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Awilco LNG ASA extends amendment to financial covenants

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LNG Industry,

Awilco LNG ASA has announced an agreement with CCB Financial Leasing Co. Ltd. (CCBFL) to extend the temporary amendments to financial covenants in the sale/leaseback facilities for the LNG carriers WilForce and the WilPride.

The required minimum consolidated cash and cash equivalents financial covenant of US$10.0 million has been reduced to US$2.0 million and the required consolidated positive working capital financial covenant has been waived, originally from 1 July 2020 to 31 December 2020, and now extended for a further six-month period, from 1 January 2021 to 30 June 2021.

As a condition of the above extension the company is restricted from declaring or paying dividends if the consolidated cash position of the Awilco LNG Group is lower than US$20.0 million.

The anticipated colder winter, caused by La Nina weather effects, is expected to support a strong LNG shipping market the next few months until LNG demand is expected to resume its growth trajectory as a crucial part of cutting CO2 and a more sustainable energy mix. The company’s results are expected to improve.

Jon Skule Storheill, CEO of Awilco LNG ASA, stated: “We are very pleased with the continued support CCBFL has shown the company in this extraordinary and temporary situation underlining the excellent cooperation and positive relationship between the parties.”

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