Awilco LNG owns two 156,000 cbm TFDE LNG vessels, WilForce and WilPride.
Third-quarter net loss of $0.3 million compares to net income of $8.7 million in the second quarter this year, and net income of $3.3 million in the same quarter last year.
Awilco LNG reported net freight income of $10.7 million in third quarter 2024, compared to $22.4 million in second quarter, and Ebitda of $7.3 million, down from $18.8 million in second quarter 2024.
Net TCE came in at $58,000 for third quarter, compared to $122,900 per day in the prior quarter and $119,500 per day in the third quarter last year.
Vessel utilization was 87 percent for third quarter 2024, compared to 100 percent for the second quarter.
“Weakest LNGC spot market experienced for years”
“After almost two years with very strong earnings where both our vessels have been employed on well-paying time charter contracts the company has experienced a significant drop in earnings in third quarter,” Awilco LNG’s CEO, Jon Skule Storheill, said.
He said WilForce is trading in the “weakest LNGC spot market experienced for years, considering this is normally high season it is surprisingly weak.”
According to Storheill, the company’s financial position is “robust” with a “comfortable” cash position and lowered cash break even following the recent refinancing.
“Due to the present weakness and lack of visibility of near-term earnings the board resolved to halt dividend payments until an improvement in earnings is seen,” he said.
Sekking employment for WilForce
Awilco LNG is looking to secure longer-term employment for its 2013-built WilForce, which is currently working in the spot market, while WilPride’s current contract expires in late 2025.
In November 2022, Awilco LNG secured a charter deal with a firm duration of about 18 months for WilForce.
This medium-term contract started at the end of January 2023 and WilForce was redelivered to Awilco LNG at the end of June.
Since then, the vessl “traded in a challenging spot market with idle periods while we are actively seeking further employment of the vessel,” Awilco LNG said.
Awilco LNG said spot rates are currently quoted at around $20-25,000 in the Pacific and $10-15,000 per day in the Atlantic for TFDE vessels.
“Requirements for term charter contracts is muted and rate assessments for up to one year have dropped to approximately $30,000 per day for TFDE vessels,” it said.
