Norway: Awilco LNG 3Q Income Drops

Awilco LNG of Norway said its freight income for the third quarter was MUSD 12.6 compared to MUSD 12.4 last quarter.

Fleet utilization for the quarter ended at 67 % compared to 68 % in the previous quarter, which equates to 100 % on the two vessels on charter. Voyage related expenses were MUSD 0.4 in the quarter compared to MUSD 2.4 in the previous quarter.The reduction is mainly due to WilPower positioning cost for dry dock and offhire on WilGas and WilEnergy in the previous quarter.

Operating expenses were MUSD 4.8 (MUSD 5.8 Q2), of which MUSD 0.7 relates to various maintenance and repairs initiated in Q2 and completed in Q3 and MUSD 0.2 relates to idling costs for WilPower. Administration expenses for the quarter were MUSD 1.0, compared to MUSD 1.2 in the previous quarter.

The decrease in administration expenses was a result of lower recruitment expenses related to establishment of in-house technical management as well as a reduction in the fair value of the synthetic employee options compared to the previous quarter.

EBITDA for the quarter was MUSD 6.4, compared to MUSD 3.0 in the previous quarter. The increase was mainly due to reduced costs related to positioning for DD and DD of WilPower expensed in the previous quarter. Depreciation for the quarter was MUSD 2.0 compared to MUSD 1.6 in previous quarter; the increase was due to the full quarterly effect of depreciation of dry dock on WilPower, which was completed in late Q2.

Net finance income/(expense) was MUSD -0.3 compared to MUSD -0.1 in the previous quarter, mainly related to unrealized foreign exchange effects and interest expenses incurred on the short term credit facility.

Profit before tax for the quarter was MUSD 4.2, compared to MUSD 0.0 in Q2 2012. Income tax expense for the period amounted to a negative expense of MUSD 1.6, compared to an expense of MUSD 2.1 in the previous quarter. The negative income tax expense in the period was mainly due to a reduction in the deferred tax liabilities arising from unrealized foreign exchange effects in the parent company, in addition to a reduction in income tax payable of MUSD 0.4. Profit for the period was MUSD 5.8, compared to a loss for the period of MUSD 2.2 in Q2 2012.

[mappress]

LNG World News Staff, November 21, 2012; Image: Awilco LNG