Report
Jørgen Lian
EUR 87.54 For Business Accounts Only

Avance Gas (Buy, TP: NOK45.00) - Freight markets set to rebound

The LPG market has seen a seasonal setback, with increasing US propane prices closing the arbitrage to Asia, thus limiting the attractiveness of the long-haul VLGC route. Forward prices suggest a rebound in the summer, with theoretical freight rates at USD30k/day for H2 2021e. In the meantime, LPG fundamentals have improved, with Brent prices stabilising above USD60/bbl. We have upgraded to BUY (HOLD) and lifted our target price to NOK45 (44).
Underlying
AVANCE GAS HOLDINGS LTD

Avance Gas Holding is principally engaged in the transportation of Liquefied Petroleum Gas ("LPG"). Co. operates a fleet of 14 Very Large Gas Carriers, providing transportation services to oil majors and traders of LPG on a global basis. Co. transports LPG from the Middle East and the U.S. Gulf or U.S.loan facility from BCBloan facility from BCB(excludes dividends satisfied by issue of shares) East Coast to destinations in Europe, South America and Asia.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Jørgen Lian

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