Awilco LNG posts Q3 loss, freight income slightly down

Oslo-based Awilco LNG, the owner of two 156,000-cbm LNG carriers, reported a lower net loss in the third quarter due to the sale of its two laid-up carriers.

Awilco LNG reduced its net loss to US$4.2 million in the third quarter, as compared to $11.5 million in the previous quarter, the LNG shipper said on Friday.

“WilEnergy and WilGas were sold and delivered to new owner on 18 August 2016, contributing with a net positive cash effect of $32.2 million including settlement of bunkers and lubes.”

Awilco LNG’s third-quarter freight income stood at $8.4 million, slightly down as compared to $8.3 million in the same quarter a year ago.

Earnings before tax and amortisation (Ebitda) were at $4.6 million. This compares to Ebitda of $2.8 million in the third quarter last year.

Awilco LNG posted a freight income of $8.3 million and an Ebitda of $4.2 million in the second quarter of this year.

Prices improve in Europe and Far East

The increasing gas price trend in Europe and Far East from the last quarter continued in the third quarter, Awilco LNG said in its report.

“The Far East gas price started the quarter at $5.16/MMBtu and ended Q3 at $5.80/MMBtu. The UK NBP price followed the same trend, starting at about $4.6/MMBtu and ending at $5.14/MMBtu while US prices increased from $2.7/MMBtu to $3.0/MMBtu.”

According to Awilco LNG, in the fourth quarter gas prices for forward delivery have continued to improve in both Europe and Far East while spot prices in the US have come off. This has created arbitrage opportunities leading to increased fixing activity.

After a promising start of the third quarter, the activity in the Atlantic region eased off halfway. Activity in the Far East was higher than in the West, but due to more available vessels in Asia rates were still reported higher in the Atlantic.

“West of Suez rates started at about $32,000 per day and increased during the quarter. Fixtures were reported in the high $40’ per day during the quarter and ended at about $40,000 per day. Far East rates improved from $30,000 per day to $35,000 per day at the end of the quarter,” Awilco LNG said in the report.

LNG World News Staff