CoolCo always looking at acquisitions, CFO says

Boots said during CoolCo’s second-quarter earnings call on Thursday that the company’s financial position “remains solid, giving us both stability and the flexibility to pursue growth when opportunities arise.”

Asked about the potential asset acquisitions and the opportunities CoolCo might be exploring, Boots said, “No, nothing in particular at this point.”

“We’re always looking at acquisitions, whether it’s companies and vessels,” he said.

“So it’s more a continued effort to look at these opportunities, but nothing concrete,” Boots said.

“And we’ve got the flexibility there with the RCF to do things. Obviously, we’ve done things in the past, and I think at the right time and created quite some value by doing that,” CoolCo CEO Richard Tyrrell said.

“But as John says, we’re always on the lookout, but nothing firm,” he said.

On the chartering market, Tyrrell said that CoolCo expects LNG carrier rates to strengthen as new LNG supply enters the market and believes that “patience in fixing our few open vessels for longer periods will be advantageous.”

“This outlook is supported by the ongoing idling and scrapping of older tonnage, as noted in prior updates,” he said.

CoolCo has seven TFDE LNG carriers it acquired from Golar LNG and the four LNG carriers it purchased from its largest shareholder Eastern Pacific Shipping.

Besides these vessels, CoolCo purchased two newbuild LNG carriers from EPS, and they feature GTT’s Mark III Flex membrane cargo tank system, reliquification, air-lubrication, and shaft generators.

The shipping firm exercised its option with affiliates of EPS Ventures in June 2023 to acquire newbuild contracts for the two 2-stroke LNG carriers.