Avance Gas Holding Ltd Reports Unaudited Third Quarter 2014 Results

BERMUDA, 10 October, 2014 - Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the third fiscal quarter ended on 31 August, 2014.

 

Avance Gas' spot strategy delivered strong performance in the quarter - Board approved a dividend of $0.92/share:

• The average time charter equivalent (TCE) rate for the fleet rose to $83,893/day, up from $45,084/day in Q2 2014.
• On a calendar basis, the TCE rates were $32,019/day for Q1 2014 and $61,269/day for Q2 2014.  We expect to report approximately $89,300/day for Q3 2014.   
• TCE earnings increased to $45.4 million from $24.5 million in Q2 2014.
• Net profit rose to $32.3 million from $9.6 million in Q2 2014.
• Operating days were essentially unchanged at 541, compared with 543 in Q2 2014.
• Avance Gas' Board declared a dividend of $0.92 per share for the quarter.

Significant events during the third fiscal quarter included:

• On 18 August, 2014, there was a fire aboard hull 1074 under construction at Jiangnan Shipyard in China. No casualties or injuries occurred. Hull 1071, which experienced a fire in April as previously reported, is scheduled for delivery in November 2014.
• Following the expiration of two time charters with maximum freight rate caps during the quarter, the Avance Gas fleet is now fully exposed to the spot market pricing.

Continued strength in export volumes from the Middle East, combined with rising US exports, drove the LPG freight market to record high levels during Q3. The spot market peaked in mid-July, rising to over $130,000/day. The market subsequently softened in August, as somewhat lower shipping demand pushed spot rates down to an average of about $80,000/day for the month.

The market continues to be driven by increased US Gulf exports, which are expected to increase in Q4 2014, as new capacity comes on stream. The Baltic Index is currently quoted at about $92/ton, or a time charter equivalent rate of about $65,000/day.

The full report and interim financial statements is attached to this press release.

For further queries, please contact:

Christian Andersen, President
Tel: [phone] / Email:[e-mail]

Peder C. G. Simonsen, CFO
Tel: [phone] / Email:[e-mail]

ABOUT AVANCE GAS

Avance Gas operates in the global market for transportation of liquefied petroleum gas (LPG). The Company is one of the world's leading owners and operators of very large gas carriers (VLGC), and operates a fleet of six modern ships and has a newbuilding program of eight VLGCs.

For more information about Avance Gas, please visit: www.avancegas.com.

FORWARD LOOKING STATEMENTS

Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Avance Gas believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice.

This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Avance Gas - 3Q 2014 Financial Report
Avance Gas - 3Q 2014 Interim Financial Statements

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Avance Gas Holding Ltd via Globenewswire

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