Capital Clean Energy Carriers Corp. (NASDAQ: CCEC) delivered a solid performance in the first quarter of 2025, marked by financial growth, fleet expansion, and the securing of long-term charters for two of its newbuild LNG carriers. The company’s strategic pivot toward gas transportation continues to yield positive results, strengthening its position in the LNG shipping market.
Key Quarterly Highlights
- New long term time charter agreements (“TC”) for two LNG/Cs under construction along with the exercise of certain options for three in-the-water LNG/Cs
- LNG/C Axios II commenced a 7-year bareboat charter on January 30, 2025, with an option for a 3-year extension by the charterer
- Contracted revenue backlog increased to $3.1 billion or $4.5 billion including optional periods
- Concluded the sale of the last two debt-free container vessels announced in the third quarter of 2024
- Announced dividend of $0.15 for the first quarter of 2025
- Favorable long-term LNG market outlook driven by an anticipated shortage of modern carriers by 2028–2029, as rising liquefaction capacity, stricter regulations, and scrapping of older vessels create a tightening supply environment
Revenue and Profit Growth
Their recent transition from container shipping to a gas-focused fleet continues to bear fruit, as revenue from continuing operations is climbing 44% year-over-year to $109.4 million. This growth was driven by the addition of three LNG carriers acquired in 2024. Net income from continuing operations rose to $32.8 million (up 486% YoY) on revenues of $109.4 million, compared to $5.6 million in Q1 2024.
Including gains from the sale of container vessels, total net income for the quarter stood at $80.7 million, up from $33.9 million in the same period last year. They declared a dividend of $0.15 per share, maintaining its 72nd consecutive quarterly payout since its IPO. As of March 31, 2025, cash reserves stood at $420.3 million, including restricted cash, ensuring ample liquidity to support future growth initiatives. CCEC’s average firm charter duration is 7.3 years, representing $3.1 billion in contracted revenues; with extension options included, duration extends to 10.2 years and contracted revenues rise to $4.5 billion.
Approximately 80% of the company’s total debt is floating rate, positioning CCEC to benefit from potential interest rate cuts by the Federal Reserve in 2025, thereby enhancing its financial flexibility and interest expense profile.
Newbuild LNG Carriers Secured on Long-Term Charters and Fleet Update
CCEC announced two under-construction LNG carriers at Hyundai Samho (Athlos and Archon) fixed on long-term charters, with firm durations of 5 and 7 years respectively, each including 5-year extension options effectively securing fixed cash flows through 2027 and beyond.
These charter agreements reduce CCEC’s open LNG carrier exposure by one-third, leaving only four uncommitted newbuilds within its LNG fleet. As of Q1 2025, just 21 of the 307 LNG carriers on order globally remain uncommitted, four of which are controlled by CCEC. This positions the Company with meaningful influence in the LNG newbuild chartering market and reinforces its strategic focus on securing long-term employment amid strong sector fundamentals.
While exact figures were not disclosed, CCO Nikos Tripodakis indicated that 10-year charters for newbuilds delivering in 2027 are in the high $80,000 to low $90,000 range per day, a significant premium over current spot rates (~$40,000/day). Furthermore, CCEC retains the right to substitute other latest-generation LNG carriers into these charters, enhancing commercial flexibility and operational agility.
In line with its strategy to secure stable long-term cash flows, CCEC commenced its previously announced seven-year bareboat charter for the LNG/C ‘Axios II’ with the charterer having the option to extend the bareboat charter by an additional three years.
On the container divestment front, CCEC concluded the sale of the last two debt-free container vessels announced in the third quarter of 2024, solidifying the Company’s transformation into a pure-play gas carrier focused on LNG, LCO₂, and LPG/ammonia; only three container vessels remain in the fleet, all on long-term charters through 2032–2033 with extension options to 2038–2039.
When Mr. Liam Burke from B. Riley Securities inquired about the four unchartered LNG newbuilds and whether charterers recognize the looming supply crunch, Mr. Tripodakis confirmed that long-term charters are pricing in future deficits, and rates are holding firm despite spot market weakness.
Mr. Jerry Kalogiratos observed that market softness tends to dissipate when it comes to serious charterers seeking multiple, high-efficiency vessels. In such cases, rates and durations are reverting to levels near $90,000 per day, as charterers increasingly recognize the structural shortfall expected to emerge from 2027–2028 onward and are pricing in this anticipated supply-demand imbalance by securing capacity at premium levels.
Market Outlook: Short-Term Challenges, Long-Term Strength
Despite some short-term pressures in the LNG spot market, where older, steam turbine vessels are being idled or scrapped at a record pace, Mr. Tripodakis remains optimistic about the future. The anticipated supply and demand imbalance, driven by rising liquefaction capacity and regulatory pressures, is expected to create a shortage of around 100 modern LNG carriers by 2028–2029.
Furthermore, U.S. policy developments, including proposed port fees on Chinese-built vessels and potential incentives for domestically constructed ships, could constrain supply, benefiting owners like CCEC with Korean-built tonnage.
In turn, Mr. Climent Molins from Value Investor’s Edge, questioned the impact of U.S. port fees requiring LNG exports to be transported on U.S.-built ships by 2029. Mr. Kalogiratos reiterated that CCEC is insulated (as none of its vessels are Chinese built) but acknowledged uncertainty around U.S. shipyard capacity, which could face cost overruns.
The rule of thumb has been that the cost of a U.S.-built ship of any type is expected to cost approximately three to four times more than the cost of building the same ship in Korea or China. It’s going to be quite challenging for U.S. shipyard capacity to take on such projects. Now, with regard to who exactly is going to be responsible to implement that, it looks to me that it’s going to be the liquefaction operators, the exporters that they will have to ensure that their volume is transported on U.S.-built LNG ships” he added.
Financing and Capex Flexibility
CEO Jerry Kalogiratos talked of the company’s financial flexibility, noting a strategic adjustment made with shipyard partners to capital expenditures that deferred $486 million in payments to later quarters, aligning with delivery schedules and charter opportunities. He also highlighted the growing interest in their upcoming gas carriers, including four liquid CO₂ vessels, which are attracting attention from industrial players seeking multi-gas solutions.
Additionally, he stated that Asia and Europe have regasification capacity multiples ahead of projected liquefaction volumes, which eliminates near-term concerns of imbalance on the regas side and reinforces the long-term demand environment for modern gas carriers.
Looking ahead, CCEC’s transition to a pure-play gas carrier is nearing completion, as only three container vessels remain (all on long-term charters expiring in 2032–2033). The company’s 16-vessel newbuild program including six LNG carriers, six LPG/ammonia carriers, and four liquid CO₂ carriers, repositions CCEC to become one of the largest U.S. listed company focused on LNG and gas transportation space.
About Capital Clean Energy Carriers Corp.
Capital Clean Energy Carriers Corp. (NASDAQ: CCEC), an international shipping company, is one of the world’s leading platforms of gas carriage solutions with a focus on energy transition. CCEC’s in-the-water fleet includes 15 high specification vessels, including 12 latest generation LNG/Cs and three legacy Neo-Panamax container vessels. In addition, CCEC’s under-construction fleet includes six additional latest generation LNG/Cs, six dual-fuel medium gas carriers and four handy LCO2/multi-gas carriers, to be delivered between the first quarter of 2026 and the third quarter of 2027. For more information about the Company, please visit: www.capitalcleanenergycarriers.com.
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