BERMUDA, November 24, 2022 – Avance Gas Holding Ltd (OSE: AGAS) (“Avance Gas” or the “Company”) today reports unaudited results for the third quarter of 2022.
The average time charter equivalent (TCE) rate on a load to unload basis was $32,954/day compared to $36,212/day for the second quarter of 2022. This was ahead of the forecast for approximately $32,000/day.
Daily operating expenses (OPEX) were $8,200/day, in line with the second quarter of 2022.
Net income of $11.6 million versus $18.4 million for the second quarter of 2022, or earnings per share of 15 cents versus 24 cents for the second quarter. Second quarter net income excluding the gain on sale was $13.9 million.
The Company continues to benefit from the interest rate hedges it has in place with gains of $7.8 million in the third quarter, bringing total gains this year to $24.6 million.
In August 2022, the Company signed a sale-leaseback agreement totaling $135 million for the financing of the new buildings five and six, Avance Castor and Avance Pollux, scheduled for delivery in the fourth quarter of 2023 and the first quarter of 2024. The transaction completes the financing of the new construction program with no unfunded financing. remaining capex and is expected to release approximately $39.4 million in net cash on delivery.
In November 2022, the company entered into an agreement to sell the VLGC pledge, generating profit of approximately $7.5 million and cash proceeds of approximately $20 million.
For the fourth quarter of 2022, we are booked at 93% and we estimate a TCE rate for the quarter between $45,000 and $50,000 per day on a load-to-discharge basis and between $50,000 and $55,000 per day on a landfill to landfill basis.
Øystein M. Kalleklev, Executive Chairman, commented:
“Today we are announcing third quarter figures for Avance Gas with average charter time equivalent (TCE) revenues of $33,000 per day, consistent with our guidance figures of approximately $32,000 per day. Although admittedly this was a little soft compared to the first and second quarters, however we are very well positioned for the fourth quarter with 93% of the quarter covered and we expect TCE earnings to increase in the region of $50,000 With strong volume growth and an increase in ton life, we now see the strongest LPG freight market since 2015. Given our positive outlook, strong balance sheet with plenty of cash and of the absence of unfunded capex, we are therefore once again pleased to declare a dividend of $0.20 per share for our shareholders.
Please see attachments for Third Quarter Results Presentation and Interim Financial Report
Avance Gas Q3 2022 results presentation
Avance Gas Q3 2022 Interim Financial Report
Avance Gas will host an audio webcast and conference call to discuss the company’s results for the period ended September 30, 2022 on Thursday, November 24, 2022 at 2:00 p.m. CET. A question and answer session will follow the presentation.
The presentation and webcast will be moderated by:
The presentation will also be available via an audio webcast, accessible on the Avance Gas website www.vancegas.com or follow the link
The conference call can be accessed via the following link:
For any other questions, please contact:
Øystein Kalleklev, Executive Chairman
Tel: +47 23 11 40 00
Randi Navdal Bekkelund, Chief Financial Officer
Tel: +47 22 11 40 00
About Advance Gas:
Avance Gas operates in the global liquefied petroleum gas (LPG) transportation market. The company is one of the world’s leading owners and operators of Very Large Gas Carriers (VLGCs) and operates a fleet of thirteen modern vessels, including two new dual-fuel LPG vessels and four additional new dual-fuel LPG vessels scheduled for delivery in 2023. and in the first quarter of 2024. For more information about Avance Gas, please visit www.avancegas.com.
This information is subject to the disclosure requirements in accordance with section 5-12 of the Norwegian Securities Act.