Awilco suffers a loss

Thursday, 03 September 2020
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Awilco LNG Group has reported net freight income of $4.1 mill for the second quarter of this year, compared with $12.9 mill in the previous quarter.

EBITDA was $1.4 mill, compared to $9.9 mill in 1Q20 and the company suffered a 2Q20 loss of $5.3 mill, compared to a profit of $2.7 mill in 1Q20.

Vessel utilisation was 99%, compared to 100% in the first quarter.

Thus far, the company said that it had been able to accommodate reasonable crew rotation and both of its vessels are fully operational with no Covid-19 cases reported to date.

Freight income fell following a marked drop in spot market rates, due to muted end-user demand and historically low gas price curves.

Despite these factors, spot market fixture activity in general remained high.

For the first six months of this year, freight income was $19.1 mill, compared to $13.2 mill in the same period last year. EBITDA in 1H20 was $11.3 mill, compared to $4.8 mill in the first half of 2019.

Net loss for the period was $2.6 mill, compared to $11.9 mill in 1H19.

Awilco LNG’s bareboat rate under its lease agreements for the two vessels operated is estimated to be about $39,000 per day per vessel for the remainder of this year, falling to about $38,500 per day in 2021, of which amortised is $25,700 per day per vessel.

Both ‘WilForce’ and ‘WilPride’ are trading in the spot/ short term market. However, ‘WilPride’ is expected to commence a 110-day timecharter later this month, rumoured to be with IOC. 

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