Awilco LNG secures new charter deal

Norway-based shipping firm Awilco LNG, the owner of two TFDE 156,000-cbm carriers, has secured a new charter deal with a firm duration of about 18 months.

Under the deal, Awilco chartered the 2013-built WilForce to a “major utility company” in direct continuation of the present charter, it said in a statement.

Also, Awilco expects the contract to contribute with an Ebitda of about $73 million over the charter period.

The company’s CEO Jon Skule Storheill said in the statement that with this contract the company had been able to “take advantage of the strong market and have now covered all trading days in 2023 and approximately 80 percent of 2024 at an average rate of approximately $120,000 per day.”

“This ensures high cash generation and profitability for the next two years also considering both vessels are scheduled for special survey, and dry docking in the second half of 2023,” he said.

In June, the firm revealed a charter deal with a “leading European LNG importer” for a firm period of three years. The 2013-built WilPride will serve this contract.

The CEO noted that the fixed rate contracts entered for both vessels would materially increase the company’s free cash flow generation.

“To maximize return to shareholders the board of directors have approved a revised dividend policy 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,” he said.

Storheill added that the company expects initial payment to take place in the first quarter of 2023 when both vessels have started their respective contracts.

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