi and LNG Canada expected to deliver additional LNG supply, demanding increased shipping services by 2025.

Risks:

• Experienced disappointing start to the winter season, impacting short-term earnings.

• Current market rates have been significantly low, complicating new 12-month charter deals.

• Asset prices may fluctuate, potentially affecting the company's valuation and operational costs negatively.

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