Avance Gas Holding Ltd, the Bermudian-based company engaged in the transportation of liquefied petroleum gas, has reported a net profit of $11.6 million for the third quarter of the year.

That compares to $18.4 million for the second quarter of 2022. Net profit in the second quarter excluding gain on sale was $13.9 million.

Avance said the average time charter equivalent rate on load to discharge basis was $32,954/day compared to $36,212/day for the second quarter. This was ahead of guidance of around $32,000/day.

Daily operating expenses were $8,200/day, in line with the second quarter.

The company said it continues to benefit from the interest rate hedges that it has in place with gains of $7.8 million in the third quarter bringing the total gains this year to $24.6 million.

For the fourth quarter, the company said, it is 93 per cent booked and estimates a TCE rate for the quarter between $45,000 and $50,000 per day on a load to discharge basis and between $50,000 and $55,000 per day on a discharge-to-discharge basis.

Øystein M Kalleklev, executive chairman, said: “With strong volume growth and increased ton time, we today see the strongest LPG freight market since 2015.

“Given our positive outlook, strong balance sheet with plenty of cash and no unfunded capex we are therefore once again happy to declare a dividend of $0.20 per share for our shareholders.”