Avance Gas Holding Ltd Reports Unaudited Results for the Fourth Quarter and Full Year of 2019
BERMUDA, 27 February 2020 – Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the fourth quarter and full year of 2019.
- The average time charter equivalent (TCE) rate was $51,358/day on discharge to discharge basis and $51,047/day on the basis of IFRS 15 accounting standard, compared to $44,295/day and $42,700/day respectively, in Q3 2019.
- The full year 2019 TCE rate on the basis of IFRS 15 accounting standard was $34,309/day, compared to $14,345/day in 2018. On a discharge to discharge basis, the rates was $35,220/day and $14,250/day, respectively.
- Daily operating expenses (OPEX) were $7,681/day, down from $8,089/day in Q3 2019. Full year 2019 OPEX was $7,983/day, up from $7,755/day in 2018.
- A&G expenses were $1,200/day in Q4, up from $1,003/day in Q3 2019 due to non-recurring items. Full year 2019 A&G expenses were $1,083 and $974/day for full year 2018.
- In December, Avance signed agreements to acquire two dual 91,000 CBM dual fuel VLGCs with DSME, for delivery Q4 2021 and Q1 2022.
- In February the company entered into agreement with its bank group for a $15 million tranche under the $515 million credit facility to part finance the scrubber installments for our fleet.
- The board has appointed Mr. Christian Fallesen as a director to fill a vacancy. Mr. Fallesen has extensive experience from the LPG industry and was until recently head of LPG for Petredec.
- The board declared a dividend of $0.30 per share for Q4 2019.
The strong freight markets continued in Q4, driven by strong US export volumes, low fleet growth and fleet efficiency disruption relating to IMO 2020. US has surpassed Middle East as the largest exporting region, both in Q4 and for full year 2019.
US Gulf and USEC VLGC exports were 8.6 million tons in Q4 2019, up from 8.1 million tons in Q3 2019 and 7.1 million in Q4 2018. Although entering into a seasonally slower period, the strong LPG production was sufficient to build record inventories and maintain continued strong export volumes. The previously announced Enterprise terminal expansion is expected to reach fully operation in Q1 2020. Much of the seasonal upswing in domestic demand has been supplied from volumes otherwise exported through the Marcus Hook LPG terminal. With the expected seasonal reduction in domestic demand, normally from March, we expect exports from the Marcus Hook terminal to rebound. US Gulf and USEC VLGC monthly exports totaled an average of 62 cargoes in Q4, compared to 59 monthly cargoes in both Q3 and full year 2019.
Middle East VLGC exports were 7.7 million tons in Q4 2019 with, down by 0.5 million tons from Q3 2019 and 0.2 million from Q2 2019. The OPEC production cuts combined with remaining instability in the region continue to impact export volumes. Average monthly cargoes exported was 59 in Q4, down from 62 in Q3 and 60 cargoes per month in 2019.
The global fleet totaled 288 ships by end January 2020. The orderbook consisted of 37 ships, equaling 13%, of which 16 ships are due for delivery during the remainder of 2020. Delays due to disruptions in the bunker markets and drydocking of ships has reduced fleet efficiency in Q4 and we expect this to continue.
The full report and interim financial statements are attached to this press release.
PRESENTATION AND WEBCAST
Avance Gas will host an audio webcast and conference call to discuss the company’s results for the period ended 31 December 2019 on Thursday, 27 February 2020, at 14:00 CET. There will be a Q&A session following the presentation. In order to attend the webcast and/or conference call you may do one of the following:
Dial in details are +44 (0)2071 928 000 (UK and International), +1 631-510-7495 (US) or +47 23 96 02 64 (Norway). Please quote the passcode: 1579384. Phone lines will open 10 minutes before the conference call.
For further queries, please contact:
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 (http://www.avancegas.com).
This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.