BW LPG Limited - BW LPG Takes Delivery of Vessel BW Levant from Avance Gas

Rhea-AI Summary

BW LPG has taken delivery of vessel BW Levant, marking the fifth delivery out of 12 Very Large Gas Carriers (VLGCs) being acquired from Avance Gas Holdings . As part of the transaction, BW LPG has issued 1,350,000 new shares to Avance Gas, bringing the total issued shares to 147,500,000 with a total share capital of USD 416,627,548. Following this issuance, Avance Gas now holds 7,500,000 shares in BW LPG, representing approximately 5.08% shareholding.

Positive

• Successful delivery of fifth VLGC vessel expanding fleet capacity
• Strategic acquisition strengthening market position as world's leading LPG vessel operator
• Fleet expansion increasing total carrying capacity beyond 3 million CBM

Negative

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

Insights

Financial Analyst

The delivery of BW Levant marks the fifth vessel received from the strategic 12-VLGC acquisition from Avance Gas, representing significant progress in BW LPG's fleet expansion. The transaction structure, involving 1,350,000 new shares issued as partial payment, effectively preserves cash while expanding the company's capacity. This brings Avance Gas's ownership to 5.08% of BW LPG, creating a notable strategic alignment between the two companies. The fleet expansion strengthens BW LPG's position as the world's leading VLGC operator, enhancing its operational scale and market presence. The deal's structure and execution demonstrate sound financial management, balancing growth with capital efficiency.

Market Research Analyst

This delivery reinforces BW LPG's market dominance in the VLGC sector, with their fleet capacity now exceeding 3 million CBM. The timing is strategic, as the LPG shipping market experiences strong demand fundamentals. The integration of modern VLGCs enhances the company's operational efficiency and environmental compliance. The expanded fleet provides greater flexibility in serving key trading routes and meeting customer demands. The vertical integration strategy, combining shipping with trading and terminal infrastructure, positions BW LPG advantageously in capturing value across the LPG supply 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 Levant on 29 November 2024. Five 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 147,500,000, representing a total share capital in the amount of USD 416,627,548. The new shares have been legally and validly issued and are fully paid.

Following the above issuance, Avance Gas holds 7,500,000 shares in BW LPG, representing approximately 5.08% 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/20241128335738/en/

Kristian Sørensen, CEO, BW LPG

Samantha Xu, CFO, BW LPG

E-mail: investor.relations@bwlpg.com

Source: BW LPG Limited

FAQ

How many vessels has BW LPG (BWLP) received from the Avance Gas acquisition as of November 29, 2024?

BW LPG has received 5 vessels out of the total 12 VLGCs being acquired from Avance Gas.

What is Avance Gas's ownership percentage in BW LPG (BWLP) after the November 29, 2024 share issuance?

Avance Gas holds approximately 5.08% of BW LPG's shares, representing 7,500,000 shares.

How many new shares did BW LPG (BWLP) issue for the BW Levant vessel acquisition?

BW LPG issued 1,350,000 new shares to Avance Gas as part-consideration for the BW Levant vessel.