Avance Gas Holding Ltd - Reports Unaudited Results for the Fourth Quarter and Full-Year 2016
(Thomson Reuters ONE) -
BERMUDA, 14 February 2017 - Avance Gas Holding Ltd (OSE: AVANCE) today reported
unaudited results for the fourth quarter and full-year 2016.
Q4 2016 saw an upward trend in freight rates, and a strengthening of the
company's financial position:
* The average time charter equivalent (TCE) rate for the fleet was $9,602/day
in Q4 2016, down from $10,131/day in Q3 2016. The average TCE for full-year
2016 was $18,324/day.
* TCE earnings in Q4 2016 were $12.1 million, compared with $12.9 million in
Q3 2016, and $92.7 million in for full-year 2016.
* Average daily operating expenses (OPEX) for Q4 2016 were $7,686/day,
compared with $7,361/day in Q3 2016. Average OPEX for full-year 2016 was
$7,764/day.
* Avance Gas reported a net loss of $14.0 million in Q4 2016. This compares
with an adjusted net loss of $13.5 million in Q3 2016, when excluding the
$47.2 million impairment charge recorded in that quarter.
* The net loss for full-year 2016 was $68.2 million. Excluding $53.3 million
in total impairment charges, the net loss for 2016 was $14.9 million,
compared with a net profit of $183.2 million in 2015.
* As previously reported, in October 2016 the company reached an agreement
with its lenders to reduce the scheduled loan repayments with 50% until Q2
2019, and amend the financial covenants under the company's credit
facilities. The agreement was subject to an equity issue of minimum $55.0
million which was completed in November 2016, raising net proceeds of $58.7
million.
The VLGC freight market improved toward the end of Q4 2016 and into Q1 2017,
mainly driven by improvement in the FOB/CIF differential, leading to increased
export volumes from the US. Despite more newbuildings entering the market, fleet
utilization remained at high levels. Avance Gas' fleet utilization was 96% in Q4
2016, compared with 95% in Q3 2016. As the global fleet continues to grow,
increased competition in the freight market remains a challenge.
US VLGC exports averaged 40 cargoes per month in Q4 2016, compared with 30
cargoes per month in Q3 2016. More than 50% of these cargoes were bound for
Asia, which helped to absorb the fleet growth. The new Phillips 66 terminal in
Freeport, Texas commenced exports late Q4 2016, which contributed to the record
high 50 cargoes exported from the US Gulf and East Coast in December.
Middle East export volumes declined somewhat following OPEC crude cut-backs, to
9.5 million tons in Q4 2016 from the record high 10.4 million tons in Q3 2016.
The Baltic freight rate for the Middle East/Far East trade increased from $18.4
per ton in early September to $32.9 per ton at year-end 2016, subsequently
rising to $34.4 per ton at the end of January 2017. The Avance Gas Spot index
(adjusted 30 days) averaged $7,846/day in Q4 2016, compared with $10,223/day in
Q3 2016.
The full report and interim financial statements are attached to this press
release.
For further queries, please contact:
Christian Andersen, President
Tel: +47 22 00 48 05
Email: c.andersen(at)avancegas.com
Peder C. G. Simonsen, CFO
Tel: +47 22 00 48 15
Email: p.simonsen(at)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 14 modern
ships.
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 - Q4 2016 Interim Financial Statements:
http://hugin.info/161089/R/2078275/782062.pdf
Avance Gas - Q4 2016 Earnings Release:
http://hugin.info/161089/R/2078275/782061.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
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
Unternehmensinformation / Kurzprofil:
Datum: 14.02.2017 - 08:14 Uhr
Sprache: Deutsch
News-ID 523894
Anzahl Zeichen: 6068
contact information:
Town:
Oslo
Kategorie:
Business News
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