Awilco LNG reports lower Q3 earnings

Norway-based shipping firm Awilco LNG, the owner of two TFDE 156,000-cbm carriers, reported a net loss and weaker earnings in the third quarter of this year.

Awilco LNG logged a net loss of $5.1 million and loss per share of $0.04 for third quarter, down from a net zero result in the second quarter and a net profit of $5.1 million in the same quarter last year.

TCE earnings for the third quarter ended at $24,800 per day, down from $56,400 per day in the second quarter.

Both WilForce and WilPride traded in the spot market through most of the third quarter.

In a “challenging market” with idle periods this resulted in a fleet utilization for the period of only 44 percent, down from 88 percent utilization for the previous quarter, Awilco LNG said.

Freight income for the quarter totaled $8.1 million, down from $12.3 million in the second quarter 2022, due to lower obtained rates and longer idle periods than in second quarter, it said.

“Solid and stable earnings” in 2023

Awilco LNG recently secured a new charter deal with a firm duration of about 18 months the 2013-built WilForce.

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.

“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,” the company’s CEO Jon Skule Storheill said in the statement.

“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,” he said.

Storheill added that the fixed earnings would also enable the company to return value to its shareholders and the company’s board of directors had approved a revised dividend policy which it would follow up on in the coming quarters.

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