Marinakis' CCEC expects weak LNG carrier market to accelerate removal of older vessels

"We anticipate the weakness in the spot and short-term period markets is likely to act as a catalyst for a potentially substantial reduction in older technology LNG vessels globally," noted CCEC chief executive Jerry Kalogiratos in the Q4 earnings report.

The US-listed shipowner emphasised this trend has gained momentum, with a record eight older steam turbine vessels sold for demolition last year. Currently, the steam turbine fleet accounts for approximately 200 vessels, or 32% of the total fleet.

US LNG export boost

This shift is one of the key reasons CCEC is optimistic about the LNG carrier market’s long-term prospects. Furthermore, Mr Kalogiratos highlighted the new US administration’s commitment to boosting LNG exports, which is expected to strengthen what is already anticipated to be a tight long-term demand-supply balance in LNG shipping.

According to CCEC’s presentation, about 200M tonnes per annum (mta) of new LNG liquefaction capacity has reached FID and is set to come online between 2025 and 2028. Additionally, roughly 150-170 mta is awaiting regulatory and investment approvals, which are expected to accelerate under the new US administration.

As a result, CCEC anticipates demand for LNG carriers will exceed supply over the next few years, tightening the market starting in 2026 and especially 2027 onwards.

Strong revenue and profit growth

In terms of financial results, CCEC posted increased revenues and net income, further reinforcing its focus on gas transport with the completion of five container vessel sales.

As of 31 December 2024, total cash amounted to US$337M.

Total revenue for 2024 reached US$369M, up from US$242M in 2023. Q4 revenue stood at US$105M, compared with US$64M in Q4 2023.

Net income from continuing operations surged to US$55M in 2024, up from US$7M in 2023, with Q4 net income of US$21M, compared with US$1M in the same period of 2023.

"CCEC is largely insulated from current spot market conditions, with our first open newbuilding set for delivery in Q1 2026," said Mr Kalogiratos. He added the company benefits from a contracted revenue backlog exceeding US$2.5Bn.

Fleet overview

In Q3 2024, CCEC announced the sale of five container vessels, four of which have been delivered to their new owners, with the final vessel set for delivery in Q1 2025.

Currently, CCEC’s fleet consists of 16 high-specification vessels, including 12 state-of-the-art LNG carriers and four legacy neo-Panamax container vessels (one of which will soon be transferred to its new owner). Additionally, the company has six LNG carriers, six dual-fuel medium gas carriers, and four handy liquid CO2/multi-gas carriers under construction, scheduled for delivery between Q1 2026 and Q3 2027.