Norwegian shipowner Awilco LNG’s two vessels pulled in cash during the second quarter with both trading full-time on fixed-rate contracts.
In its second-quarter results statement, Awilco said its 160,000-cbm WilForce and WilPride (both built 2013) traded for the entire three months with no off-hire.
In August, the WilForce shifted into drydock in Singapore for its scheduled second special survey. The vessel is due to return to hire by the end of the month.
The WilPride will be off-hire in late August and during September to perform its scheduled second special survey in Spain but is due to return to trading later in September.
Awilco said the docking cost is expected to be about $12m and the ships will likely be off-hire for approximately 60 days in total, including positioning and repositioning time.
The company reported a second-quarter net income of $11m after just breaking even in the same period a year ago.
Freight income for the three months shifted higher to $22.1m from $12.3m in the second quarter of 2022.
Awilco said its time-charter equivalent earnings for the second quarter ended at $120,500 per day, up from $113,800 per day in the first three months of 2023.
First-half net profit jumped to $20.1m from $6m a year earlier with freight income for the period at $42.8m, from $26.6m in the first half of 2022.
The company is overhauling both main engines this year at a total cost of $1m.
Rate levels increasing
Awilco LNG chief executive Jon Skule Storheill attributed the company’s second-quarter profit to the fixed rate contracts for its two LNG carriers.
Storheill said: “Seasonally low spot rates throughout the second quarter are now behind us and we are seeing rate levels increasing as usual for this time of year.”
He said that despite the dry-dockings and off-hire periods the fixed-rate contracts will enable the company to continue to return value to our shareholders also in this period.”
Awilco said no significant progress had been made on the process to agree a settlement on the collision involving its vessel WilForce in 2019 but said it is still working towards a positive outcome and final settlement.