BERMUDA, 25 November 2021 – Avance Gas Holding Ltd (OSE: AGAS or the “Company”) today reported unaudited results for the third quarter 2021.
HIGHLIGHTS
- The average time charter equivalent (TCE) rate was $27,548/day compared to $27,730/day in Q2 2021. TCE includes a ballast cost of $689/day for three TC contracts entered in Q3.
- Daily operating expenses (OPEX) were $8,610/day, down from $9,311/day in Q2 2021. OPEX was impacted by Covid-19 crew and freight cost of $650/day. A&G expenses were $1,549/day, compared to $1,357/day in Q2 2021.
- In September 2021, the Company entered into three Time Charter Agreements for a period of 2 years at an average hire level of approximately $30,000/day net to Owners.
- In October 2021, the Company signed a term sheet for the refinancing of the VLGC Iris Glory (2008) by way of a sale leaseback transaction. The loan amount is $41.65 million and bears an implied 22-year age adjusted profile and a tenor of 9 years and will generate net cash proceeds of approximately $16.6 million subject to credit approval, normal documentation and closing procedures.
- In October 2021, the final results of the mandatory offer were announced and following the settlement, Hemen Holding Limited owns 59,382,696 shares in Avance Gas representing approximately 76.70% of the registered share capital and voting rights in the Company.
- The board declared a dividend of $0.05 per share for Q3 2021 corresponding to $3.8 million.
- For the fourth quarter of 2021, we estimate TCE rate of approximately $28,000/day contracted for 94% of vessel days including approximately 50 waiting days (Northbound) in the Panama Canal.
The VLGC freight market was impacted by low US inventory levels, high US LPG prices and thereby a narrowed US-Asia arbitrage. Despite the unfavorable LPG price differential, Asian demand and US export volumes stayed firm.
US Gulf and USEC VLGC exports increased to 80 cargoes on a monthly average for Q3, slightly up from 78 cargoes in Q2 and up 20% from Q3 last year (68 cargoes/month). The increase reflects higher volumes primarily from the terminals Enterprise and Markus Hook. In Q3, Middle East VLGC exports were slightly up recording 50 cargoes (excluding Iran) on a monthly average, compared to 48 cargoes per month in Q2 2021.
PRESENTATION AND WEBCAST
Avance Gas will host an audio webcast and conference call to discuss the Company's results for the period ended 30 September 2021 on Thursday, 25 November 2021, at 14:00 CET. There will be a Q&A session following the presentation.
The presentation and webcast will be hosted by:
* Mr. Kristian Sørensen - CEO
* Mrs. Randi Navdal Bekkelund - CFO
* Mr. Ben Martin - CCO
The presentation will also be available via audio webcast, which can be accessed at Avance Gas' website www.avancegas.com (http://www.avancegas.com). Dial in details are +44 (0) 20 7192 8338 (UK and International), +1 646-741-3167 (US) or +47 21 56 30 15 (Norway). Please quote the passcode: 2757655. Phone lines will open 10 minutes before the conference call.
For further queries, please contact:
Kristian Sørensen, CEO
Tel: +47 22 00 48 10
Email: kristian.sorensen@avancegas.com
Randi Navdal Bekkelund, CFO
Tel: +47 22 00 48 29
Email: randi.navdal@avancegas.com
ABOUT AVANCE GAS
Avance Gas operates in the global market for transportation of liquefied petroleum gas (LPG). The Company is one of the world's leading owners and operators of very large gas carrier (VLGC) and operates a fleet of thirteen modern ships and six Dual Fuel LPG newbuildings due for delivery in Q1 2022, Q4 2022 and Q1-Q4 2023. For more information about Avance Gas, please visit www.avancegas.com.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
Attachment
