Capital Clean Energy Carriers Corp. · NASDAQ:CCEC
Capital Clean Energy Carriers — Q3 2024 Earnings Presentation
29 slides from Capital Clean Energy Carriers's earnings presentation, Nov 8, 2024
Slide 1: Q3 '24 Earnings Presentation
Q3 ‘24 Earnings Presentation November 8, 2024 www.capitalcleanenergycarriers.com
Slide 2: Important Notice
Important Notice This presentation contains forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looki
Slide 3: Capital Clean Energy Carriers Q3 2024 Results
01 Capital Clean Energy Carriers Q3 2024 Results
Slide 4: Third Quarter 2024 Highlights & Update
Third Quarter 2024 Highlights & Update ▪ Q3 2024 net income from continuing operations $15.8 million ▪ Declared dividend $0.15 per share for the quarter Financial Performance ▪ 2024 charter coverage 100%, 100% for 2025 and 74% for 2026 & Operating Highlights ▪ Refinanced LNG/C Attalos and LNG/C Askl
Slide 5: Delivering on Our Strategic Pivot Announced in November 2023
Delivering on Our Strategic Pivot Announced in November 2023 ✓ Active Asset Management ✓ Name Change & C-Corp status Vessel Type TEU/ DWT Sale1 Improved corporate CMA CGM Magdalena Container 9,300 Apr-2021 governance CMA CGM Uruguay Container 9,300 Apr-2021 Agamemnon Container 8,300 May-2022 ✓ Focus
Slide 6: Financials
02 Financials www.capitalcleanenergycarriers.com
Slide 7: Profit Statement
Profit Statement ($ In Thousands) For the Three-Month For the Three-Month Period Ended Period Ended Highlights September 30, 2024 September 30, 2023 Revenues 106,043 63,856 Expenses: 1 12 container vessels sold Voyage expenses 2,921 3,440 following the announcement of our Vessel operating expenses 1
Slide 8: Balance Sheet
Balance Sheet ($ In Thousands) As Of As Of September 30, 2024 December 31, 2023 Highlights Assets 1 Current Assets 360,424 225,504 Asset base of CCEC grew by $1.0 billion since the beginning of the year but Fixed Assets 3,599,796 2,387,013 mix moved from container to LNG/Cs Other Non-Current Assets
Slide 9: Debt Optimization
Debt Optimization LNG/C Attalos & LNG/C Asklipios: ▪ Refinanced outstanding debt by drawing a new senior secured loan facility per vessel, each of $162.5 million: ▪ Amount: $162.5 million ▪ Repayment: 84 monthly instalments of $0.7 million ▪ Balloon: $100.0 million ▪ Maturity: July 2031 Year to date
Slide 10: Newbuilding Commitments Funding
Newbuilding Commitments Funding Newbuilding Program Supported by Multiple Sources of Funding Million -78 Notes: 1. Newbuilding Program reflects the total acquisition price of the remaining vessels CCEC acquired and has agreed to acquire, and has not taken delivery of, as of September 30, 2024 2. Cas
Slide 11: Diversified Contracted Revenue
Diversified Contracted Revenue Contracted Revenue* Contracted Revenue Contribution* Contracted Revenue Backlog: $2.6 billion High Quality & Diversified Customer Base Million $2,500 4% 14% $2,067.1 $2,000 15% 14% $1,500 13% $1,000 10% $500 $433.9 19% 6% $101.9 5% $0 2024 remaining 2025 2026+ ~7.2 yea
Slide 12: LNG Fleet & Market
03 LNG Fleet & Market www.capitalcleanenergycarriers.com
Slide 13: Short Term Spot Rate Pressure To Bring Intense Focus on Steam LNG/C Re-lets
Short Term Spot Rate Pressure To Bring Intense Focus on Steam LNG/C Re-lets Short Term Spot LNG Market Under Pressure Uncommitted vs Committed ST and D/TFDE LNGCs 250,000 CCEC no open LNG position until Q1 2026 200,000 LNG 174k cmb spot rate 150,000 Why weak spot rates? Lack of LNG arbitrage 100,000
Slide 14: LNG/C Sector – Asset Prices Underpinned By Multiple Factors
LNG/C Sector – Asset Prices Underpinned By Multiple Factors 174,000cbm LNGC/s at $250-$260 Million – ….And Tight Vessel Supply Market From 2027 Underpinned By Rates… 290 140,000 50 Long Shipping 40 270 120,000 No of Vessels (174k) equivalent 30 20 250 100,000 10 0 Short Shipping -10 230 80,000 US mi
Slide 15: LNG Longer Term Charter Demand – Encouraging Signs During Q3 2024
LNG Longer Term Charter Demand – Encouraging Signs During Q3 2024 Contract Term Rate Tender Technology Visibility Duration Availability Focus Focus remains on Term rate largely Number of Key focus from Potential of long term contracts uncorrelated with opportunities for charterers for latest liquefa
Slide 16: A look into our LCO2 fleet investment
