Avance Gas Holding Ltd - Reports Unaudited Results for the Fourth Quarter and Full-Year 2017
BERMUDA, 15 February 2018 - Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the fourth quarter and full-year 2017.
Market shows marginal improvement in Q4 2017, after bottoming out in Q3 2017:
- The average time charter equivalent (TCE) rate for the fleet was $12,163/day in Q4 2017, up from $7,524/day in Q3 2017. The average TCE rate for full-year 2017 was $10,646/day, down from $18,324/day in 2016.
- TCE earnings in Q4 2017 were $15.3 million, up from $9.7 million in Q3 2017. TCE earnings for full-year 2017 were $53.8 million, compared with $92.7 million in 2016.
- Average daily operating expenses (OPEX) for Q4 2017 were $7,636/day, compared with $7,496/day in Q3 2017. OPEX for full-year 2017 were $7,621/day, down from $7,764/day in 2016.
- Avance Gas reported a net loss of $12.4 million in Q4 2017, compared with a net loss of $17.8 million in Q3 2017.
- The net loss for full-year 2017 was $54.8 million. This compared with a net loss of $68.2 million for full-year 2016, which included impairment charges of $53.3 million.
- Avance Gas' available liquidity at quarter end was $112.3 million, consisting of available undrawn revolving credit facilities of $50.0 million and the company's cash balance of $62.3 million.
The VLGC freight market gradually improved in Q4 2017, as increased US LPG production and LPG forward prices in contango led to higher LPG trading activity, however offset by eight ships delivered into the market during Q3, impacting tonnage supply in Q4 2017. Average monthly US VLGC exports increased to 48 cargoes per month in Q4, up from 41 cargoes in Q3. Middle Eastern LPG export volumes decreased by 1.3 million tons to 8.5 million tons in Q4, in line with expectations.
One VLGC newbuilding was delivered in Q4 2017, bringing the number of newbuilding deliveries during 2017 to 20 ships. Four newbuildings scheduled for delivery in the quarter slipped into Q1 2018. The orderbook by end 2017 consisted of 30 ships, representing 11% out of a total VLGC fleet of 261 ships. Avance Gas' fleet utilization for the quarter was 96.6% in Q4, compared with 97.0% in Q3 2017.
The Avance Gas Spot Index (adjusted 30 days) for Q4 averaged $9,400/day, compared with $5,843/day in Q3 2017 and $10,351/day for full-year 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.