Norwegian LNG Shipper Returns to Profit in Q1
Norwegian LNG shipping firm Awilco has posted a $2.7mn profit for the first quarter on surging day-rates and vessel use, down from a $3.4mn loss a year earlier, it said in results published on May 5.
The company, which owns two 156,000-m3 LNG carriers (LNGCs), reported $14mn in freight income, up from $9.4mn is the first quarter of 2019. Its pre-tax earnings (Ebitda) came in at $9.9mn, up from $5mn. It achieved 100% vessel utilisation in the three months, up from 90% a year earlier.
Awilco's operating expenses stood at $2.2mn in the quarter, virtually unchanged from a year earlier, while admin costs fell to $0.8mn from $1.0mn. Financial expenses came to $4.1mn, falling from $5.1mn, thanks to Awilco refinancing its vessels in January under improved terms.
"Activity and rates in the LNG shipping market have until recently been firm compared to the same periods in previous years," the company said, commenting on the Covid-19 crisis. "Although shipping rates have come down the last few weeks it is challenging to determine to what degree this is attributable to the usual shoulder season effects or to temporary demand destruction caused by the pandemic."
Awilco noted that its WilForce LNG carrier (LNGC) ended a 80-100 day time charter contract in mid-February, while its WilPride LNGC finished up an eight-month contract in early March. Both vessels have subsequently been deployed on the spot market.