BERMUDA, August 30, 2023 – Avance Gas Holding Ltd (OSE: AGAS) (“Avance Gas” or the “Company”) today reports unaudited results for the second quarter 2023.
HIGHLIGHTS
Øystein Kalleklev, CEO of Avance Gas, commented:
“In the second quarter, Avance Gas replicated the solid numbers from the first quarter with quarterly net profits of $36 million. With $72 million in profits for the first half of the year, Avance Gas thereby delivered its highest ever profits for the first half of the year. With a tight shipping market and high product arbitrage between US and Asia supporting strong freight levels, we anticipate doing even better in the second half of the year with expected TCE/day in the third quarter in the high $50s compared to an average of mid $50’s in the first half of the year. With two new large dual fuel VLGCs delivered during the first half of the year, we also have more vessel days available in the second half of the year compared to the first half which increase our earnings capacity.
We have also during the last three months invested close to $250 million by contracting four medium sized dual fuel combination carriers for LPG and ammonia (MGC). The MGCs are scheduled for delivery at end of 2025 into 2026, and the ships have been contracted at a very favourable price point. We are financing the expansion into a new attractive sub segment by way of divesting our older 2008/2009 vintage VLGCs. Last year we sold three VLGCs of this vintage and we recently announced the sale of the 2008 built VLGC, Iris Glory, at $60 million which will generate a book gain of approximately $22 million once the ship is delivered to new owners.
With these four ship divestures, we only have one remaining 2008 vintage VLGC left in the fleet, Venus Glory which is on Time Charter until end of 2023. Hence, we are continuously renewing the fleet by selling older ships while at the same time taking delivery of new dual fuel VLGCs and contracting the new dual fuel MGCs which can carry ammonia as well as LPG. This enables us to further improve our carbon footprint while at the same time diversifying the cargo types which our ships can transport. This means we are well positioned to comply with the stricter decarbonization rules the industry is now facing.
Given the strong earnings, the constructive outlook for the VLGC market and our healthy financial position, we are therefore pleased to declare a quarterly dividend per share per share of $0.50, bringing the dividend paid-out during the last twelve months to $1.70 per share. This provides Avance Gas shareholders with an attractive running yield of about 17 per cent.”
PRESENTATION AND WEBCAST
Avance Gas will host an audio webcast and conference call to discuss the company’s results for the period ended 30 June 2023 on Wednesday, 30 August 2023, at 14:00 CET. There will be a Q&A session following the presentation.
The presentation and webcast will be hosted by:
The presentation will also be available via audio webcast, which can be accessed at Avance Gas’ website www.avancegas.com or using the link: https://edge.media-server.com/mmc/p/g4xwbf33
Guests can log into the conference call using the following link https://register.vevent.com/register/BI6fd67101710a4a2a8df9b23faef20825
For further queries, please contact:
Øystein Kalleklev, CEO
Tel: +47 23 11 40 00
Randi Navdal Bekkelund, CFO
Tel: +47 23 11 40 00
Email: IR@avancegas.com
ABOUT AVANCE GAS
Avance Gas 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) and owns twenty LPG ships consisting of fourteen modern VLGCs on water as well as two dual fuel LPG VLGCs for delivery in early 2024 and now four dual fuel MGCs for delivery in 2025 and 2026.
For more information about Avance Gas, please visit www.avancegas.com
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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