BERMUDA, 20 October 2016 - Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the third quarter of 2016.

Q3 2016 results reflected the impairment of ships and the continued impact of weak freight rates:

• Avance Gas reported a net loss of $60.7 million in Q3 2016, which included an impairment charge of $45.3 million related to the VLGC fleet and a goodwill impairment of $1.9 million. This compared to a net loss of $14.5 million in Q2 2016.
• Excluding these charges, and impairment charges for Gaea recorded in Q2, the net loss in Q3 2016 was $13.5 million, compared with net loss of $8.4 million in Q2 2016.
• The average time charter equivalent (TCE) rate for the fleet was $10,131/day in Q3 2016, down from $15,142/day in Q2 2016.
• TCE earnings in Q3 2016 were $12.9 million, down from $19.2 million in Q2 2016.
• Average daily operating expenses (OPEX) for Q3 2016 were $7,361/day, compared with $8,228/day in Q2 2016.
• The Board did not declare any dividend for the quarter.

Significant recent events:

• In September, the company reached an agreement for the sale of the LNG carrier Gaea with delivery December 2016. The sale will generate net cash proceeds of approximately $13.3 million, in line with the book value of the ship.
• In October, subsequent to quarter end, Avance Gas reached agreement with its bank syndicates to amend the existing terms of its two credit facilities. The amended terms include a 50% reduction in scheduled loan repayments from 1 January, 2017 until 30 June, 2019, totaling $55.0 million in deferred loan repayments. A reduction in the minimum value to loan, book equity and equity ratio covenants was also agreed. The agreement with the banks is subject to the company raising minimum $55.0 million in new equity.

              
The weak freight market continued in Q3 2016, despite reported high global fleet utilization. Avance Gas' fleet utilization was 95% during Q3 2016. LPG exports from the Middle East increased to 10.4 million tons in Q3 2016, from 9.7 million tons in Q2 2016 and 9.4 million tons in Q3 2015. The VLGC export from US Gulf and US East Coast continued, however preliminary numbers for September indicates that average monthly VLGC liftings Q3 2016 fell to 30 cargoes, with August recording 27 VLGC cargoes. This compares to an average of 37 VLGC cargoes per month in Q1 2016 and 39 VLGC cargoes per month in Q2 2016. Long-haul US - Far East export remained strong with 6.9 million tons for January - August 2016, representing 50% of total US VLGC exports. The Avance Gas Spot Index (adjusted 30 days) averaged $10,223/day in Q3 2016, compared with $17,816/day in Q2 2016.

The full report and interim financial statements are attached to this press release.

Avance Gas will hold a conference call to discuss the company's results for the period ended 30 September 2016 on Thursday, 20 October 2016, at 15:00 CET.

The presentation will also be available via audio webcast, which can be accessed at Avance Gas' website www.avancegas.com. Dial in details are +44(0)20 3427 1908 (UK and International),
+1646 254 3365 (US) or +472316 2787 (Norway). Please quote the passcode: 97 03 863. Phone lines will open 10 minutes before the conference call.

For further queries, please contact:

Christian Andersen, President
Tel: +47 22 00 48 05
Email: c.andersen@avancegas.com