- VLGC TCE rates averaged US$27,500 per day
- TCE income of US$111 million, EBITDA of US$75 million, a strong EBITDA margin of 68% generating a net profit after tax of US$26 million or US$0.19 per share
- The Board has declared an interim cash dividend of US$0.10 per share, amounting to US$13.9 million. The shares will be traded ex-dividend from 3 September 2019.
VLGC freight rate recovered strongly in the second quarter, mainly supported by strong U.S. LPG exports, widening geographical LPG price arbitrage between the U.S. and the Far East, and the shipping delay caused by the closure of the Houston Ship Channel in March this year.
In the second quarter, U.S. LPG production grew 10.8% year over year, and domestic LPG consumption decreased seasonally, resulting in LPG inventory levels increasing 35.5% year over year. This supported an increased geographical LPG price spread, and U.S. exports reached the highest in history, driving up the VLGC utilisation and freight rate.
Global waterborne LPG trade reached 25.8 million tons, 5.7% growth year over year. Total LPG trade via VLGC reached 19.5 million tons, 10.2% growth year over year.
“We have a positive freight outlook for 2H 2019 and 2020. In the longer term we maintain our view that sustained U.S. LPG production growth and no further newbuild orders remain key to a balanced VLGC market,” the company stated.
Sea News, September 2