Awilco LNG Reports Third Quarter Net Loss of $5.1 Million
The Awilco LNG Group (Awilco LNG ASA together with its subsidiaries) today reports unaudited results for the three months ended September 30, 2022.
· Awilco LNG had a net loss of USD 5.1 million and loss per share of USD 0.04 for third quarter, down from a net zero result in second quarter 2022. Year to date result ended at USD 0.9 million and USD 0.01 per share as per September 30, 2022
· Net freight income of USD 4.8 million in third quarter 2022, down from USD 10.2 million in second quarter 2022
· EBITDA third quarter 2022 ended at USD 1.3 million, down from USD 6.8 million in second quarter 2022
· Vessel utilization was 44% for third quarter, down from 88% for second quarter, with a net TCE of USD 24,800 per day
· In August the company delivered the WilForce on a six-month contract at market rates
· In November the company signed an 18-month contract for WilForce commencing in first quarter 2023 in direct continuation from the present six-month charter. The charter will generate an EBITDA of approximately USD 73 million over the charter period
· In November the Board of Directors approved a revised dividend policy to maximise return to shareholders and thereby intend to distribute a substantial part of annual free cash flow, paid out quarterly, always subject to required working capital and a robust cash buffer. Initial payment is expected to take place in first quarter 2023 when both vessels have commenced their respective contracts
Jon Skule Storheill, Chief Executive Officer, commented:
“As indicated in the second quarter report, third quarter was a weak quarter for Awilco LNG. Both vessels had extended idle periods between their contracts as a result of the weak market caused by the temporary closure of Freeport LNG. The cost to position the vessels for next employment was also unusually high due to the very high cost of fuel. That being said, we are pleased to report that we have secured employment at strong rates for our vessels ensuring solid and stable earnings for the company through 2023 and most of 2024. The fixed earnings will also enable the company to return value to our shareholders and our Board of Directors have approved a revised dividend policy which the Company will follow up on in the coming quarters.”
Enclosed is in addition a third quarter 2022 presentation. No physical presentation will be held covering third quarter 2022.
Source: Awilco LNG