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

Rhea-AI Summary

BW LPG has taken delivery of the vessel BW Breeze from Avance Gas, marking the 10th delivery out of 12 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 share capital of USD 559,647,298. Following this issuance, Avance Gas now holds a 10.14% stake in BW LPG with 15,791,000 shares.

BW LPG, the world's leading LPG vessel owner and operator, manages VLGCs with over 3 million CBM total carrying capacity, offering integrated services across the LPG value chain through its shipping operations, trading division, and terminal infrastructure.

Positive

• Successful delivery of 10 out of 12 VLGCs from strategic fleet acquisition
• Strengthens position as world's leading VLGC operator with over 3 million CBM capacity
• Strategic partnership with Avance Gas through 10.14% ownership stake

Negative

• Share dilution from issuance of 1,350,000 new shares

Insights

Financial Analyst

The delivery of BW Breeze marks a significant milestone in BW LPG's strategic fleet expansion, representing the 10th of 12 VLGCs acquired from Avance Gas. The transaction, partially settled through the issuance of 1,350,000 new shares, strengthens BW LPG's position as the world's leading VLGC operator. This asset-for-equity deal structure preserves cash while giving Avance Gas a 10.14% stake in BW LPG, creating strategic alignment between the companies. The expansion increases BW LPG's total carrying capacity beyond 3 million CBM, enhancing their operational scale and market presence in the global LPG transportation sector. The deal's structure and execution demonstrate strong financial management and strategic growth planning.

Market Research Analyst

This vessel delivery strengthens BW LPG's competitive position in the VLGC market at a important time. The LPG shipping sector is experiencing robust demand growth, driven by increasing global LPG trade and energy transition initiatives. The modern VLGC fleet acquisition enhances operational efficiency and positions BW LPG to capitalize on favorable market conditions. The vertical integration strategy, combining shipping operations with trading and terminal infrastructure, creates multiple revenue streams and operational synergies. The backing of BW Group, with its extensive maritime expertise and diverse fleet of over 450 vessels, provides additional strategic advantages and stability for long-term growth.

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. 10 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/20241216846958/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

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

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

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

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 latest VLGC delivery?

BW LPG operates VLGCs with a total carrying capacity of over 3 million CBM.