Avance Gas Holding Ltd (OSE: AGAS or the "Company") reported unaudited results for the fourth quarter 2021.

HIGHLIGHTS

•The average time charter equivalent (TCE) rate was $27,631/day compared to $27,548/day in Q3 2021. The full year 2021 TCE rate was $31,302/day compared to $32,418/day in 2020.

•Daily operating expenses (OPEX) were $8,139/day, down from $8,610/day in Q3 2021. Full year 2021 OPEX was $8,871/day, down from $8,968/day in 2020.

•A&G expenses were $1,351/day, down from $1,549/day in Q3 2021. Full year 2021 A&G expenses were $1,363/day, up from $771/day in 2020.

• In December 2021, the Company successfully executed a sale leaseback transaction of the VLGC Iris Glory generating approximately $16.6 million in net cash proceeds.

•In January 2022, the Company took delivery of Avance Polaris, the first of its six 91,000 cbm VLGC newbuildings from Deawoo Shipyard in South Korea.

The vessel was shortly thereafter delivered to TotalEnergies on a Time Charter Agreement for 2 years.

• In January 2022, the Company entered a contract to sell the 2008-built VLGC Thetis Glory with delivery in February after her current voyage. Following debt repayment, the sale will generate approximately $22.5 million in net cash proceeds and a book profit of approximately $6.0 million.

•In January 2022, the Company entered into a Time Charter Agreement for a period of 2 years for the second dual fuel VLGC, Avance Capella.

•The board declared a dividend of $0.05 per share for Q4 2021 corresponding to $3.8 million.

•For the first quarter of 2022, we estimate TCE rate of approximately $40,000/day contracted for 80% of vessel days.

As we anticipated in our Q3 outlook, the last quarter of 2021 was characterized by a firming winter market where spot rates went from USD 30,000 pd in October to USD high 50,000s pd in December on scrubber fitted modern tonnage. The relatively mild winter temperatures in the US allowed for price competitive US gas to fill requirements in both Asian and European markets with demand being spiked due to political unrest on the Russia / Ukraine border, seasonal cold weather as well as the ongoing energy crunch in Europe.

In the US, exports reached an average of 82 VLGC loadings/month for Q4 which was up 2 from 80 loadings/month in Q3. On an annual basis, the US VLGC loadings averaged 78 loadings per month for 2021, up 8 from 70 loadings/month in 2020.

Middle East exports averaged 50 VLGCs/month for Q4 which is in line with the previous quarter as well as the average for the year which in turn was slightly lower than the 2020 average of 53 cargoes per month. The Opec+ agreed crude oil production cuts continue to impact LPG exports from the region, especially from Saudi Arabia. However, with production cuts being slowly reversed, LPG exports increased throughout the second half of last year.

In addition to global higher export volumes in Q4, Panama Canal waiting time absorbed capacity from the VLGC fleet where it peaked in November as the average waiting time was around 12 days both northbound (for Owner's account) and southbound (for Charterer's account) transits. The waiting time for VLGCs throughout the quarter varied from 3 to 20 days depending on arrival date and we expect uncertainty to prevail also in 2022 when pre-booked slots for VLGCs are no longer available.

Avance Gas, press release