Avance Gas Holding Ltd. · OTC:AVACF
Avance Gas — Q1 2024 Earnings Presentation
27 slides from Avance Gas's earnings presentation, May 15, 2024
Slide 1: First Quarter Results 2024
First Quarter Results 2024 May 15, 2024
Slide 2: A Word From Our Lawyers
A WORD FROM OUR LAWYERS Matters discussed in this announcement may constitute forward-looking statements. All statements other than statements of historical facts included in this announcement, including those regarding Avance Gas' plans, strategies, business prospects, changes and trends in its bus
Slide 3: A Word From Our Doctors
A WORD FROM OUR DOCTORS This Avance Gas presentation contains very high shareholder distribution which may cause symptoms among others but not limited to: • Shortness of breath • Increased heart rate and/or blood pressure • Excessive joy and/or unforced smiling • General euphoria • Elevated self-est
Slide 4: Q1 Highlight
Q1 HIGHLIGHT Q1-23 – Quarterly dividend per share: $0.50 equal to ~$38.5m Q2-23 – Quarterly dividend per share: $0.50 equal to ~$38.5m Q1-Q4 DPS of $2.15 equal to ~$165m Q3-23 – Quarterly dividend per share: $0.50 equal to ~$38.5m Q4-23 – Quarterly dividend per share: $0.65 equal to ~$50m Q1-24 – Qu
Slide 5: Other Q1 Highlights
…OTHER Q1 HIGHLIGHTS • Q1-24 TCE discharge-to-discharge of $60,900/day and $78,800/day load-to-discharge • Q1 Net Profit of $146 million and EPS of $1.91, highest ever net quarterly profit ever • Net Profit adjusted for gain on sale of $61.6 million and EPS of $0.80 • Sale of Iris Glory completed in
Slide 6: Commercial Performance and Guidance
COMMERCIAL PERFORMANCE AND GUIDANCE Q1-24-Commercial Performance1: Q2-24-Commercial Guidance2: (Discharge-to-discharge) (Discharge-to-discharge) Spot Rates: Spot Rates: 25% 26% $47,000/day $64,300/day TC Rates: TC Rates: Fleet TCE/day Q1-24 $47,000/day Fleet TCE/day Q2-24 $48,000/day $59,900 excl. F
Slide 7: Fleet Renewal Completed
FLEET RENEWAL COMPLETED 2015 eco class DF class MGC/MACs 16 Vessels 1 8 Dual-fuel vessels Scrubber Avg. Age ~ 4.8 years 6 2 fitted vessels Chinook Mistral (scrubber) Polaris (2022) MGC #1 (2025) 2008/2009 class Capella (2022) MGC #2 (2026) Pampero Monsoon (scrubber) Venus Glory (2008) Levant (scrubb
Slide 8: Employment Overview
EMPLOYMENT OVERVIEW 2024 2025 Vessel Size (CBM) Built EGCS LPG NH3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Breeze 83 000 2015 v Chinook 83 000 2015 Levant 83 000 2015 v Mistral 83 000 2015 v Monsoon 83 000 2015 v Pampero 83 000 2015 Passat 83 000 2015 v Sirocco 83 000 2015 v 83 000 Polaris 91 000 2022 v Capella 91
Slide 9: We Need to Bring in the Scissor Lift for This Dividend
WE NEED TO BRING IN THE SCISSOR LIFT FOR THIS DIVIDEND Dividend distribution Dividend decision criteria's $ / Share Q4-23 Q1-24 2,50 1 Earnings and cashflow Net Profit $146m – highest quarterly result ever $2,15 $2,15 FY 2023 Strong US production and limited fleet growth in 2 Market outlook 2024 & 2
Slide 10: Income Statement and Key Financial Figures Q1 2024
INCOME STATEMENT AND KEY FINANCIAL FIGURES Q1 2024 Income Statement (in million $) Q1 2024 Q4 2023 Variance ▪ TCE on load-to-discharge basis was $78,800/day TCE earnings 92 90 2 for Q1 2024 ($71,900/day for Q4 2023). Operating Profit before depreciation 81 78 3 ▪ TCE of $60,900/day for Q1 2024 on di
Slide 11: Balance Sheet and Key Financial Figures Q1 2024
BALANCE SHEET AND KEY FINANCIAL FIGURES Q1 2024 Balance Sheet (in million $) Q1 2024 Q4 2023 Variance ▪ VLGC & newbuildings book value decreased by $111 million from year end primarily due to sale Cash & cash equivalents 360 132 228 of three vessel sales resulting in a gain on sale of VLGCs & newbui
Slide 12: Cash Flow Movements Q1 2024
CASH FLOW MOVEMENTS Q1 2024 $m +$62m from sale of +$228m Avance Pollux in Q2 - $165m Q1 dividend = $257m pro-forma cash DPS of $0.65 $127m from vessel sales for Q4-2023 12
Slide 13: Completed Refinancings - No Debt Maturities Prior 2028
COMPLETED REFINANCINGS - NO DEBT MATURITIES PRIOR 2028 $43 million Bank Term Facility Simplifying our Financing Portfolio Total Interest-bearing debt of ~$510 million as of March 31,2024 ▪ Financing amount: $43 million for the VLGC Pampero (2015-built) ▪ Repayment profile: 20 years age-adjusted ▪ Ma
Slide 14: Well Ahead of IMO and Poseidon Emission Targets
WELL AHEAD OF IMO AND POSEIDON EMISSION TARGETS Emissions measured in AER (Annual Efficiency Ratio) Key takeaways from the ESG report 2023 ▪ AER of 6.64 for 2023, reduced CO2 emissions by 20% in three years measured in Annual Efficiency Ratio ▪ 8% ahead of IMO Trajectory and 14% ahead of Poseidon Pr
Slide 15: Steady Export Growth Despite Cold Snap in US
STEADY EXPORT GROWTH DESPITE COLD SNAP IN US KT Seaborne LPG export1 KT Seaborne LPG Import2 25 000 12 000 +10% +4% 10 000 20 000 -4% +6% 8 000 +11% +7% 15 000 6 000 10 000 +2% +2% 4 000 +1% +18% -11% -2% 5 000 -14% 2 000 - - United States Middle East Northern Africa Europe Rest of the China India J
Slide 16: US LPG Production Grows While Consumption Remains Flat
US LPG PRODUCTION GROWS WHILE CONSUMPTION REMAINS FLAT US LPG production and consumption Inventories on the rise after the cold snap million tons/year Million Bbl 120 120 100 100 80 +27% 80 60 60 40 40 20 20 - - 2020 2021 2022 2023 E2024 E2025 Jan Mar May Jul Sept Nov US Production US Consumption 5
Slide 17: Spot Freight Market Rebounded from the Cold Snap
SPOT FREIGHT MARKET REBOUNDED FROM THE COLD SNAP US Spot freight rates in TCE/day1 Current spot freight rates2 $/day US production, elevated arb $80/pmt 150 000 & Panama inefficiencies BLPG1 Ras Tanura TCE: $60,300/day Chiba 125 000 $142/pmt BLPG3 Houston TCE: $67,700/day Chiba Assumes Panama routin
Slide 18: Panama Canal - Water Levels Stabilised While Auction Fees Up
PANAMA CANAL – WATER LEVELS STABILISED WHILE AUCTION FEES UP Water levels in the Gatun Lake (feet) Auction prices for spot Neo-Panamax slot 89 $2,0 $1.8m paid for one-way southbound Millions & northbound Panama transit on $1,8 top of regular transit fee of $0.5m 87 ~80% of auction slots $1,6 booked
Slide 19: VLGC Fleet - Limited Growth for 2024 and 2025
VLGC FLEET – LIMITED GROWTH FOR 2024 AND 2025 # Vessels VLGC orderbook as of May 2024 VLGC global fleet is aging 140 127 # Vessels Orderbook % of fleet 120 108 50 50% 100 45 45% 59 vessels 50% of orders 80 older than 389 VLGCs on water, 90 60 are VLAC 20 years vessels on order, ~23% 60 40 40% orderb
Slide 20: Recap of Q1 Highlights
RECAP OF Q1 HIGHLIGHTS Q1-24 TCE discharge-to-discharge of $60,900/day and $78,800/day load-to-discharge Q1 Net Profit of $146 million and EPS of $1.91, highest ever quarterly net profit RESULTS Net Profit adjusted for gain on sale of $61.6 million and EPS of $0.80 Sold three vessels in Q1 with prof
Slide 21: Q&A and Appendix
Q&A and Appendix y
Slide 22: Appendix - Comments to the Income Statement
APPENDIX – COMMENTS TO THE INCOME STATEMENT Q1 2024 Q4 2023 Variance • TCE earnings (net of operating revenue and voyage expenses) of $92.0 Income Statement (in thousands $) 3-months 3-months 3-months million for the first quarter, up from $89.6 million in previous quarter. Operating revenue 116,127
Slide 23: Appendix - Comments to the Balance Sheet
APPENDIX – COMMENTS TO THE BALANCE SHEET Variance Balance Sheet (in thousands $) 31.03.2024 31.12.2023 3-months ASSETS Cash and cash equivalents 360,245 131,515 228,730 Trade and other receivables 13,013 42,962 (29,949) Inventory 7,016 9,776 (2,760) • Total assets consist primarily of 12 VLGCs on wa
Slide 24: Appendix - Comments to the Cash Flow
APPENDIX – COMMENTS TO THE CASH FLOW Q1 2024 Q4 2023 Variance Cash flow statement (in thousands $) 3-months 3-months 3-months • Cash and cash equivalents were $360.2 million on 31 March 2024, Cash flows from operating activities: compared to $131.5 million on 31 December 2023. Cash flow from Cash ge
Slide 25: MGC Pre-Delivery and Delivery Instalments
MGC PRE-DELIVERY AND DELIVERY INSTALMENTS $m Committed CAPEX MGCs $250 $246 4 x MGCs acquired at $61.5 million per vessel First scheduled delivery Q4-25 $200 and final Q4-26 $150 15% of $100 contract Delivery MGC 1 Delivery MGC 3 price + pre-delivery + pre-delivery Pre-delivery Pre-delivery instalme
Slide 26: Glossary
GLOSSARY A&G = Administrative and general CBE = Cash break even CAPEX = Capital expenditure EEXI = Energy Efficiency Existing Ship Index EPS = Earnings Per Share FY = Fiscal year IFRS = International Financial Reporting Standards IMO = International Maritime Organization LPG = Liquefied Petroleum Ga
Slide 27: Contact Details
Contact Details Avance Gas Bryggegata 3 0112 Oslo, Norway +47 23 11 40 00 www.avancegas.com Investor Relations https://www.avancegas.com/Investor-Relations Stock Exchange ticker: AGAS