Awilco LNG ASA (Awilco LNG or the Company) reported freight income of MUSD 8.9 (MUSD 9.6 in Q4 2015) and EBITDA of MUSD 4.9 (MUSD 5.8 in Q4 2015).
– Vessel utilisation of 78 % compared to 81 % in Q4 2015 (trading vessels).
Freight income for the quarter was MUSD 8.9, down from MUSD 9.6 in the previous quarter. The decrease was due to a minor reduction in rates and utilisation of WilPride, from 62 % in Q4 to 57 % this quarter. Fleet utilisation for the quarter ended at 78 %, compared to 81 % in Q4 2015 (trading vessels). Voyage related expenses were MUSD 0.7, same as in previous quarter. Operating expenses were MUSD 2.4 (MUSD 2.3 in Q4 2015). Administration expenses for the quarter were MUSD 1.0 (MUSD 0.8 in Q4 2015). EBITDA for the quarter was MUSD 4.9 (MUSD 5.8 Q4 2015).
Depreciation for the quarter was recorded at MUSD 3.6, compared to MUSD 4.1 in Q4 2015. The decrease in depreciation was due to the impairment losses charged in the previous quarter. Net financial items were MUSD (5.8) compared to MUSD (6.0) in Q4 2015. Interest expenses on the WilForce and WilPride financial leases amounted to MUSD 5.9 (MUSD 6.0 in Q4 2015). Loss for the period was MUSD 4.6, compared to a loss of MUSD 12.6 in Q4 2015. Statement of financial position Book value of vessels was MUSD 418.9 as at 31 March 2016 (MUSD 422.5 31 December 2015). The decrease reflects ordinary depreciation during the quarter. Total current assets were MUSD 18.9 as at 31 March 2016 (MUSD 22.8 as at 31 December 2015), of which cash and cash equivalents were MUSD 10.8 (MUSD 17.3 Q4 2015). MUSD 3.0 of the increase in total current assets compared to last quarter follows from an increase in prepayments relating to the financial lease bareboat payments.
Total equity as at 31 March 2016 was MUSD 151.0. Total current liabilities were MUSD 17.2 as at 31 March 2016 (MUSD 16.9 Q4 2015). MUSD 13.0 of the current liabilities relates to the short term portion of the WilForce and WilPride financial leases (MUSD 12.8 as at 31 December 2015). Based on the current liquidity situation and the forecasted cash flow in 2016, the Company is sufficiently funded for 2016. Forecasted cash flow comprise cash flow from firm contracts and expected cash flow from future employment based on the current and expected market situation, and also includes the possibility of leveraging the two all-equity financed second generation vessels, or potentially dispose of one or both to ensure sufficient funding to cover the Company’s obligations. Forecasting spot market earnings and utilisation involves a high degree of uncertainty.