Capital Clean Energy Carriers (NASDAQ:CCEC) reported second-quarter net income from continuing operations of $29 million, compared with $29.7 million a year earlier, as vessel additions increased revenue and the company advanced its LNG, LPG and liquid CO2 carrier expansion program.
Revenue rose to $104.9 million for the three months ended June 30, from $96.7 million in the prior-year period. Chief Financial Officer Nikos Kalampotharakos said the increase reflected a larger average fleet following the delivery of two handy gas carriers, the first dual-fuel medium gas carrier, and two LNG carriers.
Dividend, balance sheet and capital spending
Capital Clean Energy Carriers declared a quarterly dividend of $0.15 per share, payable Aug. 13 to shareholders of record as of Aug. 4. Kalampotharakos said the payment marks the company’s 77th consecutive quarterly cash dividend since its 2007 initial public offering.
Operating expenses increased year over year, partly because certain vessels incurred about $3.5 million in additional special-survey costs, according to the CFO. Depreciation and amortization also increased as the fleet expanded.
The company has two LNG carriers, Attalos and Asklepios, scheduled for special surveys in August. Following those dry dockings, no vessels are scheduled for special surveys until 2028, Kalampotharakos said. Management maintained guidance of roughly $5 million per dry dock and approximately 20 to 25 off-hire days, although completed dry docks have been below budget and involved fewer off-hire days.
Total assets increased to $4.7 billion from $4.1 billion at the end of 2025, driven mainly by growth in fixed assets as the newbuilding program progressed. Shareholders’ equity stood at $1.5 billion, while cash totaled $269 million and net leverage was about 54%.
During the quarter, the company repaid a €150 million bond issued in 2021 using proceeds from a €250 million bond issued in the first quarter. The newer bond carries a 3.75% annual coupon. Kalampotharakos said the company expects its remaining newbuilding capital expenditures to be fully funded, assuming 70% debt financing for vessels without financing arrangements and excluding internally generated cash flow.
The company also entered into two three-year zero-cost collars on compounded SOFR, covering $800 million in total notional debt. The collars have a weighted average floor of about 3.7% and a cap of 4.3%. About half of total debt is now either fixed-rate or protected against rising rates, management said.
Contracted LNG revenue and chartering plans
Head of Commercial Nikos Tripodakis said the LNG charter portfolio had about $2.8 billion in contracted revenue backlog, with an average remaining firm charter duration of 6.5 years. Including charter extension options, backlog rises to about $4.1 billion and the average duration extends to 9.4 years. Firm charter coverage reaches 2037, with options extending as far as 2043.
Management said three newbuilding vessels delivered in June and July secured employment, leaving only Amore Mio I open for the remainder of 2026. The vessel has a 10-year charter scheduled to begin in the first quarter of 2027, and the company said it aims to secure a bridging charter ahead of that employment.
Three more vessels are scheduled for delivery in the first quarter of 2027, including one that has long-term employment with a supermajor beginning in 2028. Tripodakis said management believes it is too early to commit the remaining vessels, expecting commercial interest to grow closer to delivery.
During the question-and-answer session, management said its Alcaios I vessel was placed on an 18-month index-linked charter based on Atlantic spot charter rates for modern two-stroke vessels, without a floor or ceiling. The company said it chose the shorter charter partly to diversify redelivery timing and preserve future long-term chartering options.
Tripodakis said LNG spot rates have been substantially higher during 2026, with an average of $93,000 so far this year compared with $39,000 last year. He attributed the conditions to the continuing Middle East conflict, elevated LNG prices and a wide spread between Japan-Korea Marker and Dutch TTF gas prices.
Gas-market outlook and fleet strategy
Management said the LNG market has been affected by reduced supply from Qatar and the United Arab Emirates, offset in part by rising U.S. production. Tripodakis said supply available to the market from Qatar and the UAE tightened by about 292 million cubic meters per day between March and June, while U.S. production increased by 132 million cubic meters per day.
The company expects U.S.-led LNG supply growth to support shipping demand into the early 2030s. Management said U.S. liquefaction capacity is expected to exceed 255 million tons per annum by the end of 2031, while global liquefaction capacity could approach 900 million tons per annum in the early 2030s.
Tripodakis said the company expects vessel demand tied to final-investment-decision-approved and committed LNG capacity to rise to roughly 706 vessels by 2031. He said this would exceed projected net fleet additions of about 255 vessels, while cumulative scrapping could surpass 160 vessels by 2031.
Jack Millen, head of the LPG business, said the company’s LPG and liquid CO2 newbuilding program comprises 10 vessels with 348,000 cubic meters of capacity, scheduled for delivery from January 2026 through July 2027. The fleet includes six dual-fuel, ammonia-ready medium gas carriers and four liquid CO2 carriers that can also transport LPG and ammonia.
Millen said the company intends to use shorter six- to 12-month charters in the medium gas carrier segment while considering longer-term opportunities. He said the strategy is designed to preserve exposure to stronger freight markets while maintaining a base level of contracted cash flow.
Management said it does not plan to order additional LNG carriers until it has more visibility on employment for some of its five currently uncommitted LNG newbuildings. The company said leverage could rise temporarily as vessels are delivered over the next several quarters before declining through debt amortization. It also said the board could reconsider dividend policy near the end of the original newbuilding program, potentially by late 2026 or early 2027.
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.
