Epic Gas continues with losses in weak gas carrier marketEpic Gas continues with losses in weak gas carrier market

Net loss for the gas carrier owner was recorded at $2.4m during the quarter, similar to the loss of $2.5m in the same period of last year.

Revenue jumped by 34% year-on-year to $33.4m, supported by improved vessel utilisation and larger average vessel sizes partially offsetting the weak rate environment.

“Whilst Epic Gas saw earnings marginally increase during the first quarter, the pressurised LPG sector has seen a significant reduction in average rates in the past 12 months,” the company said.

The market for larger pressurised vessels including 7,500 cu m vessels has declined only slightly during the period, while smaller vessels, especially in the East, have seen a fall of over 22% year-on-year.

For the first quarter this year, market rates for vessels of 3,500 cu m, 5,000 cu m and 7,500 cu m have averaged $5,863, $7,534, and $11,178 per day, respectively.

“While market rates have not improved, time charter activity has picked up as customers are looking to cover their freight requirements,” Epic Gas said. During the financial reporting period, the company managed to seal its first COA providing a leading petrochemical trader a fixed cost of freight solution for cargoes originating in the Indian Ocean and ending in Northeast Asia.

“Despite the increased activity, the market remains split with vessels more than 15 years of age and or of a smaller size, struggling to secure employment,” the company said.

For its newbuilding programme, Epic Gas has $28.8m in deposits made toward the construction of seven owned vessels, leaving $132.3m in remaining payments. It is also waiting to take delivery of one more vessel under a long term bareboat charter.