Presentation

Avance was founded in 2007 (as Stolt-Nielsen Gas) to pursue growth opportunities in the LPG market. The company has since expanded and now has a fleet of 14 VLGCs and two newbuilds. Avance is listed on the Oslo Stock Exchange with a market capitalization of USD 150m and net debt of USD 360m as of Q2’20. The company is part of the Seatankers group, and the largest shareholder is Hemen Holding (23.7% stake).

The current fleet consists of ~83,000 cbm gas carriers built in three tranches (one in 2003, five in 2008-09 and eight in 2015). Avance has utilized reputable yards in Japan, China and South Korea, and has gone back to the latter for the constructing of the two 91,000 cmb newbuilds with expected delivery in 2021. The fleet primarily operates in the spot market but has recently also secured some TC-coverage at healthy levels.

While the COVID-uncertainty led Avance to suspend dividends, the rebound in rates and sale of one ship could turn this around from Q3. While 2020 will be a weaker year than 2019 the company remains profitable, and trades at a significant discount to its NAV. Having sold its oldest ship recently - and refinanced one of the modern ones with a Chinese leasing house - Avance also has ample liquidity available.