Norway-based shipping firm Awilco LNG, the owner of two TFDE 156,000-cbm carriers, reported lower earnings for the full year of 2022 as well as for the fourth quarter.
The company reported a profit for the quarter of $4.9 million and a profit of $5.8 million for the January-December period.
The 12-month profit dropped 72.5 percent when compared to $21.1 million in 2021, while its quarterly net profit decreased some 15.5 percent when compared to $5.8 million in the comparable fourth quarter.
Awilco LNG logged a net loss of $5.1 million in the third quarter of last year.
Net freight income of $16.2 million in fourth quarter rose from $4.8 million in third quarter and $14.5 million in the comparable quarter.
For the full year of 2022, net freight income reached $45.3 million, down when compared to $57.1 million in 2021.
The company’s board authorized a cash dividend payment of 0.50 Norwegian krone per share.
Both vessels fixed until Q3 2024
Awilco LNG said its vessel utilization was 93 percent for the fourth quarter, up from 44 percent from the third quarter, with a net TCE of $88,100 per day.
For the full year of 2022, utilization was 81 perent with a net TCE of $62,000 per day.
In November, 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.
Wit these contracts, both vessels are trading on fixed rate contracts, securing full employment until the third quarter of 2024 with an average rate of $121,500 per day, according to Awilco LNG.
“Solid” earnings in next two years
“We are pleased to report a full year profit of $5.8 million after a roller-coaster 2022 in the LNG market driven by world events,” Awilco LNG’s CEO Jon Skule Storheill said in the statement.
“In the fourth quarter, we resumed profitable on the back of increased earnings from spot and fixed rate contracts for both vessels. This is set to continue for the next years, and earnings can be expected to remain solid throughout the next two years,” he said.
Storheill said that the market had as usual experienced a seasonal downturn at the start of the year on the back of a mild winter in Europe in combination with high LNG inventories.
“We expect the market conditions to improve throughout the year as energy security continue to be in focus, as it has been in 2022, and China returns to the market after reopening,” he said.
Storheill added that the fixed earnings contracts enable the company to return value to its shareholders, starting with a payment in the first quarter of 2023.
