Norwegian LNG transportation provider Awilco LNG has agreed to an amendment to the financial covenants in the sale/leaseback facilities for the WilForce and the WilPride.
Under the agreement with CCB Financial Leasing the required minimum consolidated cash and cash equivalents financial covenant of $10.0 million has been reduced to $2.0 million.
The required consolidated positive working capital financial covenant has been waived, originally from July 1, 2020, to December 31, 2020, and now extended for a further six-month period, from January 1, 2021, to June 30, 2021, Awilcom LNG said in a statement on Monday.
As a condition of the extension, the company is restricted from declaring or paying dividends if the consolidated cash position of the Awilco LNG Group is lower than $20.0 million.
The anticipated colder winter, caused by La Nina weather effects, is expected to support a strong LNG shipping market the next few months until LNG demand is expected to resume its growth trajectory as a crucial part of cutting CO2 and a more sustainable energy mix.
The company’s results are expected to improve, Awilco said.