Avance Gas Holding Ltd Reports Unaudited Second Quarter 2014 Results

BERMUDA, 25 June, 2014 - Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for the quarter ended on 31 May, 2014.

Strong performance in a resilient LPG market - $0.30 per share dividend:

Average time charter equivalent (TCE) rate for the fleet was $45,084/day compared to $34,499/day in Q1 2014. TCE earnings were $24.5 million in Q2 2014, up from $18.4 million in Q1 2014. 543 operating days in Q2 2014, compared with 534 days in Q1 2014. Net profit was $9.6 million in Q2 2014, compared with a net profit of $6.1 million in Q1 2014.The Board declared a dividend of $0.30 per share for the quarter.

Significant events for the quarter:

On 9 April, 2014, Avance Gas announced the successful completion of the initial public offering (IPO) of shares in the company. The total transaction amounted to $273 million, including approximately $95 million in net proceeds from the issuance of new shares and $175 million in a sell-down by the three major shareholders. The latter included an over-allotment of shares of $25 million. The three largest shareholders' aggregate shareholding in the company was reduced to 39.9% resulting from the IPO.On 9 April, 2014, a fire was reported on the first newbuilding under construction at Jiangnan Shipyard, China. The company estimates a delay of up to three months on the delivery of the ship as a result of the fire but does not expect any impact on the delivery dates of the seven other newbuildings. On 8 May, 2014, Avance Gas completed and partially drew down under a new six-year $450 million credit facility agreement. Avance Gas continues its strategy of pursuing consolidation opportunities. 

The trading activity in the fully refrigerated LPG market traditionally picks up in late spring/early summer each year. This usually creates higher demand for shipping services and, thus, stronger freight markets.

The freight market bottomed out in February and as we entered into March, spot rates started to improve. The market continued to strengthen, reaching levels above $100,000/day by the end of April. Activity slowed down in May before picking up again in June.

The market has been driven by steady export volumes from the Middle East combined with increased exports from the US Gulf.

The Baltic Index is currently quoted at about $130/ton, equaling to a time charter equivalent rate of about $100,000/day.

The full report and interim financial statements is attached to this press release.

For further queries, please contact:

Christian Andersen, President
Tel: +47 22 00 48 05 / Email:c.andersen@avancegas.com

Peder C. G. Simonsen, CFO
Tel: +47 22 80 75 72 / Email:p.simonsen@avancegas.com

ABOUT AVANCE GAS

Avance Gas operates in the global market for transportation of liquefied petroleum gas (LPG). The Company is one of the world's leading owners and operators of very large gas carriers (VLGC), and operates a fleet of six modern ships and has a newbuilding program of eight VLGCs.

For more information about Avance Gas, please visit: www.avancegas.com.

FORWARD LOOKING STATEMENTS

Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Avance Gas believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements.

The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice.

This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Avance Gas Second Quarter 2014 Interim Financial Statements
Avance Gas Second Quarter 2014 Financial Result


This announcement is distributed by Nasdaq OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Avance Gas Holding Ltd via Globenewswire
HUG#1800630