Capital Clean Energy Carriers NASDAQ: CCEC reported third-quarter 2026 net income from continuing operations of $34.6 million, or $0.57 per share, a 52% increase from the prior-year period, as newly delivered vessels began contributing to results.
Revenue rose 44% year over year to $138.1 million for the three months ended Sept. 30, driven primarily by fleet growth. Chief Financial Officer Nikos Kalapotharakos said the company’s average fleet size increased to 19.7 vessels from 13 vessels a year earlier following deliveries of gas carriers and LNG carriers during 2026.
The company took delivery of three vessels during the quarter: LNG carrier Alcaios I, dual-fuel medium gas carrier Aridaios, and LCO2 multi-gas carrier Alkimos. It also secured new employment for two LNG carriers and four gas carriers, according to EVP of Investor Relations Brian Gallagher.
Fleet Expansion Lifts Revenue, Expenses and Debt
Capital Clean Energy said third-quarter time-charter equivalent, or TCE, revenue was just under $84,000 per day for its LNG fleet and just under $41,000 per day for its gas fleet.
Kalapotharakos said voyage expenses increased to $9 million from $2.2 million a year earlier, reflecting costs associated with vessels being delivered from shipyards and beginning employment, as well as ballast legs related to five-year special surveys. Vessel operating expenses increased by $6.2 million and depreciation and amortization rose by $8.6 million, both largely due to the expanded fleet.
Interest expense and finance costs increased to $33.7 million from $25.5 million in the year-ago quarter, primarily because of higher average indebtedness used to finance vessel deliveries. The company said the effect was partly offset by a lower weighted average interest rate on its debt.
At quarter-end, the company held $287 million in total cash, including restricted cash, while total assets had increased more than 20% from the beginning of 2026 to $4.9 billion. Shareholders’ equity rose $87 million, or 6%, to approximately $1.6 billion. Total debt stood at $3.2 billion, and the company reported net leverage, adjusted for vessel fair market values, of about 55%.
About 78% of total debt was floating rate and carried an average margin of 1.70%, Kalapotharakos said. Fixed-rate debt and $800 million of zero-cost interest-rate collars entered during the second and third quarters meant approximately 47% of total debt was fixed or hedged.
The company said its newbuilding capital-expenditure program is well funded through internally generated cash, asset monetizations, debt financing and a February bond issuance. It expects to fully fund remaining capital expenditures, assuming 70% debt financing for vessels without existing facilities, while excluding future operating cash flow and proceeds from the planned sale of Amore Mio I to its LNG joint venture with BGN.
LNG Backlog and Market Outlook
Chief Commercial Officer and Head of LNG Commercial Nikos Tripodakis said the company’s 21 latest-generation LNG carriers—15 operating and six under construction—had contracted backlog of about $2.7 billion with an average firm duration of 6.4 years. Including charter options, backlog rises to $4 billion and average duration reaches 9.4 years.
Tripodakis said the company’s long-term charters with high-quality counterparties limited its exposure to volatile spot LNG shipping rates. The Alcaios I is operating on an 18-month index-linked charter through early 2028, while Athlos is expected to begin a one-year index-linked charter upon delivery before entering a seven-year charter. Five LNG newbuilding positions remain open.
The planned $230 million sale of Amore Mio I to the BGN joint venture remains on track for the first quarter of 2027, when the vessel is scheduled to begin a 10-year charter with two three-year extension options. Until then, it is operating on a three-month charter.
Management described a softer LNG spot market in the third quarter after a strong first half. Atlantic two-stroke spot rates averaged about $51,000 per day and fell to roughly $10,000 per day in August, while Pacific rates averaged about $56,000 per day. Tripodakis said one-year rates averaged around $55,000 per day during the quarter, while longer-term rates remained more stable. Five-year rates for prompt deliveries were being fixed in the high-$70,000s to mid-$80,000s per day, he said.
Tripodakis attributed pressure on spot rates to vessel availability, newbuilding deliveries, relets and shorter vessel rotations. Still, he said the company views the weakness as a near-term imbalance rather than a change to longer-term fundamentals, citing expected LNG liquefaction growth and an expected market supply-demand inflection point beginning in 2028.
During the question-and-answer session, Tripodakis said the company believes the Middle East disruption will continue through at least the first half of 2027, while cautioning that longer-term timing is uncertain. He also said buyers’ diversification toward U.S. LNG supply could be positive for shipping demand because U.S.-to-Asia cargoes require more vessel capacity than Qatar-to-Asia cargoes.
Gas Carrier Program Fully Employed for 2026
Head of LPG Commercial Jack Neilan said all five of the company’s 2026 gas-carrier newbuildings have been delivered and employed. The vessels include LCO2 multi-gas carriers Active, Amadeus and Alkimos, as well as dual-fuel medium gas carriers Aristogenis and Aridaios.
Five additional gas carriers are scheduled for delivery in 2027, completing the company’s gas-carrier program. The existing fleet is fixed into 2027, while the 2027 newbuildings are receiving firm term interest, Neilan said.
Aridaios is set to begin a one-year time charter in the fourth quarter, while Alkimos, Active and Amadeus are chartered through the second quarter of 2027. The company said its multi-gas carriers can transport LPG, petrochemicals, ammonia and liquefied CO2, while its dual-fuel medium gas carriers can transport LPG, ammonia and petrochemicals.
Neilan said market conditions strengthened for larger refrigerated gas ships, with one-year VLGC time-charter assessments nearing $88,000 per day and conventional 40,000-cubic-meter MGC assessments reaching about $43,000 per day. He cited continued Middle East export disruption, Panama Canal constraints and record U.S. LPG exports as major market drivers.
Kalapotharakos said the company had declared a quarterly cash dividend of $0.50 per share, payable Nov. 12 to shareholders of record as of Nov. 3. He described it as the company’s 78th consecutive quarterly dividend since its 2007 initial public offering.
About Capital Clean Energy Carriers (NASDAQ:CCEC)
Capital Clean Energy Carriers Corp. is a maritime transportation company focused primarily on the ownership and operation of vessels that transport liquefied natural gas (LNG) and other energy products. The company's fleet includes LNG carriers and other vessels serving the international energy supply chain, with operations conducted through long-term and other commercial charter arrangements.
The company is transitioning toward a cleaner-energy-focused shipping platform, with LNG transportation as a central part of its strategy.
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