Norway-based shipping firm Awilco LNG said it has achieved the highest quarterly average time charter equivalent rate in its history, boosted by strong winter market.
Chief executive Jon Skule Storheill said in Awilco’s first-quarter report on Thursday the company had managed to “take advantage of the strong winter market and deliver a TCE of $90,000 per day.”
Awilco said in April it had chartered the 2013-built 156,000-cbm TFDE WilForce for a period of 12 months.
Prior to that, the firm revealed a spot contract in January for the company’s second 2013-built carrier, WilPride, when spot prices exploded.
These two contracts will boost Awilco’s results this year as the firm announced a net loss of $7.9 million for the entire 2020 with a freight income of $30.7 million.
“Demand for LNG is rising as consumers are becoming more aware of its environmental benefits vs primarily coal as well as an expected rebound in freight demand as the pandemic softens its grip on the global economy, which provides further potential upside for the company,” Storheill said.
Net profit climbs
The firm said its profit reached $6.94 million in the January-March period, logging a rise compared to $2.69 million in the same quarter last year but also $1.21 million in the prior quarter.
Freight income for the quarter totaled $17.6 million, up from $14 million in the first quarter of 2020.
It also increased when compared to $12.8 million in the prior quarter as the high spot rates
from November and December 2020 continued into the first quarter of 2021 before seasonally decreasing towards the end of the winter season, Awilco said.