Awilco LNG, the Norwegian listed owner of two LNGCs, achieved a net result of USD 4.9 mill and profit per share of $0.04 for the fourth quarter of last year, up from a net loss of $5.1 mill recorded in 3Q22.
The annual result for 2022 was $5.8 mill and $0.04 per share.
Net freight income was $16.2 mill for 4Q22, up from $4.8 mill in the previous quarter, while net freight income for the year was $45.3 mill.
Fourth quarter EBITDA was $12.1 mill, up from $1.3 mill in the third quarter of last year and the 12-month EBITDA was $31.1 mill.
Vessel utilisation was 93% in 4Q22, up from 44% for 3Q22, with a net TCE of $88,100 per day. For the full year, utilisation was 81% with a net TCE of $62,000 per day.
In November, Awilco signed an 18-month charter contract for ‘WilForce’ that commenced at the end of January this year in direct continuation from the previous six-month charter.
On 15th February, 2023 the Board authorised a cash dividend payment of NOK0.50 per share.
CEO Jon Skule Storheill, commented: “We are pleased to report a full year profit of $5.8 mill after a roller-coaster 2022 in the LNG market driven by world events.
“In the fourth quarter we resumed profitability on the back of increased earnings from spot and fixed rate contracts for both vessels. This is set to continue for the next years, and earnings can be expected to remain solid throughout the next two years.
“The market has as usual experienced a seasonal downturn at the start of the year on the back of a mild winter in Europe in combination with high LNG inventories. We expect the market conditions to improve throughout the year as energy security continue to be in focus, as it has been in 2022, and China returns to the market after reopening.
“The fixed earnings contracts enable the company to return value to our shareholders, starting with a payment in first quarter 2023, which will be proposed to be extended and affirmed at the Annual General Meeting,” he said.
‘WilForce’ traded on a fixed rate contract throughout 4Q22, while ‘WilPride’ undertook a spot voyage until she commenced a fixed rate contract at the start of December, 2022.
Awilco’s cash and cash equivalents increased to $26.1 mill at the end of the year, up from $24.3 mill at the end of 3Q22. The increase was mainly related to higher rates achieved in 4Q22, compared to the previous quarter.
Interest bearing debt net of capitalised and amortising transaction costs was reduced by $4.5 mill in 4Q22 to $207.6 mill on 31st December, 2022 in accordance with the repayment profile of the leases.
Total book value of ‘WilForce’ and ‘WilPride’ was $317.1 mill at the end of the year after depreciation of $3.1 mill and capitalised cost for engine overhauls of $0.4 mill in 4Q22.
Last year, Awilco undertook a scheduled overhaul of three main engines, two on ‘WilPride’ and one on WilForce’, at a total cost $2.3 mill. This cost was capitalised and will be amortised over the next four years.
Another overhaul originally scheduled for 4Q22 on ‘WilForce’ was postponed to January, 2023. Both ships are scheduled to drydock later this year.
