Avance Gas (Buy, TP: NOK95.00) - Continued positive outlook
While Q4 adj. EBITDA fell short of our estimate, we see continued strong underlying figures adjusted for a negative USD10.8m IFRS effect, which in turn should support Q1 earnings. In our view, the VLGC market remains robust despite seasonal headwinds, with spot rates above USD80k/day supported by overall positive fundamentals. Hence, our adj. 2023e EBITDA is a solid USD167m, 19% above consensus. We reiterate our BUY and have raised our target price to NOK95 (75).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.
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