LNG carrier operator Cool Company (CoolCo), which is in the process of merging with a unit of its largest shareholder Eastern Pacific Shipping, reported higher net income and revenues in the third quarter of this year compared to the same period last year.
CoolCo generated total operating revenues of $86.3 million for the third quarter, compared to $82.4 million in the same quarter last year and $85.5 million in the second quarter.
The company’s net income of $10.81 million for the third quarter rose from $8.12 million in the same quarter last year, but it dropped compared to $11.91 million in the prior quarter, with CoolCo attributing the decrease primarily to higher non-recurring legal expenses during the third quarter.
Adjusted Ebitda of $52.6 million in the third quarter dropped compared to $53.7 million in the same quarter last year and $56.5 million in the prior quarter.
CoolCo achieved average time-charter equivalent earnings of $70,500 per day for the third quarter. This compares to $81,600 per day in the third quarter of 2024 and $69,900 per day in the prior quarter.
During the first nine months of this year, CoolCo’s total operating revenues and net profit were at $257.3 million and $31.7 million.
Revenues rose from $253.9 million in the third quarter last year, while net profit dropped from $71.4 million in the comparable quarter.
CoolCo achieved average time-charter equivalent earnings of $70,300 per day in the nine-month period, down from $79,000 in the same period in 2024.
Fleet
CoolCo has seven TFDE LNG carriers, which it acquired from Golar LNG, and the four LNG carriers it purchased from EPS.
Besides these vessels, CoolCo purchased two newbuild LNG carriers from EPS, and they feature GTT’s Mark III Flex membrane cargo tank system, reliquification, air-lubrication, and shaft generators.
The shipping firm exercised its option with affiliates of EPS Ventures in June 2023 to acquire newbuild contracts for the two 2-stroke LNG carriers.
CoolCo said its fleet maintained “strong performance” in the third quarter, achieving a 91 percent fleet utilization.
During the quarter, the LNG carriers Kool Boreas and Kool Firn completed their respective drydocks.
CoolCo noted that Kool Boreas also received LNGE upgrades, which included a high-capacity sub-cooler retrofit and various other performance enhancements.
In addition, CoolCo “commenced a three-year floating-rate charter on a redelivered vessel during the quarter.”
EPS merger
In September, CoolCo entered into a merger agreement with EPS Ventures.
Pursuant to the merger, EPS will acquire all of the outstanding shares of CoolCo that are not already held by EPS in exchange for $9.65 in cash per common share.
As of November 14, CoolCo had 52,868,029 shares issued and outstanding, excluding the 858,689 treasury shares held by the company as a result of the share repurchases.
Of the outstanding shares, 31,354,390 (59.3 percent) shares were owned by EPS and 21,513,639 (40.7 percent) shares were owned by other investors in the public market.
CoolCo said in the financial report that the transaction is expected to close in the fourth quarter of 2025 or the first quarter of 2026, subject to the receipt of the required shareholder approval and the satisfaction or waiver of the remaining closing conditions.
Upon completion of the merger, the company’s shares will be delisted from the New York Stock Exchange and Euronext Growth Oslo.
