Avance Gas Holding ( (AVACF) ) has released its Q3 earnings. Here is a breakdown of the information Avance Gas Holding presented to its investors.
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Avance Gas Holding Ltd is a company based in Bermuda engaged in the transportation of Liquefied Petroleum Gas (LPG) and operates within the shipping sector, notable for its fleet of Very Large Gas Carriers (VLGCs) and Medium-Sized Gas Carriers (MGCs).
In its latest earnings report for the third quarter of 2024, Avance Gas reported a net profit of $25.8 million, showcasing a profitable period despite a decrease in Time Charter Equivalent (TCE) rates compared to the previous quarter. The company also highlighted the completion of a significant asset sale and plans to return capital to shareholders.
The report detailed a $1,050 million agreement with BW LPG Ltd for the sale of its VLGC fleet, with a substantial portion settled in BW LPG shares, making Avance Gas a major shareholder in BW LPG. Additionally, the sale of its MGC fleet to Exmar LPG BV was finalized, further strengthening Avance Gas’s cash position. The company declared a dividend of $3.50 per share for the third quarter, aligning with its strategy to reward shareholders.
Avance Gas’s management expressed a positive outlook for the shipping market, anticipating strong US export volumes and expanding terminal capacities in 2025, although they plan to wind up operations and return capital to shareholders in an efficient manner.
Looking ahead, Avance Gas remains focused on shareholder value through strategic asset sales and capital distribution, while navigating a favorable market environment with an expected increase in LPG demand and limited fleet growth in the coming years.
