Capital Clean Energy Carriers Q1 Earnings Call Highlights

Key Points

• Q1 net income fell to $18.3 million from $32.7 million a year earlier, as off‑hire periods and five‑year special survey/drydock costs drove higher voyage and operating expenses (including $2.7M of war‑risk premiums that were reimbursed by charterers).
• Liquidity and capital returns: the company raised EUR 250 million via a Greek bond (3.75% coupon), ended the quarter with $546 million in cash and 45.6% net leverage, and the board authorized a $20 million buyback while declaring a $0.15/share dividend (the 76th consecutive quarter).
• BGN transaction expands backlog: CCEC agreed to sell 49% of Amore Mio I for $230 million (expected close Q1 2027) and secured a 10‑year time charter, boosting contracted backlog to ~97 years (~$2.9 billion) or to 136 years (~$4.3 billion) if all options are exercised.

Capital Clean Energy Carriers NASDAQ: CCEC reported first-quarter 2026 net income from continuing operations of $18.3 million, down from $32.7 million in the prior-year period, as off-hire time and special survey-related costs weighed on results. Management also highlighted new financing, a transaction with energy trader BGN that expanded contracted backlog, and a newly authorized share repurchase program.

Quarterly results impacted by off-hire time and survey costs

Chief Financial Officer Nikos Kalapotharakos said the quarter was “heavily impacted by the off-hire periods and additional voyage and operating costs” for certain vessels undergoing their five-year special surveys. Voyage expenses rose to $6.2 million from $1.1 million a year earlier, which Kalapotharakos attributed primarily to bunker expenses tied to repositioning voyages and survey-related drydocking moves.

Kalapotharakos also said voyage expenses included $2.7 million of war risk insurance premiums “due to the ongoing geopolitical tensions in the Middle East.” He emphasized that these premiums were “fully reimbursed by our charterers and are included in revenue.”

Looking ahead on drydocking, Kalapotharakos said four LNG vessels reach their fifth year of age during 2026: Adamastos and Aristarchos, which concluded dry dock in March and April, and Athalassos and Asklepios, expected to commence dry dock in the third quarter. He said no further special surveys are expected until 2028. Guidance remained at roughly $5 million per dry dock and around 20 to 25 days of off-hire, though he noted the dry docks completed so far were delivered “ahead of budget and with fewer off-hire days.”

Dividend declared; board approves share buyback

Executive Vice President of Investor Relations Brian Gallagher said the quarter’s performance supported a cash dividend of $0.15 per share. Kalapotharakos reiterated that the dividend payout remains “an important and core component” of the company’s shareholder value proposition, and said the dividend will be paid on May 20 to shareholders of record on May 11. He added that it marked the company’s “76th consecutive quarter” of paying a cash dividend.

Gallagher also said the board approved a $20 million share buyback program to be executed over the next two years.

Financing activity boosts liquidity

Gallagher said the company raised an additional EUR 250 million during the quarter through a Greek bond carrying a 3.75% coupon. Kalapotharakos said the company ended the quarter with $546 million of cash, up from $296 million in the prior quarter, and reported a net leverage ratio of 45.6%.

Kalapotharakos said part of the bond proceeds was used to repay a 2021 bond, with the remainder intended to support capital expenditures and “other general corporate purposes.” He added that the company’s newbuilding capital expenditure program is “well supported,” noting that a significant portion has already been paid, supported by internally generated cash flows, asset monetization, and debt financing.

BGN transaction expands backlog and adds long-term charter coverage

Management highlighted an April transaction involving energy trading group BGN that included both a partial sale and a long-term charter. Kalapotharakos said the company agreed to sell a 49% interest in Amore Mio I, a 2023-built LNG carrier, to a global energy trader for a contract price of $230 million. The transaction is expected to be consummated in the first quarter of 2027, and would leave Capital Clean Energy Carriers with a 51% stake and management oversight.

The transaction also secures a 10-year time charter for the vessel, with options to extend for up to six additional years. Kalapotharakos said the charter arrangement, if all options are exercised, is expected to generate up to $485.6 million in revenues through 2043.

On contracted coverage, Kalapotharakos said that following the BGN transaction, the company has 97 years of contracted backlog at an average time charter rate of approximately $86,400 per day, representing $2.9 billion of contracted revenue. If charterers exercise all options, backlog would rise to 136 years and $4.3 billion of contracted revenue, he said.

In the Q&A session, Chief Executive Officer Gerry Kalogiratos characterized the BGN deal as “opportunistic,” saying it allowed the company to “partly monetize” an older vessel while securing a 10-year charter for a position that had been “a more difficult position given market conditions” before the conflict-driven market shifts. He added that the company would consider similar arrangements again if valuation and employment terms are attractive.

Market commentary: Middle East disruption reshapes LNG and gas shipping

Chief Commercial Officer Nikos Tripodakis said the LNG shipping market in the first quarter was shaped by conflict in the Middle East, with global LNG volumes “stranded in the Arabian Gulf.” He pointed to the March 18 attack at Qatar’s Ras Laffan facility as a “pivotal moment” affecting global LNG supply dynamics, noting Qatar produces approximately 20% of global LNG output annually and that nearly 80% is destined for Asia.

Tripodakis said uncertainty around Qatari supply could drive more Asian buyers toward U.S. LNG, which he said would “structurally and inevitably” increase ton-miles, though he cautioned the extent is “hard to gauge.” Kalapotharakos added that the duration of Qatar’s production outage remained unclear, but said it would likely keep upward pressure on prices and reinforce the need for supply security and diversification. He also said European buyers face urgency in filling reserves ahead of winter, while European gas storage levels remain “approximately 20% lower than the 5-year average.”

Tripodakis said geopolitical events have benefited modern, efficient vessels more than older and smaller tonnage, which he said is increasingly challenged when long-term charters expire. He cited rising scrapping activity, saying 2025 set a benchmark for LNG carrier scrapping and that scrapping accelerated in 2026 with five LNG carriers scrapped in the first quarter alone. He said the company expects roughly 80 to 100 steamship LNG carriers could be removed over the next three to five years.

During Q&A, management discussed accelerating newbuilding deliveries. Kalogiratos said the company worked with the shipyard to align construction progress with what it sees as a strengthening market following Middle East disruptions. Tripodakis said the rationale was to capitalize on strength in the “front part of the curves,” describing an increase in spot rates after the conflict and continued strength in multi-month and one-year time charter rates.

Kalogiratos also said market conditions have improved beyond LNG, citing a beneficial impact on LPG and ammonia charter rates and noting rising asset values. Tripodakis, responding to questions on the company’s 22,000 cubic liquid CO2 carriers, said those vessels can trade in LPG, petrochemical cargoes, and ammonia while CO2-related projects develop on a longer timeline. He said the company expects such vessels to trade “at least initially” into the LPG business and described the current LPG market as strong.

About Capital Clean Energy Carriers NASDAQ: CCEC

Capital Clean Energy Carriers Corp., a shipping company, provides marine transportation services in Greece. The company's vessels provide a range of cargoes, including liquefied natural gas, containerized goods, and cargo under short-term voyage charters, and medium to long-term time charters. It owns vessels, including Neo-Panamax container vessels, Panamax container vessels, cape-size bulk carrier, and LNG carriers. In addition, the company produces and distributes oil and natural gas, including biofuels, motor oil, lubricants, petrol, crudes, liquefied natural gas, marine fuels, natural gas liquids, and petrochemicals.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.