Photo: Courtesy of Awilco LNG

Awilco LNG amends financial agreements for its tanker pair

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.

Awilco LNG amends financial agreements for its tanker pair
Courtesy of Awilco LNG

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.