Avance Gas is one of the world’s leading very large gas carriers (VLGC) shipowners and operators. Including the newbuildings, we operate a fleet of 14 modern VLGCs transporting LPG around the world. Avance Gas transports LPG from either Middle East Gulf or US Gulf to destinations in Europe, South America, India and Asia. Avance Gas chartering strategy is to offer our customers a combination of spot voyages and Contract of Affreightments. Avance Gas Holding Ltd is a Bermuda-based company. commercial operation is based in Oslo, Norway.
Avance Gas Holding Ltd (AVANCE) was listed on the Oslo Stock Exchange on 15 April 2014. You can read more over company's history here.
The company's main shareholders are Frontline 2012, controlled by shipping magnate John Fredriksen, who has a strong record of creating shareholder value. The company's second key shareholder is Stolt-Nielsen, the world's largest chemical shipping company, a segment that shares the same market dynamics and customers as LPG shipping. This relationship offers Avance Gas a solid operational platform with a qualified workforce and established customer relationships. It's expected, that Avance Gas to adopt an aggressive dividend policy, under which it will seek to pay out a large part of its generated net profit to shareholders.
|Source: Avance Gas Presentation|
The dividend history of Avance is short, it has so far paid dividends only twice, so it cannot under any circumstances be considered the dividend growth stock. The Board of Directors declared an interim dividend of $0.50 per share on April 29, 2014 and on June 25, 2014 $0.30 per share.
Analyst estimates for next years:
|Source: Danske Bank Markets|
After listed on the Oslo Stock Exchance, Avance's share price has grown up relativ fast.
|Source: Company Home Page|
Here are some target prices from Nordic banks for Avance:
- Danske Bank reiterates its buy recommendation with price target 210 NOK.
- Nordea reiterates its buy recommendation and raises its price target from 155 to 168 NOK.
- Swedbank believes Avance is well positioned to gain a good market for VLGCer and raises its price target from 160 to 170 NOK.
- DNB Markets believe in a record earnings in the LPG industry and raises price target on Avance Gas from 190 to 222 NOK.
Reuters mean rating for Avance Gas is 1.73
If the analyst estimates are correct for the next 4 quarter, my last purchase 200 shares of AVANCE increases €186.25 ($253.30) of expected annual dividend net income, which increases my portfolio projected annual dividend net income to €7347.38. With purchase price €18.22 (NOK154.00) plus commission my starting yield on cost is 6.84%.
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Full Disclosure: Long AVANCE