Avance Gas Holding Ltd, today reported unaudited results for the quarter ended 28 February, 2014. Solid results were recorded mostly due to strong LPG market – US$ 0.50 per share dividend.
Some of the highlights for the period include:
On 31 January, 2014, Avance Gas paid US$ 139.2 million to Frontline 2012 Ltd as an initial installment for the eight 83,000 cbm very large gas carriers (VLGC) under construction at the Jiangnan Shipyard. The amount equates to approximately 23% of the purchase price, with the balance payable pro-rata upon delivery of each ship.
On 28 February, 2014, Avance Gas made a payment to Transpetrol for US$ 1.7 million as final settlement.
The trading activity in the fully refrigerated LPG market is historically lower towards the end of the fourth quarter through the first quarter of each calendar year, which has motivated exporters to schedule maintenance. In Q1 2014, a continued strong US LPG export market has driven VLGC demand, resulting in high fleet utilization. In such strong markets, charterers are securing tonnage four to six weeks ahead of their loading dates.
With high fleet utilization, the VLGC spot rates were higher during the first quarter of 2014 compared to prior years. However, the market weakened from the second half of January until early March.
“From early March onwards, we have seen freight rates at record high levels and the Baltic Index is currently quoted at an all-time-high of US$ 120-130/ton, equaling a time-charter equivalent rate of US$ 95,000 – 105,000/day, “ the company said.
[mappress] Avance Gas, April 29, 2014