Updated: Nov 16, 2022 12:03 PM
Growth market: Richard Tyrrell, CEO of Cool Company Ltd
Cool Company Ltd, the owner of the Bermuda-based liquefied natural gas carrier, reported operating profit of $36.4 million and net profit of $36.8 million in the third quarter.
CoolCo earned average daily equivalent time charter revenues of $73,200 per day.
The company generated an adjusted Ebitda of $42.4 million.
CoolCo raised approximately $170 million in a principal stock offering on Nov. 2 to fund equity consideration for the acquisition of four special purpose vehicles, each holding a contracted LNG carrier, for consideration of ‘total purchase of about 660 million dollars.
The company assumed a $520 million term loan facility secured by the four SPVs on November 10 to fund the balance of the purchase consideration (approximately $500 million remaining after a principal repayment of approximately $20 million made on November 14).
CoolCo has entered into additional option agreements expiring on June 30, 2023 to acquire two new contracts to build LNG carriers with deliveries scheduled for the first quarter of 2025.
It also entered into additional interest rate hedging arrangements, which enabled the $570 million bank facility to be fully hedged at an average fixed rate of 3.37% and an average all-in rate of 6.12 %.
Richard Tyrrell, CEO, said: “I am delighted to see the buoyant market for our LNG carriers impacting the financial results. This is a trend that I expect to fuel in the coming quarters, with demand expected to remain robust and energy security considerations extending into 2023.
“Furthermore, I am delighted that our recent equity offering has enabled us to acquire four well-specified contract vessels on attractive terms from our major shareholder, EPS.
“The acquisition increased our owned fleet by 50% in terms of number of vessels, increased our order book from 100% (excluding options) to 275% (including options), added two vessels with the latest technology two-strokes to the fleet, and provided longer-term charters that complement the short-term charters in the portfolio.