Q2 2024 Avance Gas Holding Ltd Earnings Call Transcript
Key Points
- Avance Gas Holding Ltd (AVACF) reported a net profit of $61 million for Q2 2024, contributing to a record-breaking first half-year net profit of $207 million.
- The company successfully sold its last newbuilding VLGC for $120 million, resulting in a profit of $36 million.
- Avance Gas Holding Ltd (AVACF) announced a substantial dividend payout of $1.35 per share for Q2, bringing the total dividend for the first half of 2024 to $3.50 per share.
- The sale of the remaining 12 VLGCs to BW LPG for $1.05 billion is expected to generate a gain of approximately $315 million and significant cash proceeds.
- The company has a strong cash position, with a pro forma cash balance of $485 million after adjusting for the recent transaction with BW LPG.
- The market experienced a soft period during the summer, with Q3 bookings at $41,000 per day, lower than previous quarters.
- The sale of the VLGC fleet resulted in a 30% drop in the stock price, reflecting market concerns about the transaction's valuation.
- The company faces challenges with the arbitrage economics not translating into higher freight rates due to an oversupply of ships in the market.
- There is uncertainty regarding the future strategy for the four newbuild MGCs, with options including selling, chartering, or consolidating with other owners.
- The company will need to manage the termination of interest rate swaps and other financial adjustments, which could impact net finance expenses.
Thank you, and thank you, everybody, for joining this second quarter result presentation for Avance Gas. I'm Oystein Kalleklev, as mentioned, CEO of Avance Gas, and I will be joined here today as usual by our CFO, Randi Bekkelund who will run you through the numbers as mentioned in the introduction. We will close the presentation today with a Q&A session where you can either ask a question by the conference call or by the chat function.
So as you can see from our competitors, we have found some inspiration in the Japanese icon, the great [wave of canavaga] by leukocyte. This feature will solve that with this last year for $2.7 million. So we made our own edition, which we call the great wave of dividends by Avance Gas. And we paid out close to them $270 million of dividends for the first half year of 2024, which means that all shareholders can buy close to hundreds of this picture.
So let's begin with the disclaimer. During the presentation, we will begin making some forward-looking statements and non-GAAP
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