Frode Morkedal's questions to Cool Co (CLCO) leadership • Q2 2025
Question
Frode Morkedal of Clarksons Platou Securities requested details on the LNG E upgrade program, including completion status, remaining CapEx, and how the $5,000/day premium is derived. He also asked for a timeline on when the LNG demand balance might shift from Europe to Asia and questioned the role of older steam turbine ships in the current spot market.
Answer
CEO Richard Tyrrell clarified that four of five vessel upgrades are complete, costing about $10 million each, with one remaining in Q4. The premium is derived from upside-sharing agreements on three vessels and fixed payments on two others. He noted the market balance is influenced by both short-term volatility and the accelerated exit of older steam vessels in the weak market. He added that these older ships are often idled or underutilized by charterers, making them uncompetitive for new employment.