Avance Gas (Buy, TP: NOK77.00) - All set for market upswing
The hefty upswing in VLGC freight rates during Q2, combined with updated fuel spreads, has lifted our 2022e EBITDA by 9%, as we now forecast a sailed-in TCE of USD34.9k/day. Despite recent headwinds for freight rates, a rising US rig count should support our expectation of a considerable rise in US LPG exports in 2023; we estimate 15% growth YOY – with Avance Gas set to reap the benefits from the long-haul volumes. With a current EV/GAV of only 0.74x, we reiterate our BUY and have raised our target price to NOK77 (70).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.