Cool Co Ltd. (NYSE: CLCO)

CoolCo Ltd., also known as CLCO, operates in the liquefied natural gas (LNG) transportation and infrastructure industry. The company, established in 2018, is listed on the Euronext Growth Oslo and the New York Stock Exchange (NYSE) under the symbol CLCO.

CoolCo is engaged in the acquisition, ownership, operation, and chartering of liquefied natural gas carriers (LNGCs) and floating storage and regasification units (FSRUs). These primary products are integral to the transportation and storage of LNG, a cleaner energy source. CoolCo's operations span across various countries, with a focus on major energy companies, commodity traders, and end-users.

Revenue for CoolCo is generated primarily through time charters, which are contracts for the use of its ships for a specified term at a daily hire rate. This hire rate is payable in U.S. dollars on a monthly basis in advance. The staggered expiration dates of these charters help mitigate the risk associated with fluctuations in cyclical LNG shipping rates.

CoolCo's fleet consists of nine modern TFDE LNGCs and two modern 2-stroke LNGCs, offering a total cargo capacity of approximately 1.8 million cubic meters. These vessels are registered with the maritime register of the Republic of the Marshall Islands or Liberia, ensuring compliance with EEXI/CII regulations. The company also manages a fleet of eight LNGCs and nine FSRUs on behalf of third-party owners, providing ship management services including crewing, maintenance, and operations.

The competitive landscape in the LNG transportation and infrastructure industry is intense, with companies like GasLog, Teekay LNG, and Hoegh LNG as key competitors. CoolCo's competitive advantages include its modern and efficient fleet, strong relationships with customers and suppliers, and its ability to deliver high-quality customer service.

CoolCo's largest customers include energy companies such as Shell, Total, and Eni, as well as commodity traders like Vitol and Trafigura. The company's business strategies include capitalizing on the growing demand for LNG shipping, expanding its fleet through strategic acquisitions, maintaining a balanced chartering strategy, providing high-quality customer service, and reducing its environmental impact.

In terms of its brand names and trade names, CoolCo's LNG vessels are designed to transport LNG from production facilities to consumption centers around the world. The company's fleet consists of nine modern TFDE LNGCs and two modern 2-stroke LNGCs, all of which are compliant with EEXI/CII regulations. CoolCo's environmental commitment extends to compliance with various international treaties, conventions, and national and subnational laws and regulations, all aimed at reducing environmental impact.

In managing risks, CoolCo has implemented a comprehensive risk management program that includes computer-aided risk analysis tools, maintenance and assessment programs, a seafarers' competence training program, seafarers' workshops, and membership in emergency response organizations. This program is designed to identify and mitigate potential risks, ensuring the safe and efficient operation of its vessels.

CoolCo is subject to EU regulations related to greenhouse gas emissions, including the EU Emissions Trading System Directive and the International Maritime Organization's (IMO) GHG Strategy. The company is also subject to US regulations related to greenhouse gas emissions, including the Clean Air Act and the EPA's regulations on GHG emissions from vessels. Additionally, CoolCo complies with the International Labour Organization's (ILO) Maritime Labor Convention 2006, which requires vessels to have a Maritime Labor Certificate and a Declaration of Maritime Labor Compliance.