Awilco LNG Reports Loss
Oslo-based LNG shipping company, Awilco LNG, reported a first quarter freight income of US$8.9 million, down from $12.1 million in the same quarter the previous year.
The pure play LNG transportation provider said that an oversupply of shipping in the carrier market, limited growth in trade and a reduced ton-mile ratio have combined to keep the LNG spot market at “unsustainable levels” for more than one year, both in terms of low utilization and depressed freight rates.
"The decrease was due to a minor reduction in rates and utilisation of WilPride, from 62 percent in the fourth quarter 2015 to 57 percent during the first quarter," Awilco LNG said in a statement.
Awilco LNG reported a net loss of $4.6m in the first quarter, in line with the net loss of $4.7m in the comparable period of 2015.
“Despite falling LNG prices, LNG imports to Japan and South Korea continued the weakening trend from 2015, and imports were down 6 percent and 5 percent respectively during the quarter,” Awilco LNG said
Awilco LNG said its fleet utilisation for the quarter ended at 78 percent, compared to 81 percent in Q4 2015.