Capital Clean Energy Carriers (NASDAQ:CCEC) executives used the company’s fourth-quarter 2025 earnings call to detail continued progress in shifting the fleet toward gas transportation, highlight new LNG carrier investments and financing activity, and discuss a sharp change in LNG shipping market conditions tied to geopolitical events in the Middle East.
Quarterly results and shareholder returns
Management reported net income from continued operations of $28.4 million for the fourth quarter of 2025. The company paid a $0.15 per share dividend on Feb. 12 to shareholders of record on Feb. 3, and said it has now paid a cash dividend for 75 consecutive quarters since its listing in March 2007.
Fleet transition: container vessel sales and gas focus
After these divestments, the company said it has one container vessel remaining. Management said that ship remains on a long-term charter with a “blue-chip” counterparty through 2033, with options extending to 2039, and continues to generate positive cash flow. Kalogiratos emphasized the company would consider selling the final container asset only if the deal is accretive.
During the question-and-answer session, management added that the remaining container vessel’s financing structure includes tax equity, which makes a sale more complex. The company said it expects to remain opportunistic, potentially selling if an attractive deal emerges or holding the ship closer to the end of its charter.
Balance sheet, liquidity, and bond issuance
Kalogiratos said the company ended the year with a cash position of $296 million, including restricted cash, and a net leverage ratio just short of 49%. He also referenced the completion of another 13,700 TEU container vessel sale in early 2026 as part of what he called a disciplined capital recycling strategy.
On financing, management discussed bond market activity following quarter-end. Kalogiratos said the company raised EUR 250 million through a newly issued unsecured bond, and after hedging currency and interest-rate exposure, the company expects an all-in cost of about 5.11% for roughly $295 million in dollar terms. Proceeds will be used in part to refinance an outstanding bond (described as EUR 100 million and EUR 150 million issued in 2021 and maturing later in 2026), with the remainder directed to the newbuild program and general corporate purposes.
Earlier in the prepared remarks, Kalogiratos also referenced a separate bond issuance of EUR 200 million listed on the Athens Stock Exchange to enhance balance sheet flexibility.
Newbuild program and contracted backlog
Management highlighted contracted coverage in its LNG fleet, stating the company has 90 years of contracted backlog at an average time charter equivalent (TCE) of approximately $86,800 per day, representing about $2.7 billion of contracted revenue. If extension options are exercised, the company said backlog would increase to 123 years and approximately $3.9 billion of contracted revenue.
The company also reiterated it is working with multiple financing sources for nine LNG carriers still due for delivery, and said it is encouraged by progress and hopes to provide more detail in the next quarterly update. Kalogiratos said capital expenditures in 2026 and 2027 are expected to be weighted toward LNG carriers, assuming on average about 70% debt financing.
During the quarter, the company contracted three “state-of-the-art” LNG carrier newbuilds at HD Hyundai Samho in South Korea, with deliveries scheduled for one vessel in the fourth quarter of 2028 and two vessels in the first quarter of 2029. Management said the ships will include enhancements to fuel efficiency, boil-off rates, and liquefaction capacity, and characterized the delivery profile as optimized for a period when the orderbook appears undersupplied.
On fleet operations, the company said it has four upcoming LNG dry docks: Adamastos in the first quarter of 2026 and Aristachos, Attalos, and Asklipios expected in the next quarter. Guidance remained $5 million all-in cost per dry dock and about 20–25 days of hire per docking.
Management also outlined near-term deliveries in the gas segment. The company said it expects to take delivery of a second liquid CO2 carrier and a handysize LPG carrier (Amadeus) at the end of April 2026, followed by its first dual-fuel 45,000 cbm medium gas carrier (Aristogenis) in early June.
In early 2026, the company took delivery of the Active, described as the world’s first 22,000 cbm liquid CO2 multi-gas carrier. Management said the vessel can transport liquid CO2, LPG, ammonia, and other petrochemicals, and remains competitive in the conventional semi-refrigerated gas market. The Active is employed on a six-month charter transporting LPG with an optional extension. In Q&A, Kalogiratos said the headline rate is $25,000 per day, while the implied TCE after ballast and repositioning is about $21,000 per day for the initial six months. If the option is exercised, management said the headline rate would be $32,000 per day, with a blended average including repositioning of roughly $25,000–$26,000 per day over a full year.
LNG market commentary: spot surge and Middle East disruption
Chief Commercial Officer Nikos Tripodakis described a strong, short-lived spot market rally in the fourth quarter, with spot rates exceeding $100,000 per day in mid-December, the highest in two years. He attributed the move to a surge in U.S. LNG production, temporary arbitrage opportunities, and logistical constraints that absorbed available tonnage.
Tripodakis also emphasized that modern two-stroke vessels captured more upside than older steam ships. He said that while two-stroke charter rates rose by about $32,000 per day on average through the fourth quarter, steam rates increased only about $7,000 per day and continued to trade below operating expense levels, reinforcing the company’s focus on modern tonnage. He added that 2025 became a record year for scrapping, with 15 steam vessels exiting the fleet.
On ordering dynamics, Tripodakis said newbuild activity increased in the fourth quarter and contributed to a modest rise in newbuilding prices, citing limited yard capacity for 2028 and 2029. He also stated that of 30 newbuildings in the open orderbook referenced in the presentation, six (20%) are controlled by the company, which he said positions it to benefit as charterers seek modern vessels from 2027 onward. He said the company anticipates a potential market “inflection point” in late 2027 or early 2028 as LNG supply growth drives additional vessel demand, with removals of older ships tightening the balance.
Tripodakis devoted a significant portion of his remarks to the Middle East, citing heightened risk in and around the Strait of Hormuz following coordinated U.S.-Israel strikes on Iran on Feb. 28 and subsequent U.S.-Iran conflict dynamics. He said many commercial vessels are avoiding the area due to security concerns including missile and drone attacks, AIS interference, and withdrawal of war risk insurance, disrupting shipping patterns and energy flows. He noted that roughly 20% of global LNG exports originate from the Arabian Gulf, primarily Qatar’s Ras Laffan, and said Israel had shut down at least two major gas fields, potentially forcing Egypt and Jordan to increase LNG imports by up to 65 cargoes per year to replace lost pipeline supply.
Tripodakis said prompt-month global gas prices more than doubled at points during the week, with Asian prices trading at a premium to TTF, and described an “unprecedented” rise in LNG spot charter rates from around $40,000 per day the prior week to around $300,000 per day on a round-trip basis for March and April loadings. He also referenced term indications above $100,000 per day for 12 months on modern vessels, while stressing the key uncertainty is the duration of the conflict.
In Q&A, management said it had not been directly affected operationally, adding that charters were continuing as agreed and that it had no vessels within the Gulf at that time. Executives also said they were seeing increased inquiries for term employment on newbuilds, though they cautioned that longer-duration deals would depend on how long current conditions persist.
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.
