Avance Gas Holding Ltd, the Bermudian-based company engaged in the transportation of liquefied petroleum gas, has reported a net profit of $18.4 million in the second quarter of the year.

That compares to a net profit of $24.3 million in the first quarter.

The average time charter equivalent (TCE) rate on load to discharge basis was $36,212/day compared to $37,608/day for the first quarter.

This was ahead of guidance of between $32,000/day to $33,000/day.

Daily operating expenses were $8,200/day, down from $8,500/day for the first quarter.

During the quarter, the company completed the sale of the 2008-built very large gas carrier (VLGC) Providence with the vessel being delivered to the new owners in May.

The sale generated a gain on sale of $4.5 million and a cash release of $25.8 million.

This month, the company signed an aggregate $135 million sale leaseback agreement with Bocomm Leasing for the financing of newbuildings five and six, Avance Castor and Avance Pollux, scheduled for delivery in the fourth quarter of 2023 and the first quarter of 2024.

The transaction completes the financing of the newbuilding programme with no unfunded capex remaining and is expected to release approximately $39 million in net cash at delivery.

For the third quarter, Avance estimates a TCE rate of approximately $32,000/day on a load to discharge basis.

Øystein M Kalleklev, executive chairman, said: “We are pleased to deliver strong numbers for the second quarter. Time charter equivalent earnings came in at $36,200 per day, well ahead of guidance of $32-33,000 per day despite a very volatile freight market.

“We have also been able to raise very attractive long-term financing for the two last remaining dual fuel VLGC newbuildings which brings our unfunded remaining capex to below zero.

“With the worldwide energy crisis, we think the clean properties of LPG should be compelling especially when coupled with its affordable price compared to other fuels.

“Hence, we remain upbeat about the long-term prospects for LPG freight despite a rather large order book for next year.

“With a strong cash balance of close to $200 million, fully financed fleet and healthy earnings of 24 cents per share we are, therefore again declaring a dividend of 20 cents per share, which should provide our shareholders with a very attractive yield of around 16 per cent.”