Avance Gas Holding Ltd reported unaudited results for the second quarter 2020.
HIGHLIGHTS
After a seasonally strong Q1, freight markets weakened in Q2 due to COVID 19 related reduced demand and unfavorable LPG trading environment. With a closed LPG price arbitrage and reduced Asian demand, freight rates started to drop in May/June. During July/August, the demand has started to return to normal trajectories, and the LPG price differential has developed positively. Combined with lower fleet capacity, due to drydocking and slowsteaming of the fleet, this has led to a rebound in freight markets Q3 to date.
The fall in oil prices has increased the volatility in the US export volumes, mainly due to unfavorable US/Asia price differential. US Gulf and USEC VLGC exports were 9.0 million tons in Q2 2020, up from 8.9 million tons in Q1 2020 and 8.5 million in Q2 2019. US Gulf and USEC recorded 65 monthly VLGC cargoes in Q2 2020, unchanged from Q1 2020 and compared to 63 cargoes in Q2 2019. Preliminary numbers suggest another month up to 70 cargoes in July, illustrating this volatility.
Middle East export activity has followed OPEC+ production increases and cuts and has been volatile during first half 2020. Middle East VLGC exports totaled 7.8 million tons in Q2 2020, compared to 7.6 million tons in Q1 2020 and 7.9 million in Q2 2019. Middle East exported on average 59 cargoes per month in Q2, up from 57 cargoes in Q1, while preliminary data for July shows 55 cargoes.
The global fleet totaled 299 ships by end July 2020, with an orderbook of 33 ships (11%). Three new ships have been confirmed ordered, for delivery in 2022. Five ships are due for delivery for the remainder of 2020, 20 ships are due for delivery in 2021 and eight ships due for delivery in 2022. It is expected that the effect of fleet growth will be partly mitigated by large number of special surveys due 2020-2022.
PRESENTATION AND WEBCAST
Avance Gas will host an audio webcast and conference call to discuss the company’s results for the period ended 30 June 2020 on Wednesday, 26 August 2020, at 15:00 CET. There will be a Q&A session following the presentation.
The presentation and webcast will be hosted by:
Mr. Peder C. G. Simonsen – Interim CEO and CFO
The presentation will also be available via audio webcast, which can be accessed at Avance Gas’ website www.avancegas.com. Dial in details are +44 (0)2071 928 000 (UK and International), +1 631-510-7495 (US) or +47 23 96 02 64 (Norway). Please quote the passcode: 6348139. Phone lines will open 10 minutes before the conference call.
For further queries, please contact:
Peder C. G. Simonsen, Interim CEO and CFO
Tel: +47 22 00 48 15
Email: p.simonsen@avancegas.com