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2016-10-20

Avance Gas Holding Ltd: Avance Gas Holding Ltd Reports Unaudited Results for the Third Quarter of 2016

BERMUDA, 20 October 2016
- Avance Gas Holding Ltd (OSE: AVANCE) today reported unaudited results for
the third quarter of 2016.

Q3 2016 results reflected the impairment of ships and the continued impact of
weak freight rates:

* Avance Gas reported a net loss of $60.7 million in Q3 2016, which included
an impairment charge of $45.3 million related to the VLGC fleet and a
goodwill impairment of $1.9 million. This compared to a net loss of $14.5
million in Q2 2016.
* Excluding these charges, and impairment charges forGaea recorded in Q2, the
net loss in Q3 2016 was $13.5 million, compared with net loss of $8.4
million in Q2 2016.
* The average time charter equivalent (TCE) rate for the fleet was
$10,131/day in Q3 2016, down from $15,142/day in Q2 2016.
* TCE earnings in Q3 2016 were $12.9 million, down from $19.2 million in Q2
2016.
* Average daily operating expenses (OPEX) for Q3 2016 were $7,361/day,
compared with $8,228/day in Q2 2016.
* The Board did not declare any dividend for the quarter.

Significant recent events:

* In September, the company reached an agreement for the sale of the LNG
carrierGaea with delivery December 2016. The sale will generate net cash
proceeds of approximately $13.3 million, in line with the book value of the
ship.
* In October, subsequent to quarter end, Avance Gas reached agreement with
its bank syndicates to amend the existing terms of its two credit
facilities. The amended terms include a 50% reduction in scheduled loan
repayments from 1 January, 2017 until 30 June, 2019, totaling $55.0 million
in deferred loan repayments. A reduction in the minimum value to loan, book
equity and equity ratio covenants was also agreed. The agreement with the
banks is subject to the company raising minimum $55.0 million in new
equity.

The weak freight market continued in Q3 2016, despite reported high global
fleet utilization. Avance Gas' fleet utilization was 95% during Q3 2016. LPG
exports from the Middle East increased to 10.4 million tons in Q3 2016, from
9.7 million tons in Q2 2016 and 9.4 million tons in Q3 2015. The VLGC export
from US Gulf and US East Coast continued, however preliminary numbers for
September indicates that average monthly VLGC liftings Q3 2016 fell to 30
cargoes, with August recording 27 VLGC cargoes. This compares to an average
of 37 VLGC cargoes per month in Q1 2016 and 39 VLGC cargoes per month in Q2
2016. Long-haul US - Far East export remained strong with 6.9 million tons
for January - August 2016, representing 50% of total US VLGC exports. The
Avance Gas Spot Index (adjusted 30 days) averaged $10,223/day in Q3 2016,
compared with $17,816/day in Q2 2016.

The full report and interim financial statements are attached to this press
release.

Avance Gas will hold a conference call to discuss the company's results for
the period ended 30 September 2016 on Thursday, 20 October 2016, at 15:00
CET.

The presentation will also be available via audio webcast, which can be
accessed at Avance Gas' website www.avancegas.com. Dial in details are
+44(0)20 3427 1908 (UK and International),
+1646 254 3365 (US) or +472316 2787 (Norway). Please quote the passcode: 97 03
863. Phone lines will open 10 minutes before the conference call.

For further queries, please contact:

Christian Andersen, President
Tel: +47 22 00 48 05
Email: c.andersen@avancegas.com

Peder C. G. Simonsen, CFO
Tel: +47 22 00 48 15
Email: p.simonsen@avancegas.com

ABOUT AVANCE GASAvance Gas Holding Ltd operates in the global market for transportation of
liquefied petroleum gas (LPG). The company is one of the world's leading
owners and operators of very large gas carriers (VLGCs), operating a fleet of
14 modern ships.

For more information about Avance Gas, please visit: www.avancegas.com.

FORWARD LOOKING STATEMENTSMatters discussed in this announcement may constitute forward-looking
statements. Forward-looking statements are statements that are not historical
facts and may be identified by words such as "anticipate", "believe",
"continue", "estimate", "expect", "intends", "may", "should", "will" and
similar expressions. The forward-looking statements in this release are based
upon various assumptions, many of which are based, in turn, upon further
assumptions. Although Avance Gas believes that these assumptions were
reasonable when made, these assumptions are inherently subject to significant
known and unknown risks, uncertainties, contingencies and other important
factors which are difficult or impossible to predict and are beyond its
control. Such risks, uncertainties, contingencies and other important factors
could cause actual events to differ materially from the expectations
expressed or implied in this release by such forward-looking statements.

The information, opinions and forward-looking statements contained in this
announcement speak only as at its date, and are subject to change without
notice.

This information is subject to disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act.

Avance Gas - Q3 2016 Earnings Release
http://hugin.info/161089/R/2050009/766759.pdf
Avance Gas - Q3 2016 Interim Financial Statements
http://hugin.info/161089/R/2050009/766708.pdf

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Avance Gas Holding Ltd via Globenewswire

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