Freight rates continued to strengthen in the second quarter; the Board declares dividend of $1.20 per share:
- The average time charter equivalent (TCE) rate for the fleet in Q2 2015 was $86,938/day, up from $64,832/day in Q1 2015.
- TCE earnings in Q2 2015 were $59.1 million, compared with $40.0 million in Q1 2015 reflecting the stronger market and an increase in operating days following the return to service of Monsoon and Breeze.
- Average daily operating expenses for Q2 2015 were $7,447/day, down from $9,053/day in Q1 2015. The average OPEX for the first half of 2015 was $8,177/day.
- The Avance Gas Board declares dividend of $1.20 per share. The shares will trade ex-dividend on and after 31 August 2015.
Significant recent events:
- Monsoon and Breeze both completed warranty repairs to their stern tube bearings and re-entered service in mid-June and are now employed on their second voyages since the repairs.
- On 1 June 2015, Avance Gas was added to the Oslo Boers Benchmark Index, which comprises the most liquid stocks on the Oslo Stock Exchange.
- On 29 June 2015, Avance Gas took delivery of Passat, the fourth of the company's eight newbuildings. In early August, she loaded her first cargo in the Middle East for discharge in India.
- Sirocco, the fifth newbuilding from Jiangnan Shipyard, was delivered on 17 July 2015 and was fixed on her first voyage, loading in the Middle East at the end of August for discharge in India.
- The sixth ship in the series, Levant, was delivered on 18 August 2015 and is expected to complete gassing up operations in Indonesia in mid-September.
The Sunoco/Lone Star terminal in Nederland, Texas, commenced LPG exports in February 2015, becoming the third VLGC export terminal in US Gulf, in addition to Enterprise and Targa. The increased LPG exports improved global VLGC utilization, causing the LPG freight market to strengthen. The Avance Gas Spot VLGC Index averaged $84,531/day in Q2 2015, up from $71,231/day in Q1 2015.
The full report and interim financial statements is attached to this press release.
For further queries, please contact:
Christian Andersen, President
Tel: +47 22 00 48 05 / Email:c.andersen@avancegas.com
Peder C. G. Simonsen, CFO
Tel: +47 22 00 48 15 / Email:p.simonsen@avancegas.com
ABOUT AVANCE GAS
Avance Gas Holding Ltd operates in the global market for transportation of liquefied petroleum gas (LPG). The Company is one of the world's leading owners and operators of very large gas carriers (VLGCs), operating a fleet of 12 modern ships, with two VLGC newbuildings currently under construction.
For more information about Avance Gas, please visit: www.avancegas.com.
FORWARD LOOKING STATEMENTS
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Avance Gas believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.
The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice.
This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
Avance Gas - Q2 2015 Financial Result (http://hugin.info/161089/R/1947759/707306.pdf)
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Avance Gas Holding Ltd via Globenewswire
