Q2 2022 financial results

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BERMUDA, August 31, 2022 – Avance Gas Holding Ltd (OSE: AGAS) (“Avance Gas” or the “Company”) today reports unaudited results for the second quarter of 2022.

STRONG POINTS

  • The average time charter equivalent (TCE) rate on a load to unload basis was $36,212/day compared to $37,608/day for the first quarter of 2022. This figure was higher than the forecast of between 32,000 $/day and $33,000/day.
  • Daily operating expenses (OPEX) were $8,200/day, down from $8,500/day in the first quarter.
  • Net income of $18.4 million versus $24.3 million for the first quarter of 2022, or earnings per share of 24 cents versus 32 cents for the first quarter.
  • During the second quarter of 2022, the Company finalized the sale of the VLGC Providence built in 2008, with the vessel being delivered to the new owners in May. The sale generated a gain on sale of $4.5 million and a cash outflow of $25.8 million.
  • In May 2022, the Company signed a $555 million sustainability term facility with a banking syndicate. The facility is a refinancing of the previous bank facility financing the nine VLGCs, including financing for new buildings three and four, Avance Rigel and Avance Avior, for delivery in the first quarter of 2023, and an accordion option to finance the last two new buildings. for delivery in the fourth quarter of 2023 and the first quarter of 2024.
  • In August 2022, the Company signed a total $135 million sale-leaseback agreement with Bocomm Leasing to finance new buildings five and six, Avance Castor and Avance Pollux, scheduled for delivery in Q4 2023 and Q4 2023. first quarter of 2024. The transaction completes the financing of the unfunded capex-free new build construction program and is expected to release approximately $39 million in net cash upon delivery.
  • The Company has been ahead of the curve by hedging its interest rate exposure at attractive levels, resulting in gains of $5.1 million in the second quarter, bringing total gains in the first half of the year to $16.8 million in other comprehensive income.
  • The board declared a dividend for the second quarter of 2022 of $0.20 per share.
  • For the third quarter of 2022, we estimate a TCE rate of approximately $32,000/day on a load-unload basis.

Øystein M. Kalleklev, Executive Chairman, commented:

“We are delighted to deliver strong numbers for the second quarter. Time Charter Equivalent (TCE) revenue was $36,200 per day, well ahead of forecasts of $32-33,000 per day despite a very volatile freight market. We were also able to raise very attractive long-term financing for the last two VLGC dual-fuel newbuilds, bringing our remaining unfinanced investments below zero. With the global energy crisis, we believe the clean properties of LPG should be compelling, especially when combined with its affordability compared to other fuels. Therefore, we remain optimistic about the long-term outlook for LPG freight despite a fairly large order book for next year. With a strong cash balance of nearly $200 million, a fully funded fleet and healthy earnings of 24 cents per share, we are therefore once again declaring a dividend of 20 cents per share, which should provide our shareholders with a return very attractive by about 16%.

Please see attachments for second quarter results presentation and interim financial report

1. Presentation of Avance Gas Q2 2022 results

2. Avance Gas Q2 2022 interim financial report

Avance Gas will host an audio webcast and conference call to discuss the company’s results for the period ended August 31, 2022 on Wednesday, August 31, 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. Øystein Kalleklev – Executive Chairman
  • Mrs. Randi Navdal Bekkelund – CFO

The presentation will also be available via audio webcast, accessible on the Avance Gas website www.avancegas.com or follow the link

https://edge.media-server.com/mmc/p/2qv66omm

The conference call can be accessed via the following link:

https://register.vevent.com/register/BI996eb7bbc6b243e69202c5bec83562ad

For any other questions, please contact:

Øystein Kalleklev, Executive Chairman

Tel: +47 22 00 48 00

Randi Navdal Bekkelund, Chief Financial Officer

Tel: +47 22 00 48 29

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 new dual-fuel LPG vessels scheduled for delivery in the first quarter. 2023, in the fourth quarter of 2023 and in the first quarter. 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.

  • 2 Avance Gas Q2 2022 interim financial report

  • 1 Presentation of Avance Gas Q2 2022 results

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