Avance Gas Holding Ltd: Financial Results for Q3 2022

24 Nov 2022 07:01 CET

BERMUDA, November 24 2022 - Avance Gas Holding Ltd (OSE: AGAS) ("Avance Gas" or
the "Company") today reports unaudited results for the third quarter 2022.

HIGHLIGHTS

* The average time charter equivalent (TCE) rate on load to discharge basis
was $32,954/day compared to $36,212/day for the second quarter 2022. This
was ahead of guidance of around $32,000/day.
* Daily operating expenses (OPEX) were $8,200/day, in line with the second
quarter of 2022.
* Net profit of $11.6 million compared to $18.4 million for the second quarter
2022, or earnings per share of 15 cents compared to 24 cents for the second
quarter. Net profit in the second quarter excluding gain on sale was $13.9
million.
* The Company continues to benefit from the interest rate hedges that it has
in place with gains of $7.8 million in the third quarter bringing the total
gains this year to $24.6 million.
* In August 2022, the Company signed an aggregate $135 million sale leaseback
agreement for the financing of newbuildings five and six, Avance Castor and
Avance Pollux scheduled for delivery in Q4 2023 and Q1 2024. The transaction
completes the financing of the newbuilding program with no unfunded capex
remaining and is expected to release approximately $39.4 million in net cash
at delivery.
* In November 2022, the company entered into an agreement to sell the VLGC
Promise generating a profit of approximately $7.5 million and cash proceeds
of approximately $20 million.
* For the fourth quarter of 2022, we are 93% booked and we estimate a TCE rate
for the quarter between $45,000 and $50,000 per day on a load to discharge
basis and between $50,000 and $55,000 per day on a discharge-to-discharge
basis.

Øystein M. Kalleklev, Executive Chairman, commented:

"We today are announcing third quarter numbers for Avance Gas with average Time
Charter Equivalent (TCE) earnings of $33,000 per day in line with our guided
numbers of around $32,000 per day. Although this was admittedly a bit on the
soft side compared to the first and second quarter, we are however very well
positioned for fourth quarter with 93 per cent of the quarter covered and we are
expecting TCE earnings to move upwards in the region of $50,000 per day. With
strong volume growth and increased ton time, we today see the strongest LPG
freight market since 2015. Given our positive outlook, strong balance sheet with
plenty of cash and no unfunded capex we are therefore once again happy to
declare a dividend of $0.20 per share for our shareholders."

Please see attachments for the Q3 Earnings Presentation and Interim Financial
Report

1. Avance Gas Q3 2022 Earnings Presentation
2. Avance Gas Q3 2022 Interim Financial Report

Avance Gas will host an audio webcast and conference call to discuss the
company's results for the period ended 30 September 2022 on Thursday, 24
November 2022, at 14:00 CET. There will be a Q&A session following the
presentation.

The presentation and webcast will be hosted by:

* Mr. Øystein Kalleklev - Executive Chairman
* Mrs. Randi Navdal Bekkelund - CFO

The presentation will also be available via audio webcast, which can be accessed
at Avance Gas' website www.avancegas.com or follow the link

https://edge.media-server.com/mmc/p/w4ecxxkj

The conference call can be accessed using the following link:

https://register.vevent.com/register/BI0dad1ff95dd44297bb9e33f0bd8a0a4a

For further queries, please contact:
Øystein Kalleklev, Executive Chairman
Tel: +47 23 11 40 00


Randi Navdal Bekkelund, CFO
Tel: +47 22 11 40 00


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 (VLGCs)
and operates a fleet of thirteen modern ships including two dual fuel LPG
newbuidlings and an additional four Dual Fuel LPG newbuildings due for delivery
in 2023 and Q1 2024. For more information about Avance Gas, please
visit www.avancegas.com.

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

More information:
Access the news on Oslo Bors NewsWeb site

576555_1 Avance Gas Q3 2022 Earnings Presentation.pdf
576555_2 Avance Gas Q3 2022 Interim Financial Report.pdf