BW LPG Limited - Acquisition of 12 VLGCs from Avance Gas Successfully Completed With Delivery of Final Vessel BW Avior
BW LPG has successfully completed the acquisition of 12 modern Very Large Gas Carriers (VLGCs) from Avance Gas with the delivery of the final vessel, BW Avior, on December 31, 2024. The total transaction value was USD 1,050 million, funded through USD 585.4 million in cash, USD 132 million in sale-leaseback vessel novation, and the issuance of 19.282 million new shares valued at USD 17.25 per share.
Following the transaction, BW LPG now operates 53 VLGCs, including 22 LPG dual-fuel vessels, maintaining its position as the world's largest VLGC owner and operator. The company plans to maintain a balanced chartering strategy with 35-40% fleet capacity coverage using time charters and Freight Forward Agreements. Current spot market rates are in the USD mid-40,000s per day, with a positive outlook for 2025.
BW LPG ha completato con successo l'acquisizione di 12 moderni Very Large Gas Carriers (VLGC) da Avance Gas, con la consegna dell'ultima nave, BW Avior, prevista per il 31 dicembre 2024. Il valore totale della transazione è stato di USD 1.050 milioni, finanziato attraverso 585,4 milioni di USD in contante, 132 milioni di USD in novazione di nave tramite vendita e leasing, e l'emissione di 19,282 milioni di nuove azioni valutate a 17,25 USD per azione.
Dopo la transazione, BW LPG opera ora 53 VLGC, comprese 22 navi dual-fuel per LPG, mantenendo la sua posizione di maggiore proprietario e operatore di VLGC al mondo. L'azienda prevede di mantenere una strategia di noleggio equilibrata, con una copertura della capacità di flotta del 35-40% utilizzando contratti di noleggio a tempo e Accordi di Freight Forward. Le attuali tariffe del mercato spot si aggirano attorno ai 40.000 USD al giorno, con un outlook positivo per il 2025.
BW LPG ha completado con éxito la adquisición de 12 modernos Very Large Gas Carriers (VLGC) de Avance Gas, con la entrega del último buque, BW Avior, programada para el 31 de diciembre de 2024. El valor total de la transacción fue de USD 1.050 millones, financiado a través de 585.4 millones de USD en efectivo, 132 millones de USD en renovación de buques mediante venta y arrendamiento, y la emisión de 19.282 millones de nuevas acciones valoradas en 17.25 USD por acción.
Tras la transacción, BW LPG opera ahora 53 VLGC, incluyendo 22 buques dual-fuel de LPG, manteniendo su posición como el mayor propietario y operador de VLGC del mundo. La compañía planea mantener una estrategia de flete equilibrada, con una cobertura de capacidad de flota del 35-40% utilizando arrendamientos a tiempo y Acuerdos de Freight Forward. Las tarifas actuales del mercado spot están en alrededor de 40.000 USD por día, con una perspectiva positiva para 2025.
BW LPG는 Avance Gas로부터 총 12척의 현대적 대형 가스 운반선(VLGC)을 성공적으로 인수했으며, 마지막 선박인 BW Avior의 인도는 2024년 12월 31일로 예정되어 있습니다. 전체 거래 가치는 10억 5000만 달러였으며, 5억 8540만 달러 현금, 1억 3200만 달러의 선박 매각 리스 거래로 자금을 조달하며, 1,928만 2000주가치 17.25달러의 신규 주식을 발행했습니다.
이번 거래 이후, BW LPG는 현재 53척의 VLGC를 운영하고 있으며, 이중 22척은 LPG 이중 연료선입니다. BW LPG는 세계 최대 VLGC 소유자 및 운영자로서의 입지를 유지하고 있습니다. 회사는 시간차 및 화물 전송 계약을 통해 선대 용량의 35-40%를 커버하는 균형 잡힌 수익 전략을 유지할 계획입니다. 현재 현물 시장 요금은 하루 약 40,000달러 중반에 위치하고 있으며, 2025년을 위한 긍정적인 전망을 가지고 있습니다.
BW LPG a réussi à achever l'acquisition de 12 grands transporteurs de gaz modernes (VLGC) auprès de Avance Gas, avec la livraison du dernier navire, BW Avior, prévue pour le 31 décembre 2024. La valeur totale de la transaction s'élevait à 1,05 milliard USD, financée à travers 585,4 millions USD en espèces, 132 millions USD en renouvellement de vente-bail de navire, et l'émission de 19,282 millions de nouvelles actions évaluées à 17,25 USD par action.
