Strong spot market boosts Awilco LNG

Norway-based Awilco LNG, the owner of two TFDE 156,000 cbm carriers, reported improved results in the fourth quarter on the back of a strong spot market.

The firm said its profit reached $1.2 million in the October-December period compared to a loss of $6.5 in the quarter before, but still down year-on-year when the LNG shipper logged a profit of $4.7 million.

Freight income of $11.2 million also increased when compared to $2.4 million in the prior quarter, while it dropped from the $16.3 million recorded in the fourth quarter of 2019.

Awilco attributed the rise from the prior three-month period due to a sharp increase in spot rates throughout the fourth quarter, “largely driven by higher Asian LNG prices caused by an
anticipated cold winter.”

The firm posted an average time-charter rate of $60,500 per day during the quarter, compared to $13,000 in the third quarter and $88,200 in the fourth quarter of 2019.

As per the full-year of 2020, Awilco revealed a net loss of $7.9 million versus a loss of $8.3 million in the year before. Freight income dropped to $30.7 million from $33.7 million the firm logged in 2019.

WilPride starts new contract

To remind, Awilco revealed last month it chartered its 2013-built WilPride on a 2-3 month contract with expected gross revenues of between $10.3 million and $14.3 million.

The shipping firm announced the deal at a time when the spot market exploded reaching record highs for both prices and shipping rates, but these normalized a few weeks later.

Awilco said in the quarterly report it delivered the vessel to an unnamed charterer in the first half of this month.

Looking forward, the LNG shipper expects the global economic activity to improve throughout the year with the Covid-19 vaccine rollout.

However, the firm says possible Covid-19 virus mutations and a new round
of lockdowns in many countries could reintroduce uncertainty.

“With both vessels in the group employed in the spot and short-term market the impact of the ongoing pandemic on the company’s earnings and financial position is difficult to assess,” Awilco said.

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