HIGHLIGHTS
- The average time charter equivalent (TCE) rate was
$37,608 /day compared to$27,631 /day in Q4 2021. - Daily operating expenses (OPEX) were
$8,459 /day, up from$8,139 /day in Q4 2021. - A&G expenses were
$1,126 /day, down from$1,351 /day in Q4 2021. - Net profit of
$24.3 million compared to$7.5 million for the fourth quarter 2021, or earnings per share of32 cent compared to10 cent for the fourth quarter. - During the first quarter 2022, the CEO and the Chairman elected to step-down. The Board resolved to appoint Øystein Kalleklev as Executive Chairman and
Jens Martin Jensen as a Director of the Company. - During the first quarter 2022, the Company took delivery of Avance Polaris and
Avance Capella , the first two of its six dual fuel 91,000 cbm VLGC newbuildings fromDaewoo Shipyard inSouth Korea . The vessels were shortly thereafter delivered on Time Charter Agreements for 2 years.
- During the first quarter 2022, the Company entered two contracts to sell the 2008-built VLGCs Thetis Glory and Providence. These vessels were subsequently delivered to the new owners in March and May, respectively. The transactions generated in total
$48.3 million in net cash proceeds at delivery. - In
May 2022 , the Company signed a$555 million sustainability-linked term facility with a bank syndicate. The facility is a refinancing of the previous bank facility financing the nine VLGCs including a financing of the newbuildings three and four,Avance Rigel and Avance Avior, for delivery in the fourth quarter 2022 and the first quarter 2023. - The board declared a dividend of
$0.20 per share for Q1 2022 corresponding to$15.3 million . - For the second quarter of 2022, we estimate TCE rate between approximately
$35,000 /day and$36,000 /day on a discharge to discharge basis and between$32,000 /day and$33,000 /day on a load to discharge basis.
The first quarter started with a strong LPG price differential between US and
The US VLGC exports averaged 80 cargoes per month for the first quarter with March reaching the all-time high record with 90 cargoes which is ~15% above the monthly average for 2021 of 78 cargoes. The growth in the US export capacity states higher terminal utilization in
The Middle East VLGC exports (excluding
Combined with strong US export volumes and a strengthening LPG price arbitrage in April, we continue to see the usual inefficiencies in the LPG market in particular delays in
The geopolitical tensions and energy levels have and still are impacting bunker prices and earnings while the trade pattern remains unchanged as 80% of the demand is East of Suez. Short-term the VLGC segment has not been directly impacted by the geopolitical situation in
PRESENTATION AND WEBCAST
The presentation and webcast will be hosted by:
- Mr. Øystein Kalleklev – Executive Chairman
- Mrs. Randi Navdal Bekkelund - CFO
The presentation will also be available via audio webcast, which can be accessed at Avance Gas’ website www.avancegas.com or follow the link https://edge.media-server.com/mmc/p/3gib5uy6.
Dial in details is +44 20 7192 8338 (
For further queries, please contact:
Øystein Kalleklev, Executive Chairman
Tel: +47 22 00 48 00
Email: oystein.kalleklev@avancegas.com
Randi Navdal Bekkelund, CFO
Tel: +47 22 00 48 29
Email: randi.navdal@avancegas.com
About
For more information about
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
Attachment
Avance Gas - Q1 2022 Earnings Release and Interim Financial Statements
© OMX, source