Avance Gas Holding Ltd: Fourth Quarter 2022 Earnings Release

28 Feb 2023 07:01 CET

Bermuda, February 28, 2023 - Avance Gas Holding Ltd (OSE: AGAS) ("Avance Gas" or
the "Company") today reports unaudited results for the fourth quarter and full
year 2022.

* The average time charter equivalent (TCE) rate was $46,478/day, in line with
guidance of $45,000-50,000/day. The fourth quarter results have a
significant load-to-discharge adjustment of negative $10.8 million or
reduction of $9,300 in TCE/day. The TCE basis discharge-to-discharge was
therefore at $55,813 slightly higher than the guided level of $50-
55,000/day. TCE for the full year 2022, was $38,236/day compared to
$31,302/day in 2021. The TCE on discharge-to-discharge basis was $40,000/day
for 2022 for comparison.
* Daily operating expenses (OPEX) were $8,738 during the fourth quarter and
$8,403 year to date.
* Net profit of $34.7 million compared to $11.6 million for the third quarter
2022, or earnings per share of 45 cents compared to 15 cents for the third
quarter. Net profit year to date is $89.0 million and is the best results
Avance Gas has delivered in seven years since 2015.
* The Company benefited from the interest rate hedges with gains of $26.5
million for the full year 2022 recognized through Other Comprehensive Income
(OCI).
* During the fourth quarter, the Company sold the 2009-built VLGC Promise with
a Time-Charter (TC) attached resulting in a gain on sale of vessels of $7.9
million. Promise is the third older vessel sold during the year bringing the
total gains on sale of $18.7 million for these three ships during 2022.
* For the first quarter of 2023, we estimate a TCE rate for the quarter to be
approximately $58,000/day on a load-to-discharge basis and $55,000/day on a
discharge-to-discharge basis.
* The Company declared a dividend of $0.50 cent per share for the fourth
quarter, for fiscal year 2022 total declared dividend is $1.10 per share.

Øystein M. Kalleklev, Executive Chairman, commented:
"Fourth quarter 2022 was the best spot freight market for VLGCs since 2015. We
are pleased that Avance Gas also benefitted from firmer markets with average
Time Charter Equivalent (TCE) earnings increasing from $33,000/day in third
quarter to $46,500/day in fourth quarter on a load-to-discharge basis. This was
in line with previous guidance of $45,000 to $50,000/day. As the market
strengthen sharply during the fourth quarter, our full roundtrip numbers
measuring TCE from discharge to discharge was substantially higher at
$55,800/day which was slightly higher than our guidance of $50,000 to
$55,000/day.

After a short-lived slump in freight rates at the start of the year, the freight
market has rebounded sharply lately. This has enabled us to replicate the strong
earnings from fourth quarter also in the first quarter. We are now 98% booked
and expect TCE in the first quarter to be approximately $55,000/day on
discharge-to-discharge basis and slightly higher at about $58,000/day on load-
to-discharge basis.

Higher earnings and the successful sale of the VLGC Promise at a book gain of
$7.9 million in the fourth quarter resulted in a net profit for the quarter
increasing to $34.7 million or $0.45 per share. The combination of solid
earnings and a very robust balance sheet with no unfunded capex and $224 million
of free cash puts Avance Gas in a very good financial position. The Board has
therefore decided to increase our quarterly dividend per share from $0.20 the
previous three quarters to $0.50 for the fourth quarter. This means that we will
pay out a dividend of $1.10 in total for the fiscal year of 2022 in line with
earnings per share of $1.16. This should provide our investors with an
attractive dividend yield of about 16 per cent which we do hope make Avance Gas
a compelling investment alternative."

Please see attachments for the Q4 Earnings Presentation and Interim Financial
Report:

1. Avance Gas Q4 2022 Earnings Presentation
2. Avance Gas Q4 2022 Interim Financial Report

Avance Gas will host an audio webcast and conference call to discuss the
company's results for the period ended 31 December 2022 on Tuesday, 28 February
2023, 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 (http://www.avancegas.com/) or using
the link: https://edge.media-server.com/mmc/p/tkk46ek8

Guests can log into the conference call using the following link
https://register.vevent.com/register/BI1d1c1010c0934e878cd8ddfe28cef347

For further queries, please contact:
Randi Navdal Bekkelund, CFO
Tel: +47 23 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 three dual fuel LPG
newbuidlings and an additional three 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

583749_Avance Gas Q4 2022 Interim Financial Report.pdf
583749_Avance Gas Q4 2022 Earnings Presentation.pdf