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Epic Gas narrows loss to $16.3m in 2015

Epic Gas narrows loss to $16.3m in 2015
LPG carrier owner and operator Epic Gas remained in the red in 2015 but managed to narrow the losses from the previous financial year, amid an overall weak market.

Epic Gas announced a net loss of $16.3m for the year ended 31 December 2015 compared to the wider deficit of $23m in 2014. Last year’s loss was due mainly to an impairment charge of $10.4m.

Annual revenue rose by 11.3% year-on-year to $130.3m, helped by the revenue of $8,682 per vessel calendar day, up 1.9% year-on-year.

“Our increasing scale, the strength of our broad access to the market through a variety of contractual agreements, our diversified exposure to the global markets, and our increasing exposure to larger pressurised vessels has enabled us to outperform a depressed market,” Singapore-based Epic Gas stated.

“In general, our larger vessel earnings have remained firmer than those of the smaller sizes. Owing mainly to the significant growth of US LPG exports, rates in the western hemisphere continue to exceed rates in the east,” the company said.

In 2015, Epic Gas achieved vessel utilisation increase by 1.5% year-on-year to 96%, aided by a 38% decrease in idle days. The net impact means that its time charter earnings for the year have reached a new record of $116.8m, up 21% year-on-year, in a year where the weighted market has been 8% lower in average.

As at 31 December 2015, Epic Gas was 40% covered for 2016, equivalent to 5,623 vpyage days at an average daily time charter rate of $8,523, with 8,338 calendar days open. Subsequently the company has booked further business for the balance of 2016, including the fixing of one of the new 7,500 cu m vessel for two years charter. Epic Gas has a further five new 7,500 cu m ships due this year.