Jørgen Lian
EUR 428.34 For Business Accounts Only

Avance Gas (Buy, TP: NOK54.00) - On to the next upcycle

We are optimistic about the likelihood of a potential upswing this winter, as summer seasonality was evasive. The high energy prices should lead to strong demand, and given OPEC volumes returning to the market and potential Panama congestion from steady US exports, we find several boxes are ticked. The LPG stocks remain heavily discounted in our view. We reiterate our BUY with a new target price of NOK54 (53).

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 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
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.


Jørgen Lian

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