CPLP - Earnings call transcript Q1 2024 | Capital Clean Energy Carriers Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, and welcome to the Capital Product Partners' First Quarter 2021 Financial Results Conference Call.

We have with us Mr. Jerry Kalogiratos, Chief Executive Officer; Mr. Spyros Leoussis, Chief Commercial Officer; and Mr. Nikolaos Kalapotharakos, Chief Financial Officer of the company. you, is advise April recorded I'll XXXX. XX, Instructions] this being conference today, [Operator

today's that our and unit their conference our coverage, facts, in to amounts and statements The call rates or distribution our levels, allocation earnings, employment expectations including regarding vessels, objectives future as expectations cash fundamentals forward-looking may equity ability statements acquisition, charter as amounts, regarding future reserve as on in as redelivery distribution debt market Securities the including growth amended. are capital such of capital of regarding Exchange transaction the or be effect and XXXX buyback and opportunities, our amounts, expected pursue of defined well generation, returns dates expectations XXE our historical Act not Section also future

prediction I that events, statement of involve hand new in disclaim our no because to actual revise sir. those actual forecasted these whether to speaker of Please the be uncertainties These materially views stated about forward-looking any change over by would units. today, results now or your future forward-looking information, like our ahead, we We to make expectations cause and required or common from to could update statements statements, performance otherwise. or these obligation Unless Kalogiratos. to go law, results cause different of or a conform or risks to -- Mr. any anticipated. expressly

Gerasimos Kalogiratos

Paul, us today. and for you, thank joining Thank all you

XXXX, delivery acquire our go the the Carriers. slides as referring Carrier of we'll on reminder, supporting LNG generation through first we XX our under presentation. second the delivery we be X-stroke II, LNG a today's to As took Axios In agreement latest available quarter of the website to

sale container the the recognizing a concluded vessels, two vessels. TEU of of Furthermore, Panamax announced three sale on we sale containers $XX.X and of X-container million. we XX,XXX gain Moreover,

income of net was $XX.X of partnership's for sale XXXX the or first financial excluding $XX.X Turning vessels. performance, million on to the million, gain quarter the

has Directors of $X.XX of unit of Board a quarter first for declared distribution XXXX. cash common Our per the

distribution be to common record XX quarter unitholders paid will on first X. May The cash on of May

current at XX%, XXXX the to coverage for X.X partnership's XXX% charter the and backlog X.X fleet and duration stands remaining respectively, of 'XX, billion. and Finally, years with contracted revenue EUR charter corresponding

between first X. Slide of the partly capesize sales we quarter revenue this to and XXXX containers in XXXX, during first The XX acquired February to January the offset fourth compared -- the increase million. revenue contributed sold in $XX attributable Total quarter quarter the and year in the the year. was million X last the of the revenue Turning newbuilding the vessels was first to first quarter for $XX of by by million $XXX.X of of during vessel our primarily

first Total fleet. Total $XX.X first expenses $XX.X the of amounted first were of mainly due to of million higher million to $XX.X compared quarter operating quarter last vessel quarter the 'XX first size 'XX the net of average 'XX compared expenses quarter increase during million $XX.X year. million, of in for during in the our were the the to and

one-off to of plan. attributable the in in to same increased first $X.X size administrative of incentive were in was 'XX quarter of the also depreciation first year. vessel the million of quarter and first $XX.X of our $X.X this quarter first expenses recognized mainly last average for of costs quarter include mainly depreciation compared increase the to increase General attributable the from connection amortization our the for expenses the during quarter million and Total certain to in amortization year 'XX to fleet. and million in million last net equity $XX The year,

The the expense interest increased compared to rate quarter compared quarter Average mainly first $XX.X last finance to first sorry, the of the increase Interest quarter for the year. to average for EUR first indebtedness was costs the million quarter of rate the for million XX to increase million in the $XX of to attributable and 'XX. and weighted to million increase partnership's in amounted X%. $X -- interest average the

unit $XX.X same to of $XX.X per $X.XX, net The gain partnership's quarter gain for net unit income the million income quarter sales $X.XX compared for income $X.XX recorded the sale on was the on common excluding in common quarter Net year. of of the last quarter or first or million year. of last the million, to per vessels of $XX excluding vessel in compared

