December 30th, 2022, – Avenir LNG Limited and its subsidiaries (NOTC: AVENIR) (“Avenir” or the “Company or Group”), supplies small-scale LNG to off-grid industry, power generation and transport fuel sectors as well as providing infrastructure to support the development of LNG as a marine fuel, today announced its unaudited financial and operating results for the third quarter ended September 30, 2022.
Peter Mackey, Chief Executive Officer of Avenir commented:
“Avenir is pleased to report operating revenues of $20.9 million and EBITDA of $5.1 million for Q3 2022. This marks the 1st full quarter in our history with all of our assets in service, a significant milestone for the company. Global gas and LNG markets remained highly volatile throughout Q3 with the European gas benchmarking once again reaching extraordinarily high price levels.
The price environment has created significant pressure on our retail LNG business but this effect is being offset by our wholesale supply business which has continued to grow. Our ability to operate in multiple market segments is testament to the flexibility of our asset base and commercial model.”
Financial Summary
| (Expressed in thousands of U.S. Dollars except for share and per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||
| Total Operating revenues | $ | 20,934 | $ | 4,250 | $ | 37,982 | $ | 10,464 | ||||||
| Operating profit/(loss) | 2,028 | 23 | (1,545) | 291 | ||||||||||
| Net loss | (3,044) | (748) | (10,280) | (1,281) | ||||||||||
| EBITDA | 5,055 | 1,292 | 6,384 | 3,238 | ||||||||||
*EBITDA is defined as earnings before interest, tax, depreciation and amortization and impairments
Q3 2022 Highlights and Recent Events:
Financials and Corporate:
- Revenues increased by $16.7 million from Q3 2021 to Q3 2022 following the commencement of operations of the Company’s LNG bunkering business in the Baltics June 2022, and delivery of Avenir Achievement to New Fortress Energy in July 2022 to commence her six-month charter, thereby contributing to the Group’s overall revenues.
- EBITDA of $5.1 million, an increase of $3.8 million from Q3 2021, is largely attributable to strategic sourcing of LNG supply and higher TTF prices during the third quarter resulting to higher profits.
- Signed a Memorandum of Understanding (“MOU”) in August 2022 with Oxelosunds Hamn AB to build an LNG and BioLNG terminal of up to 30,000 cbm in the Port of Oxelosund, Sweden.
- Signed a Joint Collaboration Agreement (“JCA”) in August 2022 with Prvo Plinarsko Društvo d.o.o. (“PPD”) which will initially focus on the sale and distribution of LNG by truck and small-scale LNG vessels from the Krk LNG terminal to off-grid industries, power generation, marine bunkering and truck refuelling stations in Northern Italy and eastern European countries.
Post balance sheet events:
- Completed the transition of the Group’s registration form in Euronext Securities Oslo. The Company’s depository receipts which were previously traded over Euronext N-OTC under the Company’s Bermuda ISIN were converted to Sponsored Norwegian Depository Receipts issued under a new Norwegian ISIN. The conversion and change resulted from the adoption of the European Union’s Central Securities Depository Regulation in Norway which ensures the Company’s compliance of the new regulation and registration regime.
- The Group successfully completed its first LNG delivery to Finland through Avenir Aspiration.
Fleet/Asset Summary:
| Assets | Year built | Terminal location | Capacity |
| HIGAS LNG Terminal | 2021 | Sardinia | 10,800 m3 |
| Vessel name | Year built | Yard | Capacity | Charterer |
| Avenir Advantage | 2020 | Keppel Singmarine | 7,500 | Petronas* |
| Avenir Accolade | 2021 | Keppel Singmarine | 7,500 | LNG Power Limited |
| Avenir Aspiration | 2021 | CIMC SOE | 7,500 | Avenir |
| Avenir Ascension | 2022 | CIMC SOE | 7,500 | Avenir |
| Avenir Achievement | 2022 | CIMC SOE | 20,000 | Shell and New Fortress Energy |
*Ship is time-chartered from Future Horizon, a 50:50 MISC-Avenir joint venture.
