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Epic Gas posts profit amid weaker rates

Singapore-based Epic Gas has managed to post a net profit in the first half ended 30 June 2015 despite reporting that rates in the pressurised LPG sector where it operates have fallen.

Lee Hong Liang, Asia Correspondent

August 11, 2015

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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.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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