Norwegian owner Awilco LNG has landed a new time charter contract with an undisclosed major utility for the 2013-built LNG carrier, WilForce.
The charter of the 156,000 cu m vessel is for about 18 months, commencing in direct continuation of the current charter. The contract is estimated to contribute to an EBITDA of about $73m over the charter period.
The Jon Skule Storheill-led company, which owns two LNG carriers, now has all trading days in 2023 covered and about 80% of 2024 at an average rate of around $120,000 per day.
Storheill said the fixtures for both vessels would “materially increase the company’s free cash flow generation”. As a result, Awilco LNG has revised its dividend policy and will distribute a “substantial part of annual free cash flow,” paid out quarterly. The first payment is scheduled for the first quarter of 2023 when both ships begin their contracts.
The second LNG carrier, WilPride, has been fixed to a leading European LNG importer for up to five years.