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Epic Gas sees deficit widens to $5m in third quarter

Epic Gas sees deficit widens to $5m in third quarter
Singapore-based LPG specialist Epic Gas has widened its loss for the three months ended 30 September 2016 on the back of a tough quarter.

The third quarter loss was recorded at $5m compared to the deficit of $300,000 in the same period of last year.

Revenue for the quarter dropped by 3% year-on-year to $31.1m, due to lower fleet availability and operational utilisation on technical off-hire and routine dry-dockings.

“Whilst we are seeing an ongoing demand growth trend for global LPG seaborne transportation, estimated to be up 7.9% full year end, the third quarter of 2016 has proved to be a tough quarter commencing with summer seasonality alongside a lack of commodity arbitrage for LPG, but ending with a recovery in rate levels, especially for the smaller pressure vessels, as both factors unwound,” Epic Gas said.

For the third quarter, rates for vessel capacity of 3,500 cu m, 5,000 cu m and 7,500 cu m averaged $5,479, $6,959, $10,247 per day, respectively, broadly stable over the last 12 months.

As at end-September, Epic Gas completed delivery of one 7,500 cu m newbuild from a Japanese shipyard, bringing the company’s on the water fleet to 39 vessels. There is a remaining newbuilding program of four vessels – one 7,500 cu m and three 11,000 cu m – scheduled for delivery between the fourth quarter of 2016 to the first quarter of 2017.