Awilco LNG to secure up to $14.3 million from new spot charter deal

Norway-based Awilco LNG will gain up to $14.3 million in gross revenues from a new charter contract as the spot market exploded reaching record highs for both prices and shipping rates.

The shipping firm said it chartered the 2013-built 156,000-cbm TFDE WilPride on an 2-3 month time charter contract with expected gross revenues of between $10.3 million and $14.3 million.

Awilco did not disclose the name of the charterer.

With forecasted all-in cash break-even of about $58,000 per day per vessel in 2021 the contract would generate surplus liquidity of between $6.2 million and $8.6 million, Awilco said.

In addition, the contract will start upon redelivery from the current contract in the first half of February 2021.

The Norwegian operator of two 2013-built LNG carriers said gas prices and spot LNG shipping rates have recently increased dramatically for several reasons including cold weather, various production disruptions and fleet inefficiencies.

Forward gas prices for the remainder of 2021 have recovered together with consensus shipping rates, Awilco said adding that its financial results this year should improve compared to 2020.

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