BERMUDA, 25 November 2020 – Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the third quarter 2020.
Q3 has been a strong period for LPG freight despite fluctuations in export volumes from US basins. US Gulf and USEC VLGC exports were 8.6 million tons, compared to 9.0 million tons in Q2 2020, 68 cargoes in July, 65 cargoes in August and 58 cargoes in September, illustrating this volatility. Preliminary numbers show a high activity into Q4, recording 76 cargoes in October, with continued high activity levels in November.
Middle East export activity has followed changes on OPEX+ production during 2020 adding significant volatility to the freight market. In Q3, Middle East VLGC exports totaled 7.5 million tons equaling a monthly average of 56 cargoes, compared to 7.8 million tons or 59 cargoes per month in Q2 2020.
Covid-19 and oil price volatility has disrupted LPG trade through temporary lower demand from the petrochemical industry and challenging US- Asia price differential. With a continued strong Asian retail demand and improving oil prices, the VLGC market has rebounded more quickly than expected and remained strong throughout the fall.
We continue to see inefficiencies driving the freight market with turn-time in China, slow discharge in India coupled with delays in Panama creating a lasting positive sentiment leading in to Q4.
The global fleet was 304 ships at end Q3 with approx. 18 of those operating as storage vessels. The order book is 12.5%, of which one ship expected for delivery in Q4. The effect of the order book will be partly mitigated by ~20-25% of the fleet due for special surveys 2020-2022 suggesting a positive outlook for the next few years.
PRESENTATION AND WEBCAST
Avance Gas will host an audio webcast and conference call to discuss the company’s results for the period ended 30 September 2020 on Wednesday, 25 November 2020, at 14:00 CET. There will be a Q&A session following the presentation.
The presentation and webcast will be hosted by:
·Mr. Ben Martin – CCO
·Mrs. Randi Navdal Bekkelund - CFO
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)2071 928 000 (UK and International), +1 631-510-7495 (US) or +47 23 96 02 64 (Norway). Please quote the passcode: 6259105. Phone lines will open 10 minutes before the conference call.
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 thirteen modern ships and two Dual Fuel LPG newbuildings due for delivery in 2021 and 2022. For more information about Avance Gas, please visit: www.avancegas.com (http://www.avancegas.com).
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act
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