Avance Gas (AGAS) Pareto Securities' 31st annual Energy Conference Presentation summary

Investment highlights

• Sold entire VLGC fleet to BW LPG for $1,050m, with settlement in cash, BW LPG shares, and debt novation.

• Achieved total shareholder return close to 1,000% over five years, capitalizing on all-time high asset prices.

• NAV estimated at NOK124/share post-transaction, driven by cash, BW LPG shares, and MGC value.

• Distributed $268m dividend from H1-24, with further cash from VLGC sale to be distributed.

• Four MGCs on order, each increasing in value by ~$10m since order, in a strong market with modest orderbook.

Financial performance and capital structure

• Q2 2024 TCE earnings reached $50,100/day; H1 2024 TCE at $55,700/day.

• Q2 2024 net profit was $61m (EPS $0.79); H1 2024 net profit $207m (EPS $2.70), best half-year results ever.

• Recognized $36m gain on sale in Q2, totaling $121m for H1 2024.

• Pro-forma cash post-transaction and Q2 dividends estimated at $421–451m.

• Strong cash position supported by transaction proceeds, trading profit, and hedging gains.

Post-transaction company profile

• Now a pure-play MGC owner with four high-spec dual-fuel newbuildings for delivery Q4 2025–Q4 2026.

• Second largest shareholder in BW LPG, holding ~12.8% valued at ~$333m.

• Pro-forma NAV estimated at $11.5/share or NOK124/share.

• Cash holding of $165m at Q2-end, with $217m additional proceeds from VLGC sale.

• MGC investment well in-the-money, with attractive entry point and early delivery slots.