Epic Gas, a leading player in the fully pressurised LPG tanker sector, has reported second quarter revenues of $45.9m, up 13 per cent year on year, with EBITDA jumping 73 per cent to $16.6m and net income swinging from a loss of $1.6m to a profit of $4.5m. The results reflect a larger fleet and also reduced operating costs, due in no small part to the inability to perform crew transfers during Covid-19 lockdown conditions.
Those benefits are likely to be short-lived, though. Epic Gas expects growth in seaborne LPG trade for the year as a whole to be around 0.8 per cent, well down on earlier expectations of a 5.0 per cent growth and also below the projected 1.5 per cent growth in the pressurised fleet.
“Operational challenges caused by Covid-19 are escalating and include an inability to fully deploy and repatriate crew, delays to spares and dry docking, and quarantine issues in some ports,” says CEO Charles Maltby. “Despite our strenuous efforts, we expect these challenges to remain with us for the rest of the year, and to lead to increasing [operating] costs. We fully endorse the work of international organisations and industry bodies to unlock the global log jam on safe crew transfers and are grateful to our seafarers for their forbearance.
“We observe the increasing industrial activity in some economies, and our core customers in the residential LPG markets are in the most resilient sector of the LPG market,” Maltby continues. “However, this is likely not sufficient to continue the positive market momentum, especially for the smaller vessels. We remain opportunistically focused on the fine tuning of our asset base and costs, with our fleet being supplemented by the addition of a modern 7,500 m3 vessel later this year.”[post_title] => Short-term boost for Epic Gas [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => short-term-boost-for-epic-gas [to_ping] => [pinged] => [post_modified] => 2020-08-13 12:48:24 [post_modified_gmt] => 2020-08-13 11:48:24 [post_content_filtered] => [post_parent] => 0 [guid] => https://hcblive.com/?p=25738 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw )