Avance Gas Holding Ltd. · OTC:AVACF
Avance Gas — Q4 2024 Earnings Presentation
23 slides from Avance Gas's earnings presentation, Feb 12, 2025
Slide 1: Fourth Quarter Results 2024
Fourth Quarter Results 2024 February 12, 2025 1
Slide 2: Disclaimer
DISCLAIMER 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 business and the
Slide 3: Q4 Highlights
Q4 HIGHLIGHTS Q4-24 Net profit of $210 million & Earnings per Share (EPS) of $2.74 Q4-24 adjusted Net profit of $13 million & adjusted EPS of $0.181 RESULTS FY 2024 Net profit of $443 million and EPS of $5.78 – boosted by sale of 16x VLGCs Sale of the remaining VLGC fleet to BW LPG for $1.05bn compl
Slide 4: Thank You for the Journey – Fleet Sold with ~$490M Profit
THANK YOU FOR THE JOURNEY – FLEET SOLD WITH ~$490M PROFIT 2008/2009 class 2015 eco class DF class MGC/MACs Venus Glory (2008) Chinook Mistral (scrubber) Polaris (2022) MGC #1 (2025) Iris Glory (2008) Pampero Monsoon (scrubber) Capella (2022) MGC #2 (2026) Promise (2009) Levant (scrubber) Passat (scr
Slide 5: Buy Low – Sell High
BUY LOW – SELL HIGH VLGCs – Investment vs divestment point1 MGCs – Investment vs divestment point $ million Sale: $ million Sale: Four dual fuel VLGCs sold Two dual fuel VLGCs sold to BW LPG in H2 2024 140 in H1 2024 72 Contracted: 70 120 Four dual fuel VLGCs ordered in Jan and Apr 2021 Sale: 68 Eig
Slide 6: Transaction Recaps
TRANSACTION RECAPS Sale of 12 VLGCs Sale of 4 MGCs • August 15, 2024: Announced sale of the remaining 12 • November 27, 2024: Announced sale of four MGCs VLGCs to BW LPG for $1,050 million to Exmar for $282 million • Settlement: $589 million in cash, $333 million in BW • Yard reimbursement of $62 mi
Slide 7: Company Is Preparing for Wind Up
COMPANY IS PREPARING FOR WIND UP 1) Distributed Q3 dividends of $3.50 per share in December 2024, equal to $268 million, as we were prepaying some of the gains recorded in Q4 from vessel sales ✓ 2) During December 2024, we delivered the remaining VLGCs to BW LPG. In connection with these deliveries,
Slide 8: 2024 Dividend per Share of ~$13 Equal to ~$1 Billion
2024 DIVIDEND PER SHARE OF ~$13 EQUAL TO ~$1 BILLION Dividend distributions1 Comments: ▪ Total Q4 distributions, including DPS distribution of BW LPG shares and 7.00 extraordinary dividend of $6.0/share $6.00 ▪ Q4 return of capital of $153 million or 6.00 $2.0/share $0.75 ▪ An additional extraordina
Slide 9: Sources and Uses
SOURCES AND USES Overview of value pro forma cash and BW LPG share distribution Comments: ▪ NAV pre any distribution of $516 $m million 600 ▪ Following the ordinary cash 34 ~516 distribution of $2.0/share and BW LPG 500 56 -1 Will be share distribution, NAV is 251 distributed once approximately $114
Slide 10: Income Statement and Key Financial Figures Q4 2024
INCOME STATEMENT AND KEY FINANCIAL FIGURES Q4 2024 Comments: Income statement (in million $) Q4 2024 Q3 2024 Var.$ FY2024 FY2023 Var. $ ▪ TCE on a discharge-to-discharge basis was 3-months 3-months $28,200/day for Q4. For reference, our TCE earnings 26 46 (20) 215 274 (59) guidance was $27,900/day.
Slide 11: Balance Sheet and Pro Forma Financial Key Figures 2025
BALANCE SHEET AND PRO FORMA FINANCIAL KEY FIGURES 2025 Balance sheet (million $) Dec. 31,2024 Dec. 31,2023 Comments Cash and cash equivalents 176 132 Paid out dividend of $586 million during the year VLGCs & newbuildings - 934 Sold 16 VLGCs during the year, four in H1 and twelve in H2 Assets held fo
Slide 12: Cash Flow Bridge
CASH FLOW BRIDGE $m $600 $249 $3.50/share $500 $242 -$7 BW LPG share $400 distribution: $3.25/share1 Extraordinary $300 $34 $1 dividend: $56 0.75/share2 $16 $200 $193 $176 Ordinary dividend: -$268 $2.0/share $100 -$153 ~$56 -$58 $0 1) The BW LPG share distribution does not have any cash flow effect
Slide 13: US Production Growth Remains the Key Driver
US PRODUCTION GROWTH REMAINS THE KEY DRIVER Seaborne LPG export1 Seaborne LPG Import2 KT KT 70,000 +10% 40,000 +11% 60,000 35,000 +2% 30,000 50,000 -4% 25,000 40,000 +8% +4% 20,000 30,000 +8% 15,000 -2% +7% 20,000 +6% 3% 10,000 -8% -8% 10,000 5,000 - - United States Middle East Norhern Africa Europe
Slide 14: US Export Capacity Set to Ramp Up
US EXPORT CAPACITY SET TO RAMP UP US LPG production and consumption US LPG export capacity million tons/year million tons/year 140 100 CAGR ONEOK JV 120 Terminal 4.8% (12Mtpa)1 90 100 Enterprise: Hydrocarbons Terminal (9Mtpa) 80 80 Enterprise: Neches River (11Mtpa) [Ethane / Propane flexible] 60 70
Slide 15: Freight Market Stabilized but Still Gap to Arbitrage Levels
FREIGHT MARKET STABILIZED BUT STILL GAP TO ARBITRAGE LEVELS US Spot freight rates in TCE/day US-EAST price arbitrage vs rate $/day $/mt 180,000 400 160,000 350 140,000 300 120,000 250 100,000 200 80,000 150 60,000 100 40,000 20,000 50 0 0 Jan Mar May Jul Sep Nov 2020 2021 2022 2023 2024 2025 2024 FF
Slide 16: Watch Out for US Sanctions on Fleet Involved in Iranian Trade
WATCH OUT FOR US SANCTIONS ON FLEET INVOLVED IN IRANIAN TRADE VLGCs involved in the Iranian trade Age of fleet involved in Iran trade Ton-mile ~14% of the global VLGC fleet involved in the Iranian ~35 vessels older than 25 years have been involved in ~78% of Iranian oil transported to China. Volume
Slide 17: Moderate Fleet Growth Until 2027
MODERATE FLEET GROWTH UNTIL 2027 Delivery schedule Aging fleet 20 120 400 VLGCs on water, 104 vessels on order, 26% orderbook +15% of fleet older than 20 100 years. However, limited 18 scrapping due to moderate 80 strong market and old 16 vessels ending up in Iran 60 14 40 20 12 0 >25 year 20 to 24
Slide 18: Q4 Highlights
Q4 HIGHLIGHTS Q4-24 Net profit of $210 million & Earnings per Share (EPS) of $2.74 Q4-24 adjusted Net profit of $13 million & adjusted EPS of $0.181 RESULTS FY 2024 Net profit of $443 million and EPS of $5.78 – boosted by sale of 16x VLGCs Sale of the remaining VLGC fleet to BW LPG for $1.05bn compl
Slide 19: Q&A and Appendix
Q&A and Appendix 19
Slide 20: Appendix – Comments to the Income Statement
APPENDIX – COMMENTS TO THE INCOME STATEMENT Q4 2024 Q3 2024 Variance Income Statement (in thousands $) 3-months 3-months 3-months • TCE earnings of $26.1 million, compared to $45.6 million for the third quarter. Adjustment Operating revenue 44,764 62,590 (17,826) related to the IFRS 15 resulted in a
Slide 21: Appendix – Comments to the Balance Sheet
APPENDIX – COMMENTS TO THE BALANCE SHEET Variance Balance Sheet (in thousands $) 31.12.2024 30.09.2024 3-months ASSETS Cash and cash equivalents 176,021 192,585 (16,564) Trade and other receivables 7,816 6,763 1,053 Inventory - 7,621 (7,621) • Assets held for sale reduced by $688.5 million due to th
Slide 22: Appendix – Comments to the Cash Flow
APPENDIX – COMMENTS TO THE CASH FLOW Q4 2024 Q3 2024 Variance Cash flow statement (in thousands $) 3-months 3-months 3-months • Cash and cash equivalents were $176.0 million on 31 December 2024, Cash flows from operating activities: compared to $192.6 million on 30 September 2024. Cash generated fro
Slide 23: 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 23