Awilco LNG reports lower Q1 profit

Norway-based shipping firm Awilco LNG, the owner of two TFDE 156,000-cbm carriers, reported a drop in both its quarterly net profit and freight income.

The company said on Friday its net profit reached $6 million in the January-March period, compared to $6.9 million in the same quarter last year. Net profit rose from $5.8 million in the October-December period.

Freight income for the first quarter totaled $14.3 million, down from $14.5 million in the prior quarter but also from $17.6 million the firm logged during the first quarter last year.

Awilco LNG said its LNG carriers WilForce and WilPride had traded on their fixed rate time charter contracts the entire quarter and fleet utilization for the period was 100 percent, same as for the previous quarter.

TCE earnings for first quarter 2022 reached $78,300 per day compared to $78,600 per day in fourth quarter.

“The shift of demand from Asia to Europe caused by the war in Ukraine has led to shorter sailing distances and higher availability of ships which has led to a weak spot market at the start of the year,” chief executive Jon Skule Storheill said.

According to Storheil, “so far in second quarter we have seen the market gradually strengthen.”

“Both our vessels are currently trading in the spot market in anticipation of improving longer-term rates. We focus on optimizing performance but expect earnings for second quarter to come in lower than the previous quarters,” Storheill said.

WilForce case

A UK court based in London said that the 2019-built bulk carrier Western Moscow was mainly responsible for a crash with Awilco LNG’s carrier WilForce that took place off Singapore in May 2019.

Awilco LNG said it has received in May the judgement on liability on the case involving WilForce.

“As expected, the other vessel was found to have caused the accident and appointed 75:25 liability and cost of the case,” Awilco LNG said.

“The judgement is open for appeal and cost not settled,” the firm said, adding it would provide an update in “due course”.

The combined claims for the damage caused by the collision are in the region of about $17.6 million, according to the ruling.

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