Awilco LNG (ALNG) Q3 2024 earnings summary

Executive summary

• Reported net loss of USD 0.3 million and EPS of USD 0.00 for Q3 2024, down from net income of USD 8.7 million and USD 0.07 per share in Q2 2024.

• Significant earnings drop attributed to WilForce's exposure to a weak spot LNGC market and idle periods, while WilPride remains on a fixed contract until December 2025 with a 2-year option.

• Dividend payments halted for Q3 2024 due to weak market and lack of near-term earnings visibility; previous dividend of NOK 0.25 per share (USD 3.1 million) paid in September for Q2.

• Robust financial position maintained with comfortable cash reserves and reduced cash break-even after recent refinancing.

Financial highlights

• Net freight income dropped to USD 10.7 million from USD 22.4 million sequentially; EBITDA fell to USD 7.3 million from USD 18.9 million.

• Vessel utilization decreased to 87% from 100% in the previous quarter; Net TCE was USD 58,000 per day, down from USD 122,900.

• Cash and cash equivalents at quarter-end were USD 25.7 million, down from USD 36.7 million at the end of Q2 2024.

• Operating expenses were USD 2.6 million; administration expenses USD 0.8 million; depreciation USD 3.9 million.

• Book equity ratio improved to 40.0% at Q3-end from 39.2% at Q2-end.

Outlook and guidance

• Board halted dividends until earnings visibility improves.

• Market remains challenging with low spot charter rates and muted demand for term contracts.

• Mid- and long-term demand for LNG transportation remains strong, with significant LNG volume growth expected in the second half of the decade.

• Company expects continued pressure on earnings until market conditions improve, but maintains a comfortable financial position due to cash reserves and reduced break-even.