BW LPG Limited – Strategic Fleet Renewal With Sale and Purchase of Very Large Gas Carriers
November 19 2024 - 2:19AM
Business Wire
BW LPG Limited (“BW LPG”, the “Company”, OSE ticker code:
“BWLPG.OL”, NYSE ticker code: “BWLP”) today announces the sale of
2007-built BW Cedar for further trading, and the exercise of a
purchase option for 2019-built BW Kizoku.
BW LPG is pleased to announce that its 52% owned subsidiary BW
LPG India has decided to sell its 2007-built vessel BW Cedar as
part of a planned fleet renewal. On a 100% basis, the sale is
priced at approximately US$65 million and is expected to generate a
net book gain of around US$33 million and about US$51 million in
net cash after repayment of its existing bank loan. The vessel will
be delivered to the new owners in Q1 2025.
In addition, BW LPG has declared a purchase option for BW
Kizoku, a 2019 Japan-built VLGC. BW Kizoku is currently on time
charter with BW LPG with a purchase option, which BW LPG exercised
for a consideration of US$69.8 million. The vessel is expected to
be delivered in January 2025 and will continue to trade in the
conventional BW LPG fleet.
Kristian Sørensen, CEO of BW LPG, says, “Through these
transactions, we are renewing our fleet by capitalizing on strong
asset prices in the second-hand market for older vessels while
acquiring a modern vessel at a competitive price translating to a
new building equivalent of US$ mid-80 million. This example of
asset play shows the optionality and ability for value creation
that our platform and business model provide.”
About BW LPG
BW LPG is the world's leading owner and operator of LPG vessels,
owning and operating Very Large Gas Carriers (VLGC) with a total
carrying capacity of over 3 million CBM. With five decades of
operating experience in LPG shipping, experienced employees and an
in-house LPG trading division, BW LPG offers an integrated,
flexible, and reliable service to customers. More information about
BW LPG can be found at https://www.bwlpg.com.
BW LPG is associated with BW Group, a leading global maritime
company involved in shipping, floating infrastructure, deepwater
oil & gas production, and new sustainable technologies. Founded
in 1955 by Sir YK Pao, BW controls a fleet of over 450 vessels
transporting oil, gas and dry commodities, with its 200 LNG and LPG
ships constituting the largest gas fleet in the world. In the
renewables space, the group has investments in solar, wind,
batteries, biofuels and water treatment.
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version on businesswire.com: https://www.businesswire.com/news/home/20241118321326/en/
For further information, please contact: Kristian Sørensen, CEO
Samantha Xu, CFO E-mail: investor.relations@bwlpg.com
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