Epic Gas has agreed the sale of an 11,000-cbm LPG carrier newbuilding to an unnamed Japanese ship owning company.
The Singapore-based LPG specialist said it will take back the Epic Salina (built 2017) on a 10-year bareboat charter. Financial terms were not disclosed.
“This transaction has the advantage of increasing the company’s liquidity position whilst reducing the monthly financing cost,” Epic Gas said.
“The company has purchase options to re-acquire the vessel during the charter period, with the first such option exercisable on the third anniversary of the vessel delivery.”
News of the sale and charter-back deal came as Epic Gas reported a second quarter loss of $5.4m, a six-fold increase on a year ago.
The loss for the Charles Maltby-led shipowner came despite a $1.3m up-tick in revenue for the three months to $33.9m.
However, the company was hit by a 12.5% increase in expenses with higher vessel operating expenses, charter-in costs and depreciation.
The Epic Gas fleet earned a time charter equivalent (TCE) of $8,022 per vessel calendar day during the quarter, down 2% year-on- year.
“ The quarter ended on a positive note with signs of a recovery from low market levels reached since the end of the seasonally stronger first quarter,” Epic said.
“Smaller pressurised vessels are benefitting from a strengthening market. Larger pressurised vessels continue to show signs of over-supply and, on some routes, are competing with handysize semi-ref vessels.
“For the second quarter of 2017, 3,500-cbm, 5,000-cbm and 7,500-cbm market rates averaged $6,266, $7,958, $10,608 per day, respectively.
“Generally, a modest gain from the first quarter of 2017, but a significant 12-14% rise for the smaller vessels compared to a year ago.”
