Awilco LNG tightens its loss

Norwegian based LNG transportation provider Awilco tightened its loss during the third quarter of the year as its freight income jumped. 

Awilco LNG reported a net loss of $1.1 million, which compares to an $8.6 million net loss in the previous quarter and a net loss of $11.4 million in the corresponding quarter last year.

Freight income for the quarter was $6.7, up from $3.9 in the second quarter of 2019. The whole amount was attributable to WilPride which was delivered on an 8-month contract on 9 July. Subsequent to being struck by another vessel end of May 2019, WilForce was off-hire until repairs were completed in mid-September.

Fleet utilization for the quarter ended at 45 percent compared to 56 percent in the previous quarter due to the extensive off-hire on the WilForce following the collision.

Awilco LNG said that spot shipping rates are currently reported at about $117,500 per day on average. The story this year is so far completely different as demand has been muted in the Far East and the firm shipping market at time of writing is largely a result of the exceptional growth in LNG volumes.

Europe’s gas storage is full, available vessels in all basins is limited and about 25 LNG carriers are currently used for storage, illustrating the value of LNG carriers as storage in periods of market imbalances, Awilco LNG said.

The wave of new production capacity coming, 50 percent of which is from the United States, may underpin demand for LNG carriers beyond the current fleet and order book. However, periods of volatility and seasonality should be expected, Awilco LNG said.

Awilco’s efforts to consolidate with other ship owners are still ongoing, however, the outcome of these discussions is still unclear. Awilco LNG has one vessel on contract until March 2020 and is well-positioned in this growing market.