Awilco LNG logs higher Q2 earnings

Norway-based shipping firm Awilco LNG, the owner of two 156,000-cbm carriers, reported higher earnings for the second quarter of this year on the back of fixed-rate contracts for its LNG carriers.

The company reported a profit for the quarter of $11 million, compared to $9 million in the prior quarter and $0 in the same quarter last year.

Net freight income of $21.9 million in the second quarter rose from $20.5 million in prior quarter and $12.3 million in the comparable quarter.

Also, Ebitda reached $18.4 million in the second quarter, up from $16.6 million in the first quarter and $6.8 million in the second quarter last year.

The company’s board authorized a cash dividend payment of 0.25 Norwegian krone per share.

Vessels in dock

Awilco LNG said its vessel utilization was 100 percent in the second quarter and for the first half year in total, compared to 88 percent and 94 percent for the same periods last year.

Net TCE came in at $120,500 and $117,150 per day for the second quarter and the first half year respectively, compared to $56,400 and $67,400 per day respectively for the same periods last year.

The company’s vessels are chartered out on fixed rate time charters, with the first vessel coming open in the third quarter of 2024.

In November last year, Awilco LNG secured a new charter deal with a firm duration of about 18 months for the 2013-built WilForce. This contract started at the end of January 2023.

In June, the firm revealed a charter deal with a “leading European LNG importer” for a firm period of three years and the 2013-built WilPride serves this contract. This contract started in December last year.

In August, WilForce went off-hire and into drydock in Singapore to perform its scheduled second special survey.

Accoriding to Awilco LNG, this work is about to be completed and the vessel is scheduled to be on-hire again by the end of the month.

WilPride will be off-hire late August and during September to perform its scheduled second special survey in Spain, and is expected to be on-hire again late September.

The docking cost is expected to be about $12 million in total and the vessels are expected to be off-hire for about 60 days in total including positioning and repositioning time, Awilco LNG said.

“Strong” quarter

Awilco LNG’s CEO Jon Skule Storheill said in the statement the company reported another “strong” quarter on the back of fixed-rate contracts for both WilForce and WilPride.

“Seasonally low spot rates throughout the second quarter are now behind us and we are seeing rate levels increasing as usual for this time of year,” he said.

“Although both our vessels will be going through their scheduled second special survey incurring substantial off-hire periods in the third quarter, the fixed earnings contracts will enable the company to continue to return value to our shareholders also in this period,” Storheill said.

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