Suite à cette transaction, BW LPG opère désormais 53 VLGC, dont 22 navires à double carburant LPG, consolidant ainsi sa position de plus grand propriétaire et opérateur de VLGC au monde. L'entreprise prévoit de maintenir une stratégie de charte équilibrée avec une couverture de capacité de flotte de 35 à 40 % en utilisant des charters à durée déterminée et des Contrats de Fret Forward. Les tarifs actuels du marché spot se situent autour de 40 000 USD par jour, avec des perspectives positives pour 2025.
BW LPG hat erfolgreich die Übernahme von 12 modernen Very Large Gas Carriers (VLGCs) von Avance Gas abgeschlossen, wobei das letzte Schiff, BW Avior, am 31. Dezember 2024 geliefert wird. Der Gesamtwert der Transaktion betrug 1.050 Millionen USD, finanziert durch 585,4 Millionen USD in Bar, 132 Millionen USD durch Verkaufs- und Leasingvereinbarungen sowie die Ausgabe von 19,282 Millionen neuen Aktien, die mit 17,25 USD pro Aktie bewertet sind.
Nach der Transaktion betreibt BW LPG nun 53 VLGCs, darunter 22 LPG-Dualfuel-Schiffe, und behauptet damit seine Position als größter VLGC-Besitzer und -Betreiber der Welt. Das Unternehmen plant, eine ausgewogene Charterstrategie mit einer Flottenkapazitätsabdeckung von 35-40% durch zeitlich befristete Chartern und Frachtvorlaufverträge aufrechtzuerhalten. Die aktuellen Spotmarktpreise liegen im Bereich von 40.000 USD pro Tag, mit einem positiven Ausblick für 2025.
- Acquisition expands fleet by 40% with only 15% share dilution
- Strengthens position as world's largest VLGC operator with 53 vessels
- Post-transaction liquidity remains strong at USD 552 million
- 14 vessels remain unencumbered for potential financing in 2025
- Strong market outlook supported by North American LPG production growth
- Share dilution through issuance of 19.282 million new shares
- Panama Canal transit issues affecting sailing distances and rates
- Significant cash outlay of USD 585.4 million for acquisition
Insights
The successful acquisition of 12 VLGCs from Avance Gas marks a strategic expansion that increases BW LPG's fleet by
The timing is particularly strategic given the current spot rates in the
The fleet expansion comes at a pivotal moment in the LPG shipping market. Despite temporary pressure on rates due to normalized Panama Canal transit levels, the underlying fundamentals remain robust. The planned export terminal expansion projects in North America signal strong growth potential in LPG production and exports, particularly from H2 2025. BW LPG's balanced chartering strategy, targeting
The acquisition of dual-fuel capable vessels is particularly noteworthy as it aligns with the industry's decarbonization trajectory and positions BW LPG favorably for potential carbon pricing mechanisms and stricter emissions regulations.
BW LPG has today issued 2,141,000 new BW LPG shares to Avance Gas as part-consideration for the above vessel. Following the issuance of the new shares, the total number of issued shares of BW LPG is 159,282,000, representing a total share capital in the amount of
Following the above issuance, Avance Gas holds 19.282 million shares in BW LPG, representing approximately
The total consideration of the transaction was
With the completion of the transaction, BW LPG owns and operates a total of 53 VLGCs, of which 22 are LPG dual-fuel, solidifying BW LPG’s position as the world’s largest owner and operator of VLGC, and that for the dual-fuel powered VLGCs.
With the expanded fleet, BW LPG will maintain its balanced chartering strategy, targeting a coverage of approximately 35
The current spot market is trading in the USD mid 40,000s per day and we maintain a positive market outlook for 2025, although rate fluctuations are expected. Over the last six months the normalized Panama Canal transit levels have reduced sailing distances and put pressure on rates. Looking forward, we see the market is supported by the strong underlying growth in LPG production and exports from
Mr. Kristian Sørensen, CEO of BW LPG, commented, “I am very pleased to announce the successful closing of the transaction and the commencement of revenue generation from our additional 12 VLGCs. I thank the Avance Gas team for ensuring an efficient and seamless handover process. We have issued
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, an in-house LPG trading division and a growing presence in LPG terminal infrastructure and distribution, BW LPG offers an integrated, flexible, and reliable service to customers along the LPG value chain. 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.
This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241231507899/en/
For further information, please contact:
Kristian Sørensen, CEO, BW LPG
Samantha Xu, CFO, BW LPG
E-mail: investor.relations@bwlpg.com
Source: BW LPG Limited
FAQ
What is the total value of BW LPG's acquisition of 12 VLGCs from Avance Gas?
How many shares did BW LPG (BWLP) issue to Avance Gas as part of the acquisition?
What is BW LPG's total VLGC fleet size after the acquisition?
What is BW LPG's chartering strategy following the fleet expansion?
What is the current spot market rate for VLGCs in 2024?
