Epic Gas Delivers Loss in 2017
Singapore-based gas carrier owner Epic Gas saw its loss expand to USD 30.9 million during 2017, from USD 23.3 million reported a year earlier.The company’s revenue for the year ended December 31, 2017 increased by 8 percent to USD 139.5 million from USD 128.8 million reported in the previous year.Time charter equivalent (TCE) revenues were up by a mere 1.4 percent at USD 8,210 per vessel calendar day, against USD 8,095 achieved in 2016.The company recorded a non-cash goodwill impairment of USD 12.9 million during the year ended December 31, 2017 as a result of the goodwill’s carrying value exceeding its fair value. There was no impairment indicator for any of the vessels.During the fourth quarter of 2017, the company’s loss was at USD 16.4 million, compared with USD 15.9 million seen in the same period in 2016. Revenue for the quarter increased to USD 37.3 million from USD 33 million.TCE revenue per calendar day was at USD 8,449 during the quarter, 2.7 percent higher than the USD 8,206 in the fourth quarter of 2016.In February 2018, the company entered into a Memorandum of Agreement to sell the oldest ship in its fleet, the 1998-built Epic St. John. The sale is expected to be completed in March 2018 and will not have a material impact on the company’s fiscal year 2018 earnings. In respect to contract coverage, recent fixtures have raised our 2018 cover to 53%.In January 2018, the company has granted, under its existing share option plan, up to 355,393 stock options to its executive management team at a strike price of USD 1.85. The options will vest after five years.