04 A look into our LCO2 fleet investment www.capitalcleanenergycarriers.com
Slide 17: CCEC Dual Fuel LPG/MGC & Liquid CO2 Fleet
CCEC Dual Fuel LPG/ MGC & Liquid CO2 Fleet Contracted High backlog specification, offuel dual 76 years LPG &atLCO2 an average daily vessels, rate with of $88,500, increased or ca.for capacity $2.4bn of revenue reduced freight cost Backlog LCO2 could vessels increase capable to 111 years Liquid of tr
Slide 18: Liquid CO2 – Key Demand Drivers & Sector Framework
Liquid C02 – Key Demand Drivers & Sector Framework KEY DECARBONISATION CARBON CREDIT PRODUCTION OF EXTENSION OF OIL IN HARD TO ABATE MARKET E-FUELS & GAS FIELDS DEMAND SECTORS DRIVERS Subsidies / Carbon Demand for low Credit Taxes carbon products Schemes REGULATORY FRAMEWORK & Subsidies / INCENTIVES
Slide 19: Carbon Capture and Storage Does Not work without Shipping capability
Carbon Capture and Storage Does Not work without Shipping capability Carbon Capture ecosystem relies on shipping LCO2 Carrier LCO2 Carrier Global LCO2 fleet LCO2 fleet currently under Potential Near Term CCUS Projects on water construction Country C02 Capacity Start up Year Vessels Northern Lights N
Slide 20: Why LCO2 carriers? Flexible & Adaptable
Why LCO2 carriers? Flexible & Adaptable HIGH CARGO FLEXIBILITY HIGHLY FLEXIBLE VESSEL SPECIFICATION UNIT COST ECONOMICS BETTER FOR LOW PRESSURE OPTION GREEN REGULATIONS & TAXES WILL PROVIDE CCEC WITH 1ST MOVER ADVANTAGE Liquid CO2 Ammonia Other Gas Liquid Liquid CO2 Current Grey NH3 Still remains a
Slide 21: Geographic markets start to emerge
Geographic markets start to emerge EUROPE AMERICAS AMERICAS 60-90 100-130 Mtpa Mtpa ME 30-60 Mtpa APAC 75-130 Mtpa Potential Trades (CCU & CCS)* A. Intra Northern Europe B. Intra Southern Europe C. Intra SEA D. Intra ME E. Japan → Australia F. Japan → Malaysia G. EC South America → North America Int
Slide 22: What does this mean for Shipping? CCUS a structural growth driver to 2050
What does this mean for Shipping? CCUS a structural growth driver to 2050… Carbon Capture growth underpinned to 2030 To meet Net Zero – requires substantial expansion 448mpta 9 Announced CCUS volumes versus net zero requirement 8 7 Global CCUS Capacity MTPA 6 5 GTAPA 4 3 2 1 0 GCCSI Woodmac Rysta Sh
Slide 23: …in a supply constrained Shipyard complex
…in a supply constrained Shipyard complex Number of active yards – 50% of peak Active yards historically high forward cover 350 Orderbook Forward Cover Years 2009 – 321 yards 61 Gas building yards 300 6 250 Forward cover at 3.4 years 2024 – 155 yards 5 versus 2.5 years 2020 36 Gas building yards 200
Slide 24: Conclusion & Summary
05 Conclusion & Summary www.capitalcleanenergycarriers.com
Slide 25: Unique & Very Modern Fleet going forward
Unique & Very Modern Fleet going forward On the water New Deliveries 2020 2021 2021 2021 2021 2021 2026 2026 2026 2026 2027 2027 LNG carriers All dual fuel 174k cbm 2023 2023 2024 2024 2024 2024 Capable of transporting LPG, 2026 2026 2027 2027 2027 2027 NH3 Mid Sized Gas carriers Multi gas carriers
Slide 26: Significant Increase in Revenues and EBITDA on Fully Delivered Basis
Significant Increase in Revenues and EBITDA on “Fully Delivered” Basis Total Fleet: EBITDA1 (per year) Total Fleet: Adjusted Free Cash Flow1 (per year) ($ in millions) ($ in millions) $633.0 $182.2 Increase of Increase of 150% 289% $253.4 $46.8 2023 Fleet Pro Forma Fleet 2023 Fleet Pro Forma Fleet S
Slide 27: Capital Clean Energy Carriers – Largest Gas Carrier Fleet by 2027
Capital Clean Energy Carriers – Largest Gas Carrier Fleet by 20271 Expected to become largest & youngest fleet1 of energy 1.2 Years 31 Vessels ✓ Avg. Fleet Age2 Fleet Size2 transition vessels ✓ Significant blue chip charter coverage = cashflow stability 6x LNG Carriers Considerable go-forward growth
Slide 28: Appendix
Appendix www.capitalcleanenergycarriers.com
Slide 29: Assumptions
Assumptions ▪ Annual Debt Amortization: $142.4 million. Estimated amount of the average annual amortization for each vessel basis $2.7 billion debt (“Vessel Debt”) ▪ Interest Rate: Average margin of 1.97% over the 5 year SOFR rate of 3.80% ▪ Interest Expense: Interest Rate multiplied by the average
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