Financial Data and Key Metrics Changes - Revenue for Q3 2024 reached 53.7 million, and net income of 15.5 million negative mark on interest rate swaps [5][28] - The dividend has been reduced to 40 million share buyback program has been introduced [6][29] - TCE revenues were reported at 81,600 per day, up from 1.7 billion, equivalent to around 60 years of backlog, with an average TCE rate of approximately 38.9 million, down from 17,700 per day per vessel, slightly higher than Q2 but consistent with 2023 levels [25] Market Data and Key Metrics Changes - The LNG shipping market is experiencing a disconnect, with LNG prices remaining strong while shipping rates have declined [12][10] - Cold weather in Europe has led to a steepening of the curve in anticipation of increased demand, although the market remains volatile [14] - The supply of LNG has not significantly increased, contributing to strong pricing and favorable LNG value chain economics [12][13] Company Strategy and Development Direction - The company aims to maximize shareholder value through strategic decisions such as refinancing, dividend adjustments, and share buybacks, positioning itself to seize opportunities in a volatile LNG shipping market [3][9] - The long-term outlook for LNG remains strong, with expectations of increased shipping demand as new projects come online and older vessels exit the market [21][17] - The company is strategically placed to consolidate the market and is considering both asset and corporate opportunities for growth [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term market despite short-term challenges, anticipating a recovery as older vessels are phased out and new projects are launched [44][57] - The company expects rates to improve steadily in the first half of 2025 as new projects deliver and older steam turbine vessels are retired [17][18] - Management highlighted the importance of maintaining a strong balance sheet to capitalize on potential market opportunities [44][21] Other Important Information - The company successfully secured bank approvals to refinance a 142 million, up from $84 million in the previous quarter, indicating a solid liquidity position [35] Q&A Session Summary Question: What type of investments is the company anticipating in the current market? - The company is looking at both asset and corporate opportunities, particularly as market conditions may lead to more attractive growth options [41][42] Question: What is the company's confidence level in the current investment climate? - The long-term market outlook is strong, with expectations of improved conditions as older vessels are phased out and new projects come online [44] Question: Is the company open to selling ships in the current market? - The company is open to selling ships if the price is right, particularly those that can be converted into higher-value vessels [45][46] Question: What is the appetite for long-term charters given the current market softness? - There is a bid-ask spread for medium-term charters, but long-term charters are less liquid, with some recent activity noted [50] Question: How does the company view the supply-demand dynamics with upcoming LNG projects? - The company sees a cyclical phenomenon where upcoming LNG projects will primarily benefit Asia, which is favorable for shipping due to longer distances [51] Question: What is the outlook for vessel valuations in light of current TCE rates? - Vessel valuations are holding up relatively well, with newbuild prices showing slight increases, while second-hand market values depend on the specific vessel type [69][70]
l pany .(CLCO) - 2024 Q3 - Earnings Call Transcript