Avance Gas Holdings, the Oslo listed VLGC operator, expects the market to be able to absorb a large orderbook and produce good results in the near future.
Group net profit in the second quarter of 2015 (2Q15) rose to USD41.3 million from USD23.8 million in the previous quarter. Revenues rose to USD68.6 million from USD48.3 million. The company started business in its present form earlier this year.
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The company, which has a fleet of 12 ships, said its vessels earned on average USD86,938 per day in the a quarter, a marked increase from USD64,832 in 1Q15. The fleet is employed on the spot market or on spot related contracts.
“The orderbook remains high, with about 41% of the existing fleet on order for delivery during 2H15 and through 2016. The growth in US LPG production and the continued growth in Asian imports is expected to absorb the current orderbook and support healthy utilisation rates for the global VLGC fleet through 2015 and 2016,” the company said in a statement.
The widening of the Panama Canal will allow VLGCs to transit the waterway from 2H16, reducing sailing distances, but the impact on the freight markets remains to be seen, Avance said.