Avenir LNG has plenty of opportunities for its new small-scale LNG carriers, according to chairman Niels Stolt-Nielsen.
The Stolt-Nielsen chief executive told analysts on a conference call he is "very excited" about the joint venture's prospects.
"We really have turned the corner," he added.
The company, owned by Stolt-Nielsen, Golar LNG and Hoegh LNG, has two new LNG carriers already chartered out.
And charterers are queuing up for the next three of four in the series from Nantong CIMC Sinopacific & Engineering Co in China in the second half of 2021.
"Because of the timing of these ships that we have on order, we are looking at 10 chartering opportunities against three of the ships that we have opened," Stolt-Nielsen said.
"So there are a lot of opportunities that are coming our way."
Two of the remaining four vessels are of 7,500 cbm and the other two are of 20,000 cbm.
Stolt-Nielsen explained that the charters will finance the development of the LNG supply projects that the company is working on.
There are six of these integrated projects under consideration, two of which are on fast track, he added.
Not just a shipping company
"We don’t want to be a shipping company. We want to be a supplier of LNG," he said.
"We have two that are on fast-track right now where we actually will source, we will ship, we will store and we will sell LNG, which is very exciting."
He said the company is already generating Ebitda "at favourable terms".
"Avenir is expected to be cash flow positive for the first time in 2021 based on the contracts that we have already secured," he added.
The company's Higas LNG terminal on the Italian island of Sardinia will start commercial operations in May.
Stolt-Nielsen confirmed that Avenir's second vessel, the 7,500-cbm Avenir Accolade (built 2021), will transport the first cargo to the facility after bunkering the cargo from the first newbuilding, the 7,500-dwt Avenir Advantage (built 2020).
"So we are really up and running there. And we will start getting some nice revenue coming out of that business."
Financing fixed up
Avenir has a loan of $53m in place for the first two ships and a term sheet agreed for the remaining units.
It is already providing LNG via trucks to Sardinian customers, but that business will then switch over to ships.
The Avenir Accolade has started a three-year bareboat charter to LNG Power, a subsidiary of Hygo Energy Transition.
