BW LPG Limited - BW LPG Takes Delivery of Vessel BW Breeze From Avance Gas

Rhea-AI Summary

BW LPG has taken delivery of vessel BW Breeze from Avance Gas, marking the tenth delivery out of 12 modern Very Large Gas Carriers (VLGCs) acquisition announced on August 15, 2024. As part of the transaction, BW LPG issued 1,350,000 new shares to Avance Gas, bringing the total issued shares to 155,791,000 with a total share capital of USD 559,647,298. Following this issuance, Avance Gas now holds 15,791,000 shares in BW LPG, representing approximately 10.14% shareholding.

BW LPG is the world's leading owner and operator of LPG vessels, with a total carrying capacity exceeding 3 million CBM. The company offers integrated services across the LPG value chain, leveraging five decades of operating experience.

Positive

• Successful delivery of 10 out of 12 VLGCs, strengthening fleet capacity
• Maintains position as world's leading LPG vessel operator with over 3 million CBM capacity

Negative

• Share dilution of approximately 0.87% due to new share issuance

Insights

Financial Analyst

The delivery of BW Breeze marks the tenth vessel received from the strategic 12-VLGC acquisition from Avance Gas, demonstrating strong execution of BW LPG's fleet expansion strategy. The transaction structure, involving share issuance of 1.35M new shares as partial payment, helps preserve cash while giving Avance Gas a 10.14% stake in BW LPG. This strengthens BW LPG's position as the world's leading VLGC operator, expanding their fleet capacity beyond 3 million CBM. The deal enhances operational scale and market presence while maintaining financial flexibility through the equity component of the purchase consideration.

Market Research Analyst

The completion of this vessel delivery reinforces BW LPG's dominant market position in the VLGC sector. With 10 of 12 vessels now delivered, the company is efficiently executing its fleet modernization and expansion plan. The strategic importance lies in the timing, as the LPG shipping market experiences strong demand. The equity-based transaction structure creates alignment between Avance Gas and BW LPG, potentially facilitating future industry consolidation. This move strengthens BW LPG's competitive advantage in offering integrated LPG logistics solutions across the value chain.

SINGAPORE--(BUSINESS WIRE)-- With reference to the stock exchange announcement on 15 August 2024 for the acquisition of 12 modern Very Large Gas Carriers (VLGCs) from Avance Gas Holdings Ltd (“Avance Gas”, OSE ticker code: “AGAS”), BW LPG Limited (“BW LPG” or the “Company”, OSE ticker code: “BWLPG.OL”, NYSE ticker code “BWLP”) has taken delivery of vessel BW Breeze on 15 December 2024. Ten of the 12 VLGCs are now delivered.

BW LPG has today issued 1,350,000 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 155,791,000, representing a total share capital in the amount of USD 559,647,298. The new shares have been legally and validly issued and are fully paid.

Following the above issuance, Avance Gas holds 15,791,000 shares in BW LPG, representing approximately 10.14% shareholding.

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/20241215750695/en/

Kristian Sørensen, CEO, BW LPG

Samantha Xu, CFO, BW LPG

E-mail: investor.relations@bwlpg.com

Source: BW LPG Limited

FAQ

How many VLGCs has BW LPG (BWLP) received from the Avance Gas acquisition as of December 15, 2024?

BW LPG has received 10 out of the 12 Very Large Gas Carriers (VLGCs) from the Avance Gas acquisition announced on August 15, 2024.

What is BW LPG's (BWLP) total share count after the December 15, 2024 issuance?

Following the issuance of 1,350,000 new shares, BW LPG's total number of issued shares is 155,791,000.

What percentage of BW LPG (BWLP) does Avance Gas own after the December 2024 share issuance?

After the share issuance, Avance Gas holds 15,791,000 shares in BW LPG, representing approximately 10.14% shareholding.

What is BW LPG's (BWLP) total carrying capacity after the recent vessel acquisition?

BW LPG has a total carrying capacity of over 3 million CBM as the world's leading owner and operator of LPG vessels.