Avenir LNG Limited
Unaudited Consolidated Statements of Operations
(Expressed in thousands of U.S. Dollars except for share and per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| Operating revenues | $ | 20,934 | $ | 4,250 | $ | 37,982 | $ | 10,464 |
| Operating expenses | (13,901) | (1,406) | (25,521) | (2,704) | ||||
| Depreciation and amortisation | (3,027) | (1,269) | (7,929) | (2,947) | ||||
| Administrative and general expenses | (1,978) | (1,552) | (6,077) | (4,522) | ||||
| Operating profit/(loss) | 2,028 | 23 | (1,545) | 291 | ||||
| Non-operating (expenses)/income: | ||||||||
| Finance cost, net | (2,462) | (579) | (5,232) | (1,531) | ||||
| Other non-operating expense | (145) | - | (213) | - | ||||
| Foreign currency exchange (loss)/gain | (2,001) | (138) | (2,519) | 79 | ||||
| Loss before income tax | (2,580) | (694) | (9,509) | (1,161) | ||||
| Income taxes | (464) | (54) | (771) | (120) | ||||
| Net loss | $ | (3,044) | $ | (748) | $ | (10,280) | $ | (1,281) |
Avenir LNG Limited
Unaudited Condensed Consolidated Balance Sheet
(Expressed in Thousands of U.S. Dollars) | September 30, 2022 | December 31, 2021 | |||
| ASSETS | |||||
| Cash and cash equivalents | $ | 13,348 | $ | 46,934 | |
| Other current assets | 23,960 | 12,807 | |||
| Property, plant and equipment and newbuild deposits, net | 265,131 | 207,143 | |||
| Other non-current assets | 2,070 | 1,806 | |||
| Total assets | 304,509 | 268,690 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Total debt, net of deferred financing costs | 126,855 | 72,367 | |||
| Total other liabilities | 31,767 | 32,369 | |||
| Total shareholders’ equity | 145,887 | 163,954 | |||
| Total liabilities and stockholders’ equity | $ | 304,509 | $ | 268,690 | |
| SHARE COUNT DATA | |||||
| Common stock issued | 182,000,000 | 182,000,000 | |||
Other Financial Data
(Expressed in thousands of U.S. Dollars) | Three Months Ended September 30, | Nine Month Ended September 30, | ||||||
| 2022 | 2021 | 2022 | 2021 | |||||
| Net cash (used in) / from operating activities | $ | (3,757) | $ | 3,747 | $ | (7,731) | $ | 251 |
| Net cash used in investing activities | (1,186) | (7,199) | (77,010) | (59,134) | ||||
| Net cash (used in) / from financing activities | (3,383) | (1,409) | 53,476 | 57,352 | ||||
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statement. These statements may be identified by the use of words like “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “project”, “will”, “should”, “seek” and similar expressions. The forward-looking statements reflect the Company’s current views and assumptions and are subject to risks and uncertainties. The Company does not represent or warrant that the Company’s actual future results, performance or achievements will be as discussed in those statements, and assumes no obligation to, and does not intend to, update any of those forward-looking statements other than as may be required by applicable law.
Contact:
Enquiries: info@avenirlng.com
Avenir LNG Limited - + 44 (0) 207 062 6000
Peter Mackey, Chief Executive Officer
Abigail Baltar, Chief Financial Officer
About Avenir
Avenir is a fully integrated small-scale LNG supplier. Avenir supplies small-scale LNG to off-grid industry, power generation and transport fuel sectors as well as providing infrastructure to support the development of LNG as a marine fuel.
Leveraging the expertise of its shareholders, Avenir has quickly become one of the leading providers of small-scale LNG solutions; working with local partners and end users to develop the infrastructure necessary to unlock new markets for natural gas.
Avenir’s common stock is listed on the NOTC where it trades under the symbol “AVENIR”.
This information is subject of the disclosure requirements pursuant to section 5 – 12 of the Norwegian Securities Trading Act.
Visit the Company’s website at www.avenirlng.com
