Awilco LNG’s Q1 net profit down

Awilco LNG’s net profit dropped to $7.2 million in the first quarter of this year following a record profit in the fourth quarter last year.

The Norwegian owner of two 156,000-cbm LNG carriers reported a net income of $14.9 million in the fourth quarter last year due to a $5 million one-off insurance settlement, while its net income reached $9 million in the first quarter of the last year.

Net freight income of $21.9 million in the first quarter rose from $20.5 million in the same quarter last year and it dropped slightly from $22.2 million in the previous quarter.

Also, Ebitda reached $17.6 million in the first quarter. This compares to $16.6 million the first quarter last year and $22.8 million in the prior quarter.

The company’s board authorized a cash dividend payment of 0.75 Norwegian krone per share to be paid in July.

Exploring possibilities for WilForce

Awilco LNG said its vessel utilization was 100 percent for the first quarter with net TCE at $120,600 per day, the same as is in the previous quarter.

Both WilForce and WilPride traded the entire first quarter 2024 with no off-hire.

WilForce comes open in the third quarter this year and the company is “actively exploring possibilities” for next employment.

For WilPride the current charter party lasts until late 2025, while the charterer has an option to extend the contract for two more years at the existing rate.

In November 2022, Awilco LNG secured a 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 2022, the firm revealed a charter deal for a firm period of three years and the 2013-built WilPride serves this contract. This contract started in December 2022.

Awilco LNG recently also signed a sale and leaseback deal with China Development Bank Financial Leasing (CDB Leasing) for the two vessels.

“Progress has been made on the refinancing and we aim to close this transaction within the second quarter as it will significantly reduce our costs and cash break-even level,” Awilco LNG’s CEO, Jon Skule Storheill, said.

“With WilForce coming open this summer we are pleased to see activity picking up after the shoulder season although rates have yet to improve significantly,” he said.

“With both vessels on fixed rate contracts through first half 2024 we can expect earnings to be in line with first half 2023,” he said.

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