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Avance Gas Holding Ltd Reports Unaudited Results for the First Quarter of 2022
BERMUDA, 25 May 2022 – Avance Gas Holding Ltd (OSE: AGAS or the “Company”) today reported unaudited results for the first quarter 2022.
HIGHLIGHTS
The first quarter started with a strong LPG price differential between US and Asia lifting the freight rate levels to $50,000/day in January and fell to $25,000/day in February/March due to low US inventory levels, high energy prices narrowing the LPG price arbitrage and high bunker prices eating into the earnings.
The US VLGC exports averaged 80 cargoes per month for the first quarter with March reaching the all-time high record with 90 cargoes which is ~15% above the monthly average for 2021 of 78 cargoes. The growth in the US export capacity states higher terminal utilization in Marcus Hook, Nederland, and Enterprise. The strong US volumes continues into the second quarter with 89 cargoes reported in April.
The Middle East VLGC exports (excluding Iran) averaged 50 per month for the first quarter in line with the average monthly volumes for 2021. The region (excluding Iran) has reported an increase of ~14% in export volumes or 57 cargoes in April. The strength of exports comes mainly from Saudi Arabia and the majority of volumes are transported to India and China indicating that the demand remains strong despite the lockdowns.
Combined with strong US export volumes and a strengthening LPG price arbitrage in April, we continue to see the usual inefficiencies in the LPG market in particular delays in China due to covid closures and Panama Canal due to the removal of the pre-booking system for neo-panama vessels which has created both uncertainty and delays in transiting.
The geopolitical tensions and energy levels have and still are impacting bunker prices and earnings while the trade pattern remains unchanged as 80% of the demand is East of Suez. Short-term the VLGC segment has not been directly impacted by the geopolitical situation in Ukraine but there has been a rapid growth in US activity which may result on more US volumes destined for Europe.
PRESENTATION AND WEBCAST
Avance Gas will host an audio webcast and conference call to discuss the company's results for the period ended 31 March 2022 on Wednesday, 25 May 2022, at 14:00 CET. There will be a Q&A session following the presentation.
The presentation and webcast will be hosted by:
The presentation will also be available via audio webcast, which can be accessed at Avance Gas' website www.avancegas.com or follow the link https://edge.media-server.com/mmc/p/3gib5uy6.
Dial in details is +44 20 7192 8338 (UK and International), +1 646 741 3167 (US) or +47 21 56 30 15 (Norway). Please quote the passcode: 1689957. Phone lines will open 10 minutes before the conference call.
For further queries, please contact:
Øystein Kalleklev, Executive Chairman
Tel: +47 22 00 48 00
Email: oystein.kalleklev@avancegas.com
Randi Navdal Bekkelund, CFO
Tel: +47 22 00 48 29
Email: randi.navdal@avancegas.com
About Avance Gas:
Avance Gas 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 carrier (VLGC) and operates a fleet of thirteen ships and four Dual Fuel LPG newbuildings due for delivery in Q4 2022 and Q1-Q4 2023.
For more information about Avance Gas, please visit www.avancegas.com
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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