Awilco LNG: short-term market to remain challenging

Awilco LNG ASA has reported freight income of US$17.7 million and EBITDA of US$8.5 million in 4Q14.

The company’s full year 2014 freight income stood at US$78.5 million, and full year EBITDA was US$41.0 million. Awilco LNG’s vessel utilisation rate of 86% for the year was up from 73% in 2013 for trading vessels.

The WilGas LNG carrier was redelivered from a three-year charter with Petrobras in mid-October 2014, and subsequently fixed for two short charters, which will employ the vessel until mid-February 2015.

Outlook

In its results statement, Awilco LNG released the following outlook for the LNG market:

“After three years with declining LNG production there was finally an increase in production capacity in 2014 as PNG and Queensland Curtis commenced production. Unfortunately the increase in production has been more than absorbed by a growing fleet.

“The short-term market for LNG carriers is expected to remain challenging and volatile for at least the first part of 2015 as further newbuildings are scheduled for delivery, and the majority of new production capacity is not scheduled to start up before the second half of 2015.

“The market for older tonnage is even more affected by the increased fleet than the modern, more efficient tonnage. It is expected that the phasing out of older tonnage will increase due to the soft market. Rates and utilisation is expected to improve as significant new LNG production comes online.”

Edited from various sources by Katie Woodward

Read the article online at: https://www.lngindustry.com/lng-shipping/13022015/awilco-lng-reports-4q14-results-249/