FLNG - Cool Company: Keep Your Wallet Warm With A 14% Yield
2024-07-06 08:00:00 ET
Summary
- Cool Company operates a fleet of 11 LNG vessels and has two new build vessels on the way.
- The LNG market is rapidly expanding, running the risk of an oversupplied condition in the shipping market.
- Cool Company's balance sheet is stress tested to determine the stability of its 14% yield.
- I believe CLCO will be able to maintain this dividend through market weakness in 2025 and 2026.
- I rate CLCO as a BUY as a result of passing a balance sheet stress test.
Thesis
The Cool Company ( CLCO ) is a pure play LNG transportation company. CLCO owns and operates 11 LNG vessels with an additional 2 vessels scheduled to be delivered by the end of 2024. The stock price of CLCO is down 12% since my last analysis of the company on fears that the LNG market will be oversupplied as new vessels enter the market....
Cool Company: Keep Your Wallet Warm With A 14% Yield