Cool Company Ltd. Announces Time Charter
07 Febrero 2024 - 12:00AM
Business Wire
12-month charter adds to Company’s contracted backlog
Vessel to be converted to environmentally friendly LNGe
specifications during charter period; innovative mechanism for
lowering emissions and sharing cost savings
Cool Company Ltd. (NYSE: CLCO / CLCO.OL, “CoolCo” or the
“Company”) announced today that it has entered into a new time
charter agreement for one of its TFDE vessels. The 12-month time
charter is with Santos Shipping Singapore Pte Ltd and is scheduled
to commence in the first quarter of 2024.
In the third quarter of 2024, the vessel is expected to undergo
its scheduled drydock, at which time the Company also intends to
upgrade the vessel to LNGe specifications. LNGe specification
upgrades include the addition of reliquefaction capability via
state-of-the-art sub-coolers, as well as air lubrication systems
and a range of optimizations and upgrades intended to enhance
efficiency and reduce emissions. In line with the anticipated
enhanced performance profile of the vessel following the LNGe
specification upgrades, the charter includes an innovative
commercial mechanism to reward both the charterer and CoolCo.
The Santos charter takes CoolCo’s fleet utilization to 100%
until our next vessel becomes available, not before the end of the
second quarter. This enables CoolCo management to extend its total
operating revenue guidance to $88-89 million for 1Q24 ($99 million
1Q23) and $84-85 million for 2Q24 ($90 million 2Q23), subject to no
technical off-hire. The anticipated lower expected revenue range in
the second quarter of 2024 is primarily related to off-hire during
a scheduled drydock of another vessel that is expected to be
completed within the same quarter. The 1Q23 comparison period
includes a contribution from the Seal, a vessel that was sold in
1Q23.
“We are delighted with this innovative agreement that provides
and aligns incentives between the owner and the charterer, which is
expected to enhance efficiency and minimize emissions on one of our
modern TFDE vessels,” said Richard Tyrrell, CEO of CoolCo. “This
groundbreaking charter is the first to incorporate our LNGe upgrade
and our first with Santos. It serves as a model for joint
participation in the benefits of our investment in upgrading
existing vessels.”
ABOUT COOLCO
CoolCo is an LNG Carrier pure play with a balanced portfolio of
short and longer-term charters, the cash flows from which form the
basis of the Company’s quarterly dividend for common shareholders.
In addition to the built-in and funded growth from two newbuilds
scheduled to be delivered in the second half of 2024, CoolCo’s
strategy includes ongoing assessment of opportunities for vessel
acquisitions and potential consolidation in a fragmented market
segment. Through its in-house vessel management platform, CoolCo
manages and operates its LNG transportation and infrastructure
assets for a range of the world’s leading companies in addition to
providing such services to third parties. CoolCo benefits from the
scale and stature of Eastern Pacific Shipping and its affiliates,
encompassing CoolCo’s largest shareholder and the owner of one of
the world’s largest independent shipping fleets, which strengthen
the Company’s strategic position with regard to shipyards,
financial institutions, and access to dealflow. CoolCo supports the
world’s decarbonization and energy security needs and has stated
its intention to reduce its emissions by 10-15% through its LNGe
upgrade program, as part of a fleet-wide improvement target of 35%
between 2019 and 2030.
Additional information about CoolCo can be found at
www.coolcoltd.com.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995, including statements which reflect management’s current
expectations, estimates and projections about its operations and
with respect to CoolCo’s agreement for a time charter of a vessel,
including the terms of the charter with Santos, any expected
benefits from the charter with Santos, revenue guidance forecasts,
the expected drydocking schedule of our vessels, delivery dates of
newbuilds, our strategy, our intention to reduce carbon emissions
and any expected performance of our LNGe upgrade program, emissions
reduction and improvement targets and other non-historical
statements. Forward-looking statements are typically identified by
words or phrases, such as “about”, “believe,” “expect,” “plan,”
“goal,” “target,” “strategy,” “guidance” and similar expressions or
future or conditional verbs such as “may,” “will,” “should,”
“would,” and “could.” These statements are based on current
expectations, estimates, assumptions and projections and you should
not place undue reliance on them. Forward-looking statements do not
guarantee future performance and involve risks and uncertainties.
There are important factors that could cause our actual results,
level of activity, performance, liquidity or achievements to differ
materially from the ones expressed or implied by these
forward-looking statements. These risks and uncertainties include
risks relating to future industry conditions, risks that revenue
guidance forecasts may differ and other risks indicated in the risk
factors included in CoolCo’s Annual Report on Form 20-F for the
year ended December 31, 2022 and other filings with the U.S.
Securities and Exchange Commission. These forward-looking
statements are made only as of the date of this document. We do not
undertake to update or revise the forward-looking statements,
whether as a result of new information, future events or
otherwise.
This information is subject to the disclosure requirements
pursuant to Regulation EU 596/2014 (MAR) article 19 number 3 and
Section 5-12 the Norwegian Securities Trading Act.
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version on businesswire.com: https://www.businesswire.com/news/home/20240206102199/en/
c/o Cool Company Ltd - +44 207 659 1111 / ir@coolcoltd.com
Richard Tyrrell - Chief Executive Officer John Boots - Chief
Financial Officer
Cool (NYSE:CLCO)
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