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Avance Gas Holding's (AVACF) Management on Q4 2018 Results - Earnings Call Transcript

Feb. 08, 2019 7:39 PM ETAvance Gas Holding Ltd (AVACF)
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Avance Gas Holding Ltd (OTCPK:AVACF) Q4 2018 Earnings Conference Call February 7, 2019 9:00 AM ET

Company Participants

Peder Simonsen – Chief Financial Officer

Christian Andersen – President

Conference Call Participants

Lukas Daul – ABG

Marius Furuly – Carnegie

Wilhelm Flinder – Pareto

Peder Simonsen

Thank you for coming to our presentation, and thank you for also dialing in. We will start, as usual, by going through the financials, which I will do, and then Christian will take over and go through the fleet and market update and outlook.

If you move to Slide 4, our TCE rate per day came in at $21,300, which compares to the adjusted spot index for the quarter at $17,666. We had maintained our low A&G, as per usual, and we had an OpEx of just above $8,000, which is an increase of about $600 per day, which relates to non-recurring items related to the collision of Passat that we recorded in the first quarter, so normalized OpEx was 7,000 – just below $7,600. Our full year OpEx was just below $7,800.

We have had a strong operating cash flow development, which resulted in a positive $13 million inflow of operating cash flow compared to negative $7 million in the previous quarter. This is largely due to higher rates, but also the timing of freight payments, which mostly relates to a negative development from the previous quarter rather than this quarter where we were more normal and balanced in terms of operating cash flow.

We have maintained a strong balance sheet of around 42% equity ratio and a liquidity of – at today’s date of around $80 million. This includes a drawdown subsequent to quarter-end of $25 million on our revolving credit facilities. We announced today that we are likely to install scrubbers on the Mistral and Monsoon, which are the two

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