The net loss for the year ended 31 December 2016 was reported at $13.4m before an impairment charge on sale of vessels of $9.9m, bringing the total loss to $23.3m.
The 2016 full year revenue dipped slightly to $128.8m from $130.8m in 2015 due primarily to a 6.7% year-on-year decline in rates to $8,102 per vessel calender day in 2016.
“In 2016, the pressurised LPG sector continued to experience a low freight rate environment,” Epic Gas commented.
“For the full year, rates for the 5,000 cu m and smaller vessels averaged similar levels to 2015, but dropped off by 5% for the larger sized vessels. However, the year-end has seen a general upturn in rates boosted not only by LPG, but also increasing trade in petrochemicals,” the company said.
Global seaborne LPG volumes saw continued growth last year reaching an estimated 87.2m tonnes, almost 9% higher than the 80.2m tonnes shipped in 2015.
Epic Gas said it has proactively sought to reduce its exposure to the smallest, oldest vessels in its fleet. Accordingly, the company redelivered a smaller 3,500 cu m bareboat charter in May 2016, and in October it sold a 21-year-old 5,000 cu m vessel.
“The net impact to our fleet is that it is larger and younger. Year-on-year, we have delivered a 11.5% increase in average vessel size, and a 6.6% reduction in the average age of our fleet,” it said.
As at 31 December 2016, Epic Gas had 38 vessels on the water with remaining three newbuildings to be delivered in the first quarter this year.
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