BERMUDA, February 22, 2022 – Avance Gas Holding Ltd (OSE: AGAS or the “Company”) today released unaudited results for the fourth quarter of 2021.
- The average time charter equivalent (TCE) rate was $27,631/day compared to $27,548/day in the third quarter of 2021. The TCE rate for the year 2021 was $31,302/day compared to 32,418 $/day in 2020.
- Daily operating expenses (OPEX) were $8,139/day, compared to $8,610/day in the third quarter of 2021. Full-year 2021 operating expenses were $8,871/day, compared to $8,968 /day in 2020.
- A&G expenses were $1,351/day, compared to $1,549/day in Q3 2021. A&G expenses for the full year 2021 were $1,363/day, compared to $771/day in 2020.
- In December 2021, the Company successfully executed a sale-leaseback transaction of the VLGC Iris Glory, generating approximately $16.6 million in net cash proceeds.
- In January 2022, the company took delivery of Avance Polaris, the first of its six new 91,000 m3 VLGC vessels from the Deawoo shipyard in South Korea. The vessel was delivered shortly thereafter to TotalEnergies under a 2-year time charter contract.
- In January 2022, the company entered into a contract to sell the 2008-built VLGC Thetis Glory with delivery in February after its current voyage. Following the repayment of debt, the sale will generate approximately $22.5 million in net cash proceeds and an accounting profit of approximately $6.0 million.
- In January 2022, the Company entered into a 2-year time charter contract for the second dual-fuel VLGC, Avance Capella.
- The board of directors declared a dividend of $0.05 per share for the fourth quarter of 2021, corresponding to $3.8 million.
- For the first quarter of 2022, we estimate the TCE rate to be around $40,000/day contracted for 80% of ship days.
As we anticipated in our third quarter outlook, the last quarter of 2021 was characterized by a firming winter market, where spot rates fell from $30,000 per day in October to $50,000 per day. in December on the modern tonnage equipped with scrubbers. Relatively mild winter temperatures in the United States have allowed competitively priced American gas to meet the needs of Asian and European markets, with demand surging due to political unrest on the Russian-Ukrainian border, seasonal cold weather as well as the ongoing energy crisis in Europe. .
In the United States, exports averaged 82 VLGC loads/month in Q4, up 2 from 80 loads/month in Q3. On a yearly basis, US VLGC loads averaged 78 loads per month for 2021, up 8 from 70 loads/month in 2020.
Middle East exports averaged 50 VLGC/month for the fourth quarter, which was in line with the previous quarter as well as the average for the year which, in turn, was slightly below average of 2020 of 53 shipments per month. Crude oil production cuts agreed by OPEC+ continue to impact LPG exports from the region, particularly from Saudi Arabia. However, with production cuts slowly being reversed, LPG exports increased throughout the second half of last year.
In addition to higher global export volumes in the fourth quarter, the Panama Canal wait time absorbed capacity from the VLGC fleet where it peaked in November with the average wait time being around 12 days both for transits north (on owner’s account) and south (on charterer’s account). The wait time for VLGCs throughout the quarter varied from 3 to 20 days depending on the arrival date and we anticipate that uncertainty will also prevail in 2022 when pre-booked slots for VLGCs will no longer be available. .
PRESENTATION AND WEBCAST
Avance Gas will host an audio webcast and conference call to discuss the company’s results for the period ended December 31, 2021 on Tuesday, February 22, 2022 at 2:00 p.m. CET. A question and answer session will follow the presentation.
The presentation and webcast will be moderated by:
- Mr. Kristian Sørensen – CEO
- Mrs. Randi Navdal Bekkelund – CFO
The presentation will also be available via audio webcast, accessible on Avance Gas’ website www.avancegas.com or by following the link https://edge.media-server.com/mmc/p/8ftxfsuh.
The phone number is +44 20 7192 8338 (UK and international), +1 646 741 3167 (US) or +47 21 56 30 15 (Norway). Please quote the password: 3461298. Phone lines will open 10 minutes before the conference call.
For any other questions, please contact:
Kristian Sorensen, CEO
Tel: +47 22 00 48 10
Randi Navdal Bekkelund, Chief Financial Officer
Tel: +47 22 00 48 29
This information is subject to the disclosure requirements in accordance with section 5-12 of the Norwegian Securities Act.
Avance Gas – Publication of 4th quarter 2021 results and interim financial statements