Slide details sheet. the of see On X, you balance our can

first equity the the X.X an quarter to of of reflects in end of X.X the for net distributions of compared and Other this $X.XXX the EUR X.XXX during quarter, income amounted billion of partner's EUR of by the offset partly total incentive amortization EUR million paid the increase and as period year. end to million, capital million. of first As a income associated $XX XXXX. declared of plan increase with the The the billion, amount comprehensive

connection dollar II $X.X in LNG the euro-denominated by the the is by debt issued to of decrease $XXX the bank partnership, the as attributable of January debt to million payments the of XXXX. scheduled of U.S. the XXX the Axios bonds billion million of to $XX.X year-end increased X.XXX Carrier in for XX.X The this EUR Credit Total acquisition EUR compared with million year, partly equivalent by period of of million the Seller's EUR $X.XXX billion and principal in of offset increase assumption million.

entered of which under arrangements. of the we in LNG we Akadimos finance of of drew restricted financing II. into million, represents to Carrier of as liquidity including went partly the the the partly cash of $XX.X end the requirement amounted the finance the Total Axios prepayment Seller's of million The acquisition of with the facility facility acquisition to early Credit minimum quarter to the into $XXX.X cash million our full and partial repayment full of $XX.X

container On update on you X, sales. progress Slide find can the an vessel of

of quarter delivered first which the and successfully Express XXXX, and the XXXX, Fos, and during containers sold earlier, we container Seattle April of Express. In sale mentioned vessels, Beach the Long As Athenian Akadimos. completed also the

of $XXX.X net to Finally, the and Fos the X the complete we container of repayment early approximately after million. sale expect these sales Aristomenis of expect debt the Express From vessels, in we May. proceeds

full, received of LNG So the from II. approximately under to vessels used the the far, owners, delivered for the XX.X in $XXX Seller's amount net Axios we EUR acquisition we proceeds million the drew repay Carrier new for the million the credit to already have of

outstanding and of Under the Sellers' Agreement debt provisions the are towards of sale the applied any the of Credit, any Umbrella balance proceeds, repayment repayment facility. under net first

Moving The stands we customer sold LNG and to highly excluding vessels with backlog sell. partnership's XX from container X. a This billion contracted to $X.X with over high-quality base at coming or Slide agreed revenue XX% diversified contracted is vessels charters. have revenue of X of the

which do Slide to its the that fourth and all the XXXX, see daily quarter redelivered the the X year XXXX. additional of and had is quarter vessels to a we coming stress quarter between to we charters and the if XX,XXX X new new profile first the liquefaction no we from fourth additional of LNG options average for in XXXX. of increase the have total, in years X, of XXX capacity between exercise years you of rate are of expected be In In the shipyard shipyard delivery charters come were being these quarter have On employment charter first options. vessel if an up additional Carriers online contracted of vessels certain one exercised. the potentially XX not and our can of These up have coming I when delivered be an mtpa backlog to about in XXXX, could from of open XXXX being at wave LNG XXXX. from XXX should renewal fleet. expected seeking X vessels now We for

taken during export period. into ours. the these turbine and, will generate expected particular, vessels, is vessels and XXX technology steam are FID which which additional for only estimate for require replacement that like with without permits between X-stroke taking vessels projects to We vessels account vessels in due and older XXX of substantial demand delivery that have XXX This alone, incremental

vessels. leaving the of complete, will we you Currently, on sold to now committed solar in container book X sales charter a count of between X a a certain order of uncommitted expiration controlling Slide are us grid X we Once vessels CPLP fleet. see with can container total the have fleet vessels. vessels X, On are XX but XX% the this and of not with or about project XXXX,

rate contracted container could spans a average Our weighted of backlog and all the years exercised. if increase XX on years to XX $XX,XXX options fleet at are daily

divest seek Officer, with And provided to in to residual this, floor our will containers continue to with We reasonable opportunistically market sale our regard the the I views on Commercial our cash view value. contracted to and flows, pass of price the Chief we Spyros. from expectations deem

Spyros Leoussis

Thank you, Jerry.

of kept normalizing towards start availability to and of gas So lower turn rates to rates rate charter following for the to with of high historically storage decreased are than LNG we weather throughout year. After combined high a pre-war Warm rates have Europe market. Russia-Ukraine spot weaken. in review the have period Asia demand Slide levels causing year led longer the the vessels X, previous LNG, conflict, and levels. Today,

to day. X-year X-stroke in Spot time average day with vessels the per [indiscernible] rates X,XXX per hovered QX X,XXX averaged charter rate for around XXXX,

is that hand, for and higher, $XX,XXX for X onwards. other day, periods, the from the today per market charter indicating stands rates XXXX as tightening for in even years, the are while longer On X-year anticipated time example, pricing at

since Carrier year. X, shipping movement is expect the coming present ships later to buildings volumes fair volatility Overall, key X market upside Geopolitical transits new carrier limited major only Carrier time, while Panama have delivered no the vessels transit sector. highly XXXX, for of remain the for appears high LNG more balanced multiple we disruptions the LNG online. Canal to day and with and LNG incremental same February. XXXX January LNG being with having crossed XX. LNG since see start in the are that new for say are through At Suez Canal it just the any And yet we

vessels X-stroke CII to LNG in cost impact unit environmental for markets and reputational ETS, and steam they turbine an and to to charters. charters remain the on EU, to regulations start as benefits expected economic compared XXXX other DFD vessels as offer Charter to due healthy and generally XXXX have well attractive delivered as freight are

with closed remains finished downward to high, now Russian Europe Global inventories. putting and LNG X QX use ton-miles due the the climate per at this higher seasonal records. Panama at levels and EU Suez with China Total record versus period pressure on of unlimited tons import import near gas remained conditions winter to has also Canal, recent in of further is continuing basins million Canal. than applied the been strong at last with year the Overall, both storage to have month. less gas demand, mild gas year

And ordering XX for XX orders the remainder to of the now part fleet, Carrier Finally, stands being book and on expected currently newbuilds complete, Qatar-related pace XX% fleet high ordering activity XXXX. at contracting demand, responding elevated remains QX vessels encompassing of the with XXXX with the orders new XXX of of Shipyards for year across LNG Appetite is expansion. throughout second order. for order the placed XXXX. mostly LNG the fully total height building and were Qatar slower. find themselves booked in phase approximately following XXXX be of orders to the

took Looking for half pass projects, plans FID The I'll to at fourth currently to X this, last March, XXXX. Rio announce X.X FID with comprising expected year, Grande Phase in [indiscernible] XXXX. which X the the of the project And of online trains of in company decade, on train MTPA, Jerry. come take LNG is back in next on second to

Gerasimos Kalogiratos

you, Thank Spyros.

XX. Now final Slide slide, to the

transaction the Carriers. LNG quarter closed for You of can XX in of the of fourth the acquisition we an updated see time line XXXX

so Mio of and I the delivery have We the far X LNG Axios taken II. carriers, Amore

another X, continue We C have sold with sell we X agreed our program. LNG container vessels to building while Carrier and

with happy LNG delivery are partnership continue of next the over we months. early of conversion Carriers, the which to with communicated, may progress with May, Looking as coming focused the X And conclude make of to taking any previously the on questions that, which July. ahead, corporation answer you expect have. I'm And course, and the June at we are end expected to we over

Operator

question first Our is Instructions] from Omar [Operator Nokta Jefferies. with

Omar Nokta

for update. the Thanks

expecting Jerry, me. conversion, last comment the the made, still Just firstly, just the a just the in on on making you Maybe progress, couple for regarding one months. corporate -- coming that

I of, check to pushed of XX. do that you you in or know wanted I still it's little Or put Just Is think be that of June think, Is that. feasible? had sort timing XX a a bit? out still target going to realistic?

Gerasimos Kalogiratos

able that unitholder, or quite the the governance which shareholder conversion. feels that the will date be of we of at be including It the around, outline approval we done should for the new few things a vote not a need least seems still communicate likely. and are There by to corporate whether conversion,

shareholder nothing but the sometime and will June expect would a I So our that go or plan we then in maybe slip by vote. into weeks, able to thereabouts, few material, announce be

Omar Nokta

kind then the maybe Axios specific, to ask just vessel on I a And of just II. more, the Okay. on couple wanted just

that deliberate it took to doing XX-month this going go contract earlier on or But on that's a that, contract starts term. You long that's year, index linked. a a spot-linked before

ask assessments? base And can it any linked? spot what Or mechanics is you the there a that? ceiling? the a to -- charter Is contract? wanted on to And linked is that of like collar are time color is give that it like in a Just

Gerasimos Kalogiratos

XX-month index-related It's a it's -- The fully Sure. floating. charter.

the which indices. because of a its is that per charter quarter X any charters. it day the lower quarter, days until party, based the it first under XX $XX,XXX not of -- higher So in X on around which was is earned the the first is delivered Baltic slightly average than Baltic cast, has the was Axios market to

highly the third at $XX,XXX For look per the you around know, $XX,XXX, the April, always be for is the respectively. and it day, $XX,XXX, back day, same fourth has the you second, indices, volatile LNG indices. Carrier for $XXX,XXX on you X Today, around recorded market quarter seasonal. rates highly average spot average But per of on would and as forward if

low, has up we So seasonal summer go the expect -- into but now that are and start months. will the it tighter, picking already going as the through we we market feels

Omar Nokta

'XX. that type that to rate, fire double you just are XXX,XXX, we check were that saying going fully in 'XX Okay. go guys? showing they And been to that indices, there to those XXX,XXX for then I'm but on not again, had is we're things and index If achievable backward see of

Spyros Leoussis

I would forward, vessels, No, look, for think, the rates, mean fixed I going like rate. other the we be looking at floating

of year. because fleet, we X start a other next I including priority the the for January the think kind have fix is only from with at us rates it bit to from have opportunistically the all of But we vessels as longer-term -- opening. was Axios from year

Omar Nokta

No, Axios. no, I the I was appreciate checking just that. just on

basically translate So specifically, if you take ship? TCE for the the would index then $XXX,XXX, into were to the

Spyros Leoussis

course, yes, of yes. Yes,

floating. -- fully of it's -- a that's Sorry, that's course,

that's mean way fully work. that's would it I said, the a so Jerry As floating index,

Omar Nokta

on final for able of and the the What's look have remaining like? you just for containership the vessels like in those liquidity fairly you the does S&P appetite What look like, right. look All been remainder? a What And move market it then the clearly active one to Okay. bunch a maybe think, were already? vessels.

Gerasimos Kalogiratos

rates of up container market, have Panamax especially also tight container Panamax been and and for Post filling been quite Charter know, as as The late. you has moving vessels.

values or you acquire appetite also seen also buyers, momentum of more reflected a liners in to tonnage. have in be owners As it result, [indiscernible] being this asset and

and longer period increasingly seen and mean, rates rates values. rates period as -- well as period asset higher higher have We I

with of charters, this container long-term momentum have I We our all far so think, charters. they taken advantage have,

button, So momentum more it's either a or a buying. residual of the

have that. So I think in of we been good quite advantage taking

high-quality terms these assets. remaining vessels, very now the In of are all

We order container would beam were have get to if X,XXX the today, vessels. you wide design. TEU ships Effectively, same the you

buyers debt-free. alike. TEU do brand XX,XXX new, X TEU assets attractive another that the are debt, charters for vessels have also Hapag-Lloyd, wide-beam Carriers years long-term say we I actually And a have any charter that to also so. are have then so not ULCL-ready X,XXX have again, should three or these quite LNG these and So here And [indiscernible] they they

I of this Given are a sector, these of less remaining more transaction kind the of cash -- the container of typical think tenor and secondhand is flow your transaction.

So there for sure. is no lack interest of

quite I the market For the us, realizing place -- the until on hurry. we these should both assets. are people expectations, be residual. our we But be as well are view approaching going as think our a not see to We in we charters like in market a what on do us we this, see patient given we in think

So bulk it. the done I think we of have

will the good Now be divest assets. remaining from to we looking for opportunities

Operator

Ben question from Nolan with is next Stifel. Our

Benjamin Nolan

to Going and I the appreciate there. give back, transition about first I the think, question you Omar's maybe timing of color so did that forth.

on you As time? let sort close you gotten capital policy more or there about can me how anything return closer, know to the have as getting dividend you're guys thinking is of that the that we're just

Gerasimos Kalogiratos

now. generation. will net and involve of policy afraid when details, it cannot detail those with free move payout flow Thank I conversion. That's of say, I'm right leave of the overall and But think fair structure think for question. more I at will in you, the the some income I slightly or to idea a payout, I the is view the flexible plus the this that, a could we echoes is FX that and a of regard Ben. I the -- some allocation different can give Board that What start dividend capital that type decision cash after point share is exact truth to more

will this which within for definitely decision a I and think presume we'll wait year I for be Board, the final post-conversion.

Benjamin Nolan

secondly, them. are sales, the the curious of you then assets also that still And TEU XX,XXX the if view fit portfolio. they on have Okay. for given know, don't guess I the long Are contracts nature sort a those ships on broader maybe contracted I'm three container within of as I -- sale super or those fine the

Gerasimos Kalogiratos

like be vessels, We to, these sit think point, the we are charter good there with vessels happy I and are going at some divest. perfectly will just to opportunity forward. those other an to assets, or know

is focus that mean, LPG, transition segment. to is So So on COX decision energy the LNG and on we so the to gas, not was right? are -- was forth. taken enter Strategy container so I and liquid into ammonia and

So more containers. no

I maybe that TEU we are of is getting think anything would is movement charters, whether -- on maybe happy of I little bid. interest containers reasonable potential find believe also that than and However, XXX% for to these a timing them have that say, rates a else, price. valuation And cash is more XX,XXX on we more long-term the a the the generate reasonable don't perfectly sale we a think the if contracted flows especially the in cash you valuation with rather as contingent the contingent we be whether background

Benjamin Nolan

to as side, you're do, on assets assets on multi-gas maybe you put contracts still or you even And just market a Curious that or color what place sort bit then have the mentioned development you charter? get those have sort lastly the the business Or for in not, the if private you gave to Okay. like stage closer will or COX know soon, on seeing of carriers if long-term in of probably relates carries. delivery those -- -- me, if you to can it ammonia on if is customer what it of have? little terms of in to and appetite in

Gerasimos Kalogiratos

overall gas Capital medium X far the X the and liquid system carry that more carriers. In terms can the way, carriers, COX then X other there's carriers, carriers, that cargo LPG generic MGCs effectively the tanks comprises ammonia then as LPG their that also of gas Maritime, ammonia concerned, other functionalities. of the separate exposure which handy also so large multigas, and sectors are and are carriers very COX as is, liquid in strengthened of And or because or

the dozens So Europe world, I and overall, had mean, of we let's to region the the have to around from around literally, say, regarding, the new trade. Pacific discussions Asia U.S. the world

-- So COX transportation liquid apart both ammonia, and on of dependent, are ammonia. and the different what discussions how what blue in going trade, the the of COX the green transportation we LPG about are drivers regions had terms similar from is to liquid the carrier Maritime be ammonia who is your in usual -- especially is that customers? for of done of the And

the so thing are projects effect onwards. -- line is be and on Overall, there. snowball I forth. is see clients energy different along moving from projects time sides these the traders XXXX, by both there ours, of some can would and of of for companies, are these materializing that maturity. But ahead almost XXXX The independent operators at bulk you then that of interesting say there of dozens And very so are utilities, by led these a investors. levels those are Overall, would or being projects are that existing that moved

also, have these to utility sit strategy energy have different we forward. table and the ability The or segments. part the is all much -- company So going a that at are very across with an we and this of a discussion

this So to blue happened And COX we on then LNG green liquid multiple discussing would times. and has the or carrier of ammonia. carriage move be the or

So we say we can it have these -- of had continue have long-term for and mean type charters whether early discussions. today although is to to I we fix still trades, we can

while to and XXXX to able of fact use current, of But they trades, another move XXXX said, then FS demand and to be for might a term I in long have in multiple it to, higher trades, that gray the then charter for trade. example, for it be will, in ammonia trade LPG one these customers because including, some much XXXX example, I think the onwards. as will from

LPG would start word, or base case So trades trades that into multi-gas moving these, that onwards. carriers better a conventional transition start will right with the carriers, is say, and of carriers lack I energy from let's XXXX the ammonia XXXX, now, say the

Operator

next William with Burke question Our is Securities. B. from Riley

Liam Burke

conversion they the through go you are corporate, lenders? as with Or an a the comfortable MLP Jerry, from the transition? hiccups there is any to with

Gerasimos Kalogiratos

reality, there material in is No, the the, no other the to change than structure. corporate say, company let's

foresee So any with lenders going our forward. we the or don't issues bondholders

Liam Burke

Great. And looking sleep significant be on there -- builds, being does the less contracts new for a seem longer-term X appetite efficient to an there turbine. of are you're there, especially at steam when amount

Spyros Leoussis

we As activity. I you mean, said, some see

see Now, help, as obviously, fleet, said, probably especially under to of and steam vessels to realize from as replacing the that demand, doesn't that be a with guess, turbines CII newer field you project to schemes? significant of would people there start relevant EU we If we will but -- effect the market ETS have current a our we go say I as still replacement lot had to time.

Operator

Investor's next Our question from with Value Climent is Molins Edge.

Climent Molins

question the a there any unfixed Liam's the to on the of currently offered? bit terms over potentially is fix you secondly, talk And up new next forward appetite being year? Following them on about some builds. Could

Gerasimos Kalogiratos

pass me on to... let this Yes,

Spyros Leoussis

next delivery year. get But we bit is discussions fix the the as don't the stage. and discuss to we strategy is cost So for the vessels during We sure, to the terms should at some -- posting. before activity a we're are that there think discussions. target I this can foresee open always think actually I premature be specific

Gerasimos Kalogiratos

are available take today all is relets from X is these or current effectively some no vessels reality, their at will in what existing years I we at done levels. forward. or charters the said for think deals longer-term in going X they charters the few X-year But the thing X look year are year that call projects period. lower during know to that And ships you there very there are they or because important you need see wait that reality, longer, for relets their as But off. when

base you require XX% builds. your not then with which ships, will be so $XXX XX%, resulting end it's for And early XXX pay delivery close And milestones, will building delivered CPRs additional you end going if the competition, look supervision to And new to a up new the of it's then million. of upfront 'XX. at in plus to cost at Often, XXXX, today for prices at EUR million available together expect.

you order say, breakeven ordering to They requirements as in returns projects. be inquiries the new vessels in fulfill let's to say, financing a come equity XX%, new decent per like then So the XX% you even a a to single-digit in single-digit they for of will if that let's look equity, related guys will you replacement bake at, on that or up, date $XX,XXX then have, on will XX%, a that find vessel -- your a and $XX,XXX return day -- area.

terms kind a So of common new for new order floor what set is they because long-term building -- That capital lowest of the will rate to going the long-term market this a if the think, going a rate I is of forward. project. create in cost natural this, the denominator

than going And low to a long materialize, XXs expect that's be see the with well that much course, plus, projects a tighter be $XXX,XXX. more above projects, older of which, ordered the is ships the to for the the mid- much to demand be we there's if replacement for vessel that we see a to market, vessels, in can will then say regard demand way of course, we new that to technology FID So our long-term of floor market. expectations

answer. gives hope you an I indirect kind that of

Climent Molins

you the LNG/Cs of already the question more a on have the them outstanding That's covered, helpful. quarter? CapEx but also does. remaining been Most of as you the on had some the of It provide side. for commentary end had I modeling Could

Gerasimos Kalogiratos

a come LNG until July. to X remaining have Carriers we these of X effectively, So with

May, So July. June,

In terms drop number me me number. to me -- around the total and be the billion, let CapEx, line a should X.X happy let of EUR confirm give but also it you offline, but exact

Operator

at time. floor questions hand over any further Jerry Kalogiratos I'd Mr. no to closing There this comments. for like are the to back

Gerasimos Kalogiratos

all and you, for Thank today. Paul, Great. joining you us thank

Operator

This conference. concludes today's

lines your for disconnect may you You participation. at time. your Thank this

Capital Clean Energy Carriers (CCEC) 30 Apr 242024 Q1 Earnings call transcript