SINGAPORE–(BUSINESS WIRE)–As regards to the inventory change announcement on 15 August 2024 for the acquisition of 12 fashionable Very Giant Fuel Carriers (VLGCs) from Avance Fuel Holdings Ltd (Avance Fuel, OSE ticker code: AGAS), BW LPG Restricted (BW LPG or the Firm, OSE ticker code: BWLPG.OL, NYSE ticker code BWLP) has taken supply of vessel BW Avior on 31 December 2024. All 12 VLGCs at the moment are delivered by way of a easy and seamless handover course of, and the transaction has been efficiently accomplished.
BW LPG has right now issued 2,141,000 new BW LPG shares to Avance Fuel as part-consideration for the above vessel. Following the issuance of the brand new shares, the overall variety of issued shares of BW LPG is 159,282,000, representing a complete share capital within the quantity of USD 619,867,048. The brand new shares have been legally and validly issued and are absolutely paid.
Following the above issuance, Avance Fuel holds 19.282 million shares in BW LPG, representing roughly 12.11% shareholding. Every tranche of the consideration shares has a 40 calendar-day lockup interval following the supply of every vessel and its issuance to Avance Fuel.
The full consideration of the transaction was USD 1,050 million and settled by way of a money consideration of USD 585.4 million, novation of USD132 million pertaining to 2 sale-leaseback vessels, and the issuance of 19.282 million new BW LPG shares which was priced at USD 17.25 per share, representing a worth of USD 332.6 million. The liquidity upon completion of the transaction was estimated to be USD 552 million as reported in Q3 earnings launch. 14 vessels stay unencumbered and might be financed in 2025.
With the completion of the transaction, BW LPG owns and operates a complete of 53 VLGCs, of which 22 are LPG dual-fuel, solidifying BW LPG’s place because the world’s largest proprietor and operator of VLGC, and that for the dual-fuel powered VLGCs.
With the expanded fleet, BW LPG will keep its balanced chartering technique, focusing on a protection of roughly 35-40% of its fleet capability utilizing time charters and Freight Ahead Agreements.
The present spot market is buying and selling within the USD mid 40,000s per day and we keep a constructive market outlook for 2025, though fee fluctuations are anticipated. During the last six months the normalized Panama Canal transit ranges have decreased crusing distances and put stress on charges. Trying ahead, we see the market is supported by the robust underlying development in LPG manufacturing and exports from North America that are set to proceed from second half of the 12 months and underpinned by export terminal growth initiatives.
Mr. Kristian Sørensen, CEO of BW LPG, commented, I’m more than happy to announce the profitable closing of the transaction and the graduation of income technology from our extra 12 VLGCs. I thank the Avance Fuel staff for making certain an environment friendly and seamless handover course of. Now we have issued 15% extra shares to increase our owned fleet by 40% and thru our enlarged fleet we’re enhancing our industrial scale and operational leverage.
About BW LPG
BW LPG is the world’s main proprietor and operator of LPG vessels, proudly owning and working Very Giant Fuel Carriers (VLGC) with a complete carrying capability of over 3 million CBM. With 5 a long time of working expertise in LPG delivery, an in-house LPG buying and selling division and a rising presence in LPG terminal infrastructure and distribution, BW LPG gives an built-in, versatile, and dependable service to clients alongside the LPG worth chain. Extra details about BW LPG might be discovered at https://www.bwlpg.com.
BW LPG is related to BW Group, a number one international maritime firm concerned in delivery, floating infrastructure, deepwater oil & fuel manufacturing, and new sustainable applied sciences. Based in 1955 by Sir YK Pao, BW controls a fleet of over 450 vessels transporting oil, fuel and dry commodities, with its 200 LNG and LPG ships constituting the most important fuel fleet on the planet. Within the renewables area, the group has investments in photo voltaic, wind, batteries, biofuels and water therapy.
This info is topic to disclosure necessities pursuant to Part 5-12 of the Norwegian Securities Buying and selling Act.
View supply model on businesswire.com: https://www.businesswire.com/information/house/20241231507899/en/
For additional info, please contact:
Kristian Sørensen, CEO, BW LPG
Samantha Xu, CFO, BW LPG
E-mail: investor.relations@bwlpg.com
Supply: BW LPG Restricted
