Awilco LNG’s freight income rises

Oslo-based Awilco LNG, operator of five LNG tankers, reported freight income of USD 20.8 million compared to USD 19.9 million in the previous quarter.

“The increase was due to increased utilisation of WilPride, less off-hire in connection with the dry-docking of WilGas than in the previous quarter, partly offset by reduced earnings on WilEnergy,” Awilco LNG said in a statement.

Loss before tax and for the period was USD 0.3 million, compared to a profit of USD 0.2 million in Q2 2014.

The company’s WilGas LNG tanker completed scheduled dry-dock in mid-July at a total capital expenditure of USD 7 million, Awilco said.

Outlook

“Although we have seen an increase in activity in Q3, the short term markets for LNG carriers is expected to remain challenging and volatile for the remaining part of 2014 and into 2015 as several newbuildings are scheduled for delivery,” according to Awilco.

The market for older tonnage is more affected by the increased fleet than the modern, more efficient tonnage. It is expected that the phasing out of older tonnage will increase due to the soft market.

Rates and utilisation are expected to improve when significant new LNG production comes online, Awilco added.

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LNG World News Staff; Image: Awilco