l pany .(US:CLCO)2025-08-28 13:00Financial Data and Key Metrics Changes - Total operating revenue for Q2 2025 remained steady at $85,500,000, consistent with the previous quarter [20] - Adjusted EBITDA increased to $56,500,000 from $53,400,000 in Q1 2025, reflecting a modest year-on-year growth [3][21] - Average Time Charter Equivalent (TCE) slightly decreased to $69,900 per day from $70,600 in Q1 2025 [20][21] - Net income for Q2 was CHF 11,900,000, an increase of CHF 2,800,000 compared to Q1 [23] Business Line Data and Key Metrics Changes - The delivery of new vessels, Cool Tiger and Gale Saga, contributed positively to EBITDA despite a challenging market [4] - The company has completed nine drydocks, with four including performance upgrades, leading to a decrease in average vessel operating expenses to $15,900 per day [23][24] Market Data and Key Metrics Changes - LNG supply is projected to increase by 2339% compared to 2024 volumes by 2026 and 2028, indicating a positive outlook for the LNG market [6] - Year-over-year storage levels stood at 76%, down from 90% in the previous year, affecting U.S. supply flow to Europe [7] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to asset acquisitions, focusing on transactions that enhance long-term value [29] - The backlog of charters is expected to provide a healthy foundation against market volatility, with 50% of days covered until 2027 [19][29] Management's Comments on Operating Environment and Future Outlook - Management noted that while the immediate market backdrop is challenging, the macro picture remains positive, with expectations of a more balanced market by 2027 [12][29] - The company is optimistic about the gradual recovery of rates and the potential for increased demand as older steam turbine vessels exit the market [55][56] Other Important Information - The company has repurchased approximately 859,000 shares at an average price of $5.77 per share, reducing the total share count by 1.6% [28] - The average interest cost stands at around 5.6%, with approximately 75% of total notional debt hedged or fixed [25] Q&A Session Summary Question: Impact of recent liquefaction activity on charter market sentiment - Management indicated that recent positive news has started to focus attention on long-term shipping needs, although it is still early days [34] Question: Potential asset acquisitions - Management stated that they are always looking for acquisition opportunities but have nothing concrete at this time [35][36] Question: Return on investment for vessel upgrades - Management confirmed satisfaction with the returns from vessel upgrades, noting an investment of around $10,000,000 with current returns of $5,000 per day [42] Question: Scheduling of drydocking based on chartering environment - Management clarified that scheduling has not changed significantly, and they are pleased to have completed dry docks during a low-rate environment [44] Question: Status of LNG E upgrades - Four out of five upgrades have been completed, with the last one scheduled for Q4, and the total CapEx spend is approximately $10,000,000 per upgrade [50] Question: Shift in demand from Europe to Asia - Management discussed the complexities of demand shifts, noting that while macro factors may take time, the exit of older vessels could help balance the market [54][55] Question: Metrics within the three-year variable charter - Management confirmed that the charter is tied to an index with a floor of $20,000,000 and a ceiling of $100,000,000 [61][62]