Avance Gas Holding Ltd Reports Unaudited Results for the Third Quarter of 2019

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

BERMUDA, 26 November 2019 – Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the third quarter 2019.HIGHLIGHTSThe average time charter equivalent (TCE) rate calculated on a discharge-to-discharge basis was $44,295/day, up from $34,520/day in Q2 2019On the basis of IFRS 15 accounting standard the TCE was $42,700/day, up from $32,275/day in Q2 2019. TCE on a discharge to discharge basis adjusted for waiting days was $45,902/dayDaily operating expenses (OPEX) were $8,089/day, compared to $8,214/day in Q2 2019A&G expenses were $1,003/day, down from $1,220/day in Q2 2019Avance Gas has in November repaid the $35 million top up tranche, removing the related restricting covenants.  At the date of this report, the company held $65 million in cash.Agreed to acquire one additional exhaust gas cleaning system. The total number on order is six scrubbers and installment will be completed in Q1 2020.Extension of the time charter contract for Mistral until December 2021, at a TCE rate of $1.2 million per monthApprox. 88% of Q4 ship days have been fixed at an average rate exceeding $50,000/day.The freight markets remained firm in Q3 as the US LPG exports continued to grow, while the fleet growth continued at modest levels. US Gulf and USEC VLGC exports were 8.5 million tons in Q3 2019, up from 8.3 million tons in Q2 2019 and 7.0 million in Q3 2018. Supported by strong production and record high inventory levels, the healthy US LPG export continued throughout the quarter. The Mariner East II pipeline to Markus Hook has added significant volumes, with exports averaging 10 cargoes per month since March 2019. US Gulf and USEC VLGC monthly exports totaled an average of 59 cargoes in Q3, compared to 62 and 51 monthly cargoes in Q2 and Q1 2019, respectively.Middle East LPG exports in Q3 2019 were 8.2 million tons, up from 7.9 million tons in Q2 2019 and 7.8 million in Q1 2019. We have seen temporary disruptions related to oil tanker and refinery attacks in the area and we have seen lower Iranian export volumes compared to last quarter. Average monthly cargoes exported in Q3 was 62, up from 61 in Q2 but down from the average of 64 cargoes per month in 2018.Per October, the global fleet totaled approx. 280 ships, with an orderbook totaling 37 ships (13.2%), of which three ships are due for delivery in Q4 2019 and 21 ships are due for delivery in 2020. As expected we have seen efficiency disruptions relating to scrubber retrofits as well as fuel tank preparations ahead of the IMO 2020 emission rules in taking effect in January 2020.The full report and interim financial statements are attached to this press release.For further queries, please contact:Peder C. G. Simonsen, CFO
Tel: +47 22 00 48 15
Email: p.simonsen@avancegas.com (mailto:p.simonsen@avancegas.com)ABOUT AVANCE GASAvance 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 14 modern ships. For more information about Avance Gas, please visit: www.avancegas.com (http://www.avancegas.com).FORWARD-LOOKING STATEMENTS Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “anticipate”, “believe”, “continue”, “estimate”, “expect”, “intends”, “may”, “should”, “will” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Avance Gas believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.The information, opinions and forward-looking statements contained in this announcement speak only as at its date and are subject to change without notice.This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. AttachmentAvance Gas – Q3 2019 Earnings release and interim financial statement

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