Avance Gas Holding ( (AVACF) ) has released its Q4 earnings. Here is a breakdown of the information Avance Gas Holding presented to its investors.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Avance Gas Holding Ltd is a Bermuda-based company specializing in the transportation of liquefied petroleum gas (LPG) across global markets, particularly focusing on selling large gas carriers. The company recently transitioned towards winding up its operations after selling off major assets, including its fleet of Very Large Gas Carriers (VLGC).
The company’s latest earnings report highlights a significant financial performance for the fourth quarter of 2024, despite a downturn in shipping rates. Avance Gas reported a net profit of $210.2 million, a substantial increase from the previous quarter’s $25.8 million. The full-year net profit also showed significant improvement, reaching $443.0 million compared to $163.6 million in 2023. A key highlight was the successful sale of twelve VLGCs to BW LPG Limited, which was structured as a 70% cash and 30% share deal, making Avance Gas the second-largest shareholder in BW LPG.
Key financial metrics from the report include a Time Charter Equivalent (TCE) rate of $28,200/day on a discharge-to-discharge basis, which shows a decrease from the previous quarter. However, the strategic sale of the VLGC fleet resulted in a gain of $287 million, contributing significantly to the net profit. Additionally, the company has agreed to sell four Mid-Sized Gas Carriers under construction to Exmar LPG BV for $282.4 million. The financial strategy includes returning capital to shareholders through dividends and BW LPG shares.
Looking ahead, Avance Gas is focused on completing the winding-up process and distributing remaining capital to shareholders. The outlook for LPG market rates remains mixed due to factors like fleet growth and market conditions, but moderate export growth and demand from China and India are expected to provide some support. The company is set to finalize the sale of its remaining assets and proceed with its liquidation process by mid-2025, closing an 11-year chapter in the LPG transportation industry.
