Awilco LNG (ALNG) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 was USD 8.7 million, up from USD 7.2 million in Q1 2024; H1 2024 net profit reached USD 15.9 million.

• Earnings per share for Q2 2024 were USD 0.07, compared to USD 0.05 in Q1 2024; H1 2024 EPS was USD 0.12.

• Vessel utilization remained at 100% for Q2 and H1 2024; WilForce operated in the spot market, WilPride is fixed until December 2025 with extension option.

• Board approved a NOK 0.25 per share dividend for Q3 2024, payable in September; total declared dividends since March 2023 amount to NOK 3.60 per share.

• Completed refinancing of both vessels in June 2024, reducing cash payments by USD 6.5 million over 12 months and lowering cash break-even by USD 9,000 per day per vessel.

Financial highlights

• Net freight income for Q2 2024 was USD 22.4 million, up from USD 21.9 million in Q1 2024; H1 2024: USD 44.3 million.

• EBITDA for Q2 2024 was USD 18.9 million (Q1: USD 17.6 million); H1 2024: USD 36.4 million.

• Cash and cash equivalents at June 30, 2024: USD 36.7 million.

• Book equity at June 30, 2024: USD 139.1 million; total assets: USD 355.3 million; equity ratio: 39.2%.

• Dividend of NOK 0.75 per share for Q1 2024 (USD 9.3 million) paid in July 2024.

Outlook and guidance

• Mid- and long-term demand for LNG transportation remains strong, with LNG volumes projected to grow significantly in the second half of the decade.

• Disruptions in trade patterns are expected to increase ton-mile demand until resolved.

• High shipyard delivery pace may limit rate improvement, but phase-out of older vessels reduces surplus.

• Market activity for medium-term charters has increased ahead of winter, but rates remain lower than recent years.

• Company aims to maintain dividend distribution, subject to vessel employment and earnings.