Epic Gas posts profit amid weaker rates

The company’s adjusted EBITDA for the first half was recorded at $14.2m, representing a 23.5% increase from the gain of $11.5m in the same period of last year.

First half revenue also rose by by 30.8% year-on-year to $66.3m on improved utilisation and time charter equivalent earnings even as market rates continued to slide.

Epic Gas noted that during the second quarter, rates in the pressurised LPG sector continued to dropped, with the 3,500 cu m, 5,000 cu m and 7,500 cu m market rates averaged $5,836, $7,151 and $11,342 per day, respectively.

While the 3,500 cu m and 7,500 cu m segments were roughly flat compared to the first quarter, the 5,000 cu m segment softened by approximately 5% compared to the first quarter.

“Year over year, rates for smaller vessels are down approximately 20% while the 7,500 cu m segment has seen a more modest reduction of 5% compared to Q2 2014,” Epic Gas stated.

Epic Gas owns and operates a fleet of 45 fully pressurised gas carriers for the transportation of LPG and petrochemicals.