Gas shipowner Exmar has cut its losses and believes it has enough liquidity to meet its obligations and cover working capital needs for the next 12 months.
The Belgian owner’s annual results show the company nearly halved its losses for 2019, down at $8.9m from a deficit of $14.2m the previous year.
Exmar saw its turnover for the year climb to $136.7m from $87.7m in 2018.
The company, which has suffered several financial challenges, said it has “closely monitored” its liquidity position over the past months. But it said this has “evolved positively” after the Bank of China released a $40m loan from a debt service facility at the end of February for Exmar’s barge-based floating liquefaction unit Tango FLNG which is in operation in Argentina.
This cash has been partially allocated to the repayment of the bridge loans and to cover the company’s capital commitments, Exmar said.
The company also obtained $20m in pre-delivery financing to partially cover installments paid for two VLGC newbuildings, which are being constructed against five-year charters with Equinor.
Covered
Exmar said the release of the restricted loan under the Tango FLNG financing together with other anticipated cash flows from shipping and infrastructure charter fees allows the company to cover its financial commitments budgeted for the year 2020.
The Antwerp-headquartered owner operates one VLGC and is due to take delivery of the world’s first two LPG-fuelled VLGCs in 2021.
Exmar said rates for its mid-size LPG carriers improved from $500,000 to over $800,000 per month in the second half of 2019. Out of our total fleet of 22 vessels, by year-end 15 of these are trading LPG and seven are transporting ammonia.
The company has forward coverage of 81% on these ships for 2020 and 25% for 2021.
Exmar also operates a fleet of 10 pressurised LPG carriers and described the outlook for this sector as “stable”.
The company’s now lone LNG carrier, the 138,000-cbm Excalibur (built 2002), is on time-charter until 2022.
Tango FLNG has to date produced 475,000-cbm of LNG which has resulted in four shipments for its charterer YPF.
The company continues its battle with Gunvor over the trader’s 10-year charter of its 25,000-cbm floating storage and regasification unit. The charter deal on the unit is the subject of arbitration.
Exmar said COVID-19 is causing a “high level of uncertainty in the world”, adding that it had taken operational measures on-shore and on-board its vessels to ensure the safety and wellbeing of its personnel and continuity of business operations.
