Avance Gas (Hold, TP: NOK172.00) - Set for Q1 beat, high 2024e DPS
Spot rates remain above USD50k/day, supported by US inventories c14% above the 5-year average. We believe this provides a solid outlook for 2024 VLGC earnings, backed by the FFA for the rest of the year at cUSD55k/day. We forecast a 2024 DPS of cNOK45, or 28% of the current share price. However, given the recent share price rise, we find the stock fully valued at a P/NAV of 1.05x. We have downgraded to HOLD (BUY), but have raised our target price to NOK172 (168).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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