Avance Gas (Buy, TP: NOK50.00) - Main shareholder owns 77%
Although trading at a slightly smaller discount than its peers on an EV/GAV basis, its discount versus historical multiples remains significant. Given the recent decision to lock three of its legacy vessels into medium-term charters, a ship-by-ship sale of the company looks unlikely. However, we expect strategic alternatives to be considered, as the main shareholder has built an ownership stake of 77%. We reiterate our BUY but have reduced our target price to NOK50 (54) on currency and propane fuel spreads.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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.