Capital Clean Energy Carriers Corp. Q1 FY2024 earnings call

• Took delivery of LNG Carrier Axios II, second under 11 LNG Carrier acquisition. - Concluded sale of 2 container vessels, recognized $16.4 million gain. - Announced sale of 3 10,000 TEU containers and 2 Panamax container vessels. - First quarter net income $33.9 million or $17.5 million excluding gain on vessel sale. - Board declared $0.15 per common unit cash distribution. - Balance sheet: partner's capital $1.204 billion, total debt increased to $1.944 billion. - Container vessel sales progress: sold 7 vessels, expect to complete sales of remaining 2 in early May. - LNG fleet charter profile: 76 years contracted backlog at avg daily rate 88,500, could increase to 111 years if options exercised. - Corporate conversion progress: still making progress, expected to conclude over coming months.

In the first quarter of 2024, total revenue was $104.5 million compared to $81 million in the first quarter of 2023. Net income was $33.9 million or $17.5 million excluding gain on sale of vessels. The partnership's current fleet charter coverage for 2024 and 2025 stands at 100% and 82% respectively, with a contracted revenue backlog of $2.8 billion. Over 85% of contracted revenue from LNG vessels with a diversified customer base. Container vessel sales: sold 7 vessels, expect net proceeds after debt repayment of approx. $182.5 million, with net proceeds from delivered vessels used to repay Seller's Credit.

• Expect to complete sale of Aristomenis and Fos Express in early May. - Expect to take delivery of next 3 LNG Carriers at end of May, early June, and July. - Progress on corporate conversion expected to conclude over coming months.

• Market volatility affecting charter rates and vessel sales. - Geopolitical disruptions impacting LNG carrier transits and market conditions. - Uncertainties in timing and valuation of remaining container vessel sales.

Q: Regarding corporate conversion timing, still making progress, any update on feasibility?

A: Expect to announce plan in June or thereabouts, maybe slip a few weeks but nothing material, then shareholder vote.

Q: On Axios II contract mechanics, spot linked?

A: Fully floating, based on 2 Baltic indices, currently in seasonal low but market expected to pick up.

Q: Timing of dividend and capital return policy post-conversion?

A: Decision left for after conversion, idea to move to more flexible payout, exact details to be decided post-conversion.

Q: Transition from MLP to corporate and lenders?

A: No material change, no issues foreseen with lenders or bondholders.

Q: Terms of new builds and appetite for longer-term contracts?

A: Strategy is to fix vessels before delivery, discussions ongoing, target to fix before cost posting, expecting activity next year with floor in mid to low 90s per day for long-term market if demand materializes.