Avance Gas Holding Ltd - Reports Unaudited Results for the First Quarter of 2018
BERMUDA, 8 May 2018 - Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the first quarter of 2018.
- The average time charter equivalent (TCE) rate for the fleet was $12,637/day, up from $11,164/day in Q4 2017
- TCE earnings in Q1 2018 were $14.5 million, up from $14.0 million in Q4 2017
- Daily operating expenses (OPEX) decreased to $7,408/day, down from $7,636/day in Q4 2017
- Avance Gas reported a net loss of $12.3 million, up from a net loss of $13.6 million in Q4 2017
- Avance Gas' available liquidity at quarter end was $97.1 million, consisting of available undrawn revolving credit facilities of $50.0 million and the company's cash balance of $47.1 million
US LPG production and export is the key driver for the VLGC freight market. The freight market in Q1 2018 weakened due to reduced exports from US, as low winter temperatures increased domestic LPG demand. However, US official statistics (EIA) show continued growth US LPG production and the US LPG exports are expected to return as domestic demand normalizes. Furthermore, as the new Mariner East II pipeline is commissioned during second half 2018, the Marcus Hook terminal on the US East Coast is expected to increase exports.
Average monthly US Gulf/US East Coast VLGC exports decreased to 46 cargoes Q1 2018, down from 48 cargoes in Q4 2017 but up from 45 cargoes for full year 2017. After recording 50 cargoes in January, the US Gulf/US East Coast export fell to 38 cargoes in February. This has had a negative impact on the freight market in March which has continued into Q2 2018. In March, VLGC export returned to 50 cargoes. Export volumes from Middle East were 8.6 million tons in Q1 2018, compared to 8.4 million tons in Q4 2017.
Four newbuildings have been delivered in Q1 2018. One more ship was delivered in April and five more ships are due for delivery before year-end. In 2019 and 2020, 32 ships are due for delivery, representing an aggregate 13% of the global fleet. The Avance Gas Spot Index (adjusted 30 days) for Q4 2018 averaged $11,124/day, compared with $9,400/day in Q4 2017.
The full report and interim financial statements are attached to this press release.
For further queries, please contact:
Christian Andersen, President
Tel: +47 22 00 48 05
Peder C. G. Simonsen, CFO
Tel: +47 22 00 48 15
ABOUT AVANCE GAS
Avance Gas Holding Ltd 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 carriers (VLGCs), operating a fleet of 14 modern ships.
For more information about Avance Gas, please visit: www.avancegas.com.
FORWARD LOOKING STATEMENTS
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Avance Gas believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.
The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice. This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.