LNG Shipping Market Recovering: Awilco

Oslo-listed LNG carriers owner Awilco LNG said it made a net 1Q2018 profit of $1mn, after making a full year 2017 loss of $31mn which included a 4Q loss of $4.5mn

The company, which owns and operates two vessels WilForce (see banner photo, courtesy of Awilco) and WilPride that trade in the spot/short term market, said May 24 that these achieved 97% utilisation in 1Q2018 versus only 83% in 4Q2017. Freight income in 1Q was $13.8mn, up from $9.6mn in 4Q2017 thanks to a busy winter on higher day charter rates.

Turning to the wider market, it cited shipbroker Fearnleys LNG, which said that 1Q2018 spot day-rates started the quarter at $85,000 and $80,000 for West and East of Suez respectively, but softened to $55,000 and $38,000 following normal seasonal patterns heading into spring compounded by an influx of new tonnage. 

A widening gas price spread between the Far East on one hand, and both UK-NBP and Henry Hub on the other, created arbitrage opportunities, it said citing shipbroker Poten, adding that of the 67 cargoes shipped from Sabine Pass in the US in 1Q2018, 68 % were delivered to Asia, compared with about 50% in 2017. Awilco also said that LNG trade is estimated to have increased year on year by 6% in 1Q2018, with imports to China up 59% and imports to South Korea up 15%.