Avance Gas Holding Ltd

Second Quarter 2023 Earnings Release

BERMUDA, August 30, 2023 – Avance Gas Holding Ltd (OSE: AGAS) (“Avance Gas” or the “Company”) today reports unaudited results for the second quarter 2023.

HIGHLIGHTS

• The average time charter equivalent (TCE) rate on load to discharge basis was $52,000/day compared to $58,400/day for the first quarter 2023, ahead of guidance of ~$50,000/day. The TCE basis discharge-to-discharge was $50,800/day also slightly ahead of guidance of ~$50,000/day.
• For the second quarter, we had a TC coverage of 41% at an average TCE rate of $40,000/day and spot voyages of 59% at $64,500/day. Freight hedging by use of FFA resulted in a loss of $2,500/day for the fleet.
• Daily operating expenses (OPEX) were $8,000/day, compared to $8,600/day for the first quarter of 2023.
• Net profit of $35.7 million compared to $36.3 million for the first quarter 2023, or earnings per share (basic) of 47 cents for both the first and second quarter.
• During the quarter, the Company paid $0.50 per share in quarterly dividend, or $38.3 million, for the first quarter 2023.
• In May 2023, the Company took delivery of the VLGC Avance Avior, the fourth of its six 91,000 cbm VLGC newbuildings from Hanwha Ocean (previously named Daewoo Shipyard) in South Korea.
• In June 2023, the Company agreed a newbuilding contract with Nantong CIMC Sinopacific Offshore & Engineering (“CIMC”) for the construction of two dual fuel mid-sized LPG/ammonia carriers (MGCs) at a contract price of $61.5 million per vessel with delivery in the fourth quarter of 2025 and the first quarter of 2026. In August 2023, the Company declared its option to acquire two additional sister ships at the same attractive contract price of $61.5 million. These ships are scheduled for delivery in the second and fourth quarter of 2026.
• In July 2023, the Company entered into an agreement to sell the VLGC Iris Glory (built 2008) for a cash consideration of $60 million. The delivery to the new owners is expected to take place between September 2023 and January 2024.
• For the third quarter of 2023, we estimate a TCE/day for the quarter to be in the high $50’s per day on a discharge-to-discharge basis when deducting FFA hedging loss.
• The Board has declared a dividend of $0.50 per share or $38.3 million for the second quarter 2023.

Øystein Kalleklev, CEO of Avance Gas, commented: