Avance Gas Holding Ltd Reports Unaudited Results for the First Quarter of 2016

BERMUDA, 27 April 2016 - Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the first quarter of 2016.

Q1 2016 results reflected the impact of seasonally lower trading volumes and global fleet growth - Board declares dividend of $0.30 per share:

  • Net profit for Q1 2016 was $21.1 million, compared with $45.1 million in Q4 2015.
  • The average time charter equivalent (TCE) rate for the fleet was $38,707/day in Q1 2016, down from $61,144/day in Q4 2015.
  • TCE earnings in Q1 2016 were $48.5 million, down from $71.1 million in Q4 2016.
  • Average daily operating expenses (OPEX) for Q1 2016 were $7,788/day, compared with $7,620/day in Q4 2015.
  • Avance Gas' Board declared a dividend of $0.30 per share. The shares will trade ex-dividend on and after 2 May 2016.

Significant recent events:

  • In March, the company and its banking group agreed to amend Avance Gas' credit facilities, by conversion of term loans to revolving loans for $100.0 million, increasing the revolving credit capacity to $150.0 million. Further, the minimum cash covenant was reduced from 7.5% to 5.0% of interest-bearing debt, while maintaining a nominal threshold of $35.0 million.

Results for the first quarter were impacted by the seasonal decline in LPG trading volumes combined with the effects of a large number of newbuildings delivered towards the end of 2015 and into 2016, mainly from South Korean yards. This resulted in lower freight rates and increased waiting time. US Gulf VLGC export volumes continued to increase, averaging 37 cargoes per month in Q1 2016, up from an average of 29 cargoes per month in Q4 2015. The majority of the reported US Gulf VLGC exports in Q1 2016 were bound for the Far East. The Avance Gas Spot Index averaged $39,460/day in the quarter, compared with $63,847/day in Q4 2015.

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

For further queries, please contact:

Christian Andersen, President
Tel: +47 22 00 48 05 / Email:c.andersen@avancegas.com

Peder C. G. Simonsen, CFO
Tel: +47 22 00 48 15 / Email:p.simonsen@avancegas.com


Avance Gas Holding Ltd 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), operating a fleet of 14 modern ships.

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


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 - Q1 2016 Interim Financial Statements
Avance Gas - Q1 2016 Earnings Release

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.

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