Awilco LNG Q2 Net Profit at USD 9.6 Mln (Norway)

Awilco LNG of Norway, owner of three 125,000 cbm LNG vessels, reported freight income of MUSD 9.6  in the first quarter of 2013 and an EBITDA of MUSD 2.3.

The decrease was due to lower utilisation and charter rates for WilEnergy. Fleet utilisation for the quarter ended at 54 %, compared to 62 % in Q1 2013. Voyage related expenses were MUSD 2.1, of which MUSD 0.5 was related to the charterer’s consumption of bunkers during WilEnergy’s single voyage in April, and MUSD 0.2 was related to positioning of WilPower for lay-up.

Operating expenses were MUSD 3.9. The decrease from last quarter was mainly due to lay-up of WilPower, in addition to MUSD 0.7 of maintenance and repairs on WilEnergy expensed in the previous quarter. Administration expenses for the quarter were MUSD 1.4, compared to MUSD 1.2 in the previous quarter. The increase in administration expenses was mainly a result of two new employees in the quarter.

EBITDA for the quarter was MUSD 2.3, compared to MUSD 5.9 in the previous quarter. The decrease was mainly due to lower utilisation and charter rates, offset by reduced operating expenses. Depreciation for the quarter was MUSD 2.0, same as in the previous quarter.

Net finance income/(expense) was MUSD -0.4, compared to MUSD -0.1 in the previous quarter. During the quarter, the senior newbuilding bank debt facility was cancelled, and a fee related to the facility was expensed during the quarter, along with fees related to renewal of the MUSD 15 short term credit facility.

Profit before tax for the quarter was MUSD -0.1, compared to MUSD 3.8 in Q1 2013. Income tax expense for the period amounted MUSD -0.1, compared to a gain of MUSD 0.2 in the previous quarter. Loss for the period was MUSD -0.1, compared to a profit of MUSD 4.0 in Q1 2013.

The company entered into a five year sale-leaseback transaction with Teekay LNG Partners L.P. Teekay will purchase newbuilding no. 1 for MUSD 205 less MUSD 50 in pre-paid hire. The vessel is subsequently to be bareboat chartered back by Awilco LNG at a fixed rate for five years plus a one-year extension option. At the end of the charter period Awilco LNG has a fixed price purchase obligation. The transaction is a pure financing agreement.

[mappress]
LNG World News Staff, August 27, 2013; Image: Awilco