Q3 2024 Avance Gas Holding Ltd Earnings Call Transcript
Key Points
- Avance Gas Holding Ltd (AVACF) announced a significant dividend payout of $3.50 per share for Q3, totaling $268 million, reflecting a strong commitment to returning capital to shareholders.
- The company reported a net profit of $25.8 million for the quarter, with earnings per share of $0.34, excluding any gains from sales, indicating solid operational performance.
- Avance Gas Holding Ltd (AVACF) successfully sold its MGC fleet to Exmar, booking a gain of around $34 million, showcasing effective asset management and strategic divestment.
- The company has no debt by year-end, having paid off $155 million of outstanding debt, which strengthens its financial position and reduces interest expenses.
- Avance Gas Holding Ltd (AVACF) plans to distribute BW shares to its shareholders, providing them with continued exposure to the market through a 12.88% shareholding in BW.
- The market for Avance Gas Holding Ltd (AVACF) has been soft, with challenges in fixing ships due to the company's exit from the industry, impacting Q4 performance.
- The BW stock price has decreased, affecting the estimated profit from the BW deal, which is now at $296 million, down from an initial expectation of $350 million.
- The company is winding down operations, which involves costs and logistical challenges associated with closing down the business and liquidating assets.
- Avance Gas Holding Ltd (AVACF) faces a soft Q4 market, with spot rates expected to be dismal at $23,800 per day, impacting revenue potential.
- The LPG shipping market is experiencing oversupply concerns, with high fleet growth and reduced demand due to the reopening of the Panama Canal, affecting freight rates.
Thank you, everybody, for joining our webcast today. We have some exciting news for you all and which you might already be aware of. I'm joined, as usual, by our CFO, Randi Navdal Bekkelund, who will run you through the financials for the presentation.
Just to remind you, you can also ask questions either by the chat function. And once we conclude the presentation, we will do some Q&A in case there are some questions to today's presentation.
Before we begin, I'm just going to remind you about our disclaimer. We will be giving some forward-looking statements and use non-GAAP measures like TCE, and there are limits to how many details we can cover in this presentation. So I recommend that you read the presentation together with the earnings release, which we also published today, this morning, 7:00 o'clock.
So let's kick off. I think one of the big highlights today is the dividend. We've been ramping up the dividend quite a lot the last couple of years. And for this quarter, we are prepaying some
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