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US export growth fuels freight market strength
- The average time charter equivalent (TCE) rate for the fleet was
$32,275/day, up from $11,133/day in Q1 2019
- Daily operating expenses (OPEX) were $8,214/day, compared to $7,952/day in
Q1 2019
- A&G expenses were $1,220/day, up from $907/day in Q1 2019, impacted by one-
off costs
- In process of ordering three additional exhaust gas cleaning systems, with
delivery in primo Q1 2020
- At the date of this report, the company held $91 million in cash
- Approx. 80% of Q3 ship days have been fixed at a TCE rate of approx.
$45,000/day. $45,000/day represents approx. $29 million per quarter in free
cash flow
Following a weak first quarter the freight markets improved significantly from
March, driven by improvements in terminal capacity and infrastructure in the US
Gulf and East Coast.
Middle East LPG exports in Q2 2019 were 8.0 million tons, up by 0.2 million tons
compared to Q1 2019. The average quarterly exports in 2018 was 9.6m tons.
Comparing year to date 2019 to 2018, the main reduction has come from Saudi
Arabian and United Arab Emirates, largely relating to OPEC production cuts. Iran
have maintained higher export levels on a relative basis. Average monthly
cargoes exported in Q2 was 61, up from 59 in Q4 2018 and an average of 64
cargoes per month in 2018.
US Gulf and USEC VLGC exports were 8.5 million tons in Q2 2019, up from 7.0
million tons in Q1 2019 and 6.4 million in Q2 2018. In Q1, US exports were
impacted by a period of cold temperatures in February, resulting in higher
domestic consumption and increasing LPG prices. In March, the Mariner East II
pipeline to Markus Hook commenced operations, which together with further
infrastructure improvements and favorable trading economics increased export
activity in the US. US Gulf and USEC monthly VLGC exports totaled average 62
cargoes in Q2, of which average 9 cargoes from Marcus Hook. This compares to 51
monthly cargoes in Q1 2019 and 48 cargoes in Q2 2018.
Per year end July 2019 the global fleet totaled approx. 276 ships with an
orderbook totaling 36 ships (13%). Eleven ships have been delivered, leaving
seven ships due for delivery in the balance of the year. Seven new orders have
been placed and no recycling activity has been reported. Although depending on
the strength of the freight market, we continue to expect efficiency disruptions
and removal of older ships from active trade in connection with the
implementation of the IMO 2020 emission rules in January 2020.
The full report and interim financial statements are attached to this press
release.
For further queries, please contact:
Peder C. G. Simonsen, CFO
Tel: +47 22 00 48 15
Email: p.simonsen@avancegas.com (mailto: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 worldâs leading owners
and operators of very large gas carriers (VLGCs), operating a fleet of 14 modern
ships. For more information about Avance Gas, please visit: www.avancegas.com
(http://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 âanticipateâ, âbelieveâ,
âcontinueâ, âestimateâ, âexpectâ, âintendsâ, âmayâ, âshouldâ, âwillâ 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.
Kilde
Gleder meg til Ä se pÄ oversikt pÄ 
MÄ innrÞmme at jeg er veldig spent for de neste par dagene. Dorian er vel nÄ sÄ nÊr kursmÄlet til DNB som det gÄr an Ä komme (10.00), lurer pÄ om/nÄr DNB skal si noe nytt om LPG. Synes fortsatt det var svÊrt underlig det de kom med tidligere i